GrowLife Reports "An Up Quarter," Posts $1M In Backlog

GrowLife Inc. (OTCQB:PHOT) saw its revenue increase by 11% to $1.8 million during the second quarter.

According to a Monday’s update, the Kirkland, Washington-based cultivator has a gross margin of 39.3%, due to the previously applied cost reduction measures.

Moreover, GrowLife also posted a sales backlog of $1 million, scheduled to ship in the quarter to come.

“While others are pulling back due to the pandemic and other conditions, we are so happy to announce an up quarter,” said the company’s CEO Marco Hegyi.

GrowLife continued to operate throughout the current health crisis as an “essential service,” supplying hemp farmers and cannabis operators “during the pivotal spring season,” explained Hegyi.

“The fact that we are growing during these unprecedented times, speaks volumes to how we are positioned as a company,” added Hegyi.

Other quarterly highlights include:

• Gross profit increased during the quarter to $0.7 million
• Operating expenses declined by $1.7 million year-over-year
• Net loss amounted to $610,523 versus a net loss of $1,376,996 in the corresponding quarter of 2019
• Cash flow used in operations decreased to $905,804 over the year

Meantime, GrowLife made some leadership changes last month, as it appointed Lewis Swarts and Daniel Harder to its advisory board.

The board is focused on developing the company’s CBD-rich hemp cloning business.

Courtesy photo