Mon, Jul 15, 5:47 PM (54 days ago)
PureBase Corporation's Form 10-Q for the quarter ended May 31, 2024, reveals key financial metrics and operational updates. The company reported a net revenue increase of 59% year-over-year to $105,722, driven by higher customer purchases in the agricultural sector. However, cost of goods sold also rose by 24%, resulting in a gross margin of $72,647. Operating expenses significantly decreased by 83% to $392,388, primarily due to a reduction in stock-based compensation. Despite this, the company posted a net loss of $340,890, an improvement from the $2,019,216 loss in the same period last year. The balance sheet shows an increase in cash and cash equivalents to $45,940 and a reduction in current liabilities, improving the working capital deficit to $717,450 from $1,493,349. Cash used in operating activities was $1,459,532, while financing activities provided $1,499,900, primarily from advances and lines of credit from US Mine Corporation (USMC). The company remains reliant on USMC for raw materials and financing, raising concerns about its ability to continue as a going concern. Management is implementing measures to address material weaknesses in internal controls. Future operations are contingent on securing additional revenue and financing.