Phoenix Rising Companies (PRCX), a company with operations in the petroleum industry, recently reported its financial results for the year ended December 31, 2021. The company posted a net income of $10,350,864, a significant improvement from the net loss of $25,801,332 in 2020. This uptick in net income happened even as PRCX’s overall revenue declined from $14,355,341 in 2020 to $13,430,991 in 2021, a decrease of $924,350.
Despite the changes in demand and pricing influenced by the COVID-19 pandemic, the drop in cost of goods sold and the change in fair value of derivative liabilities relating to convertible notes accounted for the increase in net income. The cost of goods sold decreased by $918,686, from $14,281,300 in 2020 to $13,362,614 in 2021, which aligns with the decreased revenue during this period.
Aside from the cost of goods sold, operating expenses also decreased from $3,086,862 in 2020 to $799,370 in 2021 due to a decline in stock-based compensations. Other income significantly improved, increasing by $33,864,722 due to changes in fair value of derivative liabilities related to convertible notes. This resulted in the other income of $11,096,752 in 2021 compared to the previous year’s -$22,767,970.
The PRCX report also revealed various business segments for the year ended December 31, 2021, and 2020
For the holding company, operating expenses decreased by $2,287,464 between the two years. Other income increased by $33,864,722, resulting in a net income in 2021 for the holding company at $10,342,665 against the 2020 net loss of $25,809,521.
As for the oil and gas segment, both revenue and cost of goods sold experienced modest declines. Revenue fell from $14,355,341 in 2020 to $13,430,991 in 2021, whilst the cost of goods sold decreased from $14,281,300 to $13,362,614. As a result, the oil and gas segment reported a net income of $8,199 in 2021 compared to $8,189 in 2020.
Phoenix Rising Companies (PRCX) has been navigating the uncertain economic climate largely caused by the COVID-19 pandemic. Despite the decrease in revenue for the year ended December 31, 2021, the company’s overall financial performance showcases resilience and adaptability in the face of adversity, as demonstrated by the substantial increase in net income.
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