~ Q1 2021 revenue of $2,667,561 compared to Q1 2020 revenue of $2,067,340
VANCOUVER, BC / ACCESSWIRE / October 4, 2021 / World-Class Extractions Inc. (CSE:PUMP)(FRA:WCF)(OTCQB:WCEXF) (the "Company" or "World-Class"), is pleased to report the operating and financial results for its first quarter ended July 31, 2021.
Financial (audited)
- Revenue of $2,667,561 for the quarter ended July 31, 2021 compared to $2,636,478 for the quarter ended April 30, 2021 and $2,067,340 revenue for the quarter ended July 31, 2020. The increase in revenue is primarily attributable to the operations of Pineapple Express Delivery ("PED"). Gross margin for the quarter ended July 31, 2021 was 22% compared to 35% for the quarter ended July 31, 2020.
- The Company had cash as at July 31, 2021 of $1,921,257 (April 30, 2021 - $2,377,635) and current assets of $4,032,818 (April 30, 2021 - $4,615,345) to settle current liabilities of $4,825,027 (April 30, 2021 - $5,027,537). $2,614,377 current assets and $4,194,510 current liabilities are attributable to PED of which $2,953,101 of the current liabilities relate to convertible debt of $2,366,938 and resulting derivative liability of $438,663, and $147,500 loans payable assumed pursuant to the PED acquisition.
- The Company has long-term debt consisting of $605,431 in non-current portion of lease obligations (attributable to PED) and $99,296 in non-current government grant. Government grant is the Canada Emergency Business Account (CEBA) loans that are interest-free loan until December 31, 2022.
- The net loss and comprehensive loss for the three months ended July 31, 2021 was $262,158 (July 31, 2020 - $1,022,534). The decreased loss for the quarter is mainly attributed to the following:
- loss attributable to non-controlling interest increased $269,878 to $116,987 loss from $152,891 income;
- decrease in general and administrative expenses - $1,033,769 for the quarter ended July 31, 2021 (July 31, 2020 - $1,788,133) which included the following notable expenses: consulting fees of $14,449 (July 31, 2020 - $89,131); research and development expenses of $0 (July 31, 2020 - $332,999); lease interest of $16,890 (July 31, 2020 - $37,090); filing fees of $5,958 (July 31, 2020 - $13,232); office expenses of $317,937 (July 31, 2020 - $169,889 - the increase in expenses is attributable to an increase in insurance premiums, compliance expenses and an increase in PED operations), professional fees of $77,983 (July 31, 2020 - $113,503); management fees of $52,500 (July 31, 2020 - $61,000); rent of $54,109 (July 31, 2020 - $80,883), remuneration and benefits of $476,399 (July 31, 2020 - $632,315); and share-based payments of $17,544 (July 31, 2020 - $257,058); and
- decrease in selling expenses attributed to the costs associated with the revenue generated - $0 for the quarter ended July 31, 2021 (July 31, 2020 - $19,260). Selling expenses lowered mainly due to the hampering of business operations and consequent marketing efforts caused by the COVID-19 pandemic and the halting of some Company promotional, marketing and travel activities.
"These are unprecedented times, and we are incredibly proud of how the Pineapple Express Delivery team has risen to the challenge of ensuring that Canadians receive their regulated product orders in a safe and timely manner. PED continues to be a premiere delivery service of regulated products and will continue to maintain its high standards of security and compliance as it grows to meet clients' needs." said Rosy Mondin, CEO of World-Class. "As we continue to see impacts from the pandemic in our lives and the challenges in our industry, the Company remains committed to long-term value creation and adjusting to market demands. Management remains confident that we have the right team to strategically position WCE to capitalize on the opportunities in the pursuit of stakeholder value."
https://www.accesswire.com/666580/World-Class-Extractions-Reports-Operating-and-Financial-Results-for-the-Three-Month-Period-Ended-July-31-2021