Pervasip Announces Third Quarter Financials

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 3^rd quarter gross margins of 45%, compared to 29% for the 3^rd 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.