American Cannabis Company Reports Significant Revenue Decline and Increased Net Loss for First Half of 2024

American Cannabis Company, Inc. reported a significant decline in financial performance for the six months ended June 30, 2024, with total revenues of $687,599, down from $1,565,115 in the same period of the previous year. The decrease of $877,516 was primarily attributed to reduced revenues from consulting services and product sales, which fell by $438,542 and $633,370, respectively. In contrast, cannabis product revenues increased by $194,396, reflecting a growing retail market. The company's gross profit turned into a loss of $197,409, compared to a profit of $642,896 in the prior year, largely due to increased costs associated with cannabis products and inventory adjustments.

The company's total costs of revenues decreased slightly to $885,008 from $922,219, driven by improved operational efficiencies and reduced costs in equipment sales. Operating expenses also saw a significant reduction, totaling $488,128 compared to $1,216,005 in the previous year, mainly due to lower general and administrative expenses and decreased marketing costs. Despite these reductions, the company reported a net loss of $768,722 for the first half of 2024, compared to a loss of $456,156 in the same period of 2023.

In terms of strategic developments, American Cannabis Company has been restructuring its operations following its acquisition of Naturaleaf in 2021. The company is currently negotiating a significant transaction with KTEC, LLC, which involves the sale of 302,900,458 shares of common stock for $310,000. This agreement requires the allocation of at least $135,000 of the proceeds to settle outstanding obligations related to the Naturaleaf acquisition. The transaction is contingent upon the successful filing of delinquent financial reports and regulatory approvals.

Operationally, the company has faced challenges, including market saturation and increased competition, which have impacted customer demand for consulting services. As of June 30, 2024, American Cannabis Company had 185,800,915 shares of common stock outstanding, reflecting an increase from the previous period. The company continues to explore financing options to support its operations and growth, with management expressing confidence that the KTEC transaction will provide necessary liquidity.

Looking ahead, American Cannabis Company acknowledges the ongoing challenges in the cannabis market, including regulatory uncertainties and competition. The company is focused on improving its financial position and operational efficiency while navigating the complexities of the cannabis industry. Management remains optimistic about future growth opportunities, particularly in the retail cannabis market, and is committed to addressing its financial obligations and enhancing shareholder value.