Pervasip Corp (OTCMKTS:PVSP) revenue in 1Q2015 declined 99.6% to $894 from $213,662 recorded in the same quarter, a year ago. The decline in revenue can be attributed to the sale of most of company’s clients on September 30, 2014. However, the management now believes that the company is in a better position to re-establish the revenue as the operating loss has declined.
The highlights
In 1Q2015, the gross profit came at $268 compared to gross profit of $89,628 recorded in the quarter ending February 28, 2014. The decline in gross profit can be attributed to the sale of a big percentage of customers in 4Q2014.
S,G&A expenses declined 81% to $67,318 in 1Q2015 from $359,566 recorded in the same quarter a year earlier. Pervasip mentioned that the decline was primarily due to decline in personnel cost and cost cutting. The loss from operations came at $67,050 compared to $269,938 recorded in 1Q2014.
The performance
Pervasip reported that interest expenses came at $356,767 in 1Q2015 compared to $518,851 in the same quarter last year. The decline in interest expense was due to lower outstanding debt and larger borrowings in 1Q2014 when debt discounts surpassed or equaled the face value of new “promissory notes”.
Pervasip noted a gain on debt restructuring of $527,469 in 1Q2015. There were no transactions recorded in the quarter ended February 28, 2014. In 1Q2015 the company worked on two debt modification deals and a debt assignment deal that resulted in a gain on debt restructuring.
The other gains
Pervasip Corp (OTCMKTS:PVSP) reported that in 1Q2014 it made a profit of $640,180 on the sale of a subsidiary firm. No such transaction was recorded in 1Q2015. However, it recorded a profit on the extinguishments settlement of its liabilities worth $115,953 compared to $300,686 gain in the quarter ended February 28, 2014. Pervasip net result in 1Q2015 was a net loss of $1.95 million against net income of $388,045 in 1Q2014.
In last trading session, the stock of PVSP gained 10% to close the trading session at $0.00110. The gains came at a share volume of 59.99 million compared to average share volume of 67.08 million.
