Exhibit
99.1
Perfect
Moment Reports Fiscal Q1 2027 Results
LONDON—August
17, 2026—Perfect Moment Ltd. (OTC: PMNT) (“Perfect Moment” or the “Company”), the high-performance, luxury
lifestyle brand that fuses technical excellence with fashion-led designs, reported results for its fiscal first quarter ended June 30,
2026.
Fiscal
Q1 2027 Financial Highlights
| ● | Fiscal
Q1 is the Company’s seasonally lowest quarter, representing approximately 6% of fiscal
2026 annual revenue, with sales in the period driven by swimwear and activewear. |
| ● | Revenue
declined 21.9% to $1.2 million compared to $1.5 million in Q1 FY26. |
| ● | Wholesale
revenue increased 268% to $563,000 compared to $153,000 in Q1 FY26. |
| ● | Gross
margin decreased 580 basis points to 54.5% compared to 60.3% in Q1 FY26. |
| ● | Total
operating expenses decreased 1.4% to $3.89 million compared to $3.94 million in Q1 FY26. |
| ● | Loss
from operations increased by approximately $205,000 to $3.3 million compared to a loss from
operations of $3.1 million in Q1 FY26. |
| ● | Net
loss improved by approximately $286,000 to $3.5 million, or $(0.07) per diluted share, compared
to a net loss of $3.8 million, or $(0.21) per diluted share, in Q1 FY26. |
| ● | Adjusted
EBITDA loss increased by approximately $564,000 to $3.1 million compared to an adjusted EBITDA
loss of $2.6 million in Q1 FY26. |
| ● | Raised
$2.0 million of gross proceeds through a securities purchase agreement in May 2026; cash
and cash equivalents of $0.7 million at June 30, 2026, with $4.0 million undrawn on the Company’s
$10.0 million revolving credit facility. |
Management
Commentary
“Our
first fiscal quarter is seasonally our lowest, driven by swimwear and activewear ahead of the winter season, and this year it also reflected
a deliberate reset as we transition Perfect Moment to a full-price luxury brand model,” said Jane Gottschalk, Co-Founder, Creative
Director and President of Perfect Moment. “Our summer activation began later in the quarter than planned, but sales strengthened
through June as our campaigns took hold, and the response to the brand – from wholesale partners in particular – has been
very encouraging. Our energy is now firmly focused on September: the launch of our Fall/Winter 2026 collection, a step-up in brand activation,
and a sharper eCommerce and marketing engine to convert the brand’s momentum into full-price sales through our peak season.”
Chath
Weerasinghe, Chief Financial and Operating Officer of Perfect Moment, commented: “In Q1, the Company continued to execute on its
transformation, with a focus on strengthening its technology and operating infrastructure to support future scale and disciplined, sustainable
growth. Additionally, total operating expenses remained essentially flat year-over-year, while we continued to make targeted investments
in agency support and event-based growth activations. Together with significantly lower financing costs, this contributed to a further
narrowing of our net loss.
“We
also strengthened our balance sheet during the quarter, securing $2.0 million through our May 2026 securities purchase agreement, alongside
our $10.0 million revolving credit facility. With inventory well positioned for the upcoming winter season, we are now focused on disciplined
execution through our September launch and the peak trading period.”
Fiscal
Q1 2027 Financial Summary
Reflecting
the seasonality of the business, the fiscal first quarter is historically the lowest revenue quarter. In fiscal 2026, the first quarter
represented approximately 6% of annual revenue, with sales in the period driven by swimwear and activewear ahead of the fall/winter season.
First
quarter total net revenue decreased 21.9% to $1.2 million compared to $1.5 million in the year-ago quarter. The decrease was primarily
driven by non-recurring partnership revenue, together with lower eCommerce revenue as the Company transitions toward a full-price brand
model, partially offset by strong growth in wholesale revenue.
First
quarter eCommerce net revenue decreased 40.2% to $585,000 compared to $978,000 in the year-ago quarter, reflecting the Company’s
strategic shift away from discounted online sales as it transitions toward a full-price brand model.
First
quarter wholesale revenue increased 268% to $563,000 compared to $153,000 in the year-ago quarter, reflecting the continued build-out
of the Company’s wholesale channel ahead of the winter season.
First
quarter gross profit decreased to $627,000 compared to $889,000 in the year-ago quarter. First quarter gross margins were 54.5% compared
to 60.3% in the year-ago quarter. The decrease was primarily attributable to a change in revenue mix, as the year-ago quarter benefited
from higher-margin partnership revenue that did not recur in the current period. This was partially offset by the Company’s continued
focus on disciplined pricing, inventory management and sourcing initiatives.
First
quarter total operating expenses decreased 1.4% to $3.89 million from $3.94 million in the year-ago quarter. The decrease was driven
by continued cost discipline across the organization, partially offset by increased agency support and event-based activations designed
to drive growth across both direct-to-consumer and wholesale channels. The Company remains focused on managing its operating cost base
while continuing to invest selectively in initiatives that support long-term growth.
First
quarter loss from operations increased by approximately $205,000 to $3.3 million compared to a loss from operations of $3.1 million in
the year-ago quarter.
First
quarter net loss was $3.5 million, or $(0.07) per diluted share, compared to a net loss of $3.8 million, or $(0.21) per diluted share,
in the year-ago quarter. The improvement primarily reflects a $542,000 decrease in interest expense and finance costs following the restructuring
of the Company’s financing arrangements.
First
quarter adjusted EBITDA loss increased by approximately $564,000 to $3.1 million compared to an adjusted EBITDA loss of $2.6 million
in the year-ago quarter. The increase in adjusted EBITDA loss primarily reflects lower revenue and gross margin compared with the prior-year
period, partially offset by continued discipline in operating expenses and ongoing efforts to manage the Company’s cost structure.
Balance
Sheet Highlights
Cash
and cash equivalents were $0.7 million at June 30, 2026, compared to $1.2 million at March 31, 2026. During the quarter, the Company
raised $2.0 million of gross proceeds through its May 2026 securities purchase agreement and drew $0.9 million on its $10.0 million revolving
credit facility, with $6.0 million drawn at quarter-end. An additional $1.0 million was drawn on the facility in July 2026. Accounts
receivable were $1.1 million at June 30, 2026, compared to $2.1 million at March 31, 2026, primarily reflecting the collection of outstanding
receivables during the quarter, supporting liquidity in the current period.
Inventory
was $3.7 million at June 30, 2026, compared to $3.9 million at March 31, 2026, reflecting improved inventory planning and purchasing
timing. Purchases remain weighted toward the upcoming winter season and expanded sales channels, positioning the Company for stronger
sell-through performance during its peak season.
About
Perfect Moment Ltd.
Founded
in Chamonix, France, Perfect Moment is a luxury outerwear and activewear brand that merges alpine heritage with fashion-forward performance.
Known for its technical excellence, bold design, and versatile pieces that transition seamlessly from slopes to city, the brand is worn
by athletes, tastemakers, and celebrities worldwide. Perfect Moment is traded on the OTCQB under the ticker symbol PMNT. Learn more at
www.perfectmoment.com.
Forward-Looking
Statements
This
press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private
Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, contained in this press release are
forward-looking statements. Forward-looking statements contained in this press release may be identified by the use of words such as
“anticipate,” “believe,” “contemplate,” “could,” “estimate,” “expect,”
“intend,” “seek,” “may,” “might,” “plan,” “potential,” “predict,”
“project,” “target,” “aim,” “should,” “will,” “would,” or the
negative of these words or other similar expressions, although not all forward-looking statements contain these words. Forward-looking
statements are neither historical facts nor assurances of future performance. Instead, they are based on our current expectations and
are subject to inherent uncertainties, risks and assumptions that are difficult to predict. Further, certain forward-looking statements
are based on assumptions as to future events that may not prove to be accurate. Our actual results and financial condition may differ
materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements.
Important factors that could cause our actual results and financial condition to differ from those contained in the forward-looking statements,
include those risks and uncertainties described more fully in the sections titled “Risk Factors” in our Form 10-K for the
fiscal year ended March 31, 2026, filed with the Securities and Exchange Commission. Any forward-looking statements contained in this
press release are made as of this date and are based on information currently available to us. We undertake no duty to update any forward-looking
statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or
otherwise.
PERFECT
MOMENT LTD AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE
LOSS
(Amounts
in thousands, except share and per share data)
(Unaudited)
| | |
Three months ended June 30, 2026 | | |
Three months ended June 30, 2025 | |
| Revenue, net | |
$ | 1,150 | | |
$ | 1,472 | |
| Cost of sales | |
| 523 | | |
| 583 | |
| Gross profit | |
| 627 | | |
| 889 | |
| Operating expenses: | |
| | | |
| | |
| Selling, general and administrative expenses | |
| 3,380 | | |
| 3,415 | |
| Marketing and advertising expenses | |
| 507 | | |
| 529 | |
| Total operating expenses | |
| 3,887 | | |
| 3,944 | |
| Loss from operations | |
| (3,260 | ) | |
| (3,055 | ) |
| Other income (expense), net | |
| | | |
| | |
| Interest expense and finance costs1 | |
| (237 | ) | |
| (779 | ) |
| Foreign currency transactions (loss) gain | |
| (36 | ) | |
| 15 | |
| Total other expense, net | |
| (273 | ) | |
| (764 | ) |
| Net loss | |
| (3,533 | ) | |
| (3,819 | ) |
| Dividends on Series AA Convertible Preferred Stock | |
| - | | |
| (159 | ) |
| Net loss attributable to common stockholders | |
$ | (3,533 | ) | |
$ | (3,978 | ) |
| Basic and diluted loss per share attributable to common stockholders | |
$ | (0.07 | ) | |
$ | (0.21 | ) |
| Basic and diluted weighted-average number of shares outstanding | |
| 50,617,198 | | |
| 19,328,778 | |
| Other comprehensive losses: | |
| | | |
| | |
| Net loss | |
$ | (3,533 | ) | |
| (3,819 | ) |
| Foreign currency translation loss | |
| (22 | ) | |
| (133 | ) |
| Comprehensive loss | |
$ | (3,555 | ) | |
$ | (3,952 | ) |
1
Interest expenses and finance costs include $237 and $8 of interest expense to related parties for the three months ended June
30, 2026 and 2025, respectively.
PERFECT
MOMENT LTD. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED BALANCE SHEETS
(Amounts
in thousands, except share and per share data)
| | |
June 30, 2026 | | |
March 31, 2026 | |
| | |
unaudited | | |
| |
| ASSETS | |
| | |
| |
| Current assets: | |
| | |
| |
| Cash and cash equivalents | |
$ | 707 | | |
$ | 1,151 | |
| Accounts receivable, net | |
| 1,114 | | |
| 2,146 | |
| Inventories, net | |
| 3,669 | | |
| 3,897 | |
| Prepaid and other current assets | |
| 2,809 | | |
| 2,950 | |
| Total current assets | |
| 8,299 | | |
| 10,144 | |
| Long term assets: | |
| | | |
| | |
| Operating lease right-of-use assets | |
| 962 | | |
| 1,003 | |
| Property and equipment, net | |
| 505 | | |
| 499 | |
| Other non-current assets, net | |
| 469 | | |
| 582 | |
| Total assets | |
$ | 10,235 | | |
$ | 12,228 | |
| LIABILITIES AND STOCKHOLDERS’ DEFICIT | |
| | | |
| | |
| Current liabilities: | |
| | | |
| | |
| Trade payables | |
$ | 2,524 | | |
$ | 3,601 | |
| Accrued expenses | |
| 2,244 | | |
| 2,859 | |
| Operating lease liabilities, current | |
| 107 | | |
| 37 | |
| Deferred revenue | |
| 613 | | |
| 245 | |
| Total current liabilities | |
| 5,488 | | |
| 6,742 | |
| Long term liabilities: | |
| | | |
| | |
| Line of credit from related parties, net | |
| 5,754 | | |
| 5,140 | |
| Operating lease obligations, long-term portion | |
| 987 | | |
| 1,032 | |
| Total liabilities | |
| 12,229 | | |
| 12,914 | |
| Commitments and contingencies (see Note 10) | |
| - | | |
| - | |
| Stockholders’ deficit: | |
| | | |
| | |
| Common stock; $0.0001 par value; 100,000,000 shares authorized; 53,202,530 and 47,048,174 shares issued and outstanding as of June 30, 2026 and March 31, 2026, respectively | |
| 5 | | |
| 4 | |
| Additional paid-in capital | |
| 73,909 | | |
| 71,663 | |
| Accumulated other comprehensive loss | |
| (328 | ) | |
| (306 | ) |
| Accumulated deficit | |
| (75,580 | ) | |
| (72,047 | ) |
| Total stockholders’ deficit | |
| (1,994 | ) | |
| (686 | ) |
| Total liabilities and stockholders’ deficit | |
$ | 10,235 | | |
$ | 12,228 | |
Use
Of Non-GAAP Measures
In
addition to our results under generally accepted accounted principles (“GAAP”), we present Adjusted EBITDA as a supplemental
measure of our performance. However, Adjusted EBITDA is not a recognized measurement under GAAP and should not be considered as an alternative
to net income, income from operations or any other performance measure derived in accordance with GAAP or as an alternative to cash flow
from operating activities as a measure of liquidity. We define Adjusted EBITDA as net income (loss), plus interest expense, depreciation
and amortization, stock-based compensation, financing costs and changes in fair value of derivative liability.
Management
considers our core operating performance to be that which our managers can affect in any particular period through their management of
the resources that affect our underlying revenue and profit generating operations in that period. Non-GAAP adjustments to our results
prepared in accordance with GAAP are itemized below. You are encouraged to evaluate these adjustments and the reasons we consider them
appropriate for supplemental analysis. In evaluating Adjusted EBITDA, you should be aware that in the future we may incur expenses that
are the same as or similar to some of the adjustments in this presentation. Our presentation of Adjusted EBITDA should not be construed
as an inference that our future results will be unaffected by unusual or non-recurring items.
Adjusted
EBITDA
| | |
Three months ended June 30, 2026 | | |
Three months ended June 30, 2025 | |
| Net loss, as reported | |
$ | (3,533 | ) | |
$ | (3,819 | ) |
| Adjustments: | |
| | | |
| | |
| Interest expense | |
| 237 | | |
| 779 | |
| Stock compensation expense | |
| 67 | | |
| 134 | |
| Amortization of stock-based services | |
| 25 | | |
| 199 | |
| Depreciation and amortization | |
| 64 | | |
| 131 | |
| Adjusted EBITDA | |
$ | (3,140 | ) | |
$ | (2,576 | ) |
We
present adjusted EBITDA because we believe it assists investors and analysts in comparing our performance across reporting periods on
a consistent basis by excluding items that we do not believe are indicative of our core operating performance. In addition, we use Adjusted
EBITDA in developing our internal budgets, forecasts, and strategic plan; in analyzing the effectiveness of our business strategies in
evaluating potential acquisitions; and in making compensation decisions and in communications with our board of directors concerning
our financial performance. Adjusted EBITDA has limitations as an analytical tool, which includes, among others, the following:
| ● | Adjusted
EBITDA does not reflect our cash expenditures, or future requirements, for capital expenditures
or contractual commitments; |
| ● | Adjusted
EBITDA does not reflect changes in, or cash requirements for, our working capital needs; |
| ● | Adjusted
EBITDA does not reflect future interest expense, or the cash requirements necessary to service
interest or principal payments, on our debts; and |
| ● | Although
depreciation and amortization are non-cash charges, the assets being depreciated and amortized
will often have to be replaced in the future, and the Adjusted EBITDA does not reflect any
cash requirements for such replacements. |
Contacts
Investor
Relations Contact:
Gateway
Group
Cody
Slach, Greg Robles
949.574.3860
PMNT@gateway-grp.com
Press
Contact:
press@perfectmoment.com
