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Medicine Man Technologies Inc. (OTCQB:MDCL) (“Medicine Man Technologies” or “Company”), one of the United States’ leading cannabis branding and consulting companies today provided financial results for the quarter ended June 30, 2018.

During the three months ending June 30, 2018, the Company generated revenues of $1,417,687, an increase of 535,334 or approximately 61%, compared to revenues of $882,353 in the three months ending June 30, 2017. Total revenues include Cultivation Max revenue of $723,698, consulting and licensing fees of $287,062, product sales net revenue of $232,565, related party product sales net revenue of $148,135, and reimbursements of $20,099. The increase in revenues is primarily attributable to revenue related to Cultivation Max, which began support for several operators during mid to late fiscal 2017.

The Company reported cost of goods and services totaling $380,396 during the three months ended June 30, 2018. This is compared to $272,001 during the same time period in 2017. The increase is primarily due to an increase in selling.

Operating expenses during the three months ended June 30, 2018, dropped 83% to $884,119, compared to $5,172,869 during the same time period in 2017. Operating expenses consisted of salaries expense of $454,165, professional services fees of $250,076, general and administrative expense of $73,846, officers and directors bonuses of $51,053, advertising expense of $28,395 and conference and travel related expenses of $26,584. The change is primarily attributable to a $4,480,318 charge incurred during the three months ended June 30, 2017 related to stock based compensation expenses.

The Company reported net income of $181,692 during the three months ending June 30, 2018, or approximately $0.01 per common share, compared to a net loss of $4,494,435, or approximately -$0.44 per common share, during the same time period in 2017.

“We continue to demonstrate strong revenue growth as we conclude our second consecutive profitable quarter,” Brett Roper, Medicine Man Technologies’ co-founder, and CEO stated. “After considerable preparation, we are pleased to be applying to move the Company to QX status on the OTC markets, which we expect to finalize during the third quarter of 2018. This uplisting will, among other benefits, allow us to take full advantage of regulations in Colorado that allow fully reporting public companies to hold ownership of plant touching licenses in the state.”

Joshua Haupt, Medicine Man Technologies’ Chief Operating Officer stated, “We are pleased with the results, including revenue related to the successful deployment of our Cultivation MAX programs. “As we look to the second half of 2018, we expect to continue to generate meaningful revenue growth. Subsequent to the quarter end, the Company entered into a Master License Agreement with Canada House Wellness Group, for deployment of its Success Nutrients line as well as intellectual property in Canada. The initial payments for licensing totaled $4.65M (CAD) and is being paid to the Company in the form of cash ($1.15M) and Stock ($3.5M) in Canada House Wellness. We expect that his new partnership will generate significant revenues, commencing in Q3 2018. Furthermore, we have also entered a binding term sheet for the acquisition of hydroponics store in Denver, which offers a range of cultivation equipment on a competitive price basis.”

About Medicine Man Technologies, Inc.

Established in March 2014, the Company secured its first client/licensee in April 2014. To date, the Company has provided guidance for several clients that have successfully secured licenses to operate cannabis businesses within their state. The Company currently has or has had active clients in California, Iowa, Oregon, Colorado, Nevada, Illinois, Michigan, Arkansas, Pennsylvania, Florida, Ohio, Maryland, New York, Massachusetts, Puerto Rico, Canada, Australia, Germany, and South Africa. We continue to focus on working with clients to 1) utilize its experience, technology, and training to help secure a license in states with newly emerging regulations, 2) deploy the Company’s highly effective variable capacity constant harvest cultivation practices through its deployment of Cultivation MAX, and eliminate the liability of single grower dependence, 3) avoid the costly mistakes generally made in start-up, 4) stay engaged with an ever expanding team of licensees and partners, all focused on quality and safety that will “share” the ever-improving experience and knowledge of the network, and 5) continuing the expansion of our Brands Warehouse concept through entry into industry based cooperative agreements and pursuing other acquisitions as they prove suitable to our overall business development strategy.

Safe Harbor Statement

This press release may contain forward-looking statements which are based on current expectations, forecasts, and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially from those anticipated or expected, including statements related to the amount and timing of expected revenues and any payment of dividends on our common and preferred stock, statements related to our financial performance, expected income, distributions, and future growth for upcoming quarterly and annual periods. These risks and uncertainties are further defined in filings and reports by the Company with the U.S. Securities and Exchange Commission (SEC). Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors detailed from time to time in our filings with the Securities and Exchange Commission. Among other matters, the Medicine Man Technologies may not be able to sustain growth or achieve profitability based on many factors including, but not limited to, general stock market conditions. Reference is hereby made to cautionary statements set forth in the Company’s most recent SEC filings. We have incurred and will continue to incur significant expenses in the expansion of our existing and new service lines, noting there is no assurance that we will generate enough revenues to offset those costs in both the near and long-term. Additional service offerings may expose us to additional legal and regulatory costs and unknown exposure(s) based upon the various geopolitical locations where we will be providing services, the impact of which cannot be predicted at this time.

To be added to the Medicine Man email distribution list, please email, MDCL@kcsa.com with MDCL in the subject line.

For more information, visit us at <b>www.medicinemantechnologies.com</b>;<b>www.threealight.com</b>

<b>MEDICINE MAN TECHNOLOGIES, INC.</b>

<b>BALANCE SHEET</b>

Expressed in U.S. Dollars

June 30, 2018        December 31, 2017AssetsCurrent assetsCash and cash equivalents                                                                                                                                       $      849,223       $        748,715Accounts receivable                                                                                                                                                    1,275,125              461,343Accounts receivable - related party                                                                                                                                    62,160                 25,719Short-term note receivable, net of allowance                                                                                                                           195,988                191,111Inventory                                                                                                                                                              67,567                 106,091Other assets                                                                                                                                                           60,320                 42,819Total current assets                                                                                                                                                   2,510,383              1,575,798Non-current assetsFixed assets, net accumulated depreciation of $113,413 and $82,038                                                                                                     102,485                150,047Intangible assets, net accumulated amortization of $10,646 and $7,388                                                                                                  84,454                 87,712Goodwill                                                                                                                                                               9,304,306              9,304,306Other non-current assets                                                                                                                                               22,000                 14,500Total non-current assets                                                                                                                                               9,513,245              9,556,565Total assets                                                                                                                                                    $      12,023,628    $        11,132,363Liabilities and Stockholders' EquityCurrent liabilitiesAccounts payable                                                                                                                                                $      19,733        $        123,251Accounts payable - related party                                                                                                                                       -                      155,177Accrued expenses                                                                                                                                                       57,619                 -Other liabilities                                                                                                                                                      -                      56,495Total current liabilities                                                                                                                                              77,352                 334,923Long-term liabilitiesNote payable - related party                                                                                                                                           -                      58,280Total long-term liabilities                                                                                                                                            -                      58,280Total liabilities                                                                                                                                                      77,352                 393,203Commitments and contingencies, note 13Shareholders' equityCommon stock $0.001 par value. 90,000,000 authorized, 25,019,981 and 22,991,137 were issued and outstanding June 30, 2018 and December 31, 2017, respectively.         25,141                 23,113Additional paid-in capital                                                                                                                                             16,449,299             13,997,441Additional paid-in capital - Warrants                                                                                                                                  2,054,369              3,508,256Accumulated other comprehensive (loss)                                                                                                                                 -                      -Retained earnings                                                                                                                                                      (6,582,533 )           (6,789,650 )Total shareholders' equity (deficit)                                                                                                                                   11,946,276             10,739,160Total liabilities and stockholders' equity                                                                                                                      $      12,023,628    $        11,132,363

<b>MEDICINE MAN TECHNOLOGIES, INC.</b>

<b>STATEMENT OF COMPREHENSIVE (LOSS) AND INCOME</b>

For the Three and Six Months Ended June 30, 2018 and 2017

Expressed in U.S. Dollars

Three Months Ended June 30,              Six Months Ended June 30,                                                                   2018                  2017               2018                  2017Operating revenuesProduct sales, net                                                 $    232,565          $    229,214       $    558,296          $    229,214Product sales - related party, net                                      148,135               122,944            281,738               122,944Cultivation Max                                                         723,698               -                  916,244               -Licensing fees                                                          96,732                301,313            425,714               501,313Consulting fees                                                         190,330               226,582            386,330               565,796Reimbursements                                                          20,099                -                  47,408                -Services - related party                                                4,479                 -                  8,958                 -Seminars and others                                                     1,649                 2,300              4,036                 4,222Total revenue                                                           1,417,687             882,353            2,628,724             1,423,489Cost of goods and servicesCost of goods and services                                         $    380,396          $    245,965       $    753,914          $    411,124Cost of goods and services - related party                              -                     26,036             -                     26,036Total cost of goods and services                                        380,396               272,001            753,914               437,160Gross profit                                                       $    1,037,291        $    610,352       $    1,874,810        $    986,329Operating expensesGeneral and administrative                                         $    73,846           $    331,425       $    247,350          $    435,296Professional services                                                   250,076               141,953            480,591               233,483Acquisition costs                                                       -                     98,701             -                     98,701Stock based compensation expenses                                       -                     4,480,318          -                     4,480,318Officers and directors bonuses                                          51,053                -                  51,053Advertising                                                             28,395                56,025             77,540                89,509Conference and travel expenses                                          26,584                -                  125,857               -Salaries                                                                454,165               64,447             721,220               64,447Total operating expenses                                           $    884,119          $    5,172,869     $    1,703,611        $    5,401,754Income from operations                                             $    153,172          $    (4,562,517 )  $    171,199          $    (4,415,425 )Other income/expenseInterest income                                                    $    (32,836    )     $    (7,480     )  $    (40,233    )     $    (14,877    )Net realized gain on available for sale securities                      -                     (82,373    )       -                     (131,382   )Interest expense related to convertible notes                           -                     21,990             -                     44,329Loss on management fee contracts                                        -                     -                  -                     70,257Net gain on derivative                                                  -                     -                  -                     (262       )Other (income) expense                                                  4,316                 (219       )       4,316                 (219       )Total other expense                                                     (28,520    )          (68,082    )       (35,917    )          (32,154    )Net (loss) income                                                  $    181,692          $    (4,494,435 )  $    207,116          $    (4,383,271 )Earnings per share attributable to common shareholders:Basic and diluted (loss)/earnings per share                        $    0.01             $    (0.44      )  $    0.01             $    (0.43      )Weighted average number of shares outstanding - basic and diluted       25,019,981            10,226,086         25,019,981            10,226,086Other comprehensive (loss), net of taxNet unrealized (loss) on available for sale securities                  -                     (9,248     )       -                     (10,551    )Total other comprehensive income (loss), net of tax                     -                     (9,248     )       -                     (10,551    )Comprehensive (loss) gain                                          $    181,692          $    (4,503,683 )  $    207,116          $    (4,393,822 )
Contact Information:KCSA Strategic CommunicationsMDCL@kcsa.com

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