What changed in this filing

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Item 2. Management’s Discussion and Analysis

2023-11-20 compared with 2023-08-21 · 46 added, 61 removed, 50 unchanged (68% of the section changed)

11 unchanged sentences

and sell condoms, electronic tobacco products, cigars, energy drinks, water beverages, and related merchandise, all using the HUSTLER®

of Operations for the Three Months Ended June 30, 2023, Compared to the Three Months Ended June 30, 2022

of Operations for the Three Months Ended September 30, 2023, Compared to the Three Months Ended September 30, 2022

and Cost of Sales

During the three months ended June 30, 2023 and 2022, we had net sales

of $458,511 and $526,921, respectively, a decrease of $68,410 or 13%.

We had cost of sales of $270,010 and $178,474, respectively, for

gross profit of $188,501 and $348,447, respectively.

Revenues are derived from the design, manufacture, and delivery of certain licensed

products in accordance with our GloBrands-HUSTLER® distribution agreement.

The decrease in revenue in the current period is due to

a decrease in the sale of Vape products in California due to their ban on flavored tobacco.

During the three months ended June 30, 2023 and 2022, employee costs were

$137,107 and $134,494, respectively, an increase of $2,613 or 1.9%.

Selling, general, and administrative expenses were $150,515 and $317,594,

respectively, a decrease of $167,079 or 52.6%.

The decrease in operating expenses period over period was the result of selling certain

tobacco products in states with lower or no excise tax.

expenses during the three months ended June 30, 2023 and 2022, consisted of $186,771 and $175,081 of interest expense and a gain of $80,042

and $2,104 on derivative valuation, respectively.

We also recognized other revenue of $1,124 in the current period.

net loss from continuing operations for the three months ended June 30, 2023, was $204,726 compared to $276,618 for the three months

ended June 30, 2022, a decrease of $71,892.

Our net loss decreased in the current period mainly due to the decrease of our SG&A expenses.

of Operations for the Six Months Ended June 30, 2023, Compared to the Six Months Ended June 30, 2022

the three months ended September 30, 2023 and 2022, we had net sales of $766,512 and $477,018, respectively, an increase of $289,494

We had cost of sales of $112,094 and $170,108, respectively, for gross profit of $654,418 and $306,910, respectively.

are derived from the design, manufacture, and delivery of certain licensed products in accordance with our GloBrands-HUSTLER® distribution

The increase in revenue in the current period is due to additional income from the licensing of novelties in an international territory.

the three months ended September 30, 2023 and 2022, employee costs were $149,100 and $139,750 respectively, an increase of $9,350 or

Employee costs increased in the current period due to additional labor needed based on the current business level.

general, and administrative expenses (S,G&A”)were $505,169 and $293,891, respectively, an increase of $211,278 or 71.8%.

increase in S,G&A expenses period over period was the result of additional marketing spending to support the brand.

expenses during the three months ended September 30, 2023 and 2022, consisted of $192,487 and $179,342 of interest expense and a gain

of $25,265 and a loss of $1,156 on derivative valuation, respectively.

net loss from continuing operations for the three months ended September 30, 2023, was $167,073 compared to $307,230 for the three months

ended September 30, 2022, a decrease of $140,157.

Our net loss decreased in the current period mainly due to the increase of our gross

of Operations for the Nine Months Ended September 30, 2023, Compared to the Nine Months Ended September 30, 2022

and Cost of Sales

During the six months ended June 30, 2023 and 2022, we had net sales of

$671,920 and $1,218,689, respectively, a decrease of $546,769 or 44.9%.

We had cost of sales of $355,717 and $410,853, respectively, for

gross profit of $316,203 and $807,836, respectively.

Revenues are derived from the design, manufacture, and delivery of certain licensed

products in accordance with our GloBrands-HUSTLER® distribution agreement.

The decrease in revenue in the current period is due to

a decrease in the sale of Vape products in California due to their ban on flavored tobacco.

During the six months ended June 30, 2023 and 2022, employee costs were

$273,802 and $267,000, respectively, an increase of $6,802 or 2.5%.

Selling, general, and administrative expenses were $289,193 and $693,771,

respectively, a decrease of $404,578 or 58.3%.

The decrease in operating expenses period over period was the result of selling certain

tobacco products in states with lower or no excise tax.

expenses during the six months ended June 30, 2023 and 2022, consisted of $370,059 and $348,432 of interest expense and a loss of

$44,503 and $33,949 on derivative valuation, respectively.

the nine months ended September 30, 2023 and 2022, we had net sales of $1,438,432 and $1,695,707, respectively, a decrease of $257,275

We had cost of sales of $467,811 and $580,960, respectively, for gross profit of $970,621 and $1,114,746, respectively.

are derived from the design, manufacture, and delivery of certain licensed products in accordance with our GloBrands-HUSTLER® distribution

The decrease in revenue in the current period is due to a decrease in the sale of Vape products in California due to their

ban on flavored tobacco in 2022.

the nine months ended September 30, 2023 and 2022, employee costs were $422,902 and $406,751, respectively, an increase of $16,151 or

general, and administrative expenses were $794,362 and $987,662, respectively, a decrease of $193,300 or 19.6%.

The decrease in S,G&A

expenses period over period was the result of our efforts to control costs.

expenses during the nine months ended September 30, 2023 and 2022, consisted of $562,546 and $527,774 of interest expense and a loss

of $19,238 and $35,105 on derivative valuation, respectively.

We also recognized a gain on the forgiveness of debt of $13,000 and other

income of $1,124, in the current period.

The increase in other expenses period over period is the result of an increase to our loss

on derivative valuation.

net loss from continuing operations for the six months ended June 30, 2023, was $647,230 compared to $535,316 for the six months ended

June 30, 2022, an increase of $111,914 or 20.9%.

Our net loss increased in the current period mainly due the decrease in our gross profit.

net loss from continuing operations for the nine months ended September 30, 2023, was $814,303 compared to $842,546 for the nine months

ended September 30, 2022, a decrease of $28,243 or 3.4%.

and Capital Resources

1 unchanged sentence

Our accumulated deficit was approximately

$80 million at June 30, 2023.

As of June 30, 2023, we had current assets of $1.5 million and current liabilities of approximately $42

million, resulting in a working capital deficit of approximately $40 million at June 30, 2023.

the six months ended June 30, 2023, operations used $20,815 of net cash, comprised of a loss of $723,332, noncash items totaling $156,646

consisting primarily of losses recognized from the changes in fair values of derivative liabilities and debt discount amortization, and

changes in working capital totaling $545,871.

During the six months ended June 30, 2022, operations generated $101,926 of net cash, comprised

of a loss from continuing operations of $535,316, noncash items totaling $95,332 consisting primarily of losses recognized from the changes

in fair values of derivative liabilities and debt discount amortization, and changes in working capital totaling $541,910.

Investing Activities

During the six months ended June 30, 2023, we used $8,414 for investing

activities for the purchase of equipment.

We had no investing activity in the prior period.

the six months ended June 30, 2023, financing activities provided $46,813 of cash, compared to using $100,552 of cash during the six

months ended June 30, 2022.

$80 million at September 30, 2023.

As of September 30, 2023, we had current assets of $1.8 million and current liabilities of approximately

$42 million, resulting in a working capital deficit of approximately $42 million at September 30, 2023.

the nine months ended September 30, 2023, operations provided $33,008 of net cash, comprised of a loss of $929,087, noncash items totaling

$195,833 consisting primarily of losses recognized from the changes in fair values of derivative liabilities and debt discount amortization,

and changes in working capital totaling $766,262.

During the nine months ended September 30, 2022, operations generated $168,030 of net

cash, comprised of a loss from continuing operations of $931,863, noncash items totaling $243,194 consisting primarily of losses recognized

from the changes in fair values of derivative liabilities and debt discount amortization, and changes in working capital totaling $971,483.

the nine months ended September 30, 2023, we used $8,414 for investing activities for the purchase of equipment.

We had no investing

activity in the prior period.

the nine months ended September 30, 2023, financing activities used $19,273 of cash, compared to using $132,952 of cash during the nine

months ended September 30, 2022.

Cash used in financing consisted of repayments of related-party loans.

15 unchanged sentences

The amended debenture had a total outstanding principal

balance of $2.4 million, with accrued interest of $1.8 million as of June 30, 2023.

balance of $2.4 million, with accrued interest of $1.8 million as of September 30, 2023.

We also have four additional convertible debentures

2 unchanged sentences

on the instrument) or the lowest bid price for the 20 trading days prior to conversion.

of June 30, 2023, there is $85,877 of short-term advances due to related parties.

The advances are due on demand and included in current

of September 30, 2023, there is $21,882 of short-term advances due to related parties.

The advances are due on demand and included in

current liabilities.

No demand for payment has been made.

9 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