ORCHID VENTURES, INC. (CSE: ORCD OTC: ORVRF) (the 'Company' or 'Orchid') is pleased to announce its audited annual financial results for thirteen-month period ended June 30, 2020 ('Fiscal 2020').

All amounts, unless specified otherwise, are expressed in United States Dollars.

Results Of Operations

During the thirteen months ended June 30, 2020 ('2020'), the Company reported a net loss of $7,051,457 against revenues of $1,568,276 compared to a net loss of $6,692,581 against revenues of $5,514,593 for the year ended May 31, 2019 ('2019'). Sales decreased from the comparative period while the company was focused on a fundamental shift in their business strategy and operations. Sales also decreased due to the general health backlash related to vape products in the industry. As the causal factors were identified and sourced to the illegal cannabis market, legal vape sales improved as a consistent focus on education and providing high quality, safe products reinforced consumer confidence. The Company would like to reiterate that all Orchid products are sent to third-party independent laboratories for emissions testing. To date, there have been no reported incidents of illness or health related issues with Orchid's products and Orchid continues to work with state regulators to ensure that all testing and mandated quality and safety standards are met. Orchid has also been working with state regulators to inform and educate as to the materials and ingredients that are used in Orchid products and to ensure that Orchid remains at the forefront in terms of quality, safety and efficacy. During Q2 2020, the Company terminated its distribution agreement with Cypress Manufacturing Company, a California corporation doing business as Indus Distribution ('Indus'), and entered into a distribution agreement with Nabione, Inc., doing business as Nabis ('Nabis'), a distributor in the business of providing warehousing, storage space, material handling, and transportation services. Total operational expenses were $5,465,417 during 2020 compared to $6,875,827 for the comparative year. Operational expenses for 2020 include non-cash items such as bad debts expense of $493,091 (2019 - $42,610), depreciation and amortization of $267,157 (2019 - $13,601) and share-based payments of $1,105,474 (2019 - $2,171,891). The primary reason for the decrease in operational expenses this year compared to 2019 is due to a stronger focus on cash and expense management which resulted in decreases pertaining to legal and professional fees, sales, marketing and advertising expenses, and management fees. Other factors reported in the net loss for YTD 2020 include a non-cash impairment of $905,881 (Q2 2019 - $Nil) relating to the terminated GreenBloom acquisition.

ABOUT ORCHID ESSENTIALS

Orchid Essentials is a California-based cannabis innovation company that has developed a mass-market brand and loyal consumer following with its premium cannabis products and unique vape hardware delivery systems. Orchid also owns 100% of PurTec Delivery Systems, a company that produces, markets and sells clean vaporizer hardware that has been emissions tested against the most stringent standards in the world set forth by the EU and has unrivaled product quality and value pricing. Orchid's management brings significant branding, product development and distribution experience with a proven track record of scaling businesses and building sustainable revenue growth through value-generating partnerships and innovation that creates enterprise value. Learn more at https://orchidessentials.com/

Contact:

Tel: 949-357-5818

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