Exhibit 99.1


Akerna Corp. Reports Third Quarter Fiscal Year 2020 Results


DENVER, May 12, 2020 (GLOBE NEWSWIRE) -- Akerna Corp. (Nasdaq: KERN, KERNW), a leading provider of enterprise software solutions for the cannabis industry, today announced financial results for the quarter ended March 31, 2020.


“Despite challenges from COVID-19, Akerna executed on key business drivers in the third quarter and made meaningful progress on key initiatives enabling our ability to continue to scale and grow our business,” said Jessica Billingsley, president, and CEO, Akerna. “Cannabis businesses are essential. Now, more than ever, our clients need us, and we are well-positioned to meet those needs. In the third quarter, we increased our market share, continued to build and enhance our technology solutions, and made acquisitions that further our leadership position and create significant value.”


Third Quarter Fiscal 2020 Financial Results:


·Revenue: Total revenue for the quarter was $3.1 million, a 32% increase compared to $2.3 million for the quarter ended March 31, 2019. Total software revenue for the quarter was $2.3 million, a 16% increase compared to $2.0 million for the quarter ended March 31, 2019. Consulting revenue increased 219% to $0.7 million for the quarter compared to $0.2 million for the quarter ended March 31, 2019.


·Gross Profit: Gross profit for the quarter was $1.6 million, an increase of $0.4 million, or 42%, as compared to gross profit for the quarter ended March 31, 2019, of $1.2 million. Gross profit margin for the quarter increased to 54%, up from gross profit margin of 50% for the quarter ended March 31, 2019.


·Operating Expenses: Operating expense for the quarter was $7.1 million, an increase of $3.4 million, or 95% compared to operating expense for the quarter ended March 31, 2019, of $3.7 million. The increase compared to prior year includes $1.1 million in non-recurring acquisition-related costs, $0.5 million in operating expenses related to solo sciences, $0.3 million in non-cash stock-based compensation expense and $0.3 million as a result of becoming a publicly-traded company.


·Net Loss: We generated a net loss attributable to Akerna common shareholders of $5.3 million for the quarter compared to a loss of approximately $2.5 million for the quarter ended March 31, 2019.


·Liquidity: As of March 31, 2020, Akerna had approximately $14.3 million in cash.


Third Quarter Fiscal 2020 Key Business Highlights:


·Acquired a majority interest in solo sciences inc., a recognized leader of patented anti-counterfeiting and consumer engagement technologies.


·Executed strategic data agreement with Pax Labs to provide real-time consumer analytics.


·Increased ARR by $1 million through new and expansion sales.


·Implemented a reorganization, which we expect to reduce operating expenses between $2 million and $3 million annually.
·Expanded our robust API infrastructure, which now includes over 50 partners from sectors including financial/ERP, e-commerce, and data analytics.


·After the quarter end, completed the acquisition of Trellis Solutions, a lightweight, down market compliance solution with an impressive list of well-known California operators.


“We expect technology automation in the cannabis economy will accelerate as the industry grows and regulatory requirements expand to provide for public, product, and consumer safety,” said John Fowle, CFO, Akerna. “We continue the strategic investment in our team and infrastructure so we are well-positioned for scalable, profitable growth and can meet the needs of our global client base.”



Conference Call Details


The Company will host a conference call on Wednesday, May 13, 2020, at 8:30 am ET / 5:30 am PT. To participate in the conference call, please dial 1-877-407-3982 (domestic) or 1-201-493-6780 (international). The passcode is 13702780. Please dial into the call at least five minutes before the scheduled start time.


The conference call will also be available via a live listen-only webcast and can be accessed through the Investor Relations section of Akerna’s website, www.akerna.com. For interested individuals unable to join the live conference call, a replay of the call will be available through February 26, 2020, at (844) 512-2921 (domestic) or (412) 317-6671 (international). The passcode for the call and replay is 13702780.


About Akerna Corp.


Akerna is a global regulatory compliance technology company in the cannabis space. Akerna’s service offerings include MJ Platform®, Leaf Data Systems®, solo sciences tech platform, and Trellis. Since its establishment in 2010, the company has tracked more than $18 billion in cannabis sales. As part of its business strategy, Akerna intends to grow through targeted, strategic acquisitions that are complementary to its current business and organically by accelerating its product development efforts. Akerna is based in Denver. For more information, please visit akerna.com.


Forward-Looking Statements


Certain statements made in this release and in any accompanying statements by management contain forward-looking statements that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this release, including statements regarding future events or our future results of operations, financial condition, business, strategies, financial needs, and the plans and objectives of management, are forward-looking statements. In some cases you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “likely,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would,” or similar expressions and the negatives of those terms. Forward-looking statements are based on information available to our management as of the date of this report and our management's good faith belief as of such date with respect to future events and are subject to a number of risks, uncertainties, and assumptions that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements, in particular the substantial risks and uncertainties related to the ongoing COVID-19 pandemic. Important factors are discussed in other sections of the Quarterly Report on Form 10-Q, including the sections of the report titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and under Part II, Item 1A. “Risk Factors” and in our Annual Report on Form 10-K under Part I, Item 1A, “Risk Factors.” You should not place undue reliance on our forward-looking statements, and you should not rely on forward-looking statements as predictions of future events. The results, events, and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results, events, or circumstances could differ materially from those described in the forward-looking statements. The forward-looking statements made in this release speak only as of the date of this report. We undertake no obligation to update any forward-looking statements made in this report to reflect events or circumstances after the date of this report or to reflect new information or the occurrence of unanticipated events, except as required by law. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements, except as required by law.


Akerna Media Contact

D. Nikki Wheeler




Investor Relations

Jason Assad






 Condensed Consolidated Balance Sheets




   March 31,   June 30, 
   2020   2019 
Current assets          
Cash  $14,309,996   $21,867,289 
Restricted cash   500,000    500,000 
Accounts receivable, net   1,324,051    1,257,274 
Prepaid expenses and other assets   1,762,371    577,674 
Total current assets   17,896,418    24,202,237 
Intangible and other assets   23,136,584    - 
Fixed assets, net   65,582    - 
Investment   250,000    - 
Total assets  $41,348,584   $24,202,237 
Liabilities and Equity          
Current liabilities          
Accounts payable and accrued liabilities  $4,025,199   $1,818,116 
Deferred revenue   743,317    624,387 
Total current liabilities   4,768,516    2,442,503 
Commitments and contingencies (Note 6)          
Stockholders’ equity:          
Preferred stock, par value $0.0001; 5,000,000 shares authorized, none are issued and outstanding at March 31, 2020 and June 30, 2019   -    - 
Common stock, par value $0.0001; 75,000,000 shares authorized, 12,851,646 issued and outstanding at March 31, 2020, and 10,589,746 shares authorized, issued and outstanding at June 30, 2019   1,286    1,059 
Additional paid-in capital   69,916,857    47,325,421 
Accumulated deficit   (38,100,333)   (25,566,746)
Total stockholders’ equity   31,817,810    21,759,734 
Noncontrolling interests in consolidated subsidiaries   4,762,258    - 
Total equity   36,580,068    21,759,734 
Total liabilities and equity  $41,348,584   $24,202,237 




 Condensed Consolidated Statements of Operations




   For the Three Months Ended   For the Nine months Ended 
   March 31,   March 31, 
   2020   2019   2020   2019 
Software  $2,346,310   $2,024,916   $7,148,964   $6,174,102 
Consulting   692,584    216,897    2,248,947    826,777 
Other   31,652    86,067    171,727    200,312 
Total revenues   3,070,546    2,327,880    9,569,638    7,201,191 
Cost of revenues   1,420,909    1,166,482    4,457,110    3,550,612 
Gross profit   1,649,637    1,161,398    5,112,528    3,650,579 
Operating expenses                    
Product development   1,632,353    1,001,394    4,024,743    2,877,869 
Selling, general and administrative   5,500,837    2,663,171    13,881,055    7,440,115 
Total operating expenses   7,133,190    3,664,565    17,905,798    10,317,984 
Loss from operations   (5,483,553)   (2,503,167)   (12,793,270)   (6,667,405)
Other income (expense)                    
Interest   33,522    20,914    158,762    69,265 
Other   (124)   (7,850)   (254)   17,983 
Total other income   33,398    13,064    158,508    87,248 
Net loss   (5,450,155)   (2,490,103)   (12,634,762)  $(6,580,157)
Net loss attributable to noncontrolling interests in consolidated subsidiaries   101,175    -    101,175    - 
Net loss attributable to Akerna stockholders  $(5,348,980)  $(2,490,103)  $(12,533,587)  $(6,580,157)
Basic and diluted weighted average common stock outstanding   12,469,737    6,022,026    11,299,997    5,843,334 
Basic and diluted net loss per common share  $(0.43)  $(0.41)  $(1.11)  $(1.13)





 Condensed Consolidated Statements of Cash Flows




   For the Nine Months Ended 
   March 31, 
   2020   2019 
Cash flows from operating activities          
Net loss  $(12,634,762)  $(6,580,157)
Adjustment to reconcile net loss to net cash used in operating activities          
Bad debt expense   933,079    156,115 
Stock-based compensation expense   794,598    - 
Depreciation and amortization   2,824    - 
Changes in operating assets and liabilities          
Accounts receivable   (986,808)   (1,394,378)
Prepaid expenses and other current assets   (1,162,562)   (204,991)
Other assets   (58,925)   - 
Accounts payable and accrued liabilities   1,391,549    1,229,298 
Deferred revenue   118,930    436,178 
Net cash used in operating activities   (11,602,077)   (6,357,935)
Cash flows from investing activities          
Furniture, fixtures and equipment additions   (53,621)   - 
Cash acquired in business combination   101,340    - 
Investment acquired in Zol Solutions   (250,000)   - 
Net cash used in investing activities   (202,281)   - 
Cash flows from financing activities          
Cash received in connection with exercise of warrants   4,247,065    - 
Cash received in connection with issuance of shares   -    10,000,000 
Net cash provided by financing activities   4,247,065    10,000,000 
Net change in cash and restricted cash   (7,557,293)   3,642,65 
Cash and restricted cash - beginning of period   22,367,289    2,572,401 
Cash and restricted cash - end of period  $14,809,996   $6,214,466 



The following information was filed by Akerna Corp. (KERN) on Tuesday, May 12, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

View differences made from one quarter to another to evaluate Akerna Corp.'s financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 10-Q Quarterly Report to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Akerna Corp..


Never Miss A New SEC Filing Again

Real-Time SEC Filing Notifications
Screenshot taken from Gmail for a new 10-K Annual Report
Last10K.com Member Feature

Receive an e-mail as soon as a company files an Annual Report, Quarterly Report or has new 8-K corporate news.


We Highlighted This SEC Filing For You

SEC Filing Sentiment Analysis - Bullish, Bearish, Neutral
Screenshot taken from Wynn's 2018 10-K Annual Report
Last10K.com Member Feature

Read positive and negative remarks made by management in their entirety without having to find them in a 10-K/Q.


Widen Your SEC Filing Reading Experience

Increased Reading Area for SEC Filings
Screenshot taken from Adobe Inc.'s 10-Q Quarterly Report
Last10K.com Member Feature

Remove data columns and navigations in order to see much more filing content and tables in one view


Uncover Actionable Information Inside SEC Filings

SEC Filing Disclosures
Screenshot taken from Lumber Liquidators 10-K Annual Report
Last10K.com Member Feature

Read both hidden opportunities and early signs of potential problems without having to find them in a 10-K/Q


Adobe PDF, Microsoft Word and Excel Downloads

Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshots of actual 10-K and 10-Q SEC Filings in PDF, Word and Excel formats
Last10K.com Member Feature

Export Annual and Quarterly Reports to Adobe PDF, Microsoft Word and Excel for offline viewing, annotations and analysis


FREE Financial Statements

Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshot of actual balance sheet from company 10-K Annual Report
Last10K.com Member Feature

Get one-click access to balance sheets, income, operations and cash flow statements without having to find them in Annual and Quarterly Reports

Continue for FREE

Intrinsic Value Calculator

Intrinsic Value Calculator
Screenshot of intrinsic value for AT&T (2019)
Last10K.com Member Feature

Our Intrinsic Value calculator estimates what an entire company is worth using up to 10 years of financial ratios to determine if a stock is overvalued or not


Financial Stability Report

Financial Stability Report
Screenshot of financial stability report for Coco-Cola (2019)
Last10K.com Member Feature

Our Financial Stability reports uses up to 10 years of financial ratios to determine the health of a company's EPS, Dividends, Book Value, Return on Equity, Current Ratio and Debt-to-Equity


Get a Better Picture of a Company's Performance

Financial Ratios
Available Financial Ratios
Last10K.com Member Feature

See how over 70 Growth, Profitability and Financial Ratios perform over 10 Years


Log in with your credentials


Forgot your details?

Create Account