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Pervasip Announces Financial Results for Fiscal Year 2022
Pervasip Announces Financial Results for Fiscal Year 2022.
About this update from Pervasip Corp.
[{"type":"text","content":"\n SEATTLE, March 01, 2023 (GLOBE NEWSWIRE) -- Pervasip Corp. (OTCPK: PVSP) (“Pervasip” or the “Company”), a developer of companies and technologies in high value emerging markets, today announced the filing of its unaudited financial statements for its fiscal years ended November 30, 2022, and November 30, 2021. Key Highlights Cultivation yields increased by 31% across the Company’s four independent cultivation facilities due to infrastructure upgrades and operational improvements implemented during the year. Wholesale sales increased in volume by 65.1% with an additional margin capture of 31.6% based on management’s margin improvement measures, while retail sales decreased due to market price pressure resulting in reduced sales volume by 7.3% and $15.8 million in overall sales for the year.Gross revenues were comprised of retail sales that decreased by 6.8% with 37.5% in gross margin, and wholesale sales that increased by 65.1% with materially lower margins depressing aggregate gross profit for the year. Gross profit for the year was $3.5 million, including the impact of one-time inventory and other adjustments. However, management expects gross profit and gross margin to increase to more than 40% of sales as new brands will shift sales volume from wholesale to retail at higher margins and further rationalize in 2023 due to ongoing margin improvement measures.   Sales, general and administrative expenses decreased by 12.6% to $5.3 million, resulting in an operating loss of $2.9 million, and about $1.0 million in EBITDA.The Company closed a $1.5 million non-dilutive credit facility to enhance working capital and weather 2022's priced compressed market conditions in WA State. “We increased yields and margins during an otherwise challenging year as the Washington market experienced a painful but necessary market correction,” said German Burtscher, Pervasip’s President and Chief Executive Officer. “Retail sales dropped materially since the Pandemic high in August of 2021, and a substantial number of producer/processors have closed their doors. It’s a testament to our team and the strength of our premier Artizen and other brands that we weathered that storm. Prices are expected to stabilize over the coming months as the market transitions to increased conso...