Perk Labs Inc said it has continued to invest in its technology platform in the second quarter of 2022, reporting a 9% increase in its research and development (R&D) expenses 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 in 2021.
The company also increased its spending on 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 awareness campaign.
READ: Perk Labs closes at-the-market equity program after $3.2M in gross proceeds
Sales and marketing expenses decreased 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 of end-user customers.
In a statement, Perk Labs CEO Jonathan Hoyles said during the quarter the company had laid the technical foundation and made significant strides toward transforming the business from a B2C transaction-based marketplace to a B2B software-as-a-subscription and digital franchise business model.
"As we look ahead, I am confident that we can grow our revenue as we continue to build innovative technology and help more entrepreneurs digitize their businesses,” Hoyles said.
“We believe that even after all the change we witnessed during COVID, we are still at the very beginning of the digitization of bricks-and-mortar businesses and ordering, payment and especially digital loyalty will become more in demand. We are tremendously encouraged by the rate of adoption we are seeing at our early order from the table and online ordering customers and the reception to our custom branded app product."
Perk Labs interim CFO Vanessa Altamirano added that the company achieved a number of milestones during 2Q, including the launch of its new downloadable Merchant App, new mobile feature ‘Order and Pay Later,’ and web-based features for online ordering, pick-up and delivery.
"We invested in our technology through these initiatives to create value for restaurants and end-users, and we expect to see a continuing 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 posted a net loss of $1.9 million for the quarter, compared to a 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 decrease in the stock price of Hero Innovation Group Inc, which generated an unrealized loss of $781,000, and an increase in investor relations spending.
Following the release of its 2Q earnings, Perk Labs was trading up about 9.5% at about $0.02 per share.
Perk Labs is the owner of Perk Hero, the digital franchise company helping businesses transition to the digital economy with digital ordering and payment and loyalty tools.
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