CANNAINVESTOR Magazine August / September 2017 | Page 220

"operating revenue," or sales from a company's core business, and "non-operating revenue," which derives from other, secondary sources. As these non-operating revenue sources are often not predictable or recurring, they can be referred to as one-time events or gains. For example, proceeds from the sale of an asset, a windfall from investments or money awarded through litigation would be considered non-operating revenue.

Investors will often consider a company's revenue and net income separately to determine the health of a business. It is possible for net income to grow while revenue remains stagnant, as a result of cost-cutting; such a situation does not bode well for a company's long-term growth. When public companies report quarterly earnings, the two figures that receive the most attention are typically revenue and earnings per share ("earnings" being equivalent to net income). Subsequent price movement in stocks generally correlates to whether a company beat or missed analysts' revenue and earnings per share expectations.

http://www.investopedia.com/terms/r/revenue

MANAGEMENT TEAM EXPERIENCE

A good cannabis company should have an experienced management team. Without an experienced management team, a cannabis company is more than likely to fail. Does the management team have industry experience? If not, what experience do they bring to the business that is applicable? What are their experiences, educational backgrounds, and skills?

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