DENVER, April 19, 2017 (GLOBE NEWSWIRE) -- The Pulse Beverage Corporation ("Pulse") (OTCQB:PLSB) announced today that it had filed its annual 10-k with the United States Securities and Exchange Commission for the period ended December 31st, 2016.
For the year ended December 31, 2016, Pulse reported gross sales of $2,833,387 vs $3,730,676 for 2015. This represents a decrease of $897,289 or 23.9%. This decrease is consistent with the planned restructuring of Pulse’s operations designed for higher sales per employee, and also to allow Pulse to sell products directly to retailers instead of competing for distributor attention against larger and more well-known brands. While these changes negatively affected revenues during the third and fourth quarter of 2016, Pulse’s operating losses were considerably lower. Management believes these changes will reap benefits in the future. By way of example, subsequent to year end Pulse has shown consistent 20% month over month increases in shipments, and expects that trend to continue.
In 2016, Management elected to incur a one-time non-cash charge to operating expenses in the amount of $1,031,540, which consisted of a planned write-down of certain intangible intellectual property related to formulation, rights, and patents of products not currently marketed for sale. This write-down should be considered when comparing results of operations between the 12 months ended December 31, 2016 and the same period in 2015. Therefore, while we reported a net operating loss of $2,574,173 vs $2,466,273, an increase of $107,780 for the 12 month periods ended December 31, 2016 and 2015 respectively, the actual results excluding that one-time charge are considerably improved. For the year ended December 31, 2016, operating expenses (after deducting the one time charge of $1,031,540 for the intangible asset write-off) were $2,354,540, compared to $3,543,913 for 2015. This represents a significant reduction of $1,188,784 for operating costs. General and administrative expenses were $187,124 lower in 2016 compared to 2015, and salaries and benefits were $318,263 lower in 2016 compared to 2015. The net operating loss for the year-ended December 31, 2016 (after deducting the one-time charge of $1,031,540 for the intangible asset write-off) was $1,542,513, compared to $2,466,273 for the year ended December 31, 2015, a reduction of $923,760. This represents a 37.5 percent reduction in the operating loss for 2016 compared to 2015, and represents a very positive result from Pulse's corporate restructuring.
Total other expenses for 2016 were $769,817 vs $242,653 in 2015, an increase of $527,164. This increase is primarily related to financing and interest costs related to the cost of capital that Pulse needed to restructure and fund operations in 2016.
Net loss for 2016 was $3,447,550 vs $2,708,926 for 2015, an increase of $738,624. Excluding the one-time non-cash charge for the write down of intangible assets in 2016, the net loss for 2016 decreased to $2,416,010 from $2,708,926, an improvement of $292,916 or 10.8% for 2015.
Robert Yates, CEO of Pulse, said, “We have worked very hard to change the way that we do business so that we can accomplish more with fewer costs. We believe that with our new business processes, and the traction of the month over month 20% increases in shipments we are getting with our products, we should be able to become profitable, on an EBITDA basis, during 2017, and our goal is to earn a net income profit in 2018.”
Pulse is expecting to continue to reduce its debt exposure to TCA over the course of 2017 which may further positively impact its bottom line. (For more information about Pulse’s finances and prospects please see its recently filed Form 10-K for the year ended December 31, 2016).
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 info@pulsebeverage.com. Follow Pulse Beverage on Twitter at https://twitter.com/drinkpulsebev. Become a Pulse Beverage Facebook Fan at https://www.facebook.com/PulseBeverageCorporation.
Forward-Looking Statements
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.