Growlife Inc (OTCMKTS:PHOT) has lost some upward movement in price to start the week. PHOT saw nice rallies last week, but then dumped about 17% Monday. It seems traders are reading a little more deeply into those financials from last week.
Last week, PHOT gained 24.4% as investors respond to the company’s third quarter financial results. Gross revenue in the quarter was up 231% compared to the same period last year as Gross Margin increased 18%.
Growlife Inc (OTCMKTS:PHOT) provides goods, including media (farming soil), hydroponics equipment, organic plant nutrients, and various other products to specialty grow operations across the United States. The Company primarily sells through its subsidiary, GrowLife Hydroponics, Inc. In addition to the promotion and sales of GrowLife owned brands, GrowLife distributes and sells over 3,000 products through its e-commerce distribution channel, Greners.com, and through its regional retail storefronts. The Company serves a community of commercial and urban cultivators growing specialty crops, including organics, greens, and plant-based medicines. Indoor growing techniques are used to cultivate plant-based medicines. The Company holds rights in approximately 30 Website addresses related to its business, such as www.growlifeinc.com, www.growlifeeco.com, www.stealthgrow.com and www.greners.com.
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“Results are what matter and the GrowLife team continues to perform in a unified manner where it is firing on all cylinders with sales, finance, and operations aligned,” said GrowLife CEO Marco Hegyi. “With the recent additions of world-class talent, resources, and further regulatory approval, I expect GrowLife to continue to lead in growth and capitalize on the demand from the indoor cultivation industry. Our shareholder’s recent votes show great support in the Company’s future.”
General and Administrative expenses in the quarter totaled $589,000 compared to $438,000 for Q3 2016. Net loss for the three months totaled (-$756,000) compared to $474,000 reported last year. The net loss included non-cash expense of $407,000.
The stock is currently trading in an uptrend despite the wider than expected Q3 net loss. However, PHOT is still a shadow of itself in the market taking into consideration January trading levels. The stock has shed more than 50% in market value since the start of the year.
In other news, PHOT has completed the acquisition of 51% of assets from a tile flooring business that is aligned with its core business competencies. The assets that the company has acquired include, intellectual property rights, FreeFit patents, copyrights and trademarks associated with the technology.
“This asset purchase provides us with new ways to engage our customers with state-of-the-art environmentally friendly building materials that we believe can help indoor cultivators lower the production cost of growing crops indoors,” said Mr. CEO Hegyi.
Simultaneous to the acquisitions, David Reichwein, inventor of a patent pending luminous tile technology, is to join PHOT as the Vice President of Research and Development.
Growlife Inc (OTCMKTS: PHOT) is holding a market cap of $20.32M and has 2.16B shares out. PHOT is in a wait-and-see place right now. They continue to dump value and like other stocks in the sector have not fully recovered after the election cycle. For more news on PHOT and other fast-moving penny stocks, please subscribe to OracleDispatch.com.
Disclosure: we hold no position in $PHOT, either long or short, and we have not been compensated for this article.