TruTrace Technologies Inc (CVE:TTT) (OTCMKTS:BKKSF) reported an increase in revenue for its fiscal second quarter of 2020.
In a statement released Friday after the bell, the company said it generated revenue of $303,520 in 2Q, compared to nothing in the prior-year quarter and $48,000 in the first quarter.
Revenue growth for the quarter that ended October 31 was primarily driven by implementation fees associated with the use of TruTrace technology.
READ: TruTrace Technologies clocks first revenue after Shoppers Drug Mart pilot program in fiscal 1Q
"In the second quarter, we continued to execute on our most important priorities, highlighted by the ongoing implementation of the Shoppers Drug Mart Pilot Program and strategic alliance with Deloitte Canada, as well as the implementation of our platform with several licensed producers in the tracking of their intellectual property in their distribution of medical cannabis," said CEO Robert Galarza. "We are very excited to become the first traceability platform in this sector to achieve these milestones with such strong partners."
TruTrace also said it saw a net loss of $914,652 in the 2Q, compared to a loss of $2.3 million in the year-ago quarter.
The company reported significantly reduced corporate development, general & administrative, salaries and benefits, and stock-based compensation expense due to efficiency initiatives and the impact of listing expenses related to its reverse take-over in the prior-year period.
TruTrace completed Phases 1 and 2 of the Shoppers Drug Mart medical cannabis verification pilot program, which is intended to increase transparency, interoperability, and product identification within the medical cannabis industry. The Pilot Program uses TruTrace's StrainSecure technology as a central hub for identity management, asset tracking, validation, and product authentication. StrainSecure will also serve as a master registry for standardized testing, product verification, and quality assurance.
Licensed producers participating in the Pilot Program include: Aphria Inc (TSE:APHA), Aurora Cannabis Inc (TSE:ACB), The Flowr Corporation (CVE:FLWR) (OTCMKTS:FLWPF), Tilray Canada Ltd (NASDAQ:TLRY), United Greeneries (a subsidiary of Harvest One Cannabis Inc (CVE:HVT) (OTCMKTS:HRVOF), WeedMD Inc (CVE:WMD) (OCTMKTS:WDDMF) and Zenabis Global Inc (TSE:ZENA).
The company also added several partners to the StrainSecure ecosystem to contribute to the successful implementation of the platform, including cannabis testing lab Anandia, agricultural technology company Segra International Corp, testing and analytical services company Sigma Analytical, and clinical research and telemedicine platform AdvancedCare.
Deloitte and TruTrace announced a strategic alliance to deliver blockchain product-traceability solutions to the cannabis industry. The company expects the strategic alliance to lead to additional business development opportunities.
During the second quarter, the company completed several non-brokered private placement financings of common shares and convertibles debentures, raising total net proceeds of approximately $967,000.
"The Shoppers Pilot Program has provided a unique opportunity to validate the effectiveness of our StrainSecure platform, with the support of cornerstone clients and partners," said CEO Galarza. "Demonstrating the functionality and benefits of a new technology under real-world conditions is a vital step on the way to more widespread adoption. We expect to continue to execute on key deliverables in the coming months as the Pilot Program progresses towards full implementation."
With the launch of its StrainSecure platform, TruTrace offers an easily integrated blockchain solution that tracks cannabis from genome to sale through the supply chain and provides actionable quality assurance and real-time testing data to the cannabis industry.
The Vancouver company's goal is to build a framework for licensed producers as well as micro cultivators that are entering the newly legalized ecosystem, helping them to easily and inexpensively move their products through testing procedures.
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