Pervasip Announces Second Quarter Financials
SEATTLE, July 18, 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 2nd Quarter ended May 31, 2023.
Key Highlights
- The Company achieved break-even Net Income from Operations in its second quarter, compared to a loss of $1,111,980 in the same period in 2022.
- The Company also achieved break-even operating cash during the Six Month Ended on May 31, compared to a $854,221 loss of cash for the same 6 months period in 2022.
- SG&A in this six-month period is down by $476,308 compared to the same period last year.
- For the six-month ended period on May 31, 2023, the Company’s EBIDTA grew from about $167,000 to about $726,000, a 437% improvement
| For the Six Months Ended | |||||||||
| May 31, 2023 | May 31, 2022 | ||||||||
| Net Income attributable to Pervasip Corp | $ | (776,718 | ) | $ | (939,582 | ) | |||
| Add: | |||||||||
| Interest expense | 447,370 | 140,462 | |||||||
| Income tax expense | 753,000 | 425,222 | |||||||
| Depreciation and amortization expense | 302,652 | 540,090 | |||||||
| EBITDA | $ | 726,304 | $ | 166,192 | |||||
- The Company’s gross margins improved to 35.11% in Q2 2023 from 19.55% in Q1 2023
| Cost per gram, retail vs wholesale | Gross Profit | Gross Margin % | ||||||||
| 2022 CPG | Q1 ’23 | Q2 ’23 | 2022 GP | Q1 ’23 | Q2 ’23 | 2022 GM | Q1 ’23 | Q2 ’23 | ||
| Retail Flower | $1.81 | $1.81 | $1.56 | $1.09 | $0.75 | $0.98 | 37.60% | 29.40% | 38.50% | |
| Wholesale Flower | $1.29 | $1.29 | $1.20 | $0.03 | $0.17 | $0.33 | 2.30% | 11.90% | 21.80% | |
| Carts | $6.43 | $6.43 | $5.27 | $3.33 | $3.17 | $4.73 | 34.10% | 33.00% | 47.30% | |
| Wax | $2.57 | $2.57 | $2.82 | $3.89 | $1.85 | $5.51 | 60.20% | 41.90% | 66.10% | |
| Total | 19.55% | 35.11% | ||||||||
- Entered the Oregon market and planted for first harvest in the Fall of 2023.
- Established Artizen Nano LLC and bringing first nano infused products to market in Washington and California.
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 margin growth and expense improvements in the past quarter. This achievement is a testament to our unwavering dedication to delivering exceptional products to our customers and to continue an aggressive focus on costs and efficiency improvements,” said German Burtscher, Pervasip’s president and chief executive officer. “This all needs to be seen against an ongoing, material value decline in our industry over the past 18 months, with over 300 producer/processors in Washington State going out of business during the same timeframe and the challenges posed by prevailing price pressure in the WA recreational market during a time of increasing costs.”
Burtscher concluded: “And yes, we are continuing our process of spinning off our Artizen assets to our shareholders. And while the current market is not yet recognizing the value of our 2 businesses post spin-off, as I mentioned before, we believe today more strongly than ever that the new Artizen Corporation will justify a value exceeding $50 million and exciting new opportunities for Pervasip.”
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
