Denver, CO, Aug. 08, 2018 (GLOBE NEWSWIRE) -- 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 www.medicinemantechnologies.com; www.threealight.com

MEDICINE MAN TECHNOLOGIES, INC.BALANCE SHEETExpressed in U.S. Dollars

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

MEDICINE MAN TECHNOLOGIES, INC.STATEMENT OF COMPREHENSIVE (LOSS) AND INCOMEFor the Three and Six Months Ended June 30, 2018 and 2017Expressed in U.S. Dollars

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

Contact Information: KCSA Strategic Communications  MDCL@kcsa.com