What changed in this filing

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Item 7. Management’s Discussion and Analysis

2024-04-19 compared with 2023-04-18 · 36 added, 32 removed, 66 unchanged (51% of the section changed)

13 unchanged sentences

In 2020, we completed phase one and two of

our development of all HUSTLER®-branded products, which enabled us to generate revenue of $2,923,269 during the year ended December

31, 2021, related to our 2019 five-year manufacturing and distribution agreement with an unrelated party to manufacture, distribute,

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

have suffered substantial losses.

The future of our company is dependent upon our ability to continue to generate revenues sufficient

to offset operating costs or recover start-up costs under our GloBrands-HUSTLER® Exclusive Manufacturing and Distribution Agreement

signed in December 2019.

Management intends to seek additional capital through a private placement or public offering of its common stock,

if necessary.

Our auditors have expressed a going concern in their opinion, which raises substantial doubts about our ability to continue

as a going concern.

our development of all HUSTLER®-branded products, related to our 2019 five-year manufacturing and distribution agreement with an

unrelated party to manufacture, distribute, and sell condoms, electronic tobacco products, cigars, energy drinks, water beverages, and

related merchandise, all using the HUSTLER® brand name.

We have suffered substantial losses.

The future of

our company is dependent upon our ability to continue to generate revenues sufficient to offset operating costs or recover start-up costs

under our GloBrands-HUSTLER® Exclusive Manufacturing and Distribution Agreement signed in December 2019.

Management intends to seek

additional capital through a private placement or public offering of its common stock, if necessary.

Our auditors have expressed a going

concern in their opinion, which raises substantial doubts about our ability to continue as a going concern.

of Operations

7 unchanged sentences

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

The decrease in revenue in the current

The increase 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.

4 unchanged sentences

a decrease of $494,108 or 49.2%.

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

attributable to the development of products under the HUSTLER® brand name and selling certain tobacco products in states with lower

or no excise tax in the first quarter.

We also recognized a accrued tax liability expense in the current year of $50,888.

The decrease in operating expenses period over period is the result of focusing on products with less

marketing spending demands and spending less on marketing consultants.

Income and Expense

Other income and expenses during the year ended December

31, 2022, consisted of interest expense of approximately $709,000 and a loss on the fair value of derivative liabilities of approximately

income and expenses during the year ended December 31, 2021, consisted of interest expense of approximately $680,000, loss on the fair

value of derivative liabilities of approximately $16,000, gain on forgiveness of debt of approximately $13,000, gains on the write-off

of accounts payable of approximately $72,000 and other income of approximately $1,000.

a result of the foregoing, we had a net loss of approximately $1,349,000 from continuing operations, as compared to $838,000 in the prior

For the year ended December 31, 2023, we had total

other expense of $536,782.

This consisted of interest expense of $768,899, a loss on the fair value of derivative liabilities of $292,100

a gain on settlement of debt of $194,709, a gain on forgiveness of debt of $328,384 and other income of $1,124.

income and expenses during the year ended December 31, 2022, consisted of interest expense of $709,414 and a loss on the fair value of

derivative liabilities of approximately $66,040.

As a result of the foregoing, we had a net loss from

continuing operations of $551,699 as compared to $1,297,737 in the prior year.

For the year ended December 31, 2023, we recognized a gain from discontinued

operations of $20,831,526 due to the extinguishment of time barred debt.

the year ended December 31, 2022, we recognized a loss from discontinued operations of $153,466.

and Capital Resources

3 unchanged sentences

During the year ended December 31, 2023, operations

generated $159,304 of net cash, comprised of a loss from continuing operations of $1,502,091, noncash items totaling $337,367 consisting

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

used $72,607 of net cash, comprised of a loss from continuing operations of $551,699, noncash items totaling $20,948,388 consisting primarily

of losses recognized from the changes in fair values of derivative liabilities, debt discount amortization and a gain of $20,831,526 from

discontinued operations.

Changes in working capital totaled $587,421.

During the year ended December 31, 2021, operations generated $344,458 of net

cash, comprised of income from continuing operations of $126,212, a $964,685 loss from discontinued operations and other noncash items

totaling $51,373.

Changes in working capital of approximately $1.1 mil.

the year ended December 31, 2022, we used approximately $147,000 of net cash from financing activities mainly comprised of repayments

on related-party loans that totaled $155,000 and proceeds from related-party loans of $8,000.

During the year ended December 31, 2022, operations generated $159,304

of net cash, comprised of a loss from continuing operations of $1,502,091, noncash items totaling $337,367 consisting primarily of losses

recognized from the changes in fair values of derivative liabilities, debt discount amortization and discontinued operations.

in working capital totaled $1,273,140.

the year ended December 31, 2023, we were provided approximately $63,000 of net cash in financing activities mainly comprised of repayments on

related-party loans that totaled $47,478 and proceeds from related-party loans of $114,600.

During the year ended December 31, 2022,

we used approximately $443,000 of net cash from financing activities mainly comprised of repayments on related-party loans that totaled

$448,000 and proceeds from non-related-party loans of $5,000.

we used approximately $147,000 of net cash from financing activities mainly comprised of repayments on related-party loans

that totaled $155,000 and proceeds from related-party loans of $8,000.

Capital Resources and Anticipated Requirements

28 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-K

Item 7. Management’s Discussion and Analysis