Company also sees strong market environment confirmed by active Q1
RED BANK, NJ / ACCESSWIRE / July 10, 2024 / Propellus Inc., an Oklahoma corporation, (OTC PINK:PRPS), an alternative finance company that specializes in assisting small businesses with their cash flow needs, reported its financial results for its fiscal year ending March 31, 2024.
Higher interest rates, the challenging economic landscape, and tightening credit at most US lending institutions continue to impact small businesses, and many merchants are seeking financing outside traditional channels. "Based on our experience, we feel these market conditions benefit the financing alternatives offered by Propellus, and that has been confirmed by our initial activity in the first quarter," stated Ralph Johnson, CEO. "Company funding activity was the highest it's been in over a year, and our collections increased over 40% in sequential quarters Q4 to Q1", continued Johnson.
During fiscal year 2024, Propellus took the opportunity to complete a capital restructure that had the net effect of reducing the amount of our outstanding common shares from 10,387,116 to 8,996,016, which is a 13% reduction year over year, but represents a 38% reduction from December 31, 2023 after the conversion of over 90% of Convertible Preferred Class A and Class B shares into 4,098,900 common shares at $1.80 per share. With the conclusion of its fiscal year, the Company finalized a write-down of $3,159,221 in predominately pre-Covid non-performing transactions to largely close the chapter on pandemic affected assets acquired during an asset liquidation and exchange in late 2020.
Johnson added, "We also instituted a new corporate dividend policy to provide for the payout of 50% of free monthly cash flow to our common shareholders in the form of a cash distribution. We are experiencing a huge surge in demand and in order to continue serving this increasing market opportunity, we are currently working on several alternatives to potentially expand our capital base by up to $20,000,000. We look forward to increasing our market share and profitability for the benefit of our shareholders during the current fiscal year and beyond."
FY 2024 Highlights
Total Revenues during the period totaled $598,629 from $1,408,915 from the prior fiscal year.
While Total Expenses during the period increased to $4,820,115 from $2,082,492, excluding the pandemic assets write-down and non cash stock compensation, Operating Expenses fell 37% to $1,328,494 from $2,122,493 in the prior fiscal year.
Net Loss during the period increased to $4,221,486 from $673,577 from the prior fiscal year and Profit/(Loss) Per Share during the period increased to ($0.39) from ($0.06) from the prior fiscal year.
About Propellus Inc.: Propellus Inc., is engaged in offering small businesses a variety of financing alternatives usually ranging in amounts between $10,000-$250,000. Such financings include payroll advances, merchant cash advances, accounts receivable factoring, short-term line of credit loans, and other types of loan products and cash flow financing.
CONTACT:
Investor Relations
info@propelluscorp.com
SOURCE: Propellus Inc.
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