2024 Q1 Form 10-K Financial Statement

#000139390524000104 Filed on March 29, 2024

View on sec.gov

Income Statement

Concept 2024 Q1 2023 Q4 2023
Revenue $624.9K $420.1K $4.087M
YoY Change -54.99% -89.35% -58.37%
Cost Of Revenue $440.2K $692.8K $2.570M
YoY Change -42.73% -61.31% -44.4%
Gross Profit $184.6K -$272.7K $1.517M
YoY Change -70.21% -112.66% -70.8%
Gross Profit Margin 29.54% -64.92% 37.12%
Selling, General & Admin $115.2K -$490.1K $698.2K
YoY Change -80.35% -123.07% -83.43%
% of Gross Profit 62.4% 46.02%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $4.370K $7.540K $36.03K
YoY Change -55.32% -89.27% -10.5%
% of Gross Profit 2.37% 2.37%
Operating Expenses $530.1K -$490.1K $2.612M
YoY Change -58.81% -123.07% -65.47%
Operating Profit -$345.4K $217.4K -$1.095M
YoY Change -48.22% 663.11% -53.77%
Interest Expense -$20.53K $227.3K -$815.9K
YoY Change -113.04% -201.61% -162.04%
% of Operating Profit 104.53%
Other Income/Expense, Net $376.00 -$538.8K -$739.0K
YoY Change -100.12% -16.92%
Pretax Income -$345.1K $172.3K -$1.834M
YoY Change -64.86% -224.19% -43.71%
Income Tax $0.00 $0.00 $0.00
% Of Pretax Income 0.0%
Net Earnings -$258.4K -$2.537M -$3.995M
YoY Change -61.26% 79.35% 76.02%
Net Earnings / Revenue -41.36% -603.89% -97.74%
Basic Earnings Per Share $0.00 -$0.02
Diluted Earnings Per Share $0.00 $0.00 -$0.01
COMMON SHARES
Basic Shares Outstanding 2.898B shares 568.4M shares 234.2M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2024 Q1 2023 Q4 2023
SHORT-TERM ASSETS
Cash & Short-Term Investments $50.99K $151.6K $151.6K
YoY Change -55.26% -67.36% -67.36%
Cash & Equivalents $50.99K $151.6K
Short-Term Investments
Other Short-Term Assets $3.610K $1.900K $1.900K
YoY Change 38.85% 171.43% 171.43%
Inventory $1.436M $1.517M $1.517M
Prepaid Expenses
Receivables $4.091K $19.43K $19.43K
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $1.495M $1.690M $1.690M
YoY Change -52.73% -50.88% -50.88%
LONG-TERM ASSETS
Property, Plant & Equipment $14.67K $19.04K $106.0K
YoY Change -67.61% -62.05% 41.84%
Goodwill $2.781M $2.781M
YoY Change -51.05% -51.05%
Intangibles
YoY Change
Long-Term Investments $8.080K $6.600K $6.600K
YoY Change 22.42% 0.0% 0.0%
Other Assets
YoY Change
Total Long-Term Assets $2.882M $2.894M $2.894M
YoY Change -52.39% -52.03% -52.03%
TOTAL ASSETS
Total Short-Term Assets $1.495M $1.690M $1.690M
Total Long-Term Assets $2.882M $2.894M $2.894M
Total Assets $4.377M $4.583M $4.583M
YoY Change -52.5% -51.61% -51.61%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $936.9K $860.9K $860.9K
YoY Change -50.16% -53.5% -53.5%
Accrued Expenses $1.252M $931.2K $931.2K
YoY Change 26.81% 93.77% 93.77%
Deferred Revenue
YoY Change
Short-Term Debt $105.1K $87.08K $87.08K
YoY Change -89.24% -92.11% -92.11%
Long-Term Debt Due $699.3K $699.8K $699.8K
YoY Change -14.58% -0.38% -0.38%
Total Short-Term Liabilities $6.220M $6.041M $6.041M
YoY Change 26.53% 42.0% 42.0%
LONG-TERM LIABILITIES
Long-Term Debt $112.7K $112.2K $112.2K
YoY Change -56.89% -56.78% -56.77%
Other Long-Term Liabilities $203.5K $211.6K $211.6K
YoY Change 160.92% 3145.25% 3145.25%
Total Long-Term Liabilities $316.2K $323.8K $323.8K
YoY Change -6.83% 21.7% 21.71%
TOTAL LIABILITIES
Total Short-Term Liabilities $6.220M $6.041M $6.041M
Total Long-Term Liabilities $316.2K $323.8K $323.8K
Total Liabilities $6.536M $6.365M $2.226M
YoY Change 24.38% 40.81% -25.16%
SHAREHOLDERS EQUITY
Retained Earnings -$24.13M -$23.77M
YoY Change 18.96% 21.24%
Common Stock $28.98K $21.02K
YoY Change 23463.41% -65.87%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $2.079M $2.357M $2.357M
YoY Change
Total Liabilities & Shareholders Equity $4.377M $4.583M $4.583M
YoY Change -52.5% -51.61% -51.61%

Cashflow Statement

Concept 2024 Q1 2023 Q4 2023
OPERATING ACTIVITIES
Net Income -$258.4K -$2.537M -$3.995M
YoY Change -61.26% 79.35% 76.02%
Depreciation, Depletion And Amortization $4.370K $7.540K $36.03K
YoY Change -55.32% -89.27% -10.5%
Cash From Operating Activities -$356.8K $180.9K -$503.1K
YoY Change -45.66% -28.88% -73.81%
INVESTING ACTIVITIES
Capital Expenditures $0.00 $0.00 $4.900K
YoY Change -100.0%
Acquisitions
YoY Change
Other Investing Activities
YoY Change
Cash From Investing Activities $0.00 $0.00 -$4.900K
YoY Change -100.0%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $0.00
YoY Change -100.0%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities $256.2K 14.24K $347.0K
YoY Change -17.65% -37.21% -73.14%
NET CHANGE
Cash From Operating Activities -$356.8K 180.9K -$503.1K
Cash From Investing Activities $0.00 0.000 -$4.900K
Cash From Financing Activities $256.2K 14.24K $347.0K
Net Change In Cash -$100.6K 195.1K -$160.9K
YoY Change -71.29% -29.57% -74.41%
FREE CASH FLOW
Cash From Operating Activities -$356.8K $180.9K -$503.1K
Capital Expenditures $0.00 $0.00 $4.900K
Free Cash Flow -$356.8K $180.9K -$508.0K
YoY Change -46.06% -28.88% -73.55%

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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. In the same Articles of Amendment, the Company filed for a reverse split of the Company’s common stock, at the ratio of 1 for 500 (the “Reverse Stock Split”), which was declared effective by Financial Industry Regulatory Authority (“FINRA”) effective April 17, 2023. All share and per-share data and amounts have been retroactively adjusted as of the earliest period presented in the unaudited condensed consolidated financial statements to reflect the Reverse Stock Split.</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 further described in Note 13, the Company presently expects to sell the Company’s majority owned subsidiary, Aphrodite’s Marketing due to declining revenues and is continually operating at loss. The Company is in negotiation with a potential buyer and has entered into a Letter of Intent in March 2024. Currently, no formal agreement or purchase agreement has been executed. Accordingly, Aphrodite’s Marketing’s business are characterized as Discontinued Operations in these consolidated financial statements. The assets and liabilities of Aphrodite’s Marketing has been presented separately in the Consolidated Balance Sheet as discontinued operations.  Similarly, the operating results and cash flows of discontinued operations are separately stated in those respective consolidated financial statements. All prior year amounts from discontinued operations have been reclassified for consistency with the current year 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>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, 2023. 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>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">The Company follows 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, 2023 and 2022, the Company recorded a non-controlling interest balance of $(4,138,534) and $(1,545,389), 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 $2,593,145 and $987,917 during the years ended December 31, 2023 and 2022, respectively as reflected in the accompanying consolidated statements of operations.</p>
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CY2021Q1 fil Increase In Authorized Common Shares
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CY2023 us-gaap Stockholders Equity Reverse Stock Split
StockholdersEquityReverseStockSplit
1 for 500 (the “Reverse Stock Split”), which was declared effective by Financial Industry Regulatory Authority (“FINRA”) effective April 17, 2023
CY2021Q1 fil Business Acquisition Interest Acquired
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<p style="font:10pt Times New Roman;margin:0;text-align:justify"><b>Use of Estimates</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 preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and 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. Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate could change in the near term due to one or more future events. Accordingly, the actual results could differ significantly from estimates. Significant estimates during the years ended December 31, 2023 and 2022 include the estimates of useful lives of property and equipment and intangible assets, valuation of the operating lease liability and related right-of-use asset, valuation of derivatives, valuation of beneficial conversion features on convertible debt, allowance for uncollectable receivables, valuation of equity based instruments such as common stock and preferred stock issued for other than cash, the fair value of warrants issued with debt, the valuation allowance on deferred tax assets, and stock-based compensation.</p>
CY2023 us-gaap Revenue Recognition Sales Of Goods
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<p style="font:10pt Times New Roman;margin:0;text-align:justify"><b>Cost of revenues</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">Cost of revenue consists primarily of the cost of the merchandise, shipping fees, credit card processing services, fulfillment cost, ecommerce sellers’ pay-out; costs associated with operation and maintenance of the Company’s platform.</p>
CY2023 us-gaap Marketing Expense
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CY2023 us-gaap Prior Period Reclassification Adjustment Description
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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 </p> <p style="font:10pt Times New Roman;margin:0;text-align:justify">presentation of accounts receivable - related party separately on the consolidated balance sheets previously included in accounts receivable.</p>
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CY2023 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, 2023 and 2022, 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 71% of its finished products from two vendors (23% and 48%) during the year ended December 31, 2023. The Company purchased approximately 36% of its finished products from two vendors (15% and 21%) during the year ended December 31, 2022.</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, 2023, total accounts receivable amounted to $19,433 and one customer represented 82% of this balance. As of December 31, 2022, total accounts receivable amounted to $119,931 and two customers represented 90% (60% and 30%) of this balance.</p>
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CY2023 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate
0.21 pure
CY2022 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate
0.21 pure
CY2023 us-gaap Effective Income Tax Rate Reconciliation State And Local Income Taxes
EffectiveIncomeTaxRateReconciliationStateAndLocalIncomeTaxes
0.05 pure
CY2022 us-gaap Effective Income Tax Rate Reconciliation State And Local Income Taxes
EffectiveIncomeTaxRateReconciliationStateAndLocalIncomeTaxes
0.06 pure
CY2023 us-gaap Effective Income Tax Rate Reconciliation Change In Deferred Tax Assets Valuation Allowance
EffectiveIncomeTaxRateReconciliationChangeInDeferredTaxAssetsValuationAllowance
0.26 pure
CY2022 us-gaap Effective Income Tax Rate Reconciliation Change In Deferred Tax Assets Valuation Allowance
EffectiveIncomeTaxRateReconciliationChangeInDeferredTaxAssetsValuationAllowance
0.27 pure
CY2023 us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0 pure
CY2022 us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0 pure
CY2023 us-gaap Valuation Allowance Deferred Tax Asset Change In Amount
ValuationAllowanceDeferredTaxAssetChangeInAmount
923813 usd
CY2023 fil Loss Carry Foward
LossCarryFoward
4474000 usd
CY2023Q4 us-gaap Deferred Tax Assets Operating Loss Carryforwards
DeferredTaxAssetsOperatingLossCarryforwards
7093732 usd

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