As of March 31, |
As of December 31, |
|||||||
Assets
|
2019
|
2018
|
||||||
Current Assets
|
||||||||
Cash and cash equivalents
|
$ |
1,821,741
|
$ |
3,946,261
|
||||
Accounts receivable, net
|
163,959
|
275,560
|
||||||
Inventories, net
|
1,324,236
|
1,556,946
|
||||||
Prepaid expenses and other current assets
|
175,719
|
269,073
|
||||||
Total Current Assets
|
3,485,654
|
6,047,840
|
||||||
Property and equipment, net
|
67,095
|
71,295
|
||||||
Other Assets |
- |
27,559 |
||||||
Total Assets
|
$ |
3,552,750
|
$ |
6,146,694
|
||||
Liabilities and Stockholders' Equity
|
||||||||
Current Liabilities
|
||||||||
Line of credit
|
$ |
4,600,000
|
$ |
4,600,000
|
||||
Long-term debt, current portion
|
1,600,000
|
1,600,000
|
||||||
Accounts payable & accrued liabilities
|
1,611,578
|
1,009,308
|
||||||
Deferred revenue
|
136,554
|
65,965
|
||||||
Other current liabilities
|
1,008,200
|
1,898,759
|
||||||
Total Current Liabilities
|
8,956,332
|
9,174,032
|
||||||
Deferred rent
|
15,016
|
15,016
|
||||||
Total Liabilities
|
8,971,346
|
9,189,048
|
||||||
Members' Deficit
|
||||||||
Common units, no par value
|
8,954,805
|
8,913,647
|
||||||
Series A Preferred Units, no par value
|
4,818,000
|
4,668,000
|
||||||
Units to be issued
|
242,400
|
74,107
|
||||||
Accumulated deficit
|
(19,433,803
|
)
|
(16,698,108
|
)
|
||||
Total Members' deficit
|
(5,418,598
|
)
|
(3,042,354
|
)
|
||||
Total Liabilities and Members' Deficit
|
$ |
3,552,750
|
$ |
6,146,694
|
Three Months Ended
March 31,
|
Three Months Ended
March 31,
|
|||||||
2019
|
2018
|
|||||||
Net Sales
|
$ |
3,598,357
|
$ |
3,246,545
|
||||
Cost of Goods Sold
|
1,661,817
|
2,057,757
|
||||||
Gross Profit
|
1,936,541
|
1,188,788
|
||||||
Selling, General and Administrative Expenses
|
4,610,861
|
2,820,829
|
||||||
Gain (Loss) from Operations
|
(2,674,321
|
)
|
(1,632,041
|
)
|
||||
Other Income (Expense)
|
||||||||
Interest expense
|
(61,375
|
)
|
(23,261
|
)
|
||||
Net Income (Loss)
|
$ |
(2,735,696
|
)
|
$ |
(1,655,302
|
)
|
||
Weighted Average Shares Outstanding
|
10,551,342
|
10,396,808
|
||||||
Earnings Per Share (Basic & Diluted)
|
$ | (0.26 | ) |
$ | (0.16 | ) |
March 31,
|
March 31,
|
|||||||
2019
|
2018
|
|||||||
Cash Flows from Operating Activities
|
||||||||
Net loss
|
$ |
(2,735,696
|
)
|
$ |
(1,655,302 |
) | ||
Adjustments to reconcile net loss to net cash used in operating activities:
|
||||||||
Depreciation and amortization
|
4,241
|
2,971 | ||||||
Unit-based compensation expense
|
||||||||
Change in operating assets and liabilities:
|
||||||||
Accounts receivable
|
138,101
|
(60,235 | ) | |||||
Inventories
|
85,244
|
472,225 | ||||||
Prepaid expenses and other assets
|
451,331
|
230,611 | ||||||
Accounts payable
|
436,400
|
65,101 | ||||||
Accrued liabilities
|
(724,732
|
)
|
77,968 | |||||
Deferred revenue
|
70,591
|
35,436 | ||||||
Net cash used in operating activities
|
(2,274,520
|
)
|
(831,225 | ) | ||||
Cash Flows from Investing Activities
|
-
|
- | ||||||
Cash Flows from Financing Activities
|
||||||||
Proceeds from shares issued pursuant to private placement, net
|
150,000
|
- | ||||||
Proceeds from loan
|
- | 897,600 | ||||||
Net cash provided by financing activities
|
150,000
|
897,600 | ||||||
Net Increase (Decrease) in Cash
|
(2,124,520
|
)
|
66,375 | |||||
Cash, Beginning of Period
|
3,946,261
|
157,138 | ||||||
Cash, End of Period
|
$ |
1,821,741
|
$ | 223,513 |
Common Units
|
Series A Preferred Units
|
|||||||||||||||||||||||||||
Number
|
Amount
|
Number
|
Amount
|
Shares to be issued
|
Deficit
|
Total Equity
|
||||||||||||||||||||||
Balance as at January 1, 2017
|
5,208,354
|
$ |
1,471,000
|
-
|
-
|
-
|
$ |
(5,300,252
|
)
|
$ |
(3,829,252
|
)
|
||||||||||||||||
Shares issued pursuant to private placement
|
4,796,457
|
6,169,650
|
-
|
-
|
-
|
-
|
6,169,650
|
|||||||||||||||||||||
Shares issued pursuant to services provided
|
391,997
|
916,293
|
-
|
-
|
-
|
-
|
916,293
|
|||||||||||||||||||||
Net loss for the period
|
(5,371,838
|
)
|
(5,371,838
|
)
|
||||||||||||||||||||||||
Balance as at December 31, 2017
|
10,396,808
|
8,556,943
|
-
|
-
|
-
|
(10,672,090
|
)
|
(2,115,147
|
)
|
|||||||||||||||||||
Net loss for the period
|
-
|
-
|
-
|
-
|
-
|
(1,655,302
|
)
|
(1,655,302
|
)
|
|||||||||||||||||||
Balance as at March 31, 2018
|
10,396,808
|
$ |
8,556,943
|
-
|
-
|
-
|
$ |
(12,327,392
|
)
|
$ |
(3,770,449
|
)
|
Common Units
|
Series A Preferred Units
|
|||||||||||||||||||||||||||
Number
|
Amount
|
Number
|
Amount
|
Shares to be issued
|
Deficit
|
Total Equity
|
||||||||||||||||||||||
Balance as at January 1, 2017
|
5,208,354
|
$ |
1,471,000
|
-
|
-
|
-
|
$ |
(5,300,252
|
)
|
$ |
(3,829,252
|
)
|
||||||||||||||||
Shares issued pursuant to private placement
|
4,796,457
|
6,169,650
|
-
|
-
|
-
|
-
|
6,169,650
|
|||||||||||||||||||||
Shares issued pursuant to services provided
|
391,997
|
916,293
|
-
|
-
|
-
|
-
|
916,293
|
|||||||||||||||||||||
Net loss for the period
|
(5,371,838
|
)
|
(5,371,838
|
)
|
||||||||||||||||||||||||
Balance as at December 31, 2017
|
10,396,808
|
8,556,943
|
-
|
-
|
-
|
(10,672,090
|
)
|
(2,115,147
|
)
|
|||||||||||||||||||
Shares issued pursuant to private placement
|
-
|
-
|
2,162,536
|
4,668,000
|
-
|
-
|
4,668,000
|
|||||||||||||||||||||
Shares issued pursuant to services provided
|
148,627
|
356,704
|
-
|
-
|
74,107
|
-
|
430,811
|
|||||||||||||||||||||
Net loss for the period
|
-
|
-
|
-
|
-
|
-
|
(6,026,017
|
)
|
(6,026,017
|
)
|
|||||||||||||||||||
Balance as at December 31, 2018
|
10,545,435
|
8,913,647
|
2,162,536
|
4,668,000
|
74,107
|
(16,698,107
|
)
|
(3,042,353
|
)
|
|||||||||||||||||||
Balance as at March 31, 2019
|
||||||||||||||||||||||||||||
Shares issued pursuant to private placement
|
-
|
-
|
62,500
|
150,000
|
-
|
-
|
150,000
|
|||||||||||||||||||||
Shares issued pursuant to services provided
|
17,149
|
41,158
|
-
|
-
|
168,293
|
209,451
|
||||||||||||||||||||||
Net loss for the period
|
(2,735,696
|
)
|
(2,735,696
|
)
|
||||||||||||||||||||||||
10,545,435
|
$ |
8,954,805
|
2,225,036
|
4,818,000
|
242,400
|
$ |
(19,433,803
|
)
|
$ |
(5,418,598
|
)
|
• |
The Company’s financial position for the periods ended March 31, 2019;
|
• |
Significant events and transactions the Company has entered into, including and through the date the financial statements were available to be issued;
|
• |
Sales and profitability forecasts for the Company for the next financial year; and
|
• |
To continue to monitor the Company’s ongoing working capital requirements and minimum expenditure commitments;
|
• |
Continue their focus on maintaining an appropriate level of corporate overhead in line with the Company’s available cash resources; and
|
March 31,
2019
|
December 31,
2018
|
|||||||
Food, treats and supplements
|
$ |
1,252,213
|
$ |
1,301,274
|
||||
Other products and accessories
|
0
|
191,292
|
||||||
Inventory packaging and supplies
|
140,895
|
132,681
|
||||||
1,393,108
|
1,625,247
|
|||||||
Inventory reserve
|
(68,872
|
)
|
(68,301
|
)
|
||||
$ |
1,324,236
|
$ |
1,556,946
|
For the 12 months ending March 31,
|
||||
2019
|
$
|
194,081
|
||
2020
|
295,740
|
|||
2021
|
295,740
|
|||
2022
|
123,075
|
|||
2023
|
-
|
|||
$ |
908,636
|