The company plans to continue spinning out assets of its Artizen subsidiary.
Seattle-based Pervasip Corp. (OTCPK: PVSP) saw its cannabis division losses continue to mount through the third quarter ended Aug. 31.
The multistate marijuana brand, which operates in Oregon and Washington primarily through its subsidiary brands Artizen Corp. and Zen Asset Management LLC, disclosed that its year-to-date losses are now at $1.4 million, up from roughly $1 million in the same time period last year.
Pervasip acquired Artizen two years ago, but it has been “spinning off” much of the company assets to shareholders, CEO German Burtscher said in a statement. That strategy that will continue, he added.
The company only recently entered the Oregon marijuana market with clients of Zen Asset Management that operate four cultivation facilities in the state. It also harvested Pervasip’s first crop in Oregon, which was sold under the Artizen brand.
The company also runs a marijuana processing facility in Washington state.
Burtscher said that Pervasip had made solid strides in 2023 with “significant gross margin growth and expense improvements in the past quarter, leading to materially improved operating income,” referring to the company’s $591,751 in operating income for the third quarter.
That metric is up 1,131% from the $52,312 in operating income that it pulled in for the same period a year ago, a result the company asserted was due to “ongoing efficiency improvements, coupled with aggressive further consolidation of operations and price improvements in the wholesale market.” That includes the termination of the Slurped syrup brand this past quarter, Pervasip reported.
Quarterly revenue, however, was nearly flat at $11.9 million, compared to $11.8 million in the same period in 2022. Pervasip attributed that to “the loss of revenues from the closure of one of the company’s cultivation facilities.”
Gross margins were up to 34% from 24% over the third quarter in 2022, Pervasip reported, with a total of just over $4 million in the most recent quarter.
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