SIOUX FALLS, SD, Jan 16, 2014 - Verity Corp (OTCQB: VRTY) (http://www.veritycorp.com/), a vertically integrated sustainable agriculture company incorporating natural production technologies and non-GMO standards for the efficient production of healthy food, filed its 10-K for the 2013 Fiscal Year today.
Consolidated revenues were $2.4 million for the year ended September 30, 2013, an increase of $2.0 million or approximately 436% over consolidated revenues for the year ended September 30, 2012. Along with the increased revenue, the Company's gross profit increased $1.1 million for the year ended September 30, 2013, an increase of 1002% over consolidated gross profit for the year ended September 30, 2012. All comparisons include revenues from the acquisition of Aqualiv Technologies.
Consolidated net loss was $7,593K compared to $623K for the year ended September 30. Eighty-five percent (85%) of the period's loss is attributable to onetime adjustments of a $5,943K loss on goodwill impairment for recognizing the audit adjustments relating to the acquisition of Verity Farms and the $8K loss on the discontinued operations of Focus Systems.
Loss from operations was $1,710K, which includes approximately $300K in non-recurring expenses associated with the share exchange agreement between Aqualiv and Verity Farms. The Company continues to look for ways to improve its revenue stream at the same time reducing operating expenses.
Richard Kamolvathin, President and CEO of Verity Corp, said, "The year of 2013 will be recorded as a transitional year marked by the company going through the difficult process of going public and changing the management team. Although our loss was mostly non-cash charges associated with going public, any operating loss is unacceptable. We have taken the steps necessary to maximize revenues with an emphasis on high margin products and cutting operating costs."
Kamolvathin continued, "For 2014, we now have an audit team in place, new positions filled at our facilities in Georgia and South Dakota and launching new proprietary products for our customers. We are about to enter the very busy planting season and we look forward to continuing our positive revenue trend as we begin to maximize the benefits of going public."
Kamolvathin concluded, "Verity management will be conducting an informative webcast that will be posted on our website next Wednesday, January 22. Management will discuss the financial results for 2013, the business plan for 2014 and questions submitted by shareholders to Verity Investor Relations (IRContact@veritycorp.com). We encourage all current shareholders and interested investors to send questions by January 20."
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About Verity Corp (http://www.veritycorp.com/)
Verity Corp is an agricultural business company offering farmers a broad mix of products and services that focus on soil and crop health through the use of earth friendly crop inputs including proprietary biological media, the use of non-GMO seeds, and the use of revitalized water in all aspects of farming including livestock production. Verity's goal is to assist farmers in reducing their dependency of fertilizers, herbicides and pesticides, through the efficient application of Verity's solutions. Verity's proprietary agricultural techniques synthesize historically proven methodologies with advancements in technology.
Safe Harbor: Statements contained in this news release, other than those identifying historical facts, constitute "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934 and the Safe Harbor provisions as contained in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements relating to the Company's future expectations, including but not limited to revenues and earnings, technology efficacy, strategies and plans, are subject to safe harbors protection. Actual Company results and performance may be materially different from any future results, performance, strategies, plans, or achievements that may be expressed or implied by any such forward-looking statements. The Company disclaims any obligation to update or revise any forward-looking statements.
Verity Corp Investor Relations
SOURCE: Verity Corp.