World Class Extractions Reports Operating and Financial Results for the Three-Month Period Ended July 31, 2021
~ 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.
- 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.”
World-Class is an innovation-driven company with a focus on the evolving cannabis and hemp industries. World-Class offers compliant and secure delivery of government regulated products through its subsidiary Pineapple Express Delivery Inc., including medical and recreational cannabis in Ontario, Manitoba and Saskatchewan, and liquor delivery in certain jurisdictions in Saskatchewan. World-Class continues to investigate opportunities to monetize its technology, including its extraction and processing systems, technology, and processes, manufactured and created by its subsidiary, Soma Labs Scientific Inc.
World-Class Extractions Inc.
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Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this press release, which has been prepared by management.
Cautionary Note Regarding Forward-Looking Statements
All statements in this press release, other than statements of historical fact, are “forward-looking information” with respect to the Company within the meaning of applicable securities laws. The Company provides forward-looking statements for the purpose of conveying information about current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. These risks and uncertainties include but are not limited those identified and reported in the Company’s public filings under the Company’s SEDAR profile at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.
SOURCE: World-Class Extractions Inc.
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