What changed in this filing

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Item 2. Management’s Discussion and Analysis

2021-11-15 compared with 2021-08-19 · 50 added, 49 removed, 53 unchanged (65% of the section changed)

14 unchanged sentences

to generating revenue during 2020 for the first time in several years.

of Operations for the Three and Six Months Ended June 30, 2021, Compared to the Three and Six Months Ended June 30,

of Operations for the Three and Nine Months Ended September 30, 2021, Compared to the Three and Nine Months Ended September 30, 2020

and Cost of Sales

the three months ended June 30, 2021 and 2020, we had net sales of $700,656 and $528,232, respectively, and cost of sales of $262,411

the three months ended September 30, 2021 and 2020, we had net sales of $961,474and $405,005, respectively, and cost of sales of $339,076

and $228,380, respectively, for gross profit of $622,398 and $176,625, respectively.

During the six months ended June 30, 2021, we had

net sales of $1,320,055 and $530,314, respectively, and cost of sales of $464,059 and $197,319, respectively, for gross profit of $855,996

and $332,995, respectively.

The net sales for the three months ended June 30, 2021, consisted of product sales, which increased about

33% in the later year.

For the six months ended June 30, 2021, net sales included revenue received in the first quarter of 2021 related

to our agreement to develop and distribute certain HUSTLER® branded product, which was approximately 147% higher than net sales for

the corresponding period in the previous year.

The gross profit was approximately equal as a percentage of net sales for all reporting

the three months ended June 30, 2021 and 2020, employee costs were $135,077 and $0, respectively, and selling, general, and administrative

expenses were $359,297 and $78,884, respectively, representing an increase in operating expenses of $415,490, or 527%, in the current

During the six months ended June 30, 2021 and 2020, employee costs were $268,965 and $0, respectively, and selling, general,

and administrative expenses were $638,595 and $161,544, respectively, representing an increase in operating expenses of $746,016, or

462%, in the current period.

The increase in operating expenses period over period is the result of substantially increased activities

attributable to the development of products under the HUSTLER® brand name in 2020.

During the nine months ended September 30, 2021,

we had net sales of $2,281,529 and $935,319, respectively, and cost of sales of $803,135 and $425,699, respectively, for gross profit

of $1,478,394 and $509,620, respectively.

The net sales for the three months ended September 30, 2021, consisted of product sales, which

increased about 137.4% from the prior year.

For the nine months ended September 30, 2021, net sales included revenue received in the

first quarter of 2021 related to our agreement to develop and distribute certain HUSTLER® branded product, which was approximately

143.9% higher than net sales for the corresponding period in the previous year.

the three months ended September 30, 2021 and 2020, employee costs were $139,520 and $126,559, respectively, and selling, general, and

administrative expenses were $514,358 and $129,125, respectively, representing an increase in operating expenses of $385,233,

or 155.7%, in the current period.

During the nine months ended September 30, 2021 and 2020, employee costs were $408,485 and

$169,169, respectively, and selling, general, and administrative expenses were $1,165,870 and $248,059, respectively, representing an

increase in operating expenses of $1,157,127, or 277.3%, in the current period.

The increase in operating expenses period over period

is the result of substantially increased activities attributable to the development of products under the HUSTLER® brand name in

Income and Expense

income and expenses during the three months ended June 30, 2021 and 2020, consisted of $168,726 and $156,568 in interest expense;

of $13,131 and a loss of $289,050 on derivative valuation;

and other income of $0 and $2,000, respectively.

Other income and expenses

during the six months ended June 30, 2021 and 2020, consisted of $335,214 and $312,635 in interest expense;

a loss on disposal of equipment

of $0 and $9,771, a loss of $114,660 and $358,264 on derivative valuation;

and other income of $0 and $42,000, respectively.

in other expenses period over period is the result of a decrease in interest expense and a decrease to our loss on derivative valuation.

income and expenses during the three months ended September 30, 2021 and 2020, consisted of $172,400 and $154,318 in interest expense

and a loss of $62,086 and a gain of $39,700 on derivative valuation, respectively.

Other income and expenses during the nine months ended September 30, 2021 and 2020, consisted of $507,614 and $466,953 in interest expense;

a loss on disposal of equipment of $0 and $9,771, a loss of $176,746 and $318,564 on derivative valuation;

other income of $0 and $42,000,

respectively;

and a gain on forgiveness of debt of $12,917 and $0, respectively.

The decrease in other expenses period over period is

the result of a decrease to our loss on derivative valuation.

and Capital Resources

have had a history of losses from operations, as our expenses have been greater than our revenue.

Our accumulated deficit was $78.5 million

and $77.9 million at June 30, 2021, and December 31, 2020, respectively.

As of June 30, 2021, and December 31, 2020, we had current assets

of $1,160,811 and $942,442, respectively, and current liabilities of $38.8 million and $38.1 million, respectively, creating working

capital deficits of approximately $37.6 million and $37.1 million, respectively, as of June 30, 2021, and December 31, 2020.

have only nominal cash or short-term assets, while our current liabilities aggregated $38.8 million as of June 30, 2021.

During the six

months ended June 30, 2021, operations used $81,207 of net cash, comprised of a loss from continuing operations of $501,438, noncash

items totaling $153,367 consisting primarily of losses recognized from the changes in fair values of derivative liabilities and debt

discount amortization, repayment expenses paid by related parties on our behalf of $199,909, and changes in working capital totaling

During the six months ended June 30, 2020, operations generated $205,592 of net cash, comprised of a net loss from continuing

operations of $467,219, noncash items totaling $431,049 consisting of losses recognized from the changes in fair values of derivative

liabilities and expense paid by related parties on our behalf, and changes in working capital totaling $241,762.

the six months ended June 30, 2021, financing activities used $8,663 of cash, compared to using $103,261 of cash during the six months

ended June 30, 2020.

Cash used in financing activities during the six months ended June 30, 2021, consisted of proceeds from convertible

loans payable and repayments of related-party loans.

Cash used in financing activities during the six months ended June 30, 2020, consisted

of advances from convertible debentures totaling $15,000, repayments of bank overdrafts of $1,611, repayments on related-party payables

of $262,350, advances from related parties of $10,700, advances from loans payable of $156,000, and repayments on loans payable $21,000.

Our accumulated deficit was approximately

$78.8 million and $77.9 million at September 30, 2021, and December 31, 2020, respectively.

As of September 30, 2021, and December 31,

2020, we had current assets of $1,217,186 and $942,442, respectively, and current liabilities of approximately $39 million and $38.1

million, respectively, creating working capital deficits of approximately $37.8 million and $37.1 million, respectively, as of September

30, 2021, and December 31, 2020.

have only nominal cash or short-term assets, while our current liabilities aggregated approximately $39 million as of September 30, 2021.

During the nine months ended September 30, 2021, operations generated $152,353 of net cash, comprised of a loss from continuing operations

of $767,404, noncash items totaling $15,093 consisting primarily of losses recognized from the changes in fair values of derivative liabilities

and debt discount amortization, repayment expenses paid by related parties on our behalf of $268,924, and changes in working capital

totaling $934,850.

During the nine months ended September 30, 2020, operations generated $135,415of net cash, comprised of a net loss

from continuing operations of $660,896, noncash items totaling $418,085consisting of losses recognized from the changes in fair values

of derivative liabilities and expense paid by related parties on our behalf, and changes in working capital totaling $378,226.

the nine months ended September 30, 2021, financing activities used $214,421 of cash, compared to using$126,061 of cash during the nine

months ended September 30, 2020.

Cash used in financing activities during the nine months ended September 30, 2021, consisted of repayments

of related-party loans.

Cash used in financing activities during the nine months ended September 30, 2020, consisted of advances from

convertible debentures totaling $15,000, repayments of bank overdrafts of $1,611, repayments on related-party payables of $270,150, advances

from related parties of $10,700, advances from loans payable of $156,000 and repayments on loans payable $36,000.

Capital Resources and Anticipated Requirements

2 unchanged sentences

We are generating sales revenue under our Exclusive Manufacturing and Distribution Agreement with GloBrands, LLC.

we do not have enough cash on hand to sustain our business operations, and we expect to access external capital resources in the near

we do not have enough cash on hand to sustain our business operations, and we expect to access external capital resources in the future.

conjunction with our efforts to commercialize new products, we are actively seeking infusions of capital from investors.

12 unchanged sentences

The amended debenture had a total outstanding principal

balance of $2.4 million, with accrued interest of $1.5 million as of June 30, 2021.

balance of $2.4 million, with accrued interest of $1.5 million as of September 30, 2021.

We also have four additional convertible debentures

14 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis