Verity Corp Files 10-Q for Second Quarter, 2014
May 27 2014 - 9:00AM
Marketwired
Verity Corp Files 10-Q for Second Quarter, 2014
Gross Profit Margin Increased From 32% to 56%; Recent 8-K
Reports Significant Long Term Debt Reduction
SIOUX FALLS, SD--(Marketwired - May 27, 2014) - Verity Corp
(OTCQB: VRTY) (BERLIN: A2Q) (http://www.veritycorp.com), a
vertically integrated sustainable agriculture company incorporating
natural production technologies and non-GMO standards for the
efficient production of healthy food, filed its 10-Q for the second
quarter ended March 31, 2014.
Consolidated revenues were $366,598 and $690,897 for the three
and six months ended March 31, 2014, as compared to $586,665 and
$682,786 for the three and six months ended March 31, 2013.
Revenues for the second quarter were down 37.5% during the quarter
ended March 31, 2014 as compared to the quarter ended March 31,
2013 and were up 1% as compared to the six months ended March 31,
2013. The Company's gross profit margin increased from 32% of
revenues to 56% of revenues during the quarter ended March 31, 2014
and increased from 40% to 54% for the six months ended March 31,
2014. The increase in gross margin is directly related to a
concentration of higher margin items being sold during the year and
lower margin items being eliminated in 2014.
Operating Expenses decreased $381,286 or 52% during the three
months ended March 31, 2014 as compared to the three months ended
March 31, 2013 and $172,775 or 16% for the six months ended March
31, 2014 as compared to the six months ended March 31, 2013. Verity
was able to reduce consultant and management fees during the six
months ended March 31, 2014.
Loss from operations for the three months ended March 31, 2014
was $143,916 as compared to $541,292 for the three months ended
March 31, 2013 and was $532,964 for the 6 months ended March 31,
2014 as compared to $804,681 for the six months ended March 31,
2013. Verity is concentrating on increasing revenues at a
profitable margin to cover operating expenses in the future.
On May 16, 2014, Verity terminated two contracts for deed that
related to land and buildings in South Dakota and Georgia. The
terminations removed $2,900,000 in long term debt along with the
transfer of land and buildings back to Duane Spader. $232,000 of
accrued interest was also eliminated with the termination of the
contracts for deed. Total liabilities have been reduced by
approximately $3,132,000
Richard Kamolvathin, President and CEO of Verity Corp, said, "We
had three corporate goals to reach in the immediate term. Our
management team identified that we needed to dramatically improve
our balance sheet, introduce more proprietary products and build
a foundation to scale our business. We have met all three
goals. Long term debt has been reduced significantly. Our new
proprietary products are generating new business. And our ability
to ramp up revenues has been improved."
Kamolvathin noted, "We are particularly pleased to see that our
shift to more proprietary products has resulted in a significant
increase in gross profit margins."
"Verity has the technology and expertise to provide farmers with
a comprehensive program to move to non-GMO food production. The
market opportunity is there and we are well positioned to
capitalize on consumers' and farmers' interest in healthy
food," Kalmolvathin concluded.
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About Verity Corp (http://www.veritycorp.com/) Verity Corp is an
agricultural business company offering farmers a broad mix of
products and services that focus on soil and crop health through
the use of earth friendly crop inputs including proprietary
biological media, the use of non-GMO seeds, and the use of
revitalized water in all aspects of farming including livestock
production. Verity's goal is to assist farmers in reducing their
dependency of fertilizers, herbicides and pesticides, through the
efficient application of Verity's solutions. Verity's proprietary
agricultural techniques synthesize historically proven
methodologies with advancements in technology.
Safe Harbor: Statements contained in this news release, other
than those identifying historical facts, constitute
"forward-looking statements" within the meaning of Section 21E of
the Securities Exchange Act of 1934 and the Safe Harbor provisions
as contained in the Private Securities Litigation Reform Act of
1995. Such forward-looking statements relating to the Company's
future expectations, including but not limited to revenues and
earnings, technology efficacy, strategies and plans, are subject to
safe harbors protection. Actual Company results and performance may
be materially different from any future results, performance,
strategies, plans, or achievements that may be expressed or implied
by any such forward-looking statements. The Company disclaims any
obligation to update or revise any forward-looking statements.
Contact: Verity Corp Investor Relations (605)-543-5984
IRContact@veritycorp.com