DENVER, Nov. 14, 2017 (GLOBE NEWSWIRE) -- The Pulse Beverage Corporation ("Pulse") (OTCQB: PLSB) announced today that it had filed its Q3 FY2017 Quarterly Report (10-Q) with the United States Securities and Exchange Commission for the period ended September 30, 2017.
For the 3-month period ended September 30, 2017, the Company reported gross sales of $467,966 vs $709,754 for the comparable period in 2016. This represents a decrease of $241,788 or 34.0%. 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 its wares directly to strategic retailers. While these changes negatively affected revenues during the third 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 September 30, 2017 the Company's net operating loss was $922,137 compared to a loss of $683,262 for the comparable period in 2016.
When adding back non-cash charges and gains due to the accretion of discount on convertible debt, gain on extinguishment of convertible debt and changes in the fair value of derivative liabilities are excluded, the loss narrows to $447,621 which is directly comparable to the $511,189 comparable period loss in 2016. This means that on a cash basis the Company's quarterly loss narrowed by $63,568 or more than 12.4%.
For the 9 months ended September 30, 2017 and September 30, 2016 revenues were $1,264,672 and $2,450,949, respectively and represent a decline of $1,186,277 or 48.0%. Non-GAAP net loss for the same periods was $1,368,904 and $1,290,114. This represents an expansion of losses of $78,790 or 6.1%
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 third quarter 2017 and expect to continue winning accounts at an accelerated pace over the next twelve months. 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 remainder of 2017 and into 2018, which may further positively impact our bottom line. As of September 30, 2017, we have reduced our debt to TCA by a further $188,702 from the principal balance reported as at June 30, 2017." (For more information about the Company's finances and prospects please see our recently filed form 10-Q for the period ended September 30, 2017 as compared to the 10-Q for the period ended June 30, 2017).
Subsequent to the quarter end, the Company has entered into a Distribution Agreement with TDG Brands, Inc (“TDG”) of Scottsdale, Arizona. TDG will represent the Company’s products initially in China, Russia, and select EU countries. The first purchase orders have been received in the amount of US$450,000 for a combination of our Natural Cabana® Coconut Waters, Lemonades, and Limeades. If these products are appreciated in the China and Russia markets, this could result in sustainable and substantial reoccurring quarterly sales in China and Russia that would be incremental to our existing sales channels.
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.
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