Pervasip Corp. and Subsidiaries

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

(Unaudited)

For the Three Months Ended

Feb. 29, 2012

Feb 28, 2011

Revenues

$   275,497

$   319,671

Costs and expenses:

  Costs of services

124,888

197,405

  Financing charges

260,804

-

  Selling, general and administrative

472,887

436,113

               Total costs and expenses

858,579

633,518

Loss from operations

(583,082)

(313,847)

Other income (expense):

  Interest expense

(1,079,466)

(482,161)

  Gain on troubled debt restructuring

4,779,634

-

  Mark to market adjustment of derivative liabilities

89,671

7,520

           Total other income (expense)

3,789,839

(474,641)

Net income (loss)

3,206,757

(788,488)

Other comprehensive income (loss)

(719)

520

Comprehensive income (loss)

$3,206,038

$(787,968)

Basic earnings (loss) per share

$0.03

($0.08)

Diluted earnings (loss) per share

$0.02

($0.08)