Pervasip Announces First Quarter Financial
Reports 2024 First Quarter Revenues of $3.34 Million from Artizen Corporation
April 23, 2024 14:40 ET
| Source: Pervasip Corp.
SEATTLE, WASHINGTON, April 23, 2024 (GLOBE NEWSWIRE) -- Pervasip Corp. (OTCPK: PVSP) (“Pervasip” or the “Company”), a developer of companies and technologies in high value emerging markets, today announced its 2024 first quarter financial results.
Key Highlights
Gross Profit for the quarter ending February 29, 2024 totaled $831,079 on $3,347,086 in revenues, compared to gross profits of $716,213 during the same period in 2023.
Gross Margins increased from 20% to 25%, a 25% increase. The improved gross margin reflects increases in production yields and gains in production efficiencies.
Revenues of $3.34 million decreased slightly from 2023 first quarter revenues of $3.66 million, achieved in a market that continues to battle over supply and price compression.
Operating Loss for the quarter increased to $618,623, deeper than the $501,283 loss reported in the first quarter of 2023. This increase is attributable to one-time expenses related to the restructuring of operational staff and completion of the company’s 2022 audit.
Operating cashflow for the quarter ending February 29, 2024 totaled $98,320 compared to negative cashflow of ($38,044) during the same period in 2023.
Generated first retail sales in Oregon recreational market, fulfilling company’s goal of expanding its retail brand on the West Coast.
The Company initiated its debt and operational restructuring, continuing to reduce low yielding real estate footprint, entering into a voluntary debt restructuring, consolidating operations, and exiting one of its largest facilities which had seen 65% utilization over the past years. With a focus on higher margin products, operational objectives focus on improving gross and operating margins in preparation for the spin out of all of the Company’s cannabis assets.
“We are entering our final phase of restructuring which involves making difficult decisions to ensure additional expense reductions and separating the Company from assets it has held for many years,” said German Burtscher, Pervasip’s president and chief executive officer.
As part of the restructuring, George Jordan has resigned from his duties as CFO and COO of the company and will stay on as an advisor, supporting management through its final phase of changes in preparation of the spin out of Artizen Corporation.
The Company has engaged with Frucci & Associates for the completion of the fiscal 2023 audit of the Company and of Artizen Corporation, which is needed for a spinout and uplisting of Artizen Corporation to OTCQB. In the meanwhile, the Company also has entered into negotiations with several parties to bring to Pervasip certain technologies and related opportunities once the spinout is complete.
The basic and diluted loss per share remained constant at $(0.00), with the weighted average number of shares outstanding increasing slightly to 5,429,231,963 from 5,329,231,963.
As we continue our efforts to streamline operations and focus on higher-margin products, these quarterly figures reflect both the challenges and the ongoing strategic adjustments being undertaken by the company. Our commitment to improving our financial performance remains steadfast as we prepare for the strategic spin-out of Artizen Corporation and engage in new opportunities that align with Pervasip's growth trajectory.
For further information, please contact:
T: 206-590-2408, Extension 102
E: info@pervasip.net
Complete release: https://www.globenewswire.com/en/news-release/2024/04/23/2868067/0/en/Pervasip-Announces-First-Quarter-Financials.html
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