The PAWS Pet Company, the innovative pet services company, reported record results for the second quarter ending 30th June, 2011.
“Our Pet Airways subsidiary experienced significant revenue growth in the second quarter of 2011 as we enter into the summer travel season. This marks the highest revenues achieved for our airline operations to date,” commented Andrew Warner, President and CFO of The PAWS Pet Company.
“With the closing of our recent financing, we have access to more capital, allowing us to execute on the expansion of our broader strategy of providing innovative pet services that complement our growing pet airline revenues.”
Highlights for the Second Quarter Ended June 30, 2011
Revenue for the second quarter of 2011 was $519,000 compared to $253,000 in the second quarter of 2010, an increase of approximately 105 percent.
Net loss for the second quarter of 2011 was $14.4 million or $0.35 per common share, including $12.8 million in non-cash warrant liability charge associated with the recent Socius financing, compared to net loss of $257,000 or $0.01 per common share in the second quarter of 2010.
Net loss for the second quarter of 2011 was $1.6 million or $0.04 per common share, excluding $12.8 million in non-cash warrant liability charge, compared to net loss of $257,000 or $0.01 per common share in the second quarter of 2010
Net loss for the second quarter of 2011 included non-cash expenses of $13.6 million or $0.33 per common share, compared to $213,000 or $0.01 per common share in the second quarter of 2010. The 2011 non-cash expenses are due to the warrant liability charge, loss on extinguishment of debt, debt discount amortization, settlement of interest payable on convertible debentures and compensation to non-employees in shares of common stock in lieu of cash, and depreciation.
On June 3, 2011, we entered into a definitive agreement with Socius CG II, Ltd. (“Socius”), under which Socius purchased 2,253,470 shares of common stock and was issued a warrant to purchase up to 20,476,707 shares of common stock at an initial exercise price of $1.02 (subject to anti-dilution adjustment), for a total purchase price of $500,000, and an equity line to purchase up to an additional $5,000,000 in non-convertible Series A Preferred Stock from the Company over the next two years, subject to the Company meeting certain conditions.
Dan Wiesel, Chairman and CEO of The PAWS Pet Company, added, “Building upon the record revenue growth we’ve experienced in the second quarter, we expect further revenue increases for the balance of 2011 and into 2012, which we anticipate would put us on a path to becoming cash flow positive by the end of 2012.”
About The PAWS Pet Company
Its wholly owned subsidiary Pet Airways is the only airline specifically designed for the safe and comfortable transportation of pets. Pet Airways’ Pawsengers™ travel in the specially equipped main cabin of its planes — where pets are continuously monitored by an In-Flight Pet Attendant and the climate is controlled for maximum pet comfort.
With Pet Airways, pet parents can be assured their pets will be treated with tender, loving care by pet professionals throughout the journey. The airline launched flight operations in 2009 and currently serves coast-to-coast destinations across the United States, including Los Angeles, Phoenix, Denver, Omaha, Chicago, Baltimore, New York, Atlanta and Ft. Lauderdale. The company has also announced its upcoming expansion to Orlando, Dallas, Austin, Houston and St. Louis.