Todor Pichurov

Medbox, Inc. (OTCMKTS:MDBX) Rises Post Annual Report

by Todor Pichurov March 30, 2015

Friday's session brought a solid green move for Medbox, Inc. (OTCMKTS:MDBX). The company's share price climbed some 17% to close at $1.65 per share. The move happened in the wake of MDBX filing its annual report for 2014.

The company put up its due 10-K on Thursday, after the markets closed. The filing contained little that could have got investors so excited. Here is the brief rundown of the figures that appeared on the company's balance sheet:

  • $101 thousand in cash
  • $11.5 million in current liabilities
  • $629 thousand in annual net revenue
  • $16.5 million in annual net loss

The company's revenues have gone down 69% year over year, even when the new result is compared against the restated, far lower $2 million in annual 2013 revenue. Originally, the company reported $5.2 million in revenues for 2013. The newly furnished restated reports, provided due to what are now obvious and rather significant errors in revenue recognition, brought this figure down over 50% to just $2 million.

Net loss for 2014 is also staggering, at over $16 million. General and administrative expenses have run rampant, growing nearly 280%. The filing explains this with costs associated with the company's new stock compensation plan, amounting to $4.4 million. Additionally, there was $1 million in legal costs due to the SEC and DoJ investigation in the matter with the problematic reports that were recently restated.

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