2023 Q1 Form 10-Q Financial Statement

#000190359623000224 Filed on March 28, 2023

View on sec.gov

Income Statement

Concept 2023 Q1 2021 Q3 2020 Q4

Balance Sheet

Concept 2023 Q1 2021 Q3 2020 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $8.189M $110.00
YoY Change 5849428.57%
Cash & Equivalents $44.34K $110.00
Short-Term Investments $8.145M
Other Short-Term Assets $128.1K
YoY Change
Inventory $6.997M
Prepaid Expenses
Receivables $298.1K
Other Receivables $0.00
Total Short-Term Assets $16.14M $110.00
YoY Change 11528667.14%
LONG-TERM ASSETS
Property, Plant & Equipment $315.3K $0.00
YoY Change
Goodwill $10.80M
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $0.00 $0.00
YoY Change
Total Long-Term Assets $11.51M $0.00
YoY Change
TOTAL ASSETS
Total Short-Term Assets $16.14M $110.00
Total Long-Term Assets $11.51M $0.00
Total Assets $27.65M $110.00
YoY Change 19749901.43%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.785M $165.5K
YoY Change 978.95%
Accrued Expenses $1.090M $1.555M
YoY Change -24.34%
Deferred Revenue
YoY Change
Short-Term Debt $2.383M $1.560M
YoY Change 52.45%
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $9.871M $5.583M
YoY Change 18.81%
LONG-TERM LIABILITIES
Long-Term Debt $156.0K $0.00
YoY Change
Other Long-Term Liabilities
YoY Change
Total Long-Term Liabilities $0.00 $0.00
YoY Change
TOTAL LIABILITIES
Total Short-Term Liabilities $9.871M $5.583M
Total Long-Term Liabilities $0.00 $0.00
Total Liabilities $10.03M $5.583M
YoY Change 20.69%
SHAREHOLDERS EQUITY
Retained Earnings $15.90M
YoY Change
Common Stock $0.00 $0.00
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $14.21M -$5.583M
YoY Change
Total Liabilities & Shareholders Equity $27.65M $110.00
YoY Change 19749901.43%

Cashflow Statement

Concept 2023 Q1 2021 Q3 2020 Q4

Facts In Submission

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<p id="xdx_84D_ecustom--NatureOfBusiness_ziWQdMJ4qj2l" style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span style="text-decoration: underline"><span id="xdx_867_ztwML3LyDUt2">Nature of Business</span></span></i></span></p> <p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 5.95pt 6pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Rogue One, Inc. (“Rogue One” or the “Company”) is a consumer products and marketing company focused on the high-margin, multi-trillion-dollar alcoholic beverages sector.</span></p> <p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 5.5pt 6pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On June 27, 2017, Creative Edge Nutrition, a Nevada corporation ("CEN") and Rogue One executed an asset purchase agreement whereby the Company purchased the assets and liabilities of CEN's subsidiary, Giddy Up Energy Products, Inc. ("Giddy"). As consideration, the Company agreed to exchange 47,197,601 shares of its common stock. On January 24, 2018, the Company completed the distribution of its common shares to the CEN shareholders to consummate the acquisition of Giddy. On December 7, 2020, the Company and Giddy entered into a Settlement Agreement, Waiver and Release of Claims whereby each party warranted and represented that they sought to fully and mutually rescind the purchase agreement dated June 27, 2017 and, in so doing, for Giddy to acquire the assets previously sold and, at the same time, for each of the parties to waive and release all claims, both known and unknown, and to indemnify and hold all other parties harmless. In addition, the parties agreed to enter into an exclusive licensing agreement for the Giddy Up brand in the category of alcoholic beverages.</span></p> <p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 5.85pt 6pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On September 23, 2020, the Company entered into a Merger Agreement and Plan of Reorganization with Human Brands International, Inc., a private corporation organized pursuant to the laws of the State of Nevada (“Human Brands”), pursuant to which, at the effective time, Human Brands shareholders will exchange 100% of the equity in Human Brands in exchange for a majority controlling interest in the Company. On June 30, 2021, the Acquisition Agreement was made effective pending certain closing conditions. Under the terms of the Acquisition Agreement, the Company agreed to issue an aggregate of <span id="xdx_90F_eus-gaap--StockIssuedDuringPeriodSharesAcquisitions_c20210101__20210930__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesDPreferredStockMember_pdd" title="Stock issued during period for acquisitions">45</span> shares of its Series D preferred stock and an aggregate of <span id="xdx_90F_eus-gaap--StockIssuedDuringPeriodSharesAcquisitions_c20210101__20210930__us-gaap--StatementClassOfStockAxis__us-gaap--CommonStockMember_pdd" title="Stock issued during period for acquisitions">176,771,962</span> shares of its common stock to acquire all of the outstanding capital stock of Human Brands.</span></p> <p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 5.9pt 6pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Human Brands operating divisions currently own and manage over 250,000 agave plants, several premium spirit brands, and hold exclusive import and export rights for a variety of spirit brands. Its core foundation is built upon its bulk tequila production operations. Human Brands currently has supply contracts with well- known tequila brands, celebrities, and athletes.</span></p> <p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 5.75pt 6pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On April 7, 2021, the Company effected a <span id="xdx_90C_eus-gaap--StockholdersEquityReverseStockSplit_c20210401__20210407" title="Reverse stock split">1-for-100</span> reverse split which as preceded by a filing of an amendment to its Articles of Incorporation that the Company completed with the Nevada Secretary of State on February 13, 2021. On April 7, 2021, the Company also amended its Articles of Incorporation to change its name to Rogue One, Inc.</span></p> <p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On June 30, 2021, the Company entered into that certain Merger Agreement and Plan of Reorganization (the “Acquisition Agreement”) with each of the stockholders of Human Brands International, Inc., a Nevada corporation (the “Acquired Company” or “Human Brands”), finishing the merger initiated on September 23, 2020.</span></p> <p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under the terms of the Acquisition Agreement, the Company agreed to issue an aggregate of forty-seven (47) shares of Series D Preferred Stock (par value $0.001) (the “Preferred Shares”) and an aggregate of One Hundred Seventy-Six Million Seven Hundred Seventy-One Thousand Nine Hundred Sixty-Two (176,771,962) shares of Common Stock (par value $0.001) (the “Common Shares”) to acquire all of the outstanding capital stock of the Acquired Company.</span></p> <p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Acquisition Agreement was the product of several months of meetings and due diligence conducted by the Company’s officers and directors that resulted in successful negotiations with the officers and directors of the Acquired Company and the stockholders of the Acquired Company.</span></p> <p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company did not employ or utilize the services of any investment banker, advisor, or other third party in connection with the Acquisition Agreement, the transactions underlying the Acquisition Agreement or both of them. As a result, the Company did not incur or pay any fees to any investment banker, advisor, or other third party but may ignored critically important aspects of the business conducted by the Acquired Company that we may later discover with materially adverse consequences to the Company’s financial condition for an indefinite period of time.</span></p> <p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">All of the Preferred Shares and all of the Common Shares that were issued in accordance with the Acquisition Agreement are “unregistered securities” in that they were issued pursuant to claims of exemption provided by Section 4(a)(2) of the Securities Act of 1933, as amended (the “1933 Act”) and Rule 506(b) promulgated by the Securities and Exchange Commission thereunder as well as certain claims to the qualification requirements under state securities laws in the states wherein the holders of all of the outstanding capital stock of the Acquired Company. Moreover, all of the Preferred Shares and all of the Common Shares that were issued pursuant to the Acquisition Agreement were issued with a restricted securities legend and only then after we received certain additional written assurances from the stockholders of the Acquired Company.</span></p> <p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Human Brands was founded in late 2014 with a plan to capitalize in perceived growth prospects in the consumer alcoholic products industry. In recent years Human Brands has focused on the tequila products segment within that industry as management believes that the tequila products segment may offer stronger sales growth opportunities relative to other consumer alcoholic segments. The management of Human Brands follows a “ground to glass” strategy that, in practical terms, means that management attempts to control marketing, sales, and assets throughout the selection of raw materials (the agave plants) and the operation of the manufacturing process. The strategy also involves selection and constant management of the marketing channels, advertising programs, and target marketing strategies. Human Brands has had to confront ever-rising costs for raw materials as agave prices have increased by about 694% since 2016.</span></p> <p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Currently Human Brands has approximately 400,000 agave plants and has adopted a strategy to grow more agave plants to ensure that the company has a stable supply of raw materials and at price levels that may serve to insulate the company from excessive price increases in the market. The company has adopted a two-part strategy: (a) sell agave plants to generate revenues; and (b) at the same time, use agave produced by the company’s own agave plants as raw material for the company’s tequila products. The Company believes that, if circumstances allow, this strategy may serve to insulate the company from some of the excessive cost pressures in the raw agave market.</span></p> <p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #464646"><b>Cautionary Statement </b></span><b><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2F2F2F">on </span></b><b><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #464646">Forward-Looking Statements</span></b></p> <p style="font: 11pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 11pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2F2F2F; line-height: 115%">All statements, other than statements </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #1C1C1C; line-height: 115%">of </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2F2F2F; line-height: 115%">current or historical fact, contained </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #464646; line-height: 115%">in </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2F2F2F; line-height: 115%">this filing are forward-looking statements. Without limiting the foregoing, forward-looking statements often use words such as "believe," "anticipate," "plan," "expect," "estimate," "intend," "seek," "target," </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #1C1C1C; line-height: 115%">"goal," "may," "will," "would," "could," </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2F2F2F; line-height: 115%">"should," </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #1C1C1C; line-height: 115%">"can," </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2F2F2F; line-height: 115%">"continue" and other similar words or expressions </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #1C1C1C; line-height: 115%">(and </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2F2F2F; line-height: 115%">the negative thereof). Rogue One, Inc., and its subsidiaries </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #1C1C1C; line-height: 115%">(Rogue, </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2F2F2F; line-height: 115%">the Company, our or we) intends such forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements contained in </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #464646; line-height: 115%">the </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2F2F2F; line-height: 115%">Private Securities Litigation Reform Act of 1995, and we are including this statement for purposes of complying with these safe-harbor provisions. In particular, these statements include, without limitation, statements about our future operating or financial performance, market opportunity, growth strategy, competition, expected activities in completed and future acquisitions, </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #464646; line-height: 115%">including </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2F2F2F; line-height: 115%">statements about the impact of our recently completed acquisition of Human Brands International, Inc., and its subsidiaries</span> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #1C1C1C; line-height: 115%">(</span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2F2F2F; line-height: 115%">the Human Brands Acquisition), and future acquisitions, </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #464646; line-height: 115%">investments </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2F2F2F; line-height: 115%">and </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #464646; line-height: 115%">the </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2F2F2F; line-height: 115%">adequacy of our available cash resources. </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #464646; line-height: 115%">These </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2F2F2F; line-height: 115%">statements may be found in the various sections of this filing, such as Part I, Item 2 "Management's Discussion and Analysis of Financial Condition and Results of Operations." and </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #464646; line-height: 115%">Part </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2F2F2F; line-height: 115%">II, These forward-looking statements </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #464646; line-height: 115%">reflect </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2F2F2F; line-height: 115%">our current views with respect to future events and are based on numerous assumptions and assessments made by us in light of our experience and perception </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #1C1C1C; line-height: 115%">of </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2F2F2F; line-height: 115%">historical trends, current conditions, business </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #464646; line-height: 115%">strategies, </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2F2F2F; line-height: 115%">operating environments, future developments and other factors we believe appropriate. By their nature, forward-looking statements involve known and unknown risks and uncertainties and are subject to change because they relate to events and depend on circumstances that will occur in the future, including economic, regulatory, competitive and other factors that </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #464646; line-height: 115%">may </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2F2F2F; line-height: 115%">cause our or our </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #464646; line-height: 115%">industry's </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2F2F2F; line-height: 115%">actual results, levels of activity, performance or achievements to be materially different from any </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #464646; line-height: 115%">future </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2F2F2F; line-height: 115%">results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions.</span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"> </span></p> <p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 2.5pt 6pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2F2F2F">All forward-looking statements included in this Notes are based on information available to us </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #1C1C1C">on </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2F2F2F">the date of this filing. Except as may be otherwise required by law, we undertake </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #464646">no </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2F2F2F">obligation to update or revise the forward-looking statements included in this filing, whether as a </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #464646">result </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2F2F2F">of new information, future events or otherwise, after </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #464646">the </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2F2F2F">date of this filing. You should not place undue reliance on any</span> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B">forward-looking statements, as actual results </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B">may differ </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B">materially </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B">from projections, </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B">estimates, or other forward-looking statements due to a variety of </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B">important </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B">factors, variables and events including, but </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B">not limited to:</span></p> <p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 2.5pt 6pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B"/></p> <table cellpadding="0" cellspacing="0" style="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="width: 18px; padding-bottom: 6pt; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">•</span></td> <td style="padding-right: 2.5pt; padding-bottom: 6pt; text-align: justify; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">The impact of COVID-19 on global markets, economic conditions, </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">the healthcare </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">industry and our results of operations and the response by governments and other </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">third </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">parties.</span></td></tr> </table> <p style="font: 11pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="width: 18px; padding-bottom: 6pt; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">•</span></td> <td style="padding-right: 2.5pt; padding-bottom: 6pt; text-align: justify; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">The risk that regulatory or other approvals </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">required </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">for the HBI </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">Acquisition </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">may be delayed or not obtained or are obtained subject </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">to </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">conditions that are not anticipated that could require </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">the </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">exertion of management's time and our resources or otherwise have an adverse effect on us.</span></td></tr> </table> <p style="font: 11pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="width: 18px; padding-bottom: 6pt; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">•</span></td> <td style="padding-right: 2.5pt; padding-bottom: 6pt; text-align: justify; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">The possibility </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">that </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">certain conditions </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">to the </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">consummation of the HBI Acquisition will not be satisfied or completed on a </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">timely </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">basis and accordingly </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">the </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">HBI Acquisition may not be consummated on a timely basis or at all.</span></td></tr> </table> <p style="font: 11pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="width: 18px; padding-bottom: 6pt; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">•</span></td> <td style="padding-right: 2.5pt; padding-bottom: 6pt; text-align: justify; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">Uncertainty as </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">to the </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">expected financial performance of the combined company following completion of the HBI Acquisition.</span></td></tr> </table> <p style="font: 11pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="width: 18px; padding-bottom: 6pt; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">•</span></td> <td style="padding-right: 2.5pt; padding-bottom: 6pt; text-align: justify; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">The </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">possibility </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">that the </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">expected synergies and value creation from the HBI Acquisition will not be </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">realized or</span> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">will not be </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">realized </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">within </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">the </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">applicable expected </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">time </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">periods.</span></td></tr> </table> <p style="font: 11pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="width: 18px; padding-bottom: 6pt; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">•</span></td> <td style="padding-right: 2.5pt; padding-bottom: 6pt; text-align: justify; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">The exertion of </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">management's </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">time and our resources, and other expenses incurred, and business changes required, </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">in </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">connection with complying with </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">the </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">undertakings in connection with any regulatory, governmental or third-party consents or approvals for the HBI Acquisition.</span></td></tr> </table> <p style="font: 11pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="width: 18px; padding-bottom: 6pt; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">•</span></td> <td style="padding-right: 2.5pt; padding-bottom: 6pt; text-align: justify; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">The risk </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">that </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">unexpected costs will </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">be </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">incurred in connection with the completion and/or </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">integration </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">of the HBI Acquisition or </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">that the </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">integration of its subsidiaries will be more difficult or time consuming than </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">expected.</span></td></tr> </table> <p style="font: 11pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="width: 18px; padding-bottom: 6pt; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">•</span></td> <td style="padding-right: 2.5pt; padding-bottom: 6pt; text-align: justify; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">The </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">risk that potential </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">litigation in connection with </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">the </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">HBI Acquisition </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">may </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">affect </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">the timing </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">or occurrence of the HBI Acquisition or result in significant costs of defense, indemnification and liability.</span></td></tr> </table> <p style="font: 11pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="width: 18px; padding-bottom: 6pt; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">•</span></td> <td style="padding-right: 2.5pt; padding-bottom: 6pt; text-align: justify; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">A </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">downgrade </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">of the credit rating of our </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">indebtedness, </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">which could give </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">rise </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">to an obligation to redeem existing indebtedness.</span></td></tr> </table> <p style="font: 11pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="width: 18px; padding-bottom: 6pt; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">•</span></td> <td style="padding-right: 2.5pt; padding-bottom: 6pt; text-align: justify; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">The inability </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">to retain key personnel.</span></td></tr> </table> <p style="font: 11pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="width: 18px; padding-bottom: 6pt; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">•</span></td> <td style="padding-right: 2.5pt; padding-bottom: 6pt; text-align: justify; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">Disruption from </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">the </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">announcement, </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">pendency </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">and/or completion and/or integration of </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">the </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">HBI Acquisition or the </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">integration </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">of the </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">subsidiaries</span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">, or similar risks from other acquisitions we </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">may </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">announce or complete from time to </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">time, </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">including </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">potential adverse </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">reactions or changes to business relationships with customers, employees, </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">suppliers </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">or regulators, making it more </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">difficult </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">to </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">maintain </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">business and operational relationships.</span></td></tr> </table> <p style="font: 11pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">  </span></p> <table cellpadding="0" cellspacing="0" style="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="width: 18px; padding-bottom: 6pt; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">•</span></td> <td style="padding-right: 2.5pt; padding-bottom: 6pt; text-align: justify; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">Our </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">ability </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">to accurately predict and effectively manage health </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">benefits </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">and other operating expenses and reserves,</span></td></tr> <tr style="vertical-align: top"> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="padding-bottom: 6pt; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">•</span></td> <td style="padding-right: 2.5pt; padding-bottom: 6pt; text-align: justify; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">Competition.</span></td></tr> <tr style="vertical-align: top"> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="padding-bottom: 6pt; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">•</span></td> <td style="padding-right: 2.5pt; padding-bottom: 6pt; text-align: justify; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">Membership and revenue declines or unexpected trends.</span></td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="width: 18px; padding-bottom: 6pt; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">•</span></td> <td style="padding-right: 2.5pt; padding-bottom: 6pt; text-align: justify; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">Changes </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">in the beverage industry </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">practices, new technologies, and advances in </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">processing and distillation methods.</span></td></tr> </table> <p style="font: 4pt Times New Roman, Times, Serif; margin: 0 0 6pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"/></p> <p style="font: 11pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="width: 18px; padding-bottom: 6pt; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">•</span></td> <td style="padding-right: 2.5pt; padding-bottom: 6pt; text-align: justify; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">Increased </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">feedstock costs.</span></td></tr> </table> <p style="font: 11pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="width: 18px; padding-bottom: 6pt; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">•</span></td> <td style="padding-right: 2.5pt; padding-bottom: 6pt; text-align: justify; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">Changes </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">in economic, </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">political </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">or market conditions.</span></td></tr> </table> <p style="font: 11pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="width: 18px; padding-bottom: 6pt; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">•</span></td> <td style="padding-right: 2.5pt; padding-bottom: 6pt; text-align: justify; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">Changes </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">in </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">federal or state laws or regulations, including changes with </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">respect to income tax </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">reform or government beverage industry </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">programs </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">as well as changes with and any regulations enacted thereunder that may </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">result </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">from changing political conditions, the new administration or judicial actions.</span></td></tr> </table> <p style="font: 11pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="width: 18px; padding-bottom: 6pt; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">•</span></td> <td style="padding-right: 2.5pt; padding-bottom: 6pt; text-align: justify; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">Our ability </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">to </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">adequately </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">price </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">products.</span></td></tr> </table> <p style="font: 11pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="width: 18px; padding-bottom: 6pt; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">•</span></td> <td style="padding-right: 2.5pt; padding-bottom: 6pt; text-align: justify; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">Tax </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">matters.</span></td></tr> </table> <p style="font: 11pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="width: 18px; padding-bottom: 6pt; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">•</span></td> <td style="padding-right: 2.5pt; padding-bottom: 6pt; text-align: justify; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">Disasters or major </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">epidemics.</span></td></tr> </table> <p style="font: 11pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="width: 18px; padding-bottom: 6pt; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">•</span></td> <td style="padding-right: 2.5pt; padding-bottom: 6pt; text-align: justify; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">Changes </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">in expected </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">contract start dates.</span></td></tr> </table> <p style="font: 11pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="width: 18px; padding-bottom: 6pt; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">•</span></td> <td style="padding-right: 2.5pt; padding-bottom: 6pt; text-align: justify; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">Provider, </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">state, federal, foreign, </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">and </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">other contract changes and timing of </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">regulatory </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">approval of contracts.</span></td></tr> </table> <p style="font: 11pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="width: 18px; padding-bottom: 6pt; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">•</span></td> <td style="padding-right: 2.5pt; padding-bottom: 6pt; text-align: justify; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">The difficulty </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">of predicting the </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">timing </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">or outcome of pending or future </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">legal </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">and regulatory proceedings or government investigations.</span></td></tr> </table> <p style="font: 11pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="width: 18px; padding-bottom: 6pt; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">•</span></td> <td style="padding-right: 2.5pt; padding-bottom: 6pt; text-align: justify; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">Challenges </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">to </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">our contract awards.</span></td></tr> </table> <p style="font: 11pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="width: 18px; padding-bottom: 6pt; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">•</span></td> <td style="padding-right: 2.5pt; padding-bottom: 6pt; text-align: justify; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">Cyber-attacks </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">or other privacy or data security incidents.</span></td></tr> </table> <p style="font: 11pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="width: 18px; padding-bottom: 6pt; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">•</span></td> <td style="padding-right: 2.5pt; padding-bottom: 6pt; text-align: justify; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">The </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">possibility </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">that </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">the expected </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">synergies </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">and value creation from acquired </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">businesses, including businesses </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">we may acquire in </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">the </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">future, will not be realized, or will </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">not </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">be </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">realized </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">within the expected </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">time </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">period.</span></td></tr> </table> <p style="font: 11pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="width: 18px; padding-bottom: 6pt; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">•</span></td> <td style="padding-right: 2.5pt; padding-bottom: 6pt; text-align: justify; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">The </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">exertion of </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">management's </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">time and our </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">resources, </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">and other expenses </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">incurred, </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">and business changes </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">required </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">in connection with </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">complying </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">with </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">the </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">undertakings </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">in </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">connection with any </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">regulatory, </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">governmental or third-party consents or approvals for </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">acqu</span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #5E5D5D; line-height: 115%">i</span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #2B2A2B; line-height: 115%">sitions.</span></td></tr> </table> <p style="font: 11pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 1px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="width: 11px; padding-bottom: 6pt; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">•</span></td> <td style="padding-right: 14.2pt; padding-bottom: 6pt; text-align: justify; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #444444; line-height: 115%">Disruption </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #312F31; line-height: 115%">caused by significant completed and </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #444444; line-height: 115%">pending </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #312F31; line-height: 115%">acquisitions making it more difficult to maintain business and operational </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #444444; line-height: 115%">relationships.</span></td></tr> </table> <p style="font: 11pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 1px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="width: 11px; padding-bottom: 6pt; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">•</span></td> <td style="padding-bottom: 6pt; text-align: justify; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #444444; line-height: 115%">The risk that </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #312F31; line-height: 115%">unexpected costs will be incurred in connection with the completion and/or </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #444444; line-height: 115%">integration </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #312F31; line-height: 115%">of acquisition transactions.</span></td></tr> </table> <p style="font: 11pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 1px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="width: 11px; padding-bottom: 6pt; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">•</span></td> <td style="padding-bottom: 6pt; text-align: justify; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #312F31; line-height: 115%">Changes in expected closing dates, estimated </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #444444; line-height: 115%">purchase </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #312F31; line-height: 115%">price and accretion for </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #444444; line-height: 115%">acquisitions.</span></td></tr> </table> <p style="font: 11pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 1px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="width: 11px; padding-bottom: 6pt; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">•</span></td> <td style="padding-bottom: 6pt; text-align: justify; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #312F31; line-height: 115%">The risk that acquired businesses will not be integrated successfully.</span></td></tr> </table> <p style="font: 11pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 1px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="width: 11px; padding-bottom: 6pt; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">•</span></td> <td style="padding-bottom: 6pt; text-align: justify; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #312F31; line-height: 115%">Restrictions and limitations in connection with our indebtedness.</span></td></tr> </table> <p style="font: 11pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 1px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="width: 11px; padding-bottom: 6pt; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">•</span></td> <td style="padding-bottom: 6pt; text-align: justify; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #312F31; line-height: 115%">Availability of debt and equity financing, on </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #444444; line-height: 115%">terms that </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #312F31; line-height: 115%">are </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #444444; line-height: 115%">favorable to </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #312F31; line-height: 115%">us.</span></td></tr> </table> <p style="font: 11pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 1px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="width: 11px; padding-bottom: 6pt; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">•</span></td> <td style="padding-bottom: 6pt; text-align: justify; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #312F31; line-height: 115%">Inflation; and</span></td></tr> </table> <p style="font: 11pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 1px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="width: 11px; padding-bottom: 6pt; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #3B3B3B; line-height: 115%">•</span></td> <td style="padding-bottom: 6pt; text-align: justify; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #312F31; line-height: 115%">Foreign currency fluctuations.</span></td></tr> </table> <p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify; text-indent: 0.7pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #312F31">This list of important factors is not intended to be exhaustive. We discuss certain of these matters more </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #444444">fully, </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #312F31">as </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #444444">well </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #312F31">as certain other factors that may affect our </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #444444">business </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #312F31">operations, financial condition and results of operations, in our filings with </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #444444">the </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #312F31">Securities </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #444444">and Exchange </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #312F31">Commission (SEC), including quarterly reports on Form 10-Q and current reports on Form 8-K. Item </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #444444">1A. </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #181818">"Ris</span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #444444">k </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #312F31">Factors" of Part </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #444444">I </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #312F31">of </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #444444">this </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #312F31">Notes contains a further discussion of these and other important factors </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #444444">that </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #312F31">could cause actual results to </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #444444">differ from </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #312F31">expectations. Due to </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #444444">these </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #312F31">important </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #444444">factors </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #312F31">and </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #444444">risks, </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #312F31">we cannot give assurances with respect </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #444444">to </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #312F31">our future performance, including without limitation our ability </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #444444">to maintain </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #312F31">adequate premium levels or our ability to control our future cultivation, harvesting, distillation and selling, general and administrative costs.</span></p> <p style="font: 4pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
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<p id="xdx_84C_eus-gaap--UseOfEstimates_zqc16KJnbjh5" style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span style="text-decoration: underline"><span id="xdx_860_zjPRSjv6C604">Use of Estimates</span></span></i></span></p> <p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 5.8pt 6pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates on historical experience, known or expected trends and various other assumptions that are believed to be reasonable given the quality of information available as of the date of these financial statements. The results of these assumptions provide the basis for making estimates about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual results could differ from these estimates.</span></p>
CY2021Q3 us-gaap Cash Fdic Insured Amount
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250000 usd
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roag Net Income Loss Applicable To Common Shareholders
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us-gaap Weighted Average Number Of Shares Outstanding Basic
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us-gaap Weighted Average Number Of Shares Outstanding Basic
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roag Convertible Preferred Stock
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250000000 shares
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us-gaap Weighted Average Number Of Diluted Shares Outstanding
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365739401 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
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197081861 shares
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us-gaap Earnings Per Share Basic
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us-gaap Earnings Per Share Diluted
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-0.02
roag Net Loss
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1230814 usd
CY2021Q3 roag Working Capital Deficit
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6269364 usd
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15900941 usd
CY2021Q3 us-gaap Cash And Cash Equivalents At Carrying Value
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44342 usd
CY2020Q4 us-gaap Cash And Cash Equivalents At Carrying Value
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111 usd
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CY2020Q4 us-gaap Accounts Receivable Net
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174568 usd
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AccountReceivable3160
54731 usd
CY2021Q3 roag Account Receivable6190
AccountReceivable6190
66657 usd
CY2021Q3 roag Account Receivable91 And Over
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232262 usd
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826297 usd
CY2021Q3 us-gaap Inventory Finished Goods
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CY2021Q3 roag Inventory Biological Assets
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6996553 usd
roag Total Equity Value
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7432862 usd
roag Market Value Equity
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11033306 usd
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315300 usd
us-gaap Depreciation
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CY2021Q2 us-gaap Property Plant And Equipment Net
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331846 usd
CY2021Q3 us-gaap Depreciation
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16870 usd
CY2021Q3 us-gaap Depreciation Depletion And Amortization
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16870 usd
CY2021Q3 roag Net Value
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314976 usd
CY2021Q3 roag Prepayments
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120000 usd
CY2021Q3 us-gaap Security Deposit
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2195 usd
CY2021Q3 roag Security Deposits Rent
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3903 usd
CY2021Q3 roag Janon Costley
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1250 usd
CY2021Q3 roag Creditable Paid Iva
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129 usd
CY2021Q3 roag Creditable Paid Ieps
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151 usd
CY2021Q3 roag Iva Pending
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42 usd
CY2021Q3 roag Ieps Pending
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410 usd
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CY2021Q3 us-gaap Other Assets Noncurrent
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CY2020Q4 us-gaap Other Assets Noncurrent
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CY2021Q3 us-gaap Goodwill
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10804239 usd
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2298820 usd
roag Schedule Of Fair Value Of Assumptions Used
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<table cellpadding="0" cellspacing="0" id="xdx_89D_ecustom--ScheduleOfFairValueOfAssumptionsUsed_zBS5sWJ2Bza" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - CONVERTIBLE NOTES PAYABLE (Details 1)"> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-left: 5.4pt"><span id="xdx_8B1_zQdXOJk71dul" style="display: none">Schedule of fair value of assumptions used</span></td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"><b> </b></td><td style="text-align: center"><b> </b></td> <td colspan="3" style="text-align: center"><b>December 31,</b></td><td style="text-align: center"><b> </b></td> <td colspan="3" style="text-align: center"><b>December 31,</b></td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="3" style="font-weight: bold; text-align: center">2021</td><td style="font-weight: bold"> </td> <td colspan="3" style="font-weight: bold; text-align: center">2020</td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="3"> </td><td> </td> <td colspan="3"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; text-align: justify; padding-left: 5.4pt">Expected dividend yield (1)</td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right"><span id="xdx_901_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_dp_c20210101__20210930_fKDEp_zSDVqGLO0egf" title="Expected dividend yield">0.00</span></td><td style="width: 1%; text-align: left">%</td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right"><span id="xdx_90A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_dp_c20200101__20201231_fKDEp_zQ8pOic1RZna" title="Expected dividend yield">0.00</span></td><td style="width: 1%; text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-left: 5.4pt">Risk-free interest rate (2)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_90F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_dp_c20210101__20210930__srt--RangeAxis__srt--MinimumMember_fKDIp_zmusxBLSsd46" title="Risk-free interest rate">0.05</span> – <span id="xdx_904_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_dp_c20210101__20210930__srt--RangeAxis__srt--MaximumMember_fKDIp_z5vLUyuMz4yg" title="Risk-free interest rate">0.07</span>%</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_900_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_dp_c20200101__20201231__srt--RangeAxis__srt--MinimumMember_fKDIp_zDqbKuEGzXD2" title="Risk-free interest rate">0.09</span> – <span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_dp_c20200101__20201231__srt--RangeAxis__srt--MaximumMember_fKDIp_z77Pn2TQ6U2c" title="Risk-free interest rate">0.17</span>%</span></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-left: 5.4pt">Expected volatility (3)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_90E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMinimum_dp_c20210101__20210930__srt--RangeAxis__srt--MinimumMember_fKDMp_zGnIqITwdyVk" title="Expected volatility">253.5</span> – <span id="xdx_90C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMinimum_dp_c20210101__20210930__srt--RangeAxis__srt--MaximumMember_fKDMp_zDq3WE3uHEc9" title="Expected volatility">415.6</span>%</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_906_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMinimum_dp_c20200101__20201231__srt--RangeAxis__srt--MinimumMember_fKDMp_z3kyoC4pFRvb" title="Expected volatility">199.52 </span>– <span id="xdx_909_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMinimum_dp_c20200101__20201231__srt--RangeAxis__srt--MaximumMember_fKDMp_zgvBGEj2OiXd" title="Expected volatility">582.91</span>%</span></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-left: 5.4pt">Expected life (in years)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_907_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20210101__20210930__srt--RangeAxis__srt--MinimumMember_zzbwfdHs0dl7" title="Expected life (in years)">0.5</span> – <span id="xdx_90A_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20210101__20210930__srt--RangeAxis__srt--MaximumMember_zXFW0IfNEnh" title="Expected life (in years)">1.0</span></span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_90E_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20200101__20201231__srt--RangeAxis__srt--MinimumMember_zAL1wljeWhYe" title="Expected life (in years)">0.5</span> – <span id="xdx_906_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20200101__20201231__srt--RangeAxis__srt--MaximumMember_zXb4H2jq7G1h" title="Expected life (in years)">1.0</span></span></td><td style="text-align: left"> </td></tr> </table> <p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 5.75pt 6pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 8px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="width: 38px; padding-bottom: 6pt; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">(1)</span></td> <td style="padding-bottom: 6pt; text-align: justify; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">The Company has no history or expectation of paying cash dividends on its common <span style="letter-spacing: -0.1pt">stock.</span></span></td></tr> </table> <p style="font: 11pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 8px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="width: 38px; padding-bottom: 6pt; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">(2)</span></td> <td style="padding-bottom: 6pt; text-align: justify; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">The risk-free interest rate is based on the U.S. Treasury yield for a term consistent with the expected life of the promissory notes in effect at the time of <span style="letter-spacing: -0.1pt">issuance.</span></span></td></tr> </table> <p style="font: 11pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 8px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="width: 38px; padding-bottom: 6pt; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">(3)</span></td> <td style="padding-bottom: 6pt; text-align: justify; line-height: 115%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">The volatility of the Company’s common stock is based on trading activity for the previous contractual term ended at each promissory note issuance <span style="letter-spacing: -0.1pt">date.</span></span></td></tr> </table>
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roag Revenues From Related Parties
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1198434 usd
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110244 usd
CY2021Q3 roag Principal Value Of Convertible Notes
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1316584 usd
CY2020Q4 roag Principal Value Of Convertible Notes
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1595553 usd
CY2020Q4 us-gaap Debt Instrument Unamortized Discount
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35750 usd
CY2021Q3 roag Other Convertibles
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169364 usd
CY2021Q3 us-gaap Convertible Long Term Notes Payable
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1485948 usd
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1559803 usd
CY2020Q4 us-gaap Convertible Long Term Notes Payable
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1559803 usd
us-gaap Amortization Of Financing Costs And Discounts
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33750 usd
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1485948 usd
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us-gaap Current Income Tax Expense Benefit
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us-gaap Valuation Allowances And Reserves Deductions
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3242490 usd
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5072195 usd
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CY2020Q4 us-gaap Embedded Derivative Fair Value Of Embedded Derivative Liability
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CY2020Q4 us-gaap Derivative Liabilities
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roag Schedule Of Changes In Derivative Liabilities At Fair Value
ScheduleOfChangesInDerivativeLiabilitiesAtFairValue
<table cellpadding="0" cellspacing="0" id="xdx_89F_ecustom--ScheduleOfChangesInDerivativeLiabilitiesAtFairValue_zAvbYIvBRdfk" style="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse" summary="xdx: Disclosure - FAIR VALUE MEASUREMENTS (Details 1)"> <tr> <td colspan="3" style="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; letter-spacing: -0.1pt"><b>Schedule of Changes in Derivative Liabilities at Fair Value</b></span></td> <td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr style="background-color: #CCEEFF"> <td colspan="2" style="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Beginning balance, January 1, 2021</span></td> <td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td id="xdx_983_eus-gaap--FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisWithUnobservableInputs_iS_pp0p0_c20210101__20210930_zijchLw3WFE1" style="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right" title="Beginning balance"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl1547">-</span> </span></td></tr> <tr style="background-color: white"> <td colspan="4" rowspan="2" style="padding-right: 5.4pt; padding-left: 5.4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Change in fair value of embedded conversion features of convertible promissory notes included in earnings</span></td> <td id="xdx_981_eus-gaap--FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisUnobservableInputsReconciliationGainLossIncludedInEarnings_c20210101__20210930_pp0p0" style="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right" title="Change in fair value of embedded conversion features of convertible promissory notes and warrants included in earnings"><span style="-sec-ix-hidden: xdx2ixbrl1549">-</span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr style="background-color: #CCEEFF"> <td style="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr style="background-color: white"> <td colspan="4" rowspan="2" style="padding-right: 5.4pt; padding-left: 5.4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Embedded conversion option liability recorded in connection with the issuance of convertible promissory notes</span></td> <td id="xdx_982_ecustom--RecordNonCashDerivativeLiabilityOnNotes_c20210101__20210930_pp0p0" style="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right" title="Embedded conversion option &amp; warrant liability recorded in connection with the issuance of convertible promissory notes"><span style="-sec-ix-hidden: xdx2ixbrl1551">-</span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr style="background-color: #CCEEFF"> <td style="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr style="background-color: white"> <td style="white-space: nowrap; width: 66%; padding-right: 5.4pt; padding-left: 5.4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Ending balance, September 30, 2021</span></td> <td style="white-space: nowrap; vertical-align: bottom; width: 1%; padding-right: 5.4pt; padding-left: 5.4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="white-space: nowrap; vertical-align: bottom; width: 1%; padding-right: 5.4pt; padding-left: 5.4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="white-space: nowrap; vertical-align: bottom; width: 16%; padding-right: 5.4pt; padding-left: 5.4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td id="xdx_984_eus-gaap--FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisWithUnobservableInputs_iE_pp0p0_c20210101__20210930_zx9FVr8gBo97" style="border-top: black 1pt solid; border-bottom: black 2.25pt double; white-space: nowrap; width: 16%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right" title="Ending balance"><span style="-sec-ix-hidden: xdx2ixbrl1553">-</span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr style="background-color: #CCEEFF"> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> </table>

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