2023 Q2 Form 10-Q Financial Statement

#000149315223017082 Filed on May 15, 2023

View on sec.gov

Income Statement

Concept 2023 Q2 2023 Q1
Revenue $929.5K $1.275M
YoY Change -20.78% 28.11%
Cost Of Revenue $742.7K $986.9K
YoY Change -16.13% 16.12%
Gross Profit $186.8K $288.0K
YoY Change -35.1% 98.3%
Gross Profit Margin 20.1% 22.59%
Selling, General & Admin $927.7K $1.274M
YoY Change -10.06% 35.62%
% of Gross Profit 496.55% 442.29%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $26.80K $24.03K
YoY Change 16.78% -8.21%
% of Gross Profit 14.34% 8.34%
Operating Expenses $927.7K $1.274M
YoY Change -10.06% 35.62%
Operating Profit -$740.9K -$985.9K
YoY Change -0.37% 24.16%
Interest Expense $309.4K $293.6K
YoY Change 97.73% -31.86%
% of Operating Profit
Other Income/Expense, Net $5.037K $131.00
YoY Change 180.14% -95.94%
Pretax Income -$1.535M -$1.593M
YoY Change 10.38% -55.33%
Income Tax
% Of Pretax Income
Net Earnings -$1.535M -$1.593M
YoY Change 10.52% -55.28%
Net Earnings / Revenue -165.09% -124.92%
Basic Earnings Per Share $0.00 $0.00
Diluted Earnings Per Share $0.00 $0.00
COMMON SHARES
Basic Shares Outstanding 2228B shares 2.139B shares
Diluted Shares Outstanding 2.231B shares

Balance Sheet

Concept 2023 Q2 2023 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $97.16K $76.61K
YoY Change 1469.63% -74.19%
Cash & Equivalents $97.16K $76.61K
Short-Term Investments
Other Short-Term Assets
YoY Change
Inventory $551.8K $643.0K
Prepaid Expenses
Receivables $24.25K $13.14K
Other Receivables $0.00 $0.00
Total Short-Term Assets $673.2K $732.7K
YoY Change -47.45% -53.04%
LONG-TERM ASSETS
Property, Plant & Equipment $306.1K $325.7K
YoY Change -6.67% -5.72%
Goodwill
YoY Change
Intangibles $61.32K $63.76K
YoY Change -13.72% -13.27%
Long-Term Investments
YoY Change
Other Assets $7.100K $13.35K
YoY Change -53.07% -11.76%
Total Long-Term Assets $838.9K $1.111M
YoY Change -34.71% -17.83%
TOTAL ASSETS
Total Short-Term Assets $673.2K $732.7K
Total Long-Term Assets $838.9K $1.111M
Total Assets $1.512M $1.844M
YoY Change -41.07% -36.7%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.643M $1.587M
YoY Change 92.36% 48.03%
Accrued Expenses $407.2K $363.5K
YoY Change -8.24% -27.44%
Deferred Revenue
YoY Change
Short-Term Debt $689.0K $629.4K
YoY Change 713.12% -3.55%
Long-Term Debt Due $2.962M $2.517M
YoY Change 53.73% 629.73%
Total Short-Term Liabilities $6.358M $5.751M
YoY Change 51.29% 27.74%
LONG-TERM LIABILITIES
Long-Term Debt $58.01K $58.00K
YoY Change 161.07% -95.78%
Other Long-Term Liabilities $332.6K $579.2K
YoY Change -45.18% -5.88%
Total Long-Term Liabilities $390.6K $637.2K
YoY Change -35.62% 3.55%
TOTAL LIABILITIES
Total Short-Term Liabilities $6.358M $5.751M
Total Long-Term Liabilities $390.6K $637.2K
Total Liabilities $6.749M $6.388M
YoY Change 21.45% -12.18%
SHAREHOLDERS EQUITY
Retained Earnings -$26.74M -$25.21M
YoY Change 25.84% 26.91%
Common Stock $22.95K $21.39K
YoY Change 34.28% 44.28%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity -$5.237M -$4.545M
YoY Change
Total Liabilities & Shareholders Equity $1.512M $1.844M
YoY Change -41.07% -36.7%

Cashflow Statement

Concept 2023 Q2 2023 Q1
OPERATING ACTIVITIES
Net Income -$1.535M -$1.593M
YoY Change 10.52% -55.28%
Depreciation, Depletion And Amortization $26.80K $24.03K
YoY Change 16.78% -8.21%
Cash From Operating Activities -$369.7K -$215.5K
YoY Change -61.08% -67.81%
INVESTING ACTIVITIES
Capital Expenditures $0.00 $0.00
YoY Change -100.0% -100.0%
Acquisitions
YoY Change
Other Investing Activities
YoY Change
Cash From Investing Activities $0.00
YoY Change -100.0%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 390.3K $252.4K
YoY Change -41.07% -11.01%
NET CHANGE
Cash From Operating Activities -369.7K -$215.5K
Cash From Investing Activities 0.000
Cash From Financing Activities 390.3K $252.4K
Net Change In Cash 20.54K $36.82K
YoY Change -107.07% -109.05%
FREE CASH FLOW
Cash From Operating Activities -$369.7K -$215.5K
Capital Expenditures $0.00 $0.00
Free Cash Flow -$369.7K -$215.5K
YoY Change -60.95% -68.79%

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CY2023Q1 us-gaap Increase Decrease In Operating Lease Liability
IncreaseDecreaseInOperatingLeaseLiability
-56411 usd
CY2022Q1 us-gaap Increase Decrease In Operating Lease Liability
IncreaseDecreaseInOperatingLeaseLiability
-48945 usd
CY2023Q1 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-215544 usd
CY2022Q1 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-669504 usd
CY2022Q1 KGKG Payments For Proceeds From In Intellectual Property
PaymentsForProceedsFromInIntellectualProperty
21131 usd
CY2022Q1 us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-21131 usd
CY2023Q1 us-gaap Proceeds From Related Party Debt
ProceedsFromRelatedPartyDebt
80000 usd
CY2023Q1 us-gaap Repayments Of Related Party Debt
RepaymentsOfRelatedPartyDebt
81500 usd
CY2022Q1 us-gaap Repayments Of Related Party Debt
RepaymentsOfRelatedPartyDebt
1500 usd
CY2023Q1 KGKG Proceeds From Payment Of Acquisition Obligation
ProceedsFromPaymentOfAcquisitionObligation
5147 usd
CY2022Q1 KGKG Proceeds From Payment Of Acquisition Obligation
ProceedsFromPaymentOfAcquisitionObligation
3224 usd
CY2023Q1 us-gaap Finance Lease Principal Payments
FinanceLeasePrincipalPayments
1939 usd
CY2022Q1 us-gaap Finance Lease Principal Payments
FinanceLeasePrincipalPayments
1899 usd
CY2023Q1 us-gaap Proceeds From Notes Payable
ProceedsFromNotesPayable
284595 usd
CY2022Q1 us-gaap Proceeds From Notes Payable
ProceedsFromNotesPayable
292219 usd
CY2023Q1 us-gaap Repayments Of Notes Payable
RepaymentsOfNotesPayable
424644 usd
CY2022Q1 us-gaap Repayments Of Notes Payable
RepaymentsOfNotesPayable
1994 usd
CY2023Q1 us-gaap Proceeds From Convertible Debt
ProceedsFromConvertibleDebt
401000 usd
CY2023Q1 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
252365 usd
CY2022Q1 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
283602 usd
CY2023Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Excluding Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseExcludingExchangeRateEffect
36821 usd
CY2022Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Excluding Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseExcludingExchangeRateEffect
-407033 usd
CY2022Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
39788 usd
CY2021Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
703825 usd
CY2023Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
76609 usd
CY2022Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
296792 usd
CY2023Q1 us-gaap Interest Paid Net
InterestPaidNet
3923 usd
CY2022Q1 us-gaap Interest Paid Net
InterestPaidNet
130 usd
CY2022Q1 KGKG Noncash Recording Of Right Of Use Asset And Lease Liability
NoncashRecordingOfRightOfUseAssetAndLeaseLiability
135000 usd
CY2023Q1 KGKG Common Shares Issued On Conversion Of Debentures And Accrued Interest
CommonSharesIssuedOnConversionOfDebenturesAndAccruedInterest
315000 usd
CY2022Q1 KGKG Common Shares Issued On Conversion Of Debentures And Accrued Interest
CommonSharesIssuedOnConversionOfDebenturesAndAccruedInterest
3189414 usd
CY2023Q1 KGKG Fair Value Of Warrants Issued Upon Issuance Of Convertible Notes
FairValueOfWarrantsIssuedUponIssuanceOfConvertibleNotes
150000 usd
CY2023Q1 us-gaap Net Income Loss
NetIncomeLoss
-1592557 usd
CY2023Q1 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-215544 usd
CY2023Q1 us-gaap Stockholders Equity
StockholdersEquity
-4544952 usd
CY2023Q1 us-gaap Cash
Cash
76609 usd
CY2023Q1 us-gaap Proceeds From Sale Of Notes Receivable
ProceedsFromSaleOfNotesReceivable
230000 usd
CY2023Q1 KGKG Payments For Advance To Refinancing
PaymentsForAdvanceToRefinancing
234965 usd
CY2022Q1 us-gaap Advertising Expense
AdvertisingExpense
52519 usd
CY2023Q1 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
325683 usd
CY2022Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
348064 usd
CY2022Q4 KGKG Notes Payable Net Of Current Portion
NotesPayableNetOfCurrentPortion
57055 usd
CY2022Q1 us-gaap Shares Issued Price Per Share
SharesIssuedPricePerShare
0.004
CY2022Q1 us-gaap Debt Instrument Unamortized Discount
DebtInstrumentUnamortizedDiscount
31531 usd
CY2023Q1 us-gaap Line Of Credit
LineOfCredit
85000 usd
CY2023Q1 us-gaap Use Of Estimates
UseOfEstimates
<p id="xdx_847_eus-gaap--UseOfEstimates_zztNdcaHPn7d" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_869_zH7OPV3bMEG">Use of Estimates</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Those estimates and assumptions include estimates for reserves of uncollectible accounts receivable, assumptions used in valuing inventories at net realizable value, impairment testing of recorded long-term tangible and intangible assets, the valuation allowance for deferred tax assets, accruals for potential liabilities, assumptions made in valuing stock instruments issued for services, and assumptions used in valuing warrant liabilities, and assumptions used in the determination of the Company’s liquidity.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
CY2023Q1 us-gaap Allowance For Doubtful Accounts Receivable
AllowanceForDoubtfulAccountsReceivable
143906 usd
CY2022Q4 us-gaap Allowance For Doubtful Accounts Receivable
AllowanceForDoubtfulAccountsReceivable
145579 usd
CY2023Q1 KGKG Sales Percentage
SalesPercentage
0.03 pure
CY2023Q1 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
1274897 usd
CY2022Q1 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
995131 usd
CY2023Q1 KGKG Revenue From Contract With Customer Excluding Assessed Tax Percentage
RevenueFromContractWithCustomerExcludingAssessedTaxPercentage
0.28 pure
CY2023Q1 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
1274897 usd
CY2022Q1 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
995131 usd
CY2023Q1 KGKG Revenue From Contract With Customer Excluding Assessed Tax Percentage
RevenueFromContractWithCustomerExcludingAssessedTaxPercentage
0.28 pure
CY2023Q1 us-gaap Advertising Expense
AdvertisingExpense
18966 usd
CY2023Q1 us-gaap Debt Instrument Maturity Date
DebtInstrumentMaturityDate
2024-03-07
CY2023Q1 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
1477051088 shares
CY2022Q1 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
1696611077 shares
CY2023Q1 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
1477051088 shares
CY2022Q1 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
1696611077 shares
CY2023Q1 us-gaap Number Of Reportable Segments
NumberOfReportableSegments
1 segment
CY2023Q1 us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<p id="xdx_848_eus-gaap--ConcentrationRiskCreditRisk_zIC8zC98U3sh" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_865_zaVm1kt9rcTg">Concentrations</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company’s cash balances on deposit with banks are guaranteed by the Federal Deposit Insurance Corporation (FDIC) up to $<span id="xdx_907_eus-gaap--CashFDICInsuredAmount_iI_c20230331_zlpiatMIDJs2" title="Cash FDIC insured amount">250,000</span>. Generally, the Company’s policy is to minimize borrowing costs by immediately applying cash receipts to borrowings against its credit facility. From time to time, however, the Company may be exposed to risk for the amounts of funds held in bank accounts in excess of the FDIC limit. To minimize the risk, the Company’s policy is to maintain cash balances with high quality financial institutions.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Gross sales.</i> During the three months ended March 31, 2023, the Company reported no customers that accounted for <span id="xdx_900_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20230101__20230331__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--RevenueFromContractWithCustomerMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--NoCustomerMember_zDybhfLJdYZ" title="Concentration risk, percentage">10</span>% of gross sales. During the three months ended March 31, 2022, the Company reported no customers that accounted for <span id="xdx_908_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20220101__20220331__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--RevenueFromContractWithCustomerMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--NoCustomerMember_zjlEeqN5p2rd" title="Concentration risk, percentage">10</span>% of gross sales.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Accounts receivable.</i> As of March 31, 2023, the Company had accounts receivable from five customers that comprised <span id="xdx_904_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20230101__20230331__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__srt--MajorCustomersAxis__custom--CustomerOneMember_zs851eUiRBO8" title="Concentration risk percentage">25</span>%, <span id="xdx_908_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20230101__20230331__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__srt--MajorCustomersAxis__custom--CustomerTwoMember_zVzNY1sEC4dg" title="Concentration risk percentage">18</span>%, <span id="xdx_90B_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20230101__20230331__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__srt--MajorCustomersAxis__custom--CustomerThreeMember_zdsatTxIeEza" title="Concentration risk percentage">11</span>%, <span id="xdx_90A_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20230101__20230331__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__srt--MajorCustomersAxis__custom--CustomerFourMember_zuniMiWyfBp7" title="Concentration risk percentage">11</span>% and <span id="xdx_90D_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20230101__20230331__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__srt--MajorCustomersAxis__custom--CustomerFiveMember_z6wi7FGaMEq3" title="Concentration risk percentage">10</span>%, respectively, of its gross accounts receivable. As of December 31, 2022, the Company had accounts receivable from two customers that comprised <span id="xdx_905_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20220101__20221231__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__srt--MajorCustomersAxis__custom--CustomerOneMember_z4WTPpMiu2x2" title="Concentration risk percentage">27</span>% and <span id="xdx_903_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20220101__20221231__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__srt--MajorCustomersAxis__custom--CustomerTwoMember_zprpY8KDLsh7" title="Concentration risk percentage">20</span>%, respectively, of its gross accounts receivable.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Co-Packers. </i>The raw materials used in the production of the Company’s products are obtained by the Company’s co-packers and consist primarily of materials such as the flavors, caffeine, sugars or sucralose, taurine, vitamins, CBD, and hemp seed protein contained in its beverages, the bottles in which its beverages are packaged, and the labeling on the outside of its beverages. These principal raw materials are subject to price and availability fluctuations. The Company currently relies on a few key co-packers, which in turn rely on a few key suppliers. The Company continually endeavors to have back-up co-packers, which co-packers would in turn depend on their third-party suppliers to supply certain of the flavors and concentrates that are used in the Company’s beverages. The Company is also dependent on these co-packers to negotiate arrangements with their existing suppliers that would enable the Company to obtain access to certain of such concentrates or flavor formulas under certain extraordinary circumstances. Additionally, in a limited number of cases, the Company’s co-packers may have contractual restrictions with their suppliers or the Company’s co-packers may need to obtain regulatory approvals and licenses that may limit the co-packers’ ability to enter into agreements with alternative suppliers. Contractual restrictions in the agreements the Company has with certain distributors may also limit the Company’s ability to enter into agreements with alternative distributors. The Company believes that a satisfactory supply of co-packers will continue to be available at competitive prices, although there can be no assurance in this regard. With respect to Gold Leaf’s operations, the Company continually endeavors to contract with additional beverage vendors to ensure the Company has adequate inventory. The Company believes that a satisfactory supply of vendors will continue to be available at competitive prices, although there can be no assurance in this regard.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Purchases from vendors.</i> During the three months ended March 31, 2023, the Company’s largest three vendors accounted for approximately <span id="xdx_90E_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20230101__20230331__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--VendorOneMember__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--PurchaseMember_zQNEr12IlLl5">68</span>% of all purchases, respectively. During the year ended December 31, 2022, the Company’s largest one vendor accounted for approximately <span id="xdx_906_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20220101__20221231__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--VendorOneMember__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--PurchaseMember_zXNzPO6K6OBl">34</span>% of all purchases, respectively.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Accounts payable.</i> As of March 31, 2023, two vendors accounted for more than <span id="xdx_90C_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20230101__20230331__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__srt--MajorCustomersAxis__custom--TwoVendorMember_zymsK9I9nce2" title="Concentration risk, percentage">10</span>% the total accounts payable. The Company’s largest two vendors accounted for <span id="xdx_906_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20230101__20230331__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__srt--MajorCustomersAxis__custom--VendorOneMember_zOfug3SpcD5d">27</span>%, and <span id="xdx_90D_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20230101__20230331__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__srt--MajorCustomersAxis__custom--VendorTwoMember_z1w5f6Ky7hLc">21</span>% of the total accounts payable, respectively. As of December 31, 2022, two vendors accounted for more than <span id="xdx_904_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20220101__20221231__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__srt--MajorCustomersAxis__custom--TwoVendorMember_zDH21xjiBFy8" title="Concentration risk, percentage">10</span>% the total accounts payable. The Company’s largest two vendors accounted for <span id="xdx_903_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20220101__20221231__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__srt--MajorCustomersAxis__custom--VendorOneMember_zU6N52mp0Fce">31</span>%, and <span id="xdx_90B_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20220101__20221231__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__srt--MajorCustomersAxis__custom--VendorTwoMember_zKS1CXAcOuHf">18</span>% of the total accounts payable, respectively.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"/></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p>
CY2023Q1 us-gaap Cash Fdic Insured Amount
CashFDICInsuredAmount
250000 usd
CY2023Q1 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.00001
CY2023Q1 us-gaap Inventory Raw Materials
InventoryRawMaterials
195389 usd
CY2022Q4 us-gaap Inventory Raw Materials
InventoryRawMaterials
198605 usd
CY2023Q1 us-gaap Inventory Finished Goods
InventoryFinishedGoods
447609 usd
CY2022Q4 us-gaap Inventory Finished Goods
InventoryFinishedGoods
660574 usd
CY2023Q1 us-gaap Inventory Gross
InventoryGross
642998 usd
CY2022Q4 us-gaap Inventory Gross
InventoryGross
859179 usd
CY2023Q1 us-gaap Inventory Valuation Reserves
InventoryValuationReserves
80000 usd
CY2022Q4 us-gaap Inventory Valuation Reserves
InventoryValuationReserves
80000 usd
CY2023Q1 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
542362 usd
CY2022Q4 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
543152 usd
CY2023Q1 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
216679 usd
CY2022Q4 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
195088 usd
CY2022Q4 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.00001
CY2023Q1 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
989000 shares
CY2023Q1 us-gaap Finite Lived Trademarks Gross
FiniteLivedTrademarksGross
85340 usd
CY2022Q4 us-gaap Finite Lived Trademarks Gross
FiniteLivedTrademarksGross
85340 usd
CY2023Q1 KGKG Finite Lived Gross Website Development Trademarks
FiniteLivedGrossWebsiteDevelopmentTrademarks
12200 usd
CY2022Q4 KGKG Finite Lived Gross Website Development Trademarks
FiniteLivedGrossWebsiteDevelopmentTrademarks
12200 usd
CY2023Q1 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
33778 usd
CY2022Q4 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
31339 usd
CY2023Q1 us-gaap Finite Lived Intangible Assets Net
FiniteLivedIntangibleAssetsNet
63762 usd
CY2022Q4 us-gaap Finite Lived Intangible Assets Net
FiniteLivedIntangibleAssetsNet
66201 usd
CY2023Q1 us-gaap Adjustment For Amortization
AdjustmentForAmortization
2439 usd
CY2022Q1 us-gaap Adjustment For Amortization
AdjustmentForAmortization
2439 usd
CY2023Q1 us-gaap Finite Lived Intangible Assets Amortization Expense Remainder Of Fiscal Year
FiniteLivedIntangibleAssetsAmortizationExpenseRemainderOfFiscalYear
7315 usd
CY2023Q1 us-gaap Finite Lived Intangible Assets Amortization Expense Next Twelve Months
FiniteLivedIntangibleAssetsAmortizationExpenseNextTwelveMonths
9754 usd
CY2023Q1 us-gaap Finite Lived Intangible Assets Amortization Expense Year Two
FiniteLivedIntangibleAssetsAmortizationExpenseYearTwo
9754 usd
CY2023Q1 us-gaap Finite Lived Intangible Assets Amortization Expense Year Three
FiniteLivedIntangibleAssetsAmortizationExpenseYearThree
9754 usd
CY2023Q1 us-gaap Finite Lived Intangible Assets Amortization Expense Year Four
FiniteLivedIntangibleAssetsAmortizationExpenseYearFour
9754 usd
CY2023Q1 KGKG Finite Lived Intangible Assets Amortization Expense After Year Four
FiniteLivedIntangibleAssetsAmortizationExpenseAfterYearFour
17431 usd
CY2023Q1 us-gaap Finite Lived Intangible Assets Net
FiniteLivedIntangibleAssetsNet
63762 usd
CY2023Q1 us-gaap Debt Instrument Carrying Amount
DebtInstrumentCarryingAmount
847986 usd
CY2022Q4 us-gaap Debt Instrument Carrying Amount
DebtInstrumentCarryingAmount
988035 usd
CY2023Q1 us-gaap Debt Instrument Unamortized Discount Current
DebtInstrumentUnamortizedDiscountCurrent
57234 usd
CY2022Q4 us-gaap Debt Instrument Unamortized Discount Current
DebtInstrumentUnamortizedDiscountCurrent
218481 usd
CY2023Q1 us-gaap Notes Payable
NotesPayable
790752 usd
CY2022Q4 us-gaap Notes Payable
NotesPayable
769554 usd
CY2023Q1 KGKG Notes Payable Current Portion
NotesPayableCurrentPortion
732753 usd
CY2022Q4 KGKG Notes Payable Current Portion
NotesPayableCurrentPortion
712499 usd
CY2023Q1 KGKG Notes Payable Net Of Current Portion
NotesPayableNetOfCurrentPortion
57999 usd
CY2023Q1 us-gaap Amortization Of Debt Discount Premium
AmortizationOfDebtDiscountPremium
31531 usd
CY2023Q1 us-gaap Debt Instrument Face Amount
DebtInstrumentFaceAmount
419213 usd
CY2023Q1 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
989000 shares
CY2022Q4 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
988000 shares
CY2023Q1 us-gaap Common Stock Par Or Stated Value Per Share
CommonStockParOrStatedValuePerShare
0.00001
CY2023Q1 us-gaap Common Stock Shares Authorized
CommonStockSharesAuthorized
10500000000 shares
CY2023Q1 us-gaap Lease Cost
LeaseCost
54467 usd
CY2022Q1 us-gaap Lease Cost
LeaseCost
49210 usd
CY2022Q4 us-gaap Operating Lease Right Of Use Asset
OperatingLeaseRightOfUseAsset
762464 usd
CY2022 us-gaap Operating Lease Right Of Use Asset Amortization Expense
OperatingLeaseRightOfUseAssetAmortizationExpense
54467 usd
CY2023Q1 us-gaap Operating Lease Right Of Use Asset
OperatingLeaseRightOfUseAsset
707997 usd
CY2022Q4 KGKG Lease Liabilities
LeaseLiabilities
838882 usd
CY2022Q4 KGKG Finance Lease Liabilities
FinanceLeaseLiabilities
17824 usd
CY2022Q4 us-gaap Operating Lease Liability
OperatingLeaseLiability
821058 usd
CY2023Q1 us-gaap Finance Lease Principal Payments
FinanceLeasePrincipalPayments
1939 usd
CY2023Q1 us-gaap Operating Lease Payments
OperatingLeasePayments
56411 usd
CY2023Q1 KGKG Lease Liabilities
LeaseLiabilities
780532 usd
CY2023Q1 us-gaap Operating Lease Liability Current
OperatingLeaseLiabilityCurrent
201384 usd
CY2023Q1 us-gaap Operating Lease Liability Noncurrent
OperatingLeaseLiabilityNoncurrent
579148 usd
CY2023Q1 us-gaap Operating Lease Weighted Average Remaining Lease Term1
OperatingLeaseWeightedAverageRemainingLeaseTerm1
P3Y5M19D
CY2023Q1 us-gaap Finance Lease Weighted Average Remaining Lease Term1
FinanceLeaseWeightedAverageRemainingLeaseTerm1
P2Y
CY2023Q1 us-gaap Operating Lease Weighted Average Discount Rate Percent
OperatingLeaseWeightedAverageDiscountRatePercent
0.1000 pure
CY2023Q3 us-gaap Finance Lease Weighted Average Discount Rate Percent
FinanceLeaseWeightedAverageDiscountRatePercent
0.0209 pure
CY2023Q1 us-gaap Lessee Operating Lease Liability Payments Remainder Of Fiscal Year
LesseeOperatingLeaseLiabilityPaymentsRemainderOfFiscalYear
203848 usd
CY2023Q1 us-gaap Lessee Operating Lease Liability Payments Due Next Twelve Months
LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths
262715 usd
CY2023Q1 us-gaap Lessee Operating Lease Liability Payments Due Year Two
LesseeOperatingLeaseLiabilityPaymentsDueYearTwo
261083 usd
CY2023Q1 us-gaap Lessee Operating Lease Liability Payments Due Year Three
LesseeOperatingLeaseLiabilityPaymentsDueYearThree
198217 usd
CY2023Q1 us-gaap Operating Leases Future Minimum Payments Due
OperatingLeasesFutureMinimumPaymentsDue
925863 usd
CY2023Q1 us-gaap Lessee Operating Lease Liability Undiscounted Excess Amount
LesseeOperatingLeaseLiabilityUndiscountedExcessAmount
145331 usd
CY2023Q1 KGKG Present Value Of Net Minimum Lease Payments
PresentValueOfNetMinimumLeasePayments
780532 usd
CY2023Q1 us-gaap Operating Lease Liability Current
OperatingLeaseLiabilityCurrent
201384 usd
CY2023Q1 us-gaap Operating Lease Liability Noncurrent
OperatingLeaseLiabilityNoncurrent
579148 usd
CY2022Q4 us-gaap Common Stock Shares Authorized
CommonStockSharesAuthorized
10500000000 shares
CY2023Q1 us-gaap Common Stock Shares Issued
CommonStockSharesIssued
2139440557 shares
CY2023Q1 us-gaap Common Stock Shares Outstanding
CommonStockSharesOutstanding
2139440557 shares
CY2022Q4 us-gaap Common Stock Shares Issued
CommonStockSharesIssued
2000276378 shares
CY2022Q4 us-gaap Common Stock Shares Outstanding
CommonStockSharesOutstanding
2000276378 shares
CY2022Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Non Option Equity Instruments Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber
278333333 shares
CY2022Q4 KGKG Share Based Compensation Arrangement By Share Based Payment Award Non Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionsOutstandingWeightedAverageExercisePrice
0.0223
CY2023Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Non Option Equity Instruments Granted
ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGranted
136000000 shares
CY2023Q1 KGKG Share Based Compensation Arrangements By Share Based Payment Award Non Options Grants In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardNonOptionsGrantsInPeriodWeightedAverageExercisePrice
0.0045
CY2023Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Non Option Equity Instruments Exercised
ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercised
67164179 shares
CY2023Q1 KGKG Share Based Compensation Arrangements By Share Based Payment Award Non Options Exercises In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardNonOptionsExercisesInPeriodWeightedAverageExercisePrice
0.0045
CY2023Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Non Option Equity Instruments Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber
347169154 shares
CY2023Q1 KGKG Share Based Compensation Arrangement By Share Based Payment Award Non Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionsOutstandingWeightedAverageExercisePrice
0.0188
CY2023Q1 KGKG Share Based Compensation Arrangement By Share Based Payment Award Non Options Exercisable Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionsExercisableNumber
347169154 shares
CY2023Q1 KGKG Share Based Compensation Arrangement By Share Based Payment Award Non Options Weighted Average Exercisable Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionsWeightedAverageExercisablePrice
0.0188
CY2023Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Non Option Equity Instruments Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber
347169154 shares
CY2023Q1 us-gaap Warrants And Rights Outstanding Term
WarrantsAndRightsOutstandingTerm
P2Y11M8D
CY2023Q1 KGKG Share Based Compensation Arrangement By Share Based Payment Award Outstanding Non Options Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOutstandingNonOptionsWeightedAverageExercisePrice
0.0188
CY2023Q1 KGKG Share Based Compensation Arrangement By Share Based Payment Award Non Options Exercisable Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionsExercisableNumber
347169154 shares
CY2023Q1 KGKG Share Based Compensation Arrangement By Share Based Payment Award Non Options Exercisable Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionsExercisableWeightedAverageExercisePrice
0.0188
CY2023Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice
0.0032

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0001493152-23-017082.txt Edgar Link pending
0001493152-23-017082-xbrl.zip Edgar Link pending
ex31-1.htm Edgar Link pending
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ex32-1.htm Edgar Link pending
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form10-q.htm Edgar Link pending
kgkg-20230331.xsd Edgar Link pending
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kgkg-20230331_cal.xml Edgar Link unprocessable
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kgkg-20230331_pre.xml Edgar Link unprocessable
form10-q_htm.xml Edgar Link completed
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