Pervasip Reports Slight YoY Decrease In Q1 Revenue As It Prepares For Cannabis Spin-Off

Zinger Key Points
  • Pervasip's revenues of $3.34 million decreased slightly from 2023 first quarter revenues of $3.66 million.
  • The Seattle-based company said it’s still in the restructuring process and preparation for the spin-out of all of its cannabis assets.

Pervasip Corp. PVSP announced its 2024 first-quarter financial results on Tuesday. Simultaneously, the Seattle-based company said it's still in the restructuring process and preparation for the spin-out of all of its 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," German Burtscher, Pervasip's president and chief executive officer said.

Additionally, 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 for the spin-out of Artizen Corporation.

Q1 2024 Financial Highlights

  • Gross profit 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%, representing a 25% increase.
  • Revenues of $3.34 million decreased slightly from 2023 first quarter revenues of $3.66 million.
  • 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 the completion of the company's 2022 audit.
  • Operating cash flow amounted to $98,320 compared to negative cash flow of $38,044 during the same period in 2023.
  • Generated first retail sales in the Oregon recreational market, fulfilling the company's goal of expanding its retail brand on the West Coast.

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Posted In: CannabisEarningsNewsArtizen CorporationCannabis Earningscannabis spin-offFirst Quarter ResultsGeorge JordanGerman Burtscher
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