Novus Releases Its First Quarter of 2022 Report
New Federal Legislation, Financials, Innovating Technology Drives In Positive Direction
Miami, Florida–(Newsfile Corp. – May 10, 2022) – Novus Acquisition and Development, Corp. (OTC Pink: NDEV), through its wholly-owned subsidiary WCIG Insurance Services, Inc., is a hybrid health insurance carrier and, the nation’s first health carrier offering cannabis that is included in health plans for recreational and medicinal users, announced today its First Quarter Report and accomplishments.
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As the Company focuses to build back pre-pandemic growth percentages we continue to identify opportunities with new regulatory elements that are currently favoring our business strategy. We had continued growth in:
- Financial Highlights
- No Dilution: No common stock was issued in the last four quarters. All third-party vendors receiving stock from the treasury are subject to a mandatory leak out of securities which are 15% of the average daily trading volume over the last 30 days.
- Three Month Gross Revenue Increase: Gross Revenue increased $9,244 or 14.56% to $72,725 for the three months ended March 31, 2022, as compared to $63,481 for the three months ended March 31, 2021.
- Three Month Net Revenue Increase: Net Revenue, increased from $21,426 to $26,999 an increase of 26 % or $5,573 on March 31, 2022, as compared to three months ended March 31, 2021.
- Profit Margin: On March 31, 2022, the Company demonstrated a 37% profit margin pricing structure in its business model an increase of 3% as compared to March 31, 2021.
- Shareholder Equity Increase: An increase of $48,439 or 3.27% which is $1,527,225 on March 31, 2022, from $1,478,786 March 31, 2021.
- Cash and Cash Equivalents Increase: Moderate increase to $169,299 on March 31, 2022, or 5.8%, from $160,020 for the same period ended March 31, 2021.
- InsurTech Platform
InsurTech platforms is a disruptive and innovative technology that sells direct to consumers who have employer-sponsored health plans. These platforms sell health policies on an ala carte basis as opposed to one-size-fits-all health plans.
To gain entry on these platforms is costly and time-consuming, so we sought to find a partner who already had a presence on one or more of these platforms, in return, we would share policy sales. After lengthy negotiations with many third-party partnerships, their economic proposals proved not to be a viable option for the Company.
This decision was based on two factors, the cost of sharing revenue was extremely high by as much as 30%-45%, the other factor. was favoring regulatory changes regarding cannabis in the workplace and Veteran benefits. Consequently, management decided to take the time and expense of getting on these platforms directly to bypass this capital outlay.
- Industry Trends and Regulatory Landscape
Changes in the regulatory landscape were quite fortunate with key factors in shaping the cannabis health plan marketplace.
Significant changes in the fourth quarter that is benefiting Novus were the Compassionate Care Act: where employees are protected from termination for using medical cannabis, this leads the way to employer-sponsored health plans. Opioid Settlement Framework: state Attorney Generals settling with carrier and big pharma in $45 billion compensatory damages, rehabilitation, and opioid diversion programs which Novus proposes its health plans. Most notably,
Rising Recreational Cannabis Taxation: especially in California, taxation is as high as 37% prompting recreational users in getting their state cannabis cards and joining our health plan to get the medicinal tax rate which is 50% less than the rec tax rate.
- Accommodating American Veterans
Novus has prepared for the bipartisan legislation that allows cannabis benefits to 19 million Veterans. Amongst the numerous regulations are:
- The Veterans Cannabis Use for Safe Healing Act: Prohibits the Department of Veterans Affairs (VA) from denying VA benefits due to participation in a state-approved cannabis program(s).
- The VA Medicinal Cannabis Research Act: VA to carry out a series of clinical trials on the health effects cannabis can have on Veterans who suffer from chronic pain and PTSD.
- The Common Sense Reform for Veterans, Small Businesses, and Medical Professionals Act: Allows the VA to prescribe medical cannabis to Veterans and create a safe harbor for financial institutions and other businesses.
- The Veterans Medical Marijuana Safe Harbor Act: Provide and implement guidance for Veterans on medical cannabis. Lastly, the bill requires the VA to report on the impacts of medical cannabis on Veterans’ pain and the relationship between state-approved medical cannabis treatment programs.
- The Fully Informed Veteran Act: Requires the VA to authorize VA physicians and healthcare providers permission to educate Veterans on participating in state-legal cannabis programs.
v. California SB1186 Medicinal Patients’ Right of Access:
State bill SB 1186 will help to dramatically expand safe access to medical cannabis throughout the state. Once passed this will dramatically increase Novus provider network from dispensaries to doctor’s offices, urgent care facilities, hospitals, and managed healthcare. Just like the Employee Compassionate Care Act, there will be states following suit on similar legislation.
Many cultivators are adopting selling direct-to-consumer and are using delivery platforms to sell their products regionally, opening up a new segment in our provider network. One of Novus’ providers Budee, has one such platform that covers the entire state of California with four distribution centers and 800 deliveries per day. This gives Novus the ability to consolidate its provider network where policyholders can order from the digital platforms of their choice and get their product(s) within an hour.
Conclusion
Being first to market as a health insurance carrier has given us an increased market share of our infrastructure, combined with favorable changes in state and federal regulations, solidifying the scope of our business model profoundly.
Novus is in a virtuous position with cannabis and health insurance industries demonstrated to be recession-proof. We will remain a receivable-based business limiting overhead, and once the policyholder is procured, their policy contribution will go directly to the Company’s Net Asset Value, benefiting our shareholders.
Research Novus:
As a carrier, the insurance industry relies on two key indicators to measure value and performance. The Benefit Monetization Ratio is defined as a total number of policies, monetized annually as an Asset, then, is offset by the operating cost ratio then computed to the Balance Sheet as Net Asset Value. See how insurance companies are valued: Click Here
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About Novus
Novus Acquisition & Development Corp. (NDEV), through its subsidiary WCIG Insurance, Services, Inc. provides health insurance and related insurance solutions within the wellness and medical marijuana industries in states where legal programs exist. Novus has developed its infrastructure within many lines of the insurance business such as health, life, and fixed annuities. As a carrier Novus relies on two key indicators to measure value and performance. The Benefit Monetization Ratio is defined as a total number of policies, monetized annually, which is offset by the operating cost ratio which is a Balance Sheet line item computed as Net Asset Value.
Novus’ medical cannabis benefits package will work as outside developers and will not cultivate, handle, transport grow, extract, dispense, put up for sale, put on the market, vend, deliver, supply, circulate, or trade cannabis or any substances that violate the United States law or the Controlled Substances Act, nor does it intend to do so in the future and will continue to follow state and federal laws. The statements made about specific products have not been evaluated by the United States Food and Drug Administration (FDA) and are not intended to diagnose, treat, cure, or prevent disease. All information provided on these press releases, or any information contained on or in any product label or packaging is for informational purposes only and is not intended as a substitute for advice from your physician or other health care professional. All cannabis transaction is solely between the state-licensed dispensary and the registered patient.
The state laws conflict with the federal Controlled Substances Act. The current administration has effectively stated that it is not an efficient use of resources to direct federal law enforcement agencies to prosecute those lawfully abiding by state-designated laws, allowing the use and distribution of medical marijuana. Changes in consolidation may affect the provider network. However, there is no guarantee that the current administration, nor any future administration, will not change this policy and decide to enforce the federal laws strongly. Any such change in the federal government’s enforcement of current federal laws could cause significant financial changes. While we do not intend to harvest, distribute, or sell cannabis or cannabis-related products, we may be harmed by a change in enforcement by federal or state governments.
Forward-Looking Statements
This release includes forward-looking statements, which are based on certain assumptions and reflect management’s current expectations. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Some of these factors include: general global economic conditions; general industry and market conditions and growth rates; uncertainty as to whether our strategies and business plans will yield the expected benefits; increasing competition; availability and cost of capital; the ability to identify and develop and achieve commercial success; the level of expenditures necessary to maintain and improve the quality of services; changes in the economy; changes in laws and regulations, includes codes and standards, intellectual property rights, and tax matters; or other matters not anticipated; our ability to secure and maintain strategic relationships and distribution agreements. Novus disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Additionally, this press release that is not statements of historical fact may be considered to be forward-looking statements. Written words, such as “may,” “will,” “expect,” “believe,” “anticipate,” “estimate,” “intends,” “goal,” “objective,” “seek,” “attempt,” or variations of these or similar words, identify forward-looking statements. By their nature, forward-looking statements and forecasts involve risks and uncertainties because they relate to events and depend on circumstances that will occur in the near future.
Investor Contact Information
855-228-7355
Email: info@getnovusnow.com
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