2024 Q4 Form 10-Q Financial Statement

#000139390524000389 Filed on November 14, 2024

View on sec.gov

Income Statement

Concept 2024 Q4 2024 Q3 2023 Q3
Revenue $684.6K $869.5K
YoY Change -21.27% -34.07%
Cost Of Revenue $424.1K $499.4K
YoY Change -15.08% -16.07%
Gross Profit $260.5K $370.1K
YoY Change -29.61% -48.87%
Gross Profit Margin 38.05% 42.56%
Selling, General & Admin $399.4K $312.4K
YoY Change 27.82% -52.25%
% of Gross Profit 153.31% 84.43%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $4.150K $9.533K
YoY Change -56.47% -2.78%
% of Gross Profit 1.59% 2.58%
Operating Expenses $399.4K $812.7K
YoY Change -50.86% -47.06%
Operating Profit -$138.9K -$442.6K
YoY Change -68.63% -45.44%
Interest Expense -$28.44K -$130.0K
YoY Change -78.12% -312.84%
% of Operating Profit
Other Income/Expense, Net -$28.45K -$52.92K
YoY Change -46.25% 20.64%
Pretax Income -$167.3K -$495.5K
YoY Change -66.24% -42.05%
Income Tax $0.00 $0.00
% Of Pretax Income
Net Earnings $1.885M -$327.1K
YoY Change -676.06% -43.76%
Net Earnings / Revenue 275.29% -37.63%
Basic Earnings Per Share $0.00 $0.00
Diluted Earnings Per Share $0.00 $0.00
COMMON SHARES
Basic Shares Outstanding 2.898B shares 2.898B shares 97.07M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2024 Q4 2024 Q3 2023 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $48.43K $47.18K
YoY Change 2.65% -74.8%
Cash & Equivalents $48.43K $47.18K
Short-Term Investments
Other Short-Term Assets $155.2K $13.55K
YoY Change 1045.31% -80.08%
Inventory $1.264M $2.825M
Prepaid Expenses
Receivables $765.00 $131.5K
Other Receivables $500.0K $0.00
Total Short-Term Assets $1.968M $3.017M
YoY Change -34.76% -8.95%
LONG-TERM ASSETS
Property, Plant & Equipment $6.326K $26.58K
YoY Change -76.2% -55.68%
Goodwill $2.781M $5.681M
YoY Change -51.05% 0.0%
Intangibles $87.85K
YoY Change -73.36%
Long-Term Investments $8.080K $6.600K
YoY Change 22.42% 0.0%
Other Assets
YoY Change
Total Long-Term Assets $2.953M $5.898M
YoY Change -49.94% -3.41%
TOTAL ASSETS
Total Short-Term Assets $1.968M $3.017M
Total Long-Term Assets $2.953M $5.898M
Total Assets $4.921M $8.915M
YoY Change -44.8% -5.36%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.169M $1.769M
YoY Change -33.91% 1.37%
Accrued Expenses $1.354M $1.388M
YoY Change -2.52% 304.56%
Deferred Revenue
YoY Change
Short-Term Debt $360.8K $1.087M
YoY Change -66.8% -12.63%
Long-Term Debt Due $699.4K $701.9K
YoY Change -0.35% -7.04%
Total Short-Term Liabilities $5.292M $5.923M
YoY Change -10.66% 40.03%
LONG-TERM LIABILITIES
Long-Term Debt $112.6K $260.1K
YoY Change -56.71% -0.46%
Other Long-Term Liabilities $128.6K $67.80K
YoY Change 89.65% 501.06%
Total Long-Term Liabilities $241.2K $327.9K
YoY Change -26.45% 20.29%
TOTAL LIABILITIES
Total Short-Term Liabilities $5.292M $5.923M
Total Long-Term Liabilities $241.2K $327.9K
Total Liabilities $5.533M $6.251M
YoY Change -11.49% 38.84%
SHAREHOLDERS EQUITY
Retained Earnings -$22.47M -$21.19M
YoY Change 6.06% 16.53%
Common Stock $28.98K $1.531K
YoY Change 1793.08% -96.17%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $3.734M $4.671M
YoY Change
Total Liabilities & Shareholders Equity $4.921M $8.915M
YoY Change -44.8% -5.36%

Cashflow Statement

Concept 2024 Q4 2024 Q3 2023 Q3
OPERATING ACTIVITIES
Net Income $1.885M -$327.1K
YoY Change -676.06% -43.76%
Depreciation, Depletion And Amortization $4.150K $9.533K
YoY Change -56.47% -2.78%
Cash From Operating Activities $42.20K -$198.6K
YoY Change -121.25% -66.74%
INVESTING ACTIVITIES
Capital Expenditures $0.00 $0.00
YoY Change
Acquisitions
YoY Change
Other Investing Activities $320.2K
YoY Change
Cash From Investing Activities $320.2K $0.00
YoY Change
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -352.0K 98.93K
YoY Change -455.8% -65.88%
NET CHANGE
Cash From Operating Activities 42.20K -198.6K
Cash From Investing Activities 320.2K 0.000
Cash From Financing Activities -352.0K 98.93K
Net Change In Cash 10.42K -99.66K
YoY Change -110.46% -67.56%
FREE CASH FLOW
Cash From Operating Activities $42.20K -$198.6K
Capital Expenditures $0.00 $0.00
Free Cash Flow $42.20K -$198.6K
YoY Change -121.25% -66.74%

Facts In Submission

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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;margin-right:0.8pt;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;margin-right:0.8pt;text-align:justify"> </p> <p style="font:10pt Times New Roman;margin:0;margin-right:0.8pt;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 owned 51% of Aphrodite’s Marketing. On June 29, 2024, the Company and the owners of the 49% interest in Aphrodite’s Marketing (the “Assignors”) entered into an Assignment of Interest and Assets (the “Assignment Agreement”) whereby the Assignors agreed to transfer their 49% interest in Aphrodite’s Marketing to the Company. Consequently, the Company owns 100% of Aphrodite’s Marketing as a result of the Assignment Agreement.</p> <p style="font:10pt Times New Roman;margin:0;margin-right:0.8pt;text-align:justify"> </p> <p style="font:10pt Times New Roman;margin:0;margin-right:0.8pt;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;margin-right:0.8pt;text-align:justify"> </p> <p style="font:10pt Times New Roman;margin:0;margin-right:0.8pt;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;margin-right:0.8pt;text-align:justify"> </p> <p style="font:10pt Times New Roman;margin:0;margin-right:0.8pt;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;margin-right:0.8pt;text-align:justify"> </p> <p style="font:10pt Times New Roman;margin:0;margin-right:0.8pt;text-align:justify">In December 2023, the Company decided to sell the Company’s majority owned subsidiary, Aphrodite’s Marketing. On June 19, 2024, the Company entered into a Purchase Agreement (the “Purchased Agreement”) with a buyer to purchase all the assets of Aphrodite’s Marketing. The total purchase price for the purchased assets was $1,000,000 </p> <p style="font:10pt Times New Roman;margin:0;margin-right:0.8pt;text-align:justify">(“Purchase Price”). The buyer agreed to deliver $500,000 of the Purchase Price via wire transfer to an escrow agent on the effective date of this Agreement, and the balance in the form of a promissory note (the “Note”) which shall be payable in one lump sum payment to the Company. The buyer shall commit to making this payment as soon as practicable, but no later than December 30, 2024. The release of funds from the escrow account to the Company shall be contingent upon the satisfactory completion of all conditions precedent as detailed in the Purchased Agreement. In July 2024, the buyer delivered the $500,000 to the escrow agent and has released $352,710 to the Company from July 2024 to September 2024. In August 2024, the Company closed the sale of the majority owned subsidiary, Aphrodite’s Marketing and the buyer has obtained control of the purchased assets. Accordingly, as of September 30, 2024, the Company recorded cash held in escrow of $147,290 and note receivable from buyer of $500,000.</p> <p style="font:10pt Times New Roman;margin:0;margin-right:0.8pt;text-align:justify"> </p> <p style="font:10pt Times New Roman;margin:0;margin-right:0.8pt;text-align:justify">Accordingly, Aphrodite’s Marketing’s business is characterized as Discontinued Operations in these condensed consolidated financial statements (see Note 12).  The assets and liabilities of Aphrodite’s Marketing have been presented separately in the Condensed Consolidated Balance Sheet as discontinued operations.  Similarly, the operating results and cash flows of discontinued operations are separately stated in those respective condensed 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;margin-right:0.8pt;text-align:justify"> </p> <p style="font:10pt Times New Roman;margin:0;margin-right:0.8pt;text-align:justify">On July 30, 2024, the Company received written consents in lieu of a meeting of Stockholders from holders of 75% of the total issued and outstanding shares of voting securities of the Company and written consents in lieu of a meeting of our Company’s Board of Directors (the “Board”) approving such actions as are necessary for the Company to proceed to, and the Company accordingly intends to, effectuate a reverse stock split of the Company’s issued and outstanding shares of Common Stock in the range between 1 for 10,000 and 1 for 15,000 (the “Reverse Stock Split”). The final size of the Reverse Stock Split will be decided by management during the FINRA review process.</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 unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules and regulations of the United States Securities and Exchange Commission for interim financial information, which includes consolidated interim financial statements and present the consolidated interim financial statements of the Company and its wholly-owned and majority-owned subsidiaries as of September 30, 2024. All intercompany transactions and balances have been eliminated. In the opinion of management, all adjustments necessary to present fairly our financial position, results of operations, and cash flows have been made. Those adjustments consist of normal and recurring adjustments. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of and for the year ended December 31, 2023, and footnotes thereto included in the Company’s Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 29, 2024 (the “Annual Report”). The results of operations for the nine months ended September 30, 2024, are not necessarily indicative of the results to be expected for the full year.</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 unaudited condensed 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. On June 29, 2024, the Company owns 100% of Aphrodite’s Marketing as a result of the Assignment Agreement. 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 September 30, 2024 and December 31, 2023, the Company recorded a non-controlling interest balance of $(4,346,340) and $(4,138,534), respectively, in connection with the majority-owned subsidiaries, Aphrodite’s Marketing and GearBubble Tech as reflected in the accompanying unaudited condensed consolidated balance sheet and losses attributable to non-controlling interest of $207,806 and $462,023 during the nine months ended September 30, 2024 and 2023, respectively as reflected in the accompanying unaudited condensed consolidated statements of operations.</p>
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Company accordingly intends to, effectuate a reverse stock split of the Company’s issued and outstanding shares of Common Stock in the range between 1 for 10,000 and 1 for 15,000
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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 unaudited condensed 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 nine months ended September 30, 2024 and 2023 include the estimates of useful lives of property and equipment, valuation of the operating lease liability and related right-of-use asset, valuation of derivatives, allowance for uncollectable receivables, valuation of equity based instruments issued for other than cash, </p> <p style="font:10pt Times New Roman;margin:0;text-align:justify">the fair value of warrants issued with debt, the valuation allowance on deferred tax assets, and stock-based compensation.</p>
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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 nine months ended September 30, 2024 and 2023, 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 59% of its finished products from three vendors (23%, 23% and 13%) during the nine months ended September 30, 2024. The Company purchased approximately 37% of its finished products from two vendors (10% and 27%) during the nine months ended September 30, 2023.</p> <p style="font:10pt Times New Roman;margin:0"> </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 September 30, 2024, accounts receivable amounted to $765 and one customer represented 46% of this balance. As of December 31, 2023, total accounts receivable amounted to $19,433 and one customer represented 82% of this balance.</p>
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975721 usd
CY2024Q3 us-gaap Disposal Group Including Discontinued Operation Accounts Payable Current
DisposalGroupIncludingDiscontinuedOperationAccountsPayableCurrent
0 usd
CY2023Q4 us-gaap Disposal Group Including Discontinued Operation Accounts Payable Current
DisposalGroupIncludingDiscontinuedOperationAccountsPayableCurrent
1805 usd
CY2024Q3 us-gaap Disposal Group Including Discontinued Operation Accounts Payable And Accrued Liabilities
DisposalGroupIncludingDiscontinuedOperationAccountsPayableAndAccruedLiabilities
792474 usd
CY2023Q4 us-gaap Disposal Group Including Discontinued Operation Accounts Payable And Accrued Liabilities
DisposalGroupIncludingDiscontinuedOperationAccountsPayableAndAccruedLiabilities
1415843 usd
CY2024Q3 us-gaap Liabilities Of Disposal Group Including Discontinued Operation Current
LiabilitiesOfDisposalGroupIncludingDiscontinuedOperationCurrent
1035967 usd
CY2023Q4 us-gaap Liabilities Of Disposal Group Including Discontinued Operation Current
LiabilitiesOfDisposalGroupIncludingDiscontinuedOperationCurrent
2393369 usd
CY2024Q3 us-gaap Disposal Group Including Discontinued Operation Accounts Payable
DisposalGroupIncludingDiscontinuedOperationAccountsPayable
0 usd
CY2023Q4 us-gaap Disposal Group Including Discontinued Operation Accounts Payable
DisposalGroupIncludingDiscontinuedOperationAccountsPayable
148196 usd
CY2024Q3 us-gaap Disposal Group Including Discontinued Operation Accounts Payable And Accrued Liabilities
DisposalGroupIncludingDiscontinuedOperationAccountsPayableAndAccruedLiabilities
792474 usd
CY2023Q4 us-gaap Disposal Group Including Discontinued Operation Accounts Payable And Accrued Liabilities
DisposalGroupIncludingDiscontinuedOperationAccountsPayableAndAccruedLiabilities
1415843 usd
CY2023 us-gaap Interest Expense Deposits
InterestExpenseDeposits
95703 usd
CY2023 us-gaap Payments For Other Deposits
PaymentsForOtherDeposits
29000 usd
CY2024Q3 us-gaap Other Long Term Debt
OtherLongTermDebt
0 usd
CY2023Q4 us-gaap Other Long Term Debt
OtherLongTermDebt
157274 usd
CY2021 fil Aphrodite Sba Loan Assumed
AphroditeSbaLoanAssumed
150000 usd
CY2022Q4 fil Aphrodite Sba Outstanding Balance
AphroditeSbaOutstandingBalance
150000 usd
CY2022Q4 fil Aphrodite Sba Accrued Expense
AphroditeSbaAccruedExpense
14627 usd
CY2023Q4 fil Aphrodite Sba Outstanding Balance
AphroditeSbaOutstandingBalance
150000 usd
CY2023Q4 fil Aphrodite Sba Accrued Expense
AphroditeSbaAccruedExpense
20550 usd
CY2024Q3 fil Aphrodite Sba Outstanding Balance
AphroditeSbaOutstandingBalance
0 usd

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