Accredited Solutions Inc
For the period ended Mar 31, 2024. Filed Jul 16, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2024 · Filed Jul 16, 2024
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What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2023-09-30; filed 2024-01-12.
0001477932-24-000145
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-03-31; filed 2024-07-16.
0001477932-24-004249
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 56 previous paragraphs and 38 current paragraphs.
27 unchanged; 9 reworded; 2 added; 20 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 0 previous and 0 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (2)
Current report
Results of Operations
Current report
We had $109,373 and $156,238 of revenue for the three months ended March 31, 2024 and 2023, respectively. Revenue was lower in the first quarter of 2024 as a result of decreased sales volumes resulting from larger amount of sales in December 2023 that resulted in customer stock carrying over into 2024.
Removed paragraphs (20)
Previous report
Diamond Creek High Alkaline Water is a 9.5pH high alkaline natural spring water, sourced from the highest quality, award winning springs. Diamond Creek is available in one gallon, one liter and half liter bottles and aids in balancing the body’s pH while providing superior hydration resulting from a proprietary ionization process. As of September 30, 2023, Diamond Creek water was available in over 1,500 stores in the United States.
Previous report
Our Growth Strategy
Previous report
Diamond Creek High Alkaline Water is a 9.5pH high alkaline natural spring water, sourced from the highest quality, award winning springs. Diamond Creek is available in one gallon, one liter and half liter bottles and aids in balancing the body’s pH while providing superior hydration resulting from a proprietary ionization process.
Previous report
We are focused on expanding our US distribution reach to service more national chain stores; increase awareness of our brands in the United States; securing additional chain, convenience and key account distributors and store listings for our brands nationwide and internationally; increasing our warehouse direct-to-retail channel.
Previous report
We are looking for strategic acquisitions and partnerships in the beverage sector.
Previous report
Results of Continuing Operations
Previous report
For the nine months ended September 30, 2023, compared to the nine months ended September 30, 2022
Previous report
We had $543,116 and $319,590 of revenue for the nine months ended September 30, 2023 and 2022, respectively. Revenue was higher in the nine months of 2023 as a result of the full nine months in the fiscal period of 2023, versus only six months in the fiscal period of 2022 from the acquisitions of Diamond Creek on April 1.
Previous report
We had $414,646 and $248,554 of cost of sales and a gross profit of $128,470 and $71,036 for the nine months ended September 30, 2023 and 2022, respectively.
Previous report
Operating expenses for the nine months ended September 30, 2023 and 2022, were $210,719 and $217,094, respectively. The decrease in expenses for the nine months of 2023 compared to the nine months of 2022 is minimal and due primarily to decreased payroll expenses.
Previous report
Other Income (Expenses)
Previous report
Other income (expenses) for the nine months ended September 30, 2023 and 2022, were ($1,693,169) and $2,487,290, respectively. The decrease in other income (expenses) for the nine months of 2023 compared to the nine months of 2022 was due to the change in derivative liabilities of ($5,513,711), decrease in interest expense of $178,318, decrease in loss on extinguishment of debt of $1,007,958 and the gain on investment in subsidiaries of $133,170.
Previous report
Net operating income (loss) from continuing operations for the nine months ended September 30, 2023 and 2022, was ($1,775,418) and $2,341,232, respectively. Net loss from discontinued operations for the nine months ended September 30, 2023 and 2022, was $197,251 and $5,565, respectively. Net income (loss) for the nine months ended September 30, 2023 and 2022, was ($1,972,669) and $2,335,667, respectively.
Previous report
Revenues
Previous report
We had $164,515 and $206,520 of revenue for the three months ended September 30, 2023 and 2022, respectively. Revenue was higher in the three months of 2022 as a result of an increase in sales as a result of the economy starting to pick back up from the high inflation experienced in early 2022.
Previous report
Cost of Sales
Previous report
Operating Expenses
Previous report
Operating expenses for the three months ended September 30, 2023 and 2022, were $77,195 and $135,183, respectively. The decrease in expenses for the three months of 2023 compared to the three months of 2022 is due primarily to a decrease in payroll expenses and decrease in professional fees and expenses related to keeping the public filings current since the Company was not current with its filings.
Previous report
Other Income (Expenses)
Previous report
Net Income (Loss)
Reworded paragraphs (9)
Previous wording
We had $121,616 and $166,466 of cost of sales and a gross profit of $42,899 and $40,054 for the three months ended September 30, 2023 and 2022, respectively.
Current wording
We had $119,291 and $129,990 of cost of sales and a gross profit of ($9,918) and $26,248 for the three months ended March 31, 2024 and 2023, respectively.
Previous wording
Other income (expenses) for the three months ended September 30, 2023 and 2022, were ($216,675) and $581,208, respectively. The increase in expenses for the three months of 2023 compared to the three months of 2022 was due to the change in derivative liabilities of ($1,271,176), decrease in interest expense of $101,938 and decrease in loss on extinguishment of debt of $367,359.
Current wording
Operating income (expenses) for the three months ended March 31, 2024 and 2023, were $114,998 and ($140,918), respectively. The increase in income for the first three months of 2024 compared to the first three months of 2023 is due primarily to the change in derivative liabilities and decreased interest expense.
Previous wording
Net income (loss) from continuing operations for the three months ended September 30, 2023 and 2022, was ($250,971) and $486,079, respectively. Net income (loss) from discontinued operations for the three months ended September 30, 2023 and 2022, was $0 and ($2,665), respectively. Net income (loss) for the three months ended September 30, 2023 and 2022, was ($250,971) and $483,414, respectively.
Current wording
Net income (loss) from continuing operations for the three months ended March 31, 2024 and 2023, was $46,170 and ($196,373), respectively. Net income (loss) from discontinued operations for the three months ended March 31, 2024 and 2023, was $0 and ($35,078), respectively. Net income (loss) for the three months ended March 31, 2024 and 2023, was $46,170 and ($231,451), respectively.
Previous wording
We had cash used in operations of $9,497 the nine months ended September 30, 2023, compared to $146,674 for the nine months ended September 30, 2022.
Current wording
We had cash used in operations of $674 the three months ended March 31, 2024, compared to $47,953 for the three months ended March 31, 2023.
Previous wording
We had cash used in investing activities of $541 and $0 for the nine months ended September 30, 2023 and 2022, respectively.
Current wording
We had cash used in investing activities of $-0- for the three months ended March 31, 2024 and 2023, respectively.
Previous wording
We had cash provided by financing activities of $29,950 for the nine months ended September 30, 2023, compared to cash provided by financing activities of $245,000 for the nine months ended September 30, 2022.
Current wording
We had cash provided by financing activities of $0 for the three months ended March 31, 2024, compared to cash provided by financing activities of $15,000 for the three months ended March 31, 2023.
Previous wording
As of September 30, 2023, the Company had cash and cash equivalents of $55,880. We do not have sufficient resources to effectuate our business. We expect to incur a minimum of $100,000 in expenses during the next twelve months of operations. We estimate that these expenses will be comprised primarily of general expenses including overhead, inventory purchases, legal and accounting fees.
Current wording
As of March 31, 2024, the Company had cash and cash equivalents of $245. We do not have sufficient resources to effectuate our business. We expect to incur a minimum of $100,000 in expenses during the next twelve months of operations. We estimate that these expenses will be comprised primarily of general expenses including overhead, inventory purchases, legal and accounting fees.
Previous wording
As of September 30, 2023, the Company has primarily been funded by the issuance of convertible notes to both related and unrelated third parties. As of September 30, 2023, related party convertible notes totaled $374,102, net of discounts, and third-party convertible notes totaled $438,649, net of discounts, respectively.
Current wording
As of March 31, 2024, the Company has primarily been funded by the issuance of convertible notes to both related and unrelated third parties. As of March 31, 2024, related party notes totaled $374,102, net of discounts, and third-party notes totaled $895,754, net of discounts, respectively.
Previous wording
The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As reflected in the financial statements, the Company had a working capital deficit of $6,088,955 at September 30, 2023, a net loss of $1,972,669 for the nine months ended September 30, 2023, and $9,497 of cash used in operating activities for the nine months ended September 30, 2023, which raises substantial doubt as to the Company’s ability to continue as a going concern for a period of one year from the issuance of these financial statements.
Current wording
The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As reflected in the financial statements, the Company had a working capital deficit of $5,031,901 at March 31, 2024, a net income of $46,170 for the three months ended March 31, 2024, and $674 of cash used in operating activities for the three months ended March 31, 2024, which raises substantial doubt as to the Company’s ability to continue as a going concern for a period of one year from the issuance of these financial statements.