What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2024-08-26 compared with 2024-05-15 · 42 added, 21 removed, 59 unchanged (52% 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 March 31, 2024, Compared to the Three Months Ended March 31, 2023

of Operations for the Three Months Ended June 30, 2024, Compared to the Three Months Ended June 30, 2023

and Cost of Sales

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%.

the three months ended June 30, 2024 and 2023, we had net sales of $390,491 and $458,511, respectively, a decrease of $68,020 or 14.8%.

We had cost of sales of $168,564 and $270,010, respectively, for gross profit of $221,927 and $188,501, respectively.

1 unchanged sentence

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

the three months ended June 30, 2024 and 2023, employee costs were $125,673 and $137,107 respectively, a decrease of $11,434 or 8.3%.

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

general, and administrative expenses (“S,G&A”) were $190,548 and $150,515, respectively, an increase of $40,033 or 26.5%.

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

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

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

other expense during the three months ended June 30, 2024 was $263,553 compared to $105,605 for the prior period.

In the current period

1 unchanged sentence

In the prior period we had $186,771 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.

a gain of $80,042 on derivative valuation and other income of $1,124.

net loss from continuing operations for the three months ended June 30, 2024, was $357,847 compared to $204,726 for the three months

ended June 30, 2023, an increase of $153,121.

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

of Operations for the Six Months Ended June 30, 2024, Compared to the Six Months Ended June 30, 2023

and Cost of Sales

the six months ended June 30, 2024 and 2023, we had net sales of $819,882 and $671,920, respectively, an increase of $147,962 or

We had cost of sales of $326,461 and $355,717, respectively, for gross profit of $493,421 and $316,203, respectively.

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 six months ended June 30, 2024 and 2023, employee costs were $250,902 and $273,802 respectively, a decrease of $22,900 or 8.4%.

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

general, and administrative expenses (“S,G&A”) were $383,234 and $289,193, respectively, an increase of $94,041 or 32.5%.

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

other expense during the six months ended June 30, 2024 was $696,959 compared to $400,438 for the prior period.

In the current period

we had $370,700 of interest expense and a loss of $326,259 on derivative valuation.

In the prior period we had $370,059 of interest expense,

a loss of $44,503 on derivative valuation, a gain on forgiveness of debt of $13,000 and other income of $1,124.

net loss from continuing operations for the six months ended June 30, 2024, was $837,674 compared to $647,230 for the six months ended

June 30, 2023, an increase of $190,444.

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

$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

$59.9 million at June 30, 2024.

As of June 30, 2024, we had current assets of $2 million and current liabilities of approximately $22

million, resulting in a working capital deficit of approximately $20 million at June 30, 2024.

the six months ended June 30, 2024, operations provided $11,682 of net cash, comprised of a loss of $914,197, noncash items totaling

$454,460 consisting primarily of losses recognized from the changes in fair values of derivative liabilities and debt discount amortization,

and changes in working capital totaling $471,419.

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.

During 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.

were no investing activities during the six months ended June 30, 2024.

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

investing activities for the purchase of equipment.

the six months ended June 30, 2024, financing activities used $11,682 of cash, compared to providing $46,813 of cash during the six

months ended June 30, 2023.

Cash used in financing consisted of repayments of loans.

15 unchanged sentences

The amended debenture had a total outstanding principal

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

balance of $2.4 million, with accrued interest of $2 million as of June 30, 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 March 31, 2024, there is $21,882 of short-term advances due to related parties.

of June 30, 2024, there is $21,882 of short-term advances due to related parties.

The advances are due on demand and included in current

10 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