SEATTLE, Oct. 17, 2023 (GLOBE NEWSWIRE) -- Pervasip Corp. (OTCPK: PVSP) (“Pervasip” or the “Company”), a developer of companies and technologies in high value emerging markets, and its wholly owned subsidiary, Artizen Corporation, today announced the filing of its unaudited financial statements for its 3rd Quarter ended August 31, 2023.
Key Highlights
- 60% Gross Margin Improvement: Gross profits for the three months ended August 31, 2023, totaled $1,994,465 compared to $1,257,843 during the same period in 2022, an increase of almost 60%, leading to 2023 3rd quarter gross margins of 45%, compared to 29% for the 3rd quarter 2022. The quarter-over-quarter comparison best reflects the results of the Company’s cultivation investments and process improvements.
- Income from Operations increased by 1,131%: Operating income rose to $591,751 for the quarter ending August 31, 2023, compared to $52,312 for the same period ending August 31, 2022.
- Slight revenue growth: Consolidated revenues for the 9 months ended August 31, 2023, totaled $11,920,638, compared to revenues of $11,847,517 during the same period in 2022, representing an increase of $73,121, a small increase despite the loss of revenues from the closure of one of the Company’s cultivation facilities.
- Cost of goods and services for 9 months ended August 31, 2023, totaled $7,879,869 compared to cost of goods and services of $9,016,889 for the 9 months ended August 31, 2022, representing a decrease of $1,137,020, or approximately 12.6%. With revenues remaining almost even during the same period, this material decrease in cost of goods is due to the successful transition of one of the company’s cultivation facilities, increases in harvest yields stemming from infrastructure and process improvement undertaken during 2022, combined with improved labor efficiencies.
- The Cost of Goods improvement can best be seen in the three months ended August 2023, totaling $2,409,891 compared to $3,080,904 during the same period in 2022, a $671,013 reduction, or a 21.8% improvement, while increasing revenue for the same period.
- Gross profit for the 9 months ended August 31, 2023, totaled $4,040,769 compared to gross profit of $2,830,628 for the 9 months ended August 31, 2022, representing an increase of $1,210,141, and improving gross margins to 34% compared to 24% during the same period in 2022. The change in gross profit is driven by process improvements, higher yields from ongoing facility improvements, and labor efficiency gains.
- EBIDTA improved from 7.2% to 10.3%
| For the Nine Months Ended | |||||||
| August 31, 2023 | August 31, 2022 | ||||||
| Net Income attributable to Pervasip Corp. | $ | (1,440,785 | ) | $ | (1,027,738 | ) | |
| Add: | |||||||
| Interest expense | 898,751 | 305,535 | |||||
| Income tax expense | 1,320,791 | 827,531 | |||||
| Depreciation and amortization expense | 454,663 | 745,603 | |||||
| EBITDA | $ | 1,233,420 | $ | 850,931 | |||
- Entered the Oregon market and harvested first crop in early September.
- Terminated the brand licensing and acquisition for the Slurped syrup product line.
The Company’s improvement in key financial performance categories is due to ongoing efficiency improvements, coupled with aggressive further consolidation of operations and price improvements in the wholesale market. “We are proud to report significant gross margin growth and expense improvements in the past quarter, leading to materially improved operating income,” said German Burtscher, Pervasip’s president and chief executive officer.
Burtscher concluded: “And yes, we are continuing our process of spinning off our Artizen assets to our shareholders. While the audit has taken frustratingly long, we are in the final stages of completion and the financial data used for this filing is the final dataset submitted to our auditors.”
Pervasip Corporation
Pervasip Corp., a developer of companies and technologies in high value emerging markets, owns Artizen Corporation and its subsidiary, Zen Asset Management LLC, a diversified asset management company founded to acquire, develop, and support companies and technologies in the cannabis industry. ZAM’s existing clients operate four licensed cannabis cultivation and one processing facility in Washington. Most of the biomass produced by these independent cultivators has been sold historically under the Artizen™ brand, including all-time top selling products in flower in Washington state. Additional information on Artizen-branded products is available online at www.artizencannabis.com.
Forward-Looking Statements
This news release contains statements and information that, to the extent that they are not historical fact, may constitute “forward-looking information” within the meaning of applicable securities legislation. Forward-looking information may include financial and other projections, as well as statements regarding future plans, objectives, or economic performance, or the assumption underlying any of the foregoing. In some cases, forward-looking statements can be identified by terms such as may, would, could, will, likely, except, anticipate, believe, intend, plan, forecast, project, estimate, outlook, or the negative thereof or other similar expressions concerning matters that are not historical facts. Examples of such statements include, but are not limited to, statements with respect to the objectives and business plans of the Company; ability to realize benefits from its recent corporate appointments; ability to retain its key personnel; the intention to grow the Company’s business and operations; the competitive conditions of the industries in which the Company operates; and laws and any amendments thereto applicable to the Company. Forward-looking information is based on the assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect. The material factors and assumptions used to develop the forward-looking information contained in this news release include, but are not limited to, key personnel and qualified employees continuing their involvement with the Company; and the Company’s ability to secure financing on reasonable terms. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking information, including, without limitation, risks relating to the future business plans of the Company; risks that the Company will not be able to retain its key personnel; risks that the Company will not be able to secure financing on reasonable terms or at all, as well as all of the other risks as described in the Company’s periodic disclosure statements. Accordingly, readers should not place undue reliance on any such forward-looking information. Further, any forward-looking information speaks only as of the date on which such statement is made. New factors emerge from time to time, and it is not possible for the Company’s management to predict all of such factors and to assess in advance the impact of each such factor on the Company’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking information. The Company does not undertake any obligation to update any forward-looking information to reflect information or events after the date on which it is made or to reflect the occurrence of unanticipated events, except as required by law, including securities laws.
For further information, please contact:
Investor Relations: PACIFIC CAPITAL MARKETS LLC
Investor Contact(s): Drew S. Phillips & Colin Gibson
Contact phone: 858.308.5835 pacificcapitalmarketsllc@gmail.com
