PureBase Corporation Reports Mixed Financial Results for Q3 and Nine Months Ended August 31, 2024

PureBase Corporation reported its financial results for the three and nine months ended August 31, 2024, revealing a mixed performance compared to the previous fiscal period. For the three months ended August 31, 2024, the company generated revenue of $204,314, a slight decrease of 1% from $207,243 in the same period of 2023. For the nine-month period, revenue totaled $310,036, down 5% from $325,875 in the prior year, primarily due to a lack of agricultural product sales in early 2024.

The company's operating expenses surged significantly, with total operating expenses for the three months ending August 31, 2024, reaching $410,570, an increase of 33% from $290,487 in the same quarter of 2023. This rise was largely driven by a substantial increase in selling, general, and administrative expenses, which rose to $406,379 from $288,487. Consequently, PureBase reported a loss from operations of $(253,434) for the three months ended August 31, 2024, compared to a loss of $(127,324) in the same period of 2023. The net loss for the quarter was $(276,838), up from $(152,026) year-over-year.

For the nine months ended August 31, 2024, the net loss was $(1,108,700), a significant reduction from $(8,002,041) in the same period of 2023, reflecting improved operational efficiency despite ongoing losses. The company’s total operating expenses for the nine months decreased dramatically to $1,264,714 from $8,496,542, primarily due to a reduction in stock-based compensation.

On the balance sheet, as of August 31, 2024, total assets increased to $881,812 from $811,521 at the end of November 2023, while total liabilities decreased significantly to $1,535,922 from $3,040,031. This reduction in liabilities was accompanied by a notable improvement in stockholders' deficit, which narrowed to $(654,110) from $(2,228,510).

Cash and cash equivalents rose to $31,246 as of August 31, 2024, compared to $5,572 at the end of November 2023. The company reported net cash used in operating activities of $(1,957,010) for the nine months, an increase from $(900,536) in the previous year, while net cash provided by financing activities was $1,982,684, up from $1,109,983.

Strategically, PureBase continues to rely on financing from US Mine Corporation (USMC) to support its operations, with significant advances and convertible notes issued during the period. The company has also engaged a third-party financial operations consulting firm to address identified weaknesses in its internal controls over financial reporting.