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.
For the 6 months ended June 30, 2017 and June 30, 2016 revenues were $796,706 and $1,741,195 respectively and represent a decline of $944,489 or 54.2%. non-GAAP net income for the same periods was $921,283 and $1,133,539. This represents a narrowing of losses of $212,256 or 18.7%
Robert Yates, CEO of Pulse, said, "Our team is working hard to expand our customer base and build distribution channels. We made significant inroads in the second quarter and expect to continue winning accounts at an accelerated pace in the second half of the year. At the same time, we are continuing to make progress on reducing our overhead expenses and think that we will soon be able to show profitability."
Mr. Yates continued, "The Company is expecting to continue to reduce its debt exposure to TCA over the course of 2017, which may further positively impact our bottom line. As of August 14, 2017, we have reduced our debt to TCA by $463,000." (For more information about the Company's finances and prospects please see our recently filed form 10-Q for the period ended June 30, 2017).
Mr. Yates explained some of the Company's future plans, "We are working on some very exciting developments for the Company that we would consider transformative in nature. There are several opportunities to expand our product portfolio that are in front of us. With the debt reductions in place, we are now actively looking for acquisitions to transform our Company for the benefit of our shareholders. We look forward to being able to announce progress in this area when the time is right."
About Pulse Beverage Corporation
Pulse Beverage Corporation ("Pulse") is an emerging beverage company that offers Natural Cabana® Lemonade/Limeade in 7 great tasting, low-calorie flavors and Natural Cabana® Coconut Water in pineapple and natural flavors. With Pulse's revamped business model, utilizing warehouse direct and key accounts, Pulse directly teams up with major retailers like Walmart, Albertsons/Safeway, Kroger, Stater Bros, Food Max, Houchens, Kmart, 7-Eleven, United C-stores, Weis Markets, King Kullen, Dierbergs Markets, Hy-Vee Supermarket, WinCo Foods, Price Less Markets, Gristede's Foods, Toot n Totem and Travel America. Consumers easily find Pulse's prominently displayed products thereby increasing revenue and earnings for shareholders of Pulse.
For more information, please visit: www.pulsebeverage.com or email firstname.lastname@example.org. Follow Pulse Beverage on Twitter at https://twitter.com/drinkpulsebev. Become a Pulse Beverage Facebook Fan at https://www.facebook.com/PulseBeverageCorporation.
This news release contains "forward-looking statements" as that term is defined in Section 27A of the United States Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, regulatory incentives, the development of new business opportunities, and projected costs, revenue, profits and results operations. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects and development stage companies. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K for the most recent fiscal year, our quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission.