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In December 2019, a strain of novel coronavirus (COVID-19) causing respiratory illness and death emerged in the city of Wuhan in the Hubei province of China.
−Removed: The coronavirus was recently declared a global pandemic by the World Health Organization and has been spreading throughout the world, including the United States, resulting in emergency measures, including travel bans, closure of retail stores, and restrictions on gatherings of more than a maximum number of people.
+Added: The coronavirus was declared a global pandemic by the World Health Organization and has been spreading throughout the world, including the United States, resulting in emergency measures, including travel bans, closure of retail stores, and restrictions on gatherings of more than a maximum number of people.
Included in these emergency measures is the mandated full or partial closure of restaurants and other foodservice establishments across the United States.
−Removed: These foodservice establishments represent a significant portion of our revenues and their continued closure would likely have a detrimental effect on our business.
+Added: These foodservice establishments represent a significant portion of our revenues and their continued closure and/or operation with capacity limits would likely continue to have a detrimental effect on our business.
In addition, in the relatively short period with which the world has been dealing with this pandemic, significant economic turmoil has already impacted world markets.
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For all of these reasons, the impact on sales, net income and cash flows can be significant depending on the items mentioned above but at this time we cannot quantify the specific extent of the impact this disease will have on our sales, net income and cash flows.
−Removed: Prior to 2013, We Have a History of Losses Requiring Us to Seek Additional Sources of Capital.
+Added: We Have a History of Losses Requiring Us to Seek Additional Sources of Capital.
As of December 31, 2020, we had an accumulated deficit of $32,399,793.
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Our sales through USF’s sales force generated gross revenues for us of $20,748,819 in the year ended December 31, 2020, and $33,076,220 in the year ended December 31, 2019.
−Removed: Those amounts contributed 57% of our total sales for each of 2019 and 2018.
+Added: Those amounts contributed 40% and 57% of our total sales for each of 2020 and 2019, respectively.
Our sales efforts within specialty foodservice are for the most part substantially dependent upon the efforts of the USF sales force.
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As a result of the seasonal nature of our business, we would be significantly and adversely affected, in a manner disproportionate to the impact on a company with sales spread more evenly throughout the year, by unforeseen events such as a terrorist attack or economic shock (including shock caused by world-wide pandemic or otherwise) that harm the retail environment or consumer buying patterns during our key selling season, or by events such as pandemic, strikes or weather related delays that interfere with the shipment of goods, during the critical period of the holiday season.
−Removed: The Recent Acquisition of Substantially All of the Assets of i g ourmet LLC and Mouth Foods, Inc .
+Added: The Loss of Availability of our Bank Loans Could Adversely Impact our Business and Financial Condition.
+Added: We currently have multiple loans with Fifth Third Bank.
+Added: All of these contain cross-default provisions which means that all outstanding borrowings can be accelerated and can become immediately due and payable in the event of a default in any of such loans, which includes, among other things, failure to comply with certain financial covenants, one of which was not met at year end, or breach of representations contained in the loan documents, defaults under other loans or obligations or involvement in bankruptcy proceedings (as such terms are defined in the loan documents).
+Added: We are also subject to negative covenants which, during the life of the loans, prohibit and/or limit us from, among other things, incurring certain types of other debt, acquiring other companies, making certain expenditures or investments, and changing the character of our business.
+Added: Any material change to the business and economic landscape negatively impacting our business, including among other things, an outbreak of infectious disease, a pandemic or a similar public health threat, such as the COVID-19 outbreak, could adversely impact our ability to comply with such covenants.
+Added: Our failure to comply with such covenants or any other breach of the loan documents could cause a default and we may then be required to repay all of such borrowings with capital from other sources.
+Added: Under these circumstances, other sources of capital may not be available or may be available only on unfavorable terms.
+Added: In the event of a default, it is possible that our assets and certain of our subsidiaries’ assets may be attached or seized by the lenders.
+Added: Any (i) failure by us to comply with the covenants or other provisions of the loan documents, (ii) difficulty in securing any required future financing, or (iii) any such seizure or attachment of assets could have a material adverse effect on our business and financial condition.
+Added: The Recent Acquisition of Substantially All of the Assets of igourmet LLC and Mouth Foods, Inc.
Could Create Additional Risks to Our Business.
−Removed: On January 23, 2018, our subsidiary Innovative Gourmet acquired substantially all of the assets of igourmet, LLC.
−Removed: On July 6, 2018 M Innovations LLC acquired substantially all of assets of Mouth Foods, Inc.
+Added: On January 23, 2018, our subsidiary, Innovative Gourmet LLC, acquired substantially all of the assets of igourmet, LLC.
+Added: On July 6, 2018, our subsidiary, M Innovations LLC, acquired substantially all of assets of Mouth Foods, Inc.
These businesses are very seasonal in nature, which generates certain operational considerations and could exacerbate the seasonality of our business.
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Any material disruptions in our e-commerce presence or information technology systems could have a material adverse effect on our business, financial condition and results of operations.
−Removed: A Failure to Establish and Maintain Strategic Online and Social Media Relationships , and O ther R elationships T argeted T owards D riving W eb T raffic to our W ebsites, that Generate a Significant Amount of Traffic Could Limit the Growth of the Assets Acquired from i g ourmet LLC and Mouth Foods Inc .
+Added: A Failure to Establish and Maintain Strategic Online and Social Media Relationships, and Other Relationships Targeted Towards Driving Web Traffic to our Websites, that Generate a Significant Amount of Traffic Could Limit the Growth of the Assets Acquired from igourmet LLC and Mouth Foods Inc.
We rely on third party websites, search engines and affiliates with which we have strategic relationships for traffic.
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We are heavily dependent upon one national carrier for the delivery of our fresh products to our customers.
−Removed: Accordingly, we are subject to risks, including labor disputes, union organizing activity, inclement weather, technology breakdowns, natural disasters, the closure of their offices or a reduction in operational hours due to an economic slowdown, possible acts of terrorism, their ability to provide delivery services to meet our shipping needs, disruptions or increased fuel costs, and costs associated with any regulations to address climate change.
+Added: Accordingly, we are subject to risks, including labor disputes, union organizing activity, inclement weather, technology breakdowns, natural disasters, the closure of their offices or a reduction in operational hours due to an economic slowdown or health related crisis, possible acts of terrorism, their ability to provide delivery services to meet our shipping needs, disruptions or increased fuel costs, and costs associated with any regulations to address climate change.
Since our customers rely on us to deliver their orders daily or within 24-72 hours, delivery delays could significantly harm our business.
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We May be Exposed to Risks and Costs Associated with Credit Card Fraud and Identity Theft that could Cause Us to Incur Unexpected Expenses and Loss of Revenue.
−Removed: A portion of our customer orders are placed through our e-commerce websites and a significant portion of our orders are submitted via networked applications.
+Added: An increasing portion of our customer orders are placed through our e-commerce websites and a significant portion of our orders are submitted via networked applications.
In addition, a significant portion of sales made through our retail channel require the collection of certain customer data, such as credit card information.
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In addition, it is possible that a number of laws and regulations may be adopted with respect to the Internet and other areas of our business, covering issues such as user privacy, pricing, content, copyrights, distribution, antitrust, taxation and characteristics and quality of products and services.
−Removed: Because we do Not Intend to Pay Any Cash Dividends on Our Shares of Common Stock, Our Stockholders Will Not be Able to Receive a Return on Their Shares Unless They Sell Them .
+Added: Since we do Not Intend to Pay Any Cash Dividends on Our Shares of Common Stock, Our Stockholders Will Not be Able to Receive a Return on Their Shares Unless They Sell Them .
We intend to retain any future earnings to finance the development and expansion of our business.
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If some investors find our common stock less attractive as a result, there may be a less active trading market for our common stock and our stock price may be more volatile.
−Removed: We will remain a smaller reporting company until the beginning of a year in which we had a public float of $250 million held by non-affiliates or revenues below $100 million and a public float below $750 million, in each case as of the last business day of the second quarter of the prior year.
+Added: We will remain a smaller reporting company until the beginning of a year in which we had a public float of $250 million held by non-affiliates or revenues below $100 million and a public float below $700 million, in each case as determined as of the last business day of the second quarter of the prior year.
Our Common Stock is Subject to the “ Penny Stock ” Rules of the SEC and the Trading Market in our Securities is Limited, Which Makes Transactions in Our Stock Cumbersome and May Reduce the Value of an Investment in Our Stock.
14 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.