What changed in this filing

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Item 2. Management’s Discussion and Analysis

2024-11-14 compared with 2024-08-26 · 50 added, 49 removed, 52 unchanged (66% 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, 2024, Compared to the Three Months Ended June 30, 2023

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

and Cost of Sales

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.

Revenues are derived

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

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%.

the three months ended September 30, 2024 and 2023, we had net sales of $256,070 and $766,512, respectively, a decrease of $510,422 or

We had cost of sales of $130,072 and $112,094, respectively, and gross profit of $125,998 and $654,418, respectively.

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

We had higher revenue in the prior period due to additional income from the licensing of novelties in an international territory.

the three months ended September 30, 2024 and 2023, employee costs were $129,743 and $149,100 respectively, a decrease of $19,357 or

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%.

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

we had $185,748 of interest expense and a loss of $77,805 on derivative valuation.

In the prior period we had $186,771 of interest expense,

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

the three months ended September 30, 2024 and 2023, selling, general, and administrative expenses (“S,G&A”) were $218,480

and $505,169, respectively, a decrease of $286,689 or 56.8%.

The decrease in S,G&A expenses period over period was the result of

a reduction in spending on marketing.

other expense during the three months ended September 30, 2024 was $639,047 compared to $167,222 for the prior period.

In the current

period we had $190,399 of interest expense and a loss of $448,898 on derivative valuation.

We also had other income of $250.

period we had $192,487 of interest expense and a gain of $25,265 on derivative valuation.

net loss from continuing operations for the three months ended September 30, 2024, was $861,272 compared to $167,073 for the three months

ended September 30, 2023, an increase to our net loss of $694,199.

Our net loss increased in the current period due to the reasons discussed

of Operations for the Nine Months Ended September 30, 2024, Compared to the Nine Months Ended September 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

the nine months ended September 30, 2024 and 2023, we had net sales of $1,075,952 and $1,438,432, respectively, a decrease of $362,480

We had cost of sales of $456,533 and $467,811, respectively, for gross profit of $619,419 and $970,621, 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.

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

We had higher revenue in the prior period due to additional income from the licensing of novelties in an international territory.

the nine months ended September 30, 2024 and 2023, employee costs were $380,645 and $422,902 respectively, a decrease of $42,257 or 10%.

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

the nine months ended September 30, 2024 and 2023, S,G&A costs were $601,714 and $794,362, respectively, a decrease of $192,648 or

The decrease in S,G&A expenses period over period was the result of a reduction in spending on marketing.

other expense during the nine months ended September 30, 2024 was $1,336,006 compared to $567,660 for the prior period.

In the current

period we had $561,099 of interest expense and a loss of $775,157 on derivative valuation.

We also had other income of $250.

period we had $562,546 of interest expense, a loss of $19,238 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 nine months ended September 30, 2024, was $1,698,946 compared to $814,303 for the nine months

ended September 30, 2023, an increase to our net loss of $884,643 Our net loss increased in the current period due to the reasons discussed

and Capital Resources

1 unchanged sentence

Our accumulated deficit was approximately

$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

$60.8 million at September 30, 2024.

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

$23 million, resulting in a working capital deficit of approximately $21 million at September 30, 2024.

the nine months ended September 30, 2024, operations used $8,434 of net cash, comprised of a loss of $1,814,150, noncash items totaling

$967,890 consisting primarily of losses recognized from the changes in fair values of derivative liabilities and debt discount amortization,

and changes in working capital totaling $837,826.

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.

During 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 $837,826.

were no investing activities during the nine months ended September 30, 2024.

During the nine months ended September 30, 2023, we used

$8,414 for investing activities for the purchase of equipment.

the nine months ended September 30, 2024, financing activities provided $8,434 of cash, compared to using $19,273 of cash during the

nine months ended September 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 $2 million as of June 30, 2024.

balance of $2.4 million, with accrued interest of $2 million as of September 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 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

of September 30, 2024, 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