MassRoots, a popular marijuana-focused social media platform, said in its quarterly financial filings that the company is running low on capital and will need to raise $5 million in the next year “to continue to fund operations.”
The Denver-based business added that it expects to be able to raise most of that sum by exercising warrants.
“We are dependent on the sale of our securities to fund our operations, and will remain so until we generate sufficient revenues to pay for our operating costs,” the publicly traded company said in filings with the Securities and Exchange Commission.
MassRoots posted a $7.4 million net loss for the quarter that ended March 31, nearly triple the $2.6 million it lost in the same period a year earlier.
Operating expenses totaled $7.6 million, widening from $2.4 million in the first three months of 2016. Revenue, meanwhile, totaled $134,741 in the latest quarter, up from $93,385 a year earlier.
MassRoots – which trades on over-the-counter markets under the symbol MSRT – has seen its stock dip since releasing its quarterly financials.
The company also reported that it invested $100,000 in High Times during the first quarter of the year and completed its acquisition of Colorado-based DDDigital and subsidiary Whaxy. Whaxy makes a software platform that helps cannabis retailers with inventory management, marketing and ordering.