Phoenix Rising Companies (ticker: PRCX) witnessed a commendable financial turnaround in its latest financial report, showcasing a net income of $10.35 million in 2021, a significant improvement from the net loss of $27.8 million in 2020. This article will dive into the details from the SEC report, touching on various aspects such as earnings per share, convertible debts, and other subsequent events impacting the company.
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Earnings per Share and Convertible Debts
The company’s basic net income per common share rose to $0.07 in 2021, a considerable increase from the loss of $0.32 per share in 2020. However, the diluted net income per share was -$0.00 in 2021, reflecting the impact of convertible instruments during the period.
Convertible debts contributed to a significant change in the fair value of derivative liabilities, totaling $12,207,480 in 2021. Additionally, the interest on convertible debts amounted to $137,045. These factors led to a net loss of $1,993,661 for diluted earnings per share calculation purposes.
Weighted Average Common Shares Outstanding
The weighted average common shares outstanding for 2021 stood at 139,754,668 for basic calculations and 636,042,148 for diluted calculations. This is in contrast to 87,872,217 weighted average shares in 2020. The significant increase in the weighted average common shares can be attributed to the impact of dilutive shares in the form of Series A Preferred Stock, convertible notes, and warrants during the year.
Subsequent Events and Transactions
Following the December 31, 2021 reporting period, Phoenix Rising Companies saw several noteworthy subsequent events and transactions. The company issued 73,050,000 shares for the conversion of debt amounting to $242,581. Moreover, the issuance of convertible notes totaling $112,500 came with a one-year term and an 8% annual interest rate. These notes are convertible at the option of the holders after six months from the issuance date, with conversion prices based on a 35% discount to the company’s lowest trading prices during the ten periods prior to conversion. However, certain notes have a floor price of $0.01.
After posting a remarkable net income in 2021 and reversing the substantial loss from the previous year, Phoenix Rising Companies has shown encouraging signs of financial progress. The company’s efforts in managing its debts and attracting investments through convertible notes and the issuance of new shares add to its potential for sustained growth. As the company continues to build on its recent achievements, investors and stakeholders will undoubtedly keep a close eye on future developments and financial milestones.
Note that we may hold securities mentioned in this article. All data is based on recent SEC filings. Even though we have implemented various manual and automatic fact-checking and data acquisition processes, some incorrect information may have slipped through (false positive). Let us know if you find any inconsistencies!