Pulse Beverage Releases Its Second Quarter FY2017 Earnings Report and Announces That It Has Eliminated Almost $500,000 in Secured Debt and Continues to Trim Expenses and Narrows the Non-GAAP Net Loss by 9.3% Over the Same Period in 2016

DENVER, CO--(Marketwired - Aug 18, 2017) - The Pulse Beverage Corporation ("Pulse") (OTCQB: PLSB) announced today that it had filed its Q2 FY2017 Quarterly Report (10-Q) with the United States Securities and Exchange Commission for the period ended June 30, 2017.

For the 3-month period ended June 30, 2017, The Company reported gross sales of $428,264 vs $1,003,780 for the comparable period in 2016. This represents a decrease of $575,516 or 57.3%. This decrease is consistent with the planned restructuring that continues in 2017 of the Company's operations that was designed to achieve higher sales per employee and to allow the Company to sell their wares directly to strategic retailers. While these changes negatively affected revenues during the second quarter of 2017, management believes these changes will yield benefits in the future in the form of future profitability.

For the 3-month period ended June 30, 2017 the Company's GAAP net operating loss was $1,212,264 compared to a loss of $576,267 for the comparable period in 2016.

On a non-GAAP basis when non-cash charges due to the accretion of discount on convertible debt and changes in the fair value of derivative liabilities are excluded, the loss narrows to $522,671 which is directly comparable to the $576,267 comparable period loss in 2016. This means that on a non-GAAP basis the Company's quarterly loss narrowed by $53,596 or nearly 9.3%.

Also affecting Q2: FY2017 results was a 9-day computer outage at the Port of Los Angeles at the end of June 2017, due to a reported computer "hack", which stopped all shipments scheduled for release during that period. This resulted in approximately $150,000 of product that was in Pulse's backlog that was not shipped during Q2. If this product had been shipped as planned, the Company would have been able to report gross revenues of $578,000 vs the $428,264 reported. When considering the higher margins the Company earns on its coconut waters of nearly 40.0%, the non-GAAP net loss would have been 11.4% better ($60,000) than the non-GAAP loss reported. This would have represented a 19.7% improvement over the same period in 2016 and would have been more in line with management's expectations. Since that time, the Port of Los Angeles has resumed normal operations and the product in transit has been delivered to customers and will be reflected in Pulse's Q3:FY2017 results.