3 unchanged sentences
Significant Accounting Policies — Accounting policies that we believe are important to understanding the assumptions and judgments incorporated in our reported financial results and forecasts.
−Removed: Results of Operations — Analysis of our financial results comparing the quarter ended March 31, 2024 to March 31, 2023.
+Added: Results of Operations — Analysis of our financial results comparing the quarter ended June 30, 2024 to June 30, 2023.
Liquidity and Capital Resources — Analysis of changes in our cash flows, and discussion of our financial condition and potential sources of liquidity.
34 unchanged sentences
Results of Operations
−Removed: Three Months Ended March 31, 2024 and 2023
−Removed: For the quarter ended March 31, 2024, the Company reported revenue of $640,653 an increase of $125,020 or 24% from revenue of $515,633 for the quarter ended March 31, 2023.
+Added: Three Months Ended June 30, 2024 and 2023
+Added: For the quarter ended June 30, 2024, the Company reported revenue of $845,321 an increase of $256,843 or 44% from revenue of $588,478 for the quarter ended June 30, 2023.
The increase in revenue was due to strong demand for all products.
+Added: There was also a significant gain shelf space and new points of sale during the second quarter of 2024.
Cost of Revenue
Cost of revenue includes finished goods purchase costs and freight in costs.
−Removed: For the quarter ended March 31, 2024, cost of revenue was $370,070 or 58% of revenue, an improvement of 3 percentage points from the same period in 2023.
−Removed: For the quarter ended March 31, 2023, cost of revenue was $313,457 or 61% of revenue.
−Removed: The improvement in the operating margin was the result of improved sales of higher margin products.
+Added: For the quarter ended June 30, 2024, cost of revenue was $502,838 or 52% of revenue, an increase of 7 percentage points from the same period in 2023.
+Added: For the quarter ended June 30, 2023, cost of revenue was $307,721 or 52% of revenue.
+Added: The increase in in cost of revenue was primarily due to higher ocean freight costs in 2024 compared to the same period in 2023.
Operating Expenses
−Removed: Operating expenses for the first quarter of 2024 were $230,758 compared to $178,720 for the same period in 2023 excluding restricted, non-trading stock awards issued to officers and directors.
+Added: Operating expenses for the quarter ended June 30, 2024 were $297,033 compared to $228,311 for the same period in 2023 excluding restricted, non-trading stock awards issued to officers and directors.
This $68,759 or 30% increase was primarily due to increased revenue of 44%.
−Removed: During the first quarter of 2023, 201,000 shares of restricted, non-trading common stock were issued to officers and directors compared to 276,000 shares issued during the same period in 2023 which is a reduction of 75,000 shares.
−Removed: For the first quarter of 2024, the implied cost of the restricted, non-trading common shares was $0.61 per share compared to $0.06 per share for the first quarter of 2023.
+Added: During the quarter ended June 30, 2024, 276,000 shares of restricted, non-trading common stock were issued to officers and directors compared to 238,500 shares issued during the same period in 2023.
+Added: For the second quarter of 2024, the implied cost of the restricted, non-trading common shares was $0.42 per share compared to $0.11 per share for the second quarter of 2023.
The increase was due to a higher stock price of the publicly traded shares in 2024.
+Added: Six Months Ended June 30, 2024 and 2023
+Added: For the six months ended June 30, 2024, the Company reported revenue of $1,485,975 an increase of $381,862 or 35% from revenue of $1,014,113 for the six months ended June 30, 2023.
+Added: The increase in revenue was due to strong demand for all products.
+Added: Cost of Revenue
+Added: Cost of revenue includes finished goods purchase costs and freight in costs.
+Added: For the six months ended June 30, 2024, cost of revenue was $872,908 or 59% of revenue, an increase of 3 percentage points from the same period in 2023.
+Added: For the six months ended June 30, 2023, cost of revenue was $621,179 or 56% of revenue.
+Added: Operating Expenses
+Added: Operating expenses during the six months ended June 30, 2024 were $527,828 compared to $407,031 for the same period in 2023 excluding restricted, non-trading stock awards issued to officers and directors.
+Added: This $120,797 or 30% increase was primarily due to increased revenue of 35%.
+Added: During the six months ended June 30, 2024, 477,000 shares of restricted, non-trading common stock were issued to officers and directors compared to 477,000 shares issued during the same period in 2023.
+Added: For the six months ended June 30, 2024, the implied cost of the restricted, non-trading common shares was $0.50 per share compared to $0.08 per share for the first six months of 2023.
+Added: The increase was due to a higher stock price of the publicly traded shares in 2024.
Liquidity and Capital Resources
−Removed: As of March 31, 2024, the Company had working capital of $290,462 compared to $164,342 for the first quarter of 2023.
−Removed: Net cash used in operating activities was $162,241 for the quarter ended March 31, 2024, a $182,149 decline compared to net cash from operating activities for the quarter ended March 31, 2023 of $19,908.
−Removed: Net cash provided by financing activities was $130,000 for the quarter ended March 31, 2024 compared to $10,000 net cash provided by financing activities for the quarter ended March 31, 2023.
−Removed: Net cash provided by financing activities was used for operations for the quarter ended March 31, 2024.
+Added: As of June 30, 2024, the Company had working capital of $345,494 compared to $171,407 for the same period in 2023.
+Added: Net cash used in operating activities was $160,248 for the six months ended June 30, 2024, a $157,575 increase compared to net cash used in operating activities for the six months ended June 30, 2023 of $2,673.
+Added: Net cash provided by financing activities was $86,000 for the six months ended June 30, 2024 compared to $26,998 net cash provided by financing activities for the six months ended June 30, 2023.
+Added: Net cash provided by financing activities was used for operations for the six months ended June 30, 2024.
Working Capital Needs
Our working capital requirements increase as revenue grows for our products.
−Removed: During the quarter ended March 31, 2024, the Company had net borrowings of $130,000.
−Removed: In the first quarter of 2023, net borrowings were $235,000.
+Added: During the six months ended June 30, 2024, the Company had net borrowings of $86,000.
+Added: During the first six months of 2023, net borrowings were $65,000.
Should the Company require additional working capital during the next twelve months, it may seek to raise additional funds.
3 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.