DENVER and VANCOUVER, British Columbia, May 25, 2022 (GLOBE NEWSWIRE via COMTEX) --
DENVER and VANCOUVER, British Columbia, May 25, 2022 (GLOBE NEWSWIRE) -- Koios Beverage Corp.
(the "Company" or "Koios") hereby provides an overview of its financial status as at the end of its third quarter for the interim period ended February 28, 2022 ("Q3 2022"). The Company's management is pleased to report significant growth in revenue, improvements to gross margin, reduced expenses, and strong cash holdings with minimal debt liabilities. With the recent addition of new products and an expansion of the Company's retail and distribution footprint, the Company believes its financial performance in Q3 2022 foreshadows strong performance in the future ahead.
Highlights from the Company's unaudited condensed interim consolidated financial statements for the six-month period ended February 28, 2022, and 2021, filed on SEDAR as at April 29, 2022 are listed below. Unless otherwise noted, all figures reflect data for the three-month period at the end of the Company's Q3 2022 (February 28, 2022), and are expressed in US dollars:
Cash holdings were $2,038,838 in Q3 2022, 678.92% higher than Q2 2021 cash holdings of $300,304. Total liabilities were $2,164,582, 137.2% higher than Q2 2022 liabilities of $1,577,715.
The cost of sales decreased by 29.5% from $473,194 in Q2 2021 to $333,435 in Q3 2022.
There was a 287.48% increase in revenue in the same periods from 259,588 to $746,264 resulting in a significant increase to the Company's gross margin as described below.
Gross margin was 55.32%, compared to Q2 2021 in which gross margin was -82.29%  .
From Q2 2021 to Q2 2022, the Company reduced its expenses in several categories to include office (by 69.78%), freight and shipping fees (by 19.82%) and rent (by 2.79%).
Overall, the Company's general and administration expenses increased by 158.21% from $348,291 in Q2 2021 to $551,035 in Q3 2022, including a 118.55% increase in the corporate development category from $20,889 in Q2 2021 to $24,763 in Q3 2022.
Koios encourages readers to review the Company's unaudited condensed interim consolidated financial statements for the nine-month period ended February 28, 2022, and 2021 and accompanying MD&A for the same period as filed on SEDAR April 29, 2022 prior to drawing any conclusions or taking any action based on the data provided in the highlights above. These documents may be found under the Company's SEDAR profile at http://sedar.com
On behalf of the Board of Directors of the Company,
KOIOS BEVERAGE CORP.
Chris Miller, CEO, and Director
For further information, please contact:
THE CANADIAN SECURITIES EXCHANGE (CSE) HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ACCURACY OR ADEQUACY OF THIS RELEASE.
About Koios Beverage Corp.
The Company is an emerging functional beverage company which has an available distribution network of more than 4,400 retail locations across the United States in which to sell its products. Koios has relationships with some of the largest and most reputable distributors in the United States, including Europa Sports, Muscle Foods USA, KeHE, and Wishing-U-Well. Koios uses a proprietary blend of nootropics and natural organic compounds to enhance human productivity without using harmful chemicals or stimulants. Koios products have been shown to enhance focus, concentration, mental capacity, memory retention, cognitive function, alertness, brain capacity and create all day mental clarity. Its ingredients are specifically designed to target brain function by increasing blood flow, oxygen levels and neural connections in the brain.
Koios produces one of the only drinks in the world infused with MCT oil. MCT oil is derived from coconuts and has been shown to help the body burn fat more effectively, create lasting energy from a natural food source, produce ketones in the brain, allowing for greater brain function and clarity, support healthy hormone production and improve immunity. For more information, please visit our website: https://www.koiosbeveragecorp.com .
This news release includes statements containing certain "forward-looking information" within the meaning of applicable securities law ("forward-looking statements"). Forward-looking statements are frequently characterized by words such as "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. These forward-looking statements are only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release. Forward-looking statements are based on the opinions, estimates and assumptions of management in light of management's experience and perception of historical trends, current conditions and expected developments at the date the statements are made, such as current and future market conditions, the current and future regulatory environment and future approvals and permits. Forward-looking statements are subject to a variety of risks, uncertainties and other factors that management believes to be relevant and reasonable in the circumstances could cause actual events, results, level of activity, performance, prospects, opportunities or achievements to differ materially from those projected in the forward-looking statements, including general business and economic conditions, changes in laws and regulations, product demand, changes in prices of required commodities, competition and other risks, uncertainties and factors set out under the heading "Risk Factors" in the Company's annual financial statements and accompanying management discussion and analysis dated October 7, 2021 (the "Financial Statements") and filed with Canadian securities regulators available on the Company's issuer profile on SEDAR at www.sedar.com . The Company cautions that the list of risks, uncertainties and other factors described in the Financial Statements is not exhaustive and other factors could also adversely affect its results. Readers are urged to consider the risks, uncertainties and assumptions carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such information. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities laws.
The statements in this news release have not been evaluated by Health Canada or the U.S. Food and Drug Administration. As each individual is different, the benefits, if any, of taking the Company's products will vary from person to person. No claims or guarantees can be made as to the effects of the Company's products on an individual's health and well-being. The Company's products are not intended to diagnose, treat, cure, or prevent any disease.
This news release may contain trademarked names of third-party entities (or their respective offerings with trademarked names) typically in reference to (i) relationships had by Koios with such third-party entities as referred to in this release and/or (ii) client/vendor/service provider parties whose relationship with Koios is/are referred to in this release. All rights to such trademarks are reserved by their respective owners or licensees.
SOURCE Koios Beverage Corp.
 This gross margin improvement can be attributed to the Company's ability to benefit from economies of scale in its operations, in addition to re-negotiating preferable terms with suppliers and co-packing facilities. The Company also increased its focus on multiple distribution partnerships, which also positively impacted its gross margin in this period.
Is there a problem with this press release? Contact the source provider Comtex at firstname.lastname@example.org. You can also contact MarketWatch Customer Service via our Customer Center.
(C) Copyright 2022 GlobeNewswire, Inc. All rights reserved.