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.
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. Additional information on Pervasip can be found at www.pervasip.net.
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:
T: 206-590-2408, Extension 102
E: info@pervasip.net
