Perk Labs Inc said it continued to invest in its technology platform in the second quarter of 2022, reporting a 9% increase in research and development (R&D) spending during this period.
For the quarter ended May 31, 2022, the company spent $406,000 on R&D, compared to $372,000 in the same quarter of 2021.
The company also increased its general and administrative expenses by 14%, from $568,000 in 2Q 2021 to $645,000, to support the prioritization of investor relations through its market outreach campaign.
Sales and marketing expenses fell 35% from $346,000 in the second quarter of last year to $225,000 this quarter, as Perk Labs refocused its marketing efforts on businesses and franchises instead. than on end-user customers.
In a statement, Perk Labs CEO Jonathan Hoyles said that during the quarter the company laid the technical foundation and made significant progress towards transforming the business from a B2C transaction-based marketplace. into a software-as-a-subscription and B2B digital franchise business model. .
“Looking ahead, I’m confident we can grow our revenue while continuing to develop innovative technologies and help more entrepreneurs digitize their businesses,” Hoyles said.
“We believe that even after all the changes we have witnessed during COVID, we are still at the very beginning of the digitalization of physical businesses and ordering, payment and especially digital loyalty will become more and more in demand. We are extremely encouraged by the adoption rate we are seeing with our first orders at the table and our customers ordering online, as well as the reception of our custom branded application product. »
Perk Labs Acting Chief Financial Officer Vanessa Altamirano added that the company achieved a number of milestones during Q2, including the launch of its new downloadable app for merchants, new mobile functionality “Order and Pay later” and web features for online ordering, pickup and delivery.
“We have invested in our technology through these initiatives to create value for restaurants and end users, and we expect to see a continued increase in customer adoption,” Altamirano said.
Perk Labs reported working capital for the quarter of $989,000, compared to $3 million in the year-ago quarter.
The company reported a net loss of $1.9 million for the quarter, compared to net profit of $241,000 in the year-ago quarter. Perk Labs attributed the loss to the reduction in the value of its marketable securities caused by the decline in the stock price of Hero Innovation Group Inc, which generated an unrealized loss of $781,000 and increased relationship expenses. with investors.
Following the release of its Q2 earnings, Perk Labs was trading up around 9.5% at around $0.02 per share.
Perk Labs is the owner of Perk Hero, the digital franchise company that helps businesses move into the digital economy with digital ordering, payment and loyalty tools.
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