NetBrands Corp
For the period ended Sep 30, 2024. Filed Nov 25, 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.
Sep 30, 2024 · Filed Nov 25, 2024
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What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-14.
0001493152-24-032167
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-25.
0001493152-24-047532
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 65 previous paragraphs and 64 current paragraphs.
48 unchanged; 16 reworded; 0 added; 0 removed; 1 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.
Reworded paragraphs (16)
Previous wording
Sales for the three months ended June 30, 2024, were $-0- compared to sales of $194,383 for the three months ended June 30, 2023 .
Current wording
Sales for the three months ended September 30, 2024, were $-0- compared to sales of $71,938 for the three months ended September 30, 2023 .
Previous wording
During 2023 we incurred a significant loss of revenue due to the supply, shipping and logistic issues, transitioning from a public warehouse to our own warehousing facility, and the significant loss of revenue on a product with eight SKUs that was produced in Russia that is no longer available to us. Without having an adequate amount of inventory on hand to fulfill existing and future orders, and our lack of sufficient liquidity, our ability to conduct future business with our customers is materially impaired. We are currently seeking new lines of business, new sources of liquidity and an acquisition target. If we are unsuccessful in our efforts it will have a material adverse impact on our Company on our ability to remain a going concern.
Current wording
During 2023 we incurred a significant loss of revenue due to the supply, shipping and logistic issues, transitioning from a public warehouse to our own warehousing facility, and the significant loss of revenue on a product with eight SKUs that was produced in Russia that is no longer available to us. Without having an adequate amount of inventory on hand to fulfill existing and future orders, and our lack of sufficient liquidity, our ability to conduct future business with our customers is materially impaired. We are currently seeking new lines of business, new sources of liquidity and an acquisition target. If we are unsuccessful in our efforts to raise capital it will have a material adverse impact on our Company on our ability to remain a going concern.
Previous wording
Operating expenses for the three months ended June 30, 2024 were $548,761 compared to $409,420 during the same three months ended June 30, 2023. The material increase in expenses is attributable to non-cash stock based compensation of $368,889 for the three months ended June 30, 2024 compared to zero in the prior period.
Current wording
Operating expenses for the three months ended September 30, 2024 were $52,122 compared to $151,697 during the same three months ended September 30, 2023. The material decrease in expenses is attributable to limited expenses due to the lack of revenue in the 2024 period.
Previous wording
Other income (expense) is comprised solely of interest expense and finance charges related to our fundings. Other expense was $4,584 for the three months ended June 30, 2024, compared to $76,374 in other expense during the three months ended June 30, 2023.
Current wording
Other income (expense) is comprised solely of interest expense and finance charges related to our fundings. Other expense was $4,117 for the three months ended September 30, 2024, compared to $304,372 in other expense during the three months ended September 30, 2023.
Previous wording
As a result of the foregoing, we recorded a net loss of $553,345 or $(0.03) per share for the three months ended June 30, 2024, compared to a loss of $425,807 or $(0.03) per share for the three months ended June 30, 2023.
Current wording
As a result of the foregoing, we recorded a net loss of $56,239 or $(0.00) per share for the three months ended September 30, 2024, compared to a loss of $422,740 or $(0.03) per share for the three months ended September 30, 2023.
Previous wording
Comparison of Results of Operations for the Six Months Ended June 30, 2024 and 2023
Current wording
Comparison of Results of Operations for the Nine Months Ended September 30, 2024 and 2023
Previous wording
Sales for the six months ended June 30, 2024, were $-0- compared to sales of $512,066 for the six months ended June 30, 2024 .
Current wording
Sales for the nine months ended September 30, 2024, were $-0- compared to sales of $584,004 for the nine months ended September 30, 2024 .
Previous wording
We have not generated any sales in 2024 and have no inventory on hand. If we are unsuccessful in our efforts to raise it will have a material adverse impact on our Company and our ability to remain a going concern.
Current wording
We have not generated any sales in 2024 and have no inventory on hand. If we are unsuccessful in our efforts to raise capital it will have a material adverse impact on our Company and our ability to remain a going concern.
Previous wording
Operating expenses for the six months ended June 30, 2024 were $739,871 compared to $783,879 during the same six months ended June 30, 2023. During the three months ended June 30, 2024 we incurred $425,139 in non-cash stock based compensation compared to $103,500 during the same three month period ended in 2023.
Current wording
Operating expenses for the nine months ended September 30, 2024 were $791,991 compared to $933,818 during the same nine months ended September 30, 2023. During the nine months ended September 30, 2024 we incurred $425,139 in non-cash stock based compensation compared to $164,500 during the same three month period ended in 2023.
Previous wording
Other expense is comprised solely of interest expense and finance charges related to our fundings. Other expense was $233,100 for the six months ended June 30, 2024 compared to $103,615 in other expense during the six months ended June 30, 2023, as a result of higher levels of borrowings due to the loss of liquidity from operating activities.
Current wording
Other expense is comprised solely of interest expense and finance charges related to our fundings. Other expense was $237,217 for the nine months ended September 30, 2024 compared to $407,987 in other expense during the nine months ended September 30, 2023, as a result of higher levels of borrowings due to the loss of liquidity from operating activities.
Previous wording
As a result of the foregoing, we recorded a net loss of $972,971 or $(0.05) per share for the six months ended June 30, 2024, compared to a loss of $719,584 or $(0.05) per share for the six months ended June 30, 2023.
Current wording
As a result of the foregoing, we recorded a net loss of $1,029,210 or $(0.05) per share for the nine months ended September 30, 2024, compared to a loss of $1,140,565 or $(0.07) per share for the nine months ended September 30, 2023.
Previous wording
As of June 30, 2024, we had $821 in cash, compared to $1,013 in cash as of December 31, 2023.
Current wording
As of September 30, 2024, we had $9 in cash, compared to $1,013 in cash as of December 31, 2023.
Previous wording
Net cash used in operating activities decreased to $187,172 in the six months ended June 30, 2024, compared to $366,339 in the six months ended June 30, 2023. The decrease in cash used in operating is primarily due to changes in balance sheet accounts.
Current wording
Net cash used in operating activities decreased to $182,111 in the nine months ended September 30, 2024, compared to $384,447 in the nine months ended September 30, 2023. The decrease in cash used in operating is primarily due to changes in balance sheet accounts and reduced activities at the Company.
Previous wording
Net cash provided by financing activities was $186,980 during the six months ended June 30, 2024, compared to $317,805 of net cash provided by financing activities in the six months ended June 30, 2023. The decrease in net cash provided in the six-month period ended June 30, 2024, as compared to the same period in 2023, is primarily due to lower proceeds from notes and loans payable.
Current wording
Net cash provided by financing activities was $181,107 during the nine months ended September 30, 2024, compared to $330,262 of net cash provided by financing activities in the nine months ended September 30, 2023. The decrease in net cash provided in the nine-month period ended September 30, 2024, as compared to the same period in 2023, is primarily due to lower proceeds from notes and loans payable.
Previous wording
On March 22, 2024, the Company received net proceeds of $150,000 from the Cove Loan. The Company plans to use the net proceeds for working capital should we put of M&A purposes? and general corporate purposes.
Current wording
On March 22, 2024, the Company received net proceeds of $150,000 from the Cove Loan. The Company used the net proceeds for working capital.
Previous wording
In the event continuing lack of sales, our ability to obtain additional financing or factoring for our receivables could be negatively impacted which could have a material adverse impact on our liquidity or our ability to remain as a going concern.
Current wording
In the event continuing lack of sales, our ability to obtain additional financing could be negatively impacted which could have a material adverse impact on our liquidity or our ability to remain as a going concern.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
On April 10, 2023, Paul Adler, the President and a director of the Company, made a loan to the Company in the amount of $124,000, at an interest rate of 14.9% per annum. The principal amount of the loan, and any accrued and unpaid interest thereon, were due and payable on July 9, 2024, in cash or shares of the Company’s common stock, at Mr. Adler’s sole discretion. As of April 8, 2024, Mr. Adler had advanced an additional $54,728 to the Company on the same terms.