What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2024-05-15 compared with 2023-11-20 · 28 added, 44 removed, 52 unchanged (58% 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 September 30, 2023, Compared to the Three Months Ended September 30, 2022

of Operations for the Three Months Ended March 31, 2024, Compared to the Three Months Ended March 31, 2023

and Cost of Sales

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

the three months ended March 31, 2024 and 2023, we had net sales of $429,391 and $213,409, respectively, an increase of $215,982 or 101.2%.

We had cost of sales of $157,897 and $85,707, respectively, for gross profit of $271,494 and $127,702, respectively.

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

Revenues are derived

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

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.

the three months ended March 31, 2024 and 2023, employee costs were $125,229 and $136,695 respectively, a decrease of $11,466 or 8.4%.

Employee costs decreased in the current period due to efficiencies based on the current business level.

general, and administrative expenses (“S,G&A”)were $192,686 and $138,678, respectively, an increase of $54,008 or 38.9%.

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

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.

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%.

other expense during the three months ended March 31, 2024 was $433,406 compared to $294,833 for the prior period.

In the current period

we had $184,952 of interest expense and a loss of $248,454 on derivative valuation.

In the prior period we had $183,288 of interest expense,

a loss of $124,545 on derivative valuation and a gain on forgiveness of debt of $13,000.

net loss from continuing operations for the three months ended March 31, 2024, was $479,827 compared to $442,504 for the three months

ended March 31, 2023, an increase of $37,323.

Our net loss increased in the current period mainly due to the increase of our other expense.

and Capital Resources

1 unchanged sentence

Our accumulated deficit was approximately

$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

$59.5 million at March 31, 2024.

As of March 31, 2024, we had current assets of $1.6 million and current liabilities of approximately

$21 million, resulting in a working capital deficit of approximately $19.4 million at March 31, 2024.

the three months ended March 31, 2024, operations provided $15,087 of net cash, comprised of a loss of $518,088, noncash items totaling

$312,138 consisting primarily of losses recognized from the changes in fair values of derivative liabilities and debt discount amortization,

and changes in working capital totaling $221,037.

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.

During the three months ended March 31, 2023, operations generated $196,598 of net

cash, comprised of a loss of $480,345, noncash items totaling $173,610 consisting primarily of losses recognized from the changes in

fair values of derivative liabilities and debt discount amortization, and changes in working capital totaling $503,333.

were no investing activities during the three months ended March 31, 2024 and 2023.

the three months ended March 31, 2024, financing activities used $12,091 of cash, compared to using $15,788 of cash during the three

months ended March 31, 2023.

Cash used in financing consisted of repayments of loans.

Capital Resources and Anticipated Requirements

14 unchanged sentences

The amended debenture had a total outstanding principal

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

balance of $2.4 million, with accrued interest of $1.9 million as of March 31, 2024.

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 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.

of March 31, 2024, there is $21,882 of short-term advances due to related parties.

The advances are due on demand and included in current

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