2023 Q1 Form 10-K Financial Statement

#000139390523000154 Filed on March 30, 2023

View on sec.gov

Income Statement

Concept 2023 Q1 2022 Q4 2022
Revenue $1.388M $3.944M $9.817M
YoY Change -33.75% -28.76% -10.73%
Cost Of Revenue $768.7K $1.790M $4.622M
YoY Change -42.96% -33.8% -3.77%
Gross Profit $619.7K $2.153M $5.195M
YoY Change -17.15% -23.95% -16.13%
Gross Profit Margin 44.64% 54.6% 52.92%
Selling, General & Admin $586.3K $2.125M $4.215M
YoY Change -65.75% -15.67% -45.07%
% of Gross Profit 94.61% 98.68% 81.13%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $9.781K $70.29K $40.25K
YoY Change -86.23% -1.51% -85.12%
% of Gross Profit 1.58% 3.26% 0.77%
Operating Expenses $1.287M $2.125M $7.563M
YoY Change -24.83% -15.67% -1.43%
Operating Profit -$667.1K $28.49K -$2.368M
YoY Change -30.8% -90.87% 60.14%
Interest Expense $157.5K -$223.6K $1.315M
YoY Change -112.53% -307.32% -152.41%
% of Operating Profit -784.98%
Other Income/Expense, Net -$314.9K $0.00 -$889.5K
YoY Change -2766.33% -100.0% -5366.64%
Pretax Income -$982.0K -$138.8K -$3.258M
YoY Change -52.75% -149.0% -8.55%
Income Tax $0.00 $0.00 $0.00
% Of Pretax Income
Net Earnings -$667.1K -$1.414M -$2.270M
YoY Change -57.93% -5.78% -49.4%
Net Earnings / Revenue -48.05% -35.86% -23.12%
Basic Earnings Per Share -$0.05 $0.00
Diluted Earnings Per Share -$0.05 $0.00 $0.00
COMMON SHARES
Basic Shares Outstanding 6.158B shares 6.158B shares 3.716B shares
Diluted Shares Outstanding

Balance Sheet

Concept 2023 Q1 2022 Q4 2022
SHORT-TERM ASSETS
Cash & Short-Term Investments $114.0K $464.3K $464.3K
YoY Change -80.87% -57.53% -57.53%
Cash & Equivalents $114.0K $464.2K
Short-Term Investments
Other Short-Term Assets $2.600K $700.00 $700.00
YoY Change -81.91% -97.91% -97.91%
Inventory $2.886M $2.856M $2.856M
Prepaid Expenses
Receivables $160.0K $119.9K $119.9K
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $3.163M $3.440M $3.440M
YoY Change -16.86% -21.53% -21.53%
LONG-TERM ASSETS
Property, Plant & Equipment $45.28K $50.16K $74.76K
YoY Change -71.23% -73.81% -60.96%
Goodwill $5.681M $5.681M
YoY Change 0.0%
Intangibles $208.8K $269.3K
YoY Change -47.32%
Long-Term Investments $6.600K $6.600K $6.600K
YoY Change 0.0% 0.0% 0.0%
Other Assets
YoY Change
Total Long-Term Assets $6.052M $6.032M $6.032M
YoY Change -3.87% -5.61% -5.61%
TOTAL ASSETS
Total Short-Term Assets $3.163M $3.440M $3.440M
Total Long-Term Assets $6.052M $6.032M $6.032M
Total Assets $9.215M $9.472M $9.472M
YoY Change -8.76% -12.09% -12.09%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.880M $1.851M $1.851M
YoY Change 8.06% -11.49% -11.49%
Accrued Expenses $987.5K $480.6K $480.6K
YoY Change 117.46% -15.39%
Deferred Revenue
YoY Change
Short-Term Debt $977.2K $1.103M $1.103M
YoY Change -26.93% -51.08% -51.08%
Long-Term Debt Due $818.7K $702.5K $702.5K
YoY Change 17.12% -17.85% -17.85%
Total Short-Term Liabilities $4.916M $4.254M $4.254M
YoY Change -2.55% -36.96% -36.96%
LONG-TERM LIABILITIES
Long-Term Debt $261.3K $259.5K $259.5K
YoY Change -0.64% -0.87% -0.87%
Other Long-Term Liabilities $77.99K $6.520K $6.520K
YoY Change 282.87% -73.5% -73.5%
Total Long-Term Liabilities $339.3K $266.0K $266.0K
YoY Change 19.73% -7.11% -7.11%
TOTAL LIABILITIES
Total Short-Term Liabilities $4.916M $4.254M $4.254M
Total Long-Term Liabilities $339.3K $266.0K $266.0K
Total Liabilities $5.255M $4.520M $2.975M
YoY Change 22.85% -30.21% -54.07%
SHAREHOLDERS EQUITY
Retained Earnings -$20.28M -$19.61M
YoY Change 35.65%
Common Stock $123.00 $61.59K
YoY Change 406.25%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $5.503M $6.498M $6.498M
YoY Change
Total Liabilities & Shareholders Equity $9.215M $9.472M $9.472M
YoY Change -8.76% -12.09% -12.09%

Cashflow Statement

Concept 2023 Q1 2022 Q4 2022
OPERATING ACTIVITIES
Net Income -$667.1K -$1.414M -$2.270M
YoY Change -57.93% -5.78% -49.4%
Depreciation, Depletion And Amortization $9.781K $70.29K $40.25K
YoY Change -86.23% -1.51% -85.12%
Cash From Operating Activities -$656.5K $254.3K -$1.921M
YoY Change -38.72% 118.78% -11.86%
INVESTING ACTIVITIES
Capital Expenditures $4.900K $0.00 $0.00
YoY Change -100.0%
Acquisitions
YoY Change
Other Investing Activities $0.00 $0.00
YoY Change -100.0%
Cash From Investing Activities -$4.900K $0.00 $0.00
YoY Change -100.0%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $89.36K
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities $311.1K 22.68K $1.292M
YoY Change -45.79% -113.64% -68.41%
NET CHANGE
Cash From Operating Activities -$656.5K 254.3K -$1.921M
Cash From Investing Activities -$4.900K 0.000 $0.00
Cash From Financing Activities $311.1K 22.68K $1.292M
Net Change In Cash -$350.3K 277.0K -$628.9K
YoY Change -654.35% -161.47%
FREE CASH FLOW
Cash From Operating Activities -$656.5K $254.3K -$1.921M
Capital Expenditures $4.900K $0.00 $0.00
Free Cash Flow -$661.4K $254.3K -$1.921M
YoY Change -38.26% 118.78% -9.89%

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<p style="font:10pt Times New Roman;margin:0;text-align:justify"><b>Note 1 - Nature of Operations and Basis of Presentation</b></p> <p style="font:10pt Times New Roman;margin:0;text-align:justify"> </p> <p style="font:10pt Times New Roman;margin:0;text-align:justify"><b>Organization and Nature of Operations</b></p> <p style="font:10pt Times New Roman;margin:0;text-align:justify"> </p> <p style="font:10pt Times New Roman;margin:0;text-align:justify">Bergio International, Inc. (the “Company”) was incorporated in the State of Delaware on July 24, 2007 under the name Alba Mineral Exploration, Inc. On October 21, 2009, as a result of a Share Exchange Agreement, the corporation’s name was changed to Bergio International, Inc. On February 19, 2020, the Company changed its state of incorporation to Wyoming. The Company is engaged in the product design, manufacturing, distribution of fine jewelry primarily in the United States and is headquartered in Fairfield, New Jersey. The Company’s intent is to take advantage of the Bergio brand and establish a chain of retail stores worldwide. The Company’s branded product lines are products and/or collections designed by the Company’s designer and CEO, Berge Abajian, and will be the centerpiece of the Company’s retail stores.</p> <p style="font:10pt Times New Roman;margin:0;text-align:justify"> </p> <p style="font:10pt Times New Roman;margin:0;text-align:justify">On February 10, 2021, the Company entered into an Acquisition Agreement (“Acquisition Agreement”) with Digital Age Business, Inc., a Florida corporation, (“Digital Age Business”), pursuant to which the shareholders of Digital Age Business agreed to sell all of the assets and liabilities of its Aphrodite’s business to a subsidiary of the Company known as Aphrodite’s Marketing, Inc. (“Aphrodite’s Marketing”), a Wyoming corporation in exchange for Series B Preferred Stock of the Company. The Company owns 51% of Aphrodite’s Marketing.</p> <p style="font:10pt Times New Roman;margin:0;text-align:justify"> </p> <p style="font:10pt Times New Roman;margin:0;text-align:justify">On July 1, 2021 (“Closing”), the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with GearBubble, Inc., a Nevada corporation, (“GearBubble”), pursuant to which the shareholders of GearBubble (the “Equity Recipients”) agreed to sell 100% of the issued and outstanding shares of GearBubble to a subsidiary of the Company known as GearBubble Tech, Inc. (“GearBubble Tech”), a Wyoming corporation in exchange for $3,162,000 (the “Cash Purchase Price”), which shall be paid as follows: a) $2,000,000 (which was paid in cash at Closing), b) $1,162,000 to be paid in 15 equal installments, and c) 49,000 of the 100,000 authorized shares of the Merger Sub, such that upon the Closing, 51% of the Merger Sub shall be owned by the Company, and 49% of the Merger Sub shall be owned by the GearBubble Shareholders. The Company owns 51% of GearBubble Tech.</p> <p style="font:10pt Times New Roman;margin:0;text-align:justify"> </p> <p style="font:10pt Times New Roman;margin:0;text-align:justify">On March 24, 2021, the Company filed, with the Wyoming Secretary of State, a Certificate of Amendment, to amend its Articles of Incorporation. The amendment reflected the increase in the authorized shares of common stock from 1,000,000,000 shares to 3,000,000,000 shares. On July 9, 2021, the Company filed, with the Wyoming Secretary of State, a Certificate of Amendment, to amend its Articles of Incorporation. The amendment reflected the increase in the authorized shares of common stock from 3,000,000,000 shares to 6,000,000,000 shares. On April 28, 2022, the Company filed, with the Wyoming Secretary of State, a Certificate of Amendment, to amend its Articles of Incorporation and reflected the increase in the authorized shares of common stock from 6,000,000,000 shares to 9,000,000,000 shares.</p> <p style="font:10pt Times New Roman;margin:0;text-align:justify"> </p> <p style="font:10pt Times New Roman;margin:0;text-align:justify">On September 26, 2022, the Company filed, with the Wyoming Secretary of State, a Certificate of Amendment, to amend its Articles of Incorporation and reflected the increase in the authorized shares of common stock from 9,000,000,000 shares to 15,000,000,000 shares. In March 2023, the Company filed, with the Wyoming Secretary of State, a Certificate of Amendment, to amend its Articles of Incorporation and reflected the increase in the authorized shares of common stock from 15,000,000,000 shares to 25,000,000,000 shares.</p> <p style="font:10pt Times New Roman;margin:0;text-align:justify"> </p> <p style="font:10pt Times New Roman;margin:0;text-align:justify"><b>Basis of Presentation</b></p> <p style="font:10pt Times New Roman;margin:0;text-align:justify"> </p> <p style="font:10pt Times New Roman;margin:0;text-align:justify">The accompanying consolidated financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), the instructions to Form 10-K, and the rules and regulations of the United States Securities and Exchange Commission (the “SEC”) for financial information, which includes the consolidated financial statements of the Company and its wholly-owned and majority-owned subsidiaries as of December 31, 2022. All intercompany transactions and balances have been eliminated. It is management’s opinion that all material adjustments (consisting of normal recurring adjustments) have been made, which are necessary for a fair financial statement presentation.</p> <p style="font:10pt Times New Roman;margin:0;text-align:justify"> </p> <p style="font:10pt Times New Roman;margin:0;text-align:justify"><b>Impact of the COVID-19 Coronavirus</b></p> <p style="font:10pt Times New Roman;margin:0;text-align:justify"> </p> <p style="font:10pt Times New Roman;margin:0;text-align:justify">The Company’s operations have been affected by the recent and ongoing outbreak of the coronavirus disease 2019 (COVID-19) which in March 2020, was declared a pandemic by the World Health Organization. The ultimate disruption which may be caused by the outbreak is uncertain; however, it has resulted in a material adverse impact on the Company’s financial position, operations and cash flows. Areas affected include, but are not limited to, disruption to the Company’s customers and revenue, including a significant disruption in consumer demand and accessories, labor workforce, inability of customers to pay outstanding accounts receivable due and owing to the Company as they limit or shut down their businesses, customers seeking relief or extended payment plans relating to accounts receivable due and owing to the Company, unavailability of products and supplies used in operations, and the decline in value of assets held by the Company, including property and equipment. As such, the comparability of the Company’s operating results has been affected by significant adverse impacts related to the COVID-19 pandemic.</p> <p style="font:10pt Times New Roman;margin:0;text-align:justify"> </p> <p style="font:10pt Times New Roman;margin:0;text-align:justify">The Company has increased its online presence to minimize the impact of having to close its retail stores as well as directing efforts towards its wholesale operations. The Company increase its online presence through its majority-owned subsidiaries, Aphrodite’s Marketing and GearBubble Tech.</p> <p style="font:10pt Times New Roman;margin:0;text-align:justify"> </p> <p style="font:10pt Times New Roman;margin:0;text-align:justify"><b>Non-controlling Interest in Consolidated Financial Statements</b></p> <p style="font:10pt Times New Roman;margin:0;text-align:justify"> </p> <p style="font:10pt Times New Roman;margin:0;text-align:justify">In December 2007, the Financial Accounting Standard Board (“FASB”) issued ASC 810-10-65, “Non-controlling Interests in Consolidated Financial Statements, an amendment of Accounting Research Bulletin No. 51” (“SFAS No. 160”). This ASC clarifies that a non-controlling (minority) interest in a subsidiary is an ownership interest in the entity that should be reported as equity in the consolidated financial statements. It also requires consolidated net income to include the amounts attributable to both the parent and non-controlling interest, with disclosure on the face of the consolidated income statement of the amounts attributed to the parent and to the non-controlling interest. In accordance with ASC 810-10- 45-21, those losses attributable to the parent and the non-controlling interest in subsidiaries may exceed their interests in the subsidiary’s equity. The excess and any further losses attributable to the parent and the non-controlling interest shall be attributed to those interests even if that attribution results in a deficit non-controlling interest balance.</p> <p style="font:10pt Times New Roman;margin:0;text-align:justify"> </p> <p style="font:10pt Times New Roman;margin:0;text-align:justify">On February 9, 2021, the Company entered into an Acquisition Agreement which resulted to the acquisition of 51% interest in Aphrodite’s Marketing. Additionally, on July 1, 2021, the Company entered into a Merger Agreement with GearBubble which resulted to the acquisition of 51% interest in the Merger Sub, GearBubble Tech. As of December 31, 2022 and 2021, the Company recorded a non-controlling interest balance of $(1,545,389) and $(557,472), respectively, in connection with the majority-owned subsidiaries, Aphrodite’s Marketing and GearBubble Tech as reflected in the accompanying consolidated balance sheet and losses attributable to non-controlling interest of $987,917 and $923,629 during the years ended December 31, 2022 and 2021, respectively as reflected in the accompanying consolidated statements of operations.</p>
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CY2021Q3 fil Total Selling Percentage
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CY2021Q3 fil Installment Description
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CY2021Q1 fil Increase In Authorized Common Shares
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CY2021Q3 fil Increase In Authorized Common Shares
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<p style="font:10pt Times New Roman;margin:0;text-align:justify"><b>Reclassifications</b></p> <p style="font:10pt Times New Roman;margin:0;text-align:justify"> </p> <p style="font:10pt Times New Roman;margin:0;text-align:justify">Certain prior period amounts have been reclassified to conform to the current period presentation. The reclassified amounts have no impact on the Company’s previously reported financial position or results of operations and relates to the presentation of selling and marketing expenses, and compensation and related expenses, separately on the consolidated statements of operation previously included in the general and administrative expenses, and the presentation of accounts receivable - related party separately on the consolidated balance sheets previously included in accounts receivable.</p>
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CY2022 us-gaap Concentration Risk Credit Risk
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<p style="font:10pt Times New Roman;margin:0;text-align:justify"><b>Concentration Risk</b></p> <p style="font:10pt Times New Roman;margin:0;text-align:justify"> </p> <p style="font:10pt Times New Roman;margin:0;text-align:justify"><span style="border-bottom:1px solid #000000"><i>Concentration of Revenues</i></span></p> <p style="font:10pt Times New Roman;margin:0;text-align:justify"> </p> <p style="font:10pt Times New Roman;margin:0;text-align:justify">For the years ended December 31, 2022 and 2021, no customer accounted for over 10% of total revenues.</p> <p style="font:10pt Times New Roman;margin:0;text-align:justify"> </p> <p style="font:10pt Times New Roman;margin:0;text-align:justify"><span style="border-bottom:1px solid #000000"><i>Concentration of Purchases</i></span></p> <p style="font:10pt Times New Roman;margin:0;text-align:justify"> </p> <p style="font:10pt Times New Roman;margin:0;text-align:justify">The Company purchased approximately 36% of its finished products from two vendors (15% and 21%) during the year ended December 31, 2022. The Company purchased approximately 25% of its finished products from two vendors (11% and 14%) during the year ended December 31, 2021.</p> <p style="font:10pt Times New Roman;margin:0;text-align:justify"> </p> <p style="font:10pt Times New Roman;margin:0;text-align:justify"><span style="border-bottom:1px solid #000000"><i>Concentration of Accounts Receivable</i></span></p> <p style="font:10pt Times New Roman;margin:0;text-align:justify"> </p> <p style="font:10pt Times New Roman;margin:0;text-align:justify">As of December 31, 2022, total accounts receivable amounted to $119,931 and two customers represented 90% (60% and 30%) of this balance. As of December 31, 2021, accounts receivable amounted to $51,324 and two customers represented 75% of this balance.</p>
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CY2021Q1 fil Increase In Authorized Common Shares
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0.27 pure
CY2021 us-gaap Effective Income Tax Rate Reconciliation Change In Deferred Tax Assets Valuation Allowance
EffectiveIncomeTaxRateReconciliationChangeInDeferredTaxAssetsValuationAllowance
0.27 pure
CY2022 us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0 pure
CY2021 us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0 pure
CY2022 us-gaap Valuation Allowance Deferred Tax Asset Change In Amount
ValuationAllowanceDeferredTaxAssetChangeInAmount
370600 usd
CY2022 fil Loss Carry Foward
LossCarryFoward
4474000 usd
CY2022Q4 us-gaap Deferred Tax Assets Operating Loss Carryforwards
DeferredTaxAssetsOperatingLossCarryforwards
3764000 usd
CY2023Q1 fil Increase In Authorized Common Shares
IncreaseInAuthorizedCommonShares
25000000000 shares

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brgo-20221231_cal.xml Edgar Link unprocessable
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