JAMMIN Java Corp which trades as Marley Coffee has issued a letter to its shareholders that despite an ongoing Securities Exchange Commission (SEC) lawsuit, the company seems finally to be nearing profitability.

In November the SEC announced fraud charges against several alleged perpetrators behind a $78 million pump-and-dump scheme involving the stock of Jammin’ Java, which uses trademarks of late reggae artist Bob Marley to sell coffee products.

Jammin Java Corp, based in the US provides roasted coffee to the grocery, retail, online, service, hospitality, office coffee service and big box store industry.

Under its exclusive licensing agreement with Fifty-Six Hope Road Music Limited, the company continues to develop its coffee lines under the ‘Marley Coffee’ brand.

Rohan Marley, Chairman and Founder of Marley Coffee said in the letter to shareholders that the year 2015 “has been a phenomenal year of expansion for Marley Coffee in all areas… it’s unfortunate that despite all of the growth and the great news, such as 18 consecutive quarters of revenue growth and continued expansion into new countries, there’s a cloud that has hung over this company since early 2011. Nevertheless, I’m glad this (ie, the SEC’s investigation) is now out in the open and that we have the ability to tell the world our story. The future is bright for Marley Coffee.”

Brent Toevs, CEO of Marley Coffee said in the letter that while share prices have receded to near their 52-week lows, “the fundamentals of the company have seen improvements such as continued revenue growth and declining losses”.

The letter reported that revenue came in at US$3.25 million for the quarter ended October 31, 2015, approximately 14 per cent increase over last year, while total operating expenses were down 19 per cent.

Net revenue for the quarter increased by 12 per cent to US$2.8 million while net losses was US$1.5 million for the three months ended October 31, 2015 which represents a decrease of US$1.44 million or 49 per cent down from US$2.94 million in October 2014.

Expansion was described as coming from the launch of EcoCups and growth in distribution footprint to about 11,000 retail grocery locations.

“Our expectations are to have continued growth in Q4 while continuing to reduce our operating expenses,” the letter said.

The company added new accounts at Safeway/Randalls, Acme, Rouses Markets, Price Chopper and Meijers.

“We anticipate adding about 1,200 new stores during this period. This expansion includes another division of Safeway/Albertsons as well as Sprouts,” the shareholder letter said.