During the three months ending March 31, 2018, we generated revenues of $1,211,037, including consulting/licensing fees of $524,982, Cultivation Max revenue sharing of $192,545, reimbursements of $27,309, product sales of $459,335 and other revenue of $6,866. This as compared with the three months ending March 31, 2017, where we generated revenues of $541,136, of which $531,030 was related to consulting/licensing services and $10,106 was related to seminar and other revenues. By comparison, consulting and licensing revenues have remained very consistent quarter over quarter since March 31, 2017. Overall revenue increased during this three-month period over that of the prior year by $669, 901, or 124%, making this the fifth consecutive quarter on quarter revenue growth period achieved.
Costs of goods and services consisted of expenses related to the delivery of services and product procurement, totaled $373,518 during the three months ended March 31, 2018. This is compared to $165,159 during the same time period in 2017. This increase was due to the increase in sales of goods and an increase in salaries for the period.
Operating expenses during the three months ending March 31, 2018, were $1,059,367. This amount consisted of professional fees of $230,517, salaries of $466,256, advertising of $49,144 and general and administrative expense of $313,450. This as compared to general and administrative expenses incurred during the same three-month time period ending March 31, 2017, of $195,401, an increase of $118,049. Increased operating expenses during this three-month period were primarily attributable to salaries and related expenses, professional fees, as well as the cost increase of additional staff needed to service our expanding client base as reflected in our operating expense category.
As a result, we generated net income of $25,424 during the three months ending March 31, 2018 (approximately $0.001 per share), compared to net income of $112,363 during the three months ending March 31, 2017.
Brett Roper, Medicine Man Technologies' co-founder, and CEO commented, "We are pleased to see a continuation of our quarter on quarter revenue growth trend, coupled with achieving modest profits in this quarter. We are beginning to work on strategies that will allow us to move up to a QX status company on the OTC markets later this year. When achieved, this uplisting will allow us to take better advantage of the Colorado House Bill 18-1011, which upon passing will allow fully reporting public company ownership of plant touching licenses in Colorado as we move into 2019."
Andy Williams, Chairperson of Medicine Man Technologies' Board of Directors added, "We are excited to be participating in the MJ Business NEXT conference next week in New Orleans where Mr. Roper will be a featured presenter and participant in the invitation-only, CEO Executive Summit. Additionally, Mr. Joshua Haupt will be participating in the Lead Cultivator program and I look forward to catching up with friends and business associates on the latest national and international trends."
Joshua Haupt, Medicine Man Technologies' Chief Revenue Officer stated, "We are really energized by our clients' initial success with the deployment of our Cultivation MAX programs in Nevada and expect this service to drive increased revenues for both our Clients as well as Company well into the future. We have four new Cultivation MAX clients scheduled for full deployment between now and the end of summer and several more in our pipeline for deployment later this year."
Established in March 2014, the Company secured its first client/licensee in April 2014. To date, the Company has provided guidance for several clients that have successfully secured licenses to operate cannabis businesses within their state. The Company currently has or has had active clients in California, Iowa, Oregon, Colorado, Nevada, Illinois, Michigan, Arkansas, Pennsylvania, Florida, Ohio, Maryland, New York, Massachusetts, Puerto Rico, Canada, Australia, Germany, and South Africa. We continue to focus on working with clients to 1) utilize its experience, technology, and training to help secure a license in states with newly emerging regulations, 2) deploy the Company's highly effective variable capacity constant harvest cultivation practices through its deployment of Cultivation MAX, and eliminate the liability of single grower dependence, 3) avoid the costly mistakes generally made in start-up, 4) stay engaged with an ever expanding team of licensees and partners, all focused on quality and safety that will "share" the ever-improving experience and knowledge of the network, and 5) continuing the expansion of our Brands Warehouse concept through entry into industry based cooperative agreements and pursuing other acquisitions as they prove suitable to our overall business development strategy.
Safe Harbor Statement
This press release may contain forward-looking statements which are based on current expectations, forecasts, and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially from those anticipated or expected, including statements related to the amount and timing of expected revenues and any payment of dividends on our common and preferred stock, statements related to our financial performance, expected income, distributions, and future growth for upcoming quarterly and annual periods. These risks and uncertainties are further defined in filings and reports by the Company with the U.S. Securities and Exchange Commission (SEC). Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors detailed from time to time in our filings with the Securities and Exchange Commission. Among other matters, the Medicine Man Technologies may not be able to sustain growth or achieve profitability based on many factors including, but not limited to, general stock market conditions. Reference is hereby made to cautionary statements set forth in the Company's most recent SEC filings. We have incurred and will continue to incur significant expenses in the expansion of our existing and new service lines, noting there is no assurance that we will generate enough revenues to offset those costs in both the near and long-term. Additional service offerings may expose us to additional legal and regulatory costs and unknown exposure(s) based upon the various geopolitical locations where we will be providing services, the impact of which cannot be predicted at this time.