2023 Q4 Form 10-Q Financial Statement

#000121390023084520 Filed on November 08, 2023

View on sec.gov

Income Statement

Concept 2023 Q4 2023 Q3 2022 Q4
Revenue $450.0K $453.7K $217.9K
YoY Change 106.48% 30.69%
Cost Of Revenue $65.49K $79.75K $60.82K
YoY Change 7.68% 22.65%
Gross Profit $384.5K $374.0K $157.1K
YoY Change 144.73% 32.55%
Gross Profit Margin 85.45% 82.42% 72.09%
Selling, General & Admin $2.503M $1.720M -$149.3K
YoY Change -1777.23% -35.13%
% of Gross Profit 651.01% 459.93% -94.99%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $7.240K $7.774K $149.1K
YoY Change -95.14% -498.67%
% of Gross Profit 1.88% 2.08% 94.88%
Operating Expenses $2.504M $1.720M -$149.3K
YoY Change -1777.39% -35.12%
Operating Profit -$2.119M -$1.346M $306.4K
YoY Change -791.64% -43.18%
Interest Expense -$246.7K $144.5K -$126.3K
YoY Change 95.31% 38.55%
% of Operating Profit -41.23%
Other Income/Expense, Net -$291.3K -$431.8K -$291.3K
YoY Change 0.0% -40.11%
Pretax Income -$3.511M -$1.778M -$193.2K
YoY Change 1717.23% -42.46%
Income Tax $10.00 $7.680K
% Of Pretax Income
Net Earnings -$3.510M -$1.778M -$200.6K
YoY Change 1649.52% -42.46%
Net Earnings / Revenue -779.96% -391.9% -92.05%
Basic Earnings Per Share -$0.04
Diluted Earnings Per Share -$0.09 -$0.04 -$0.01
COMMON SHARES
Basic Shares Outstanding 39.97M shares 39.97M shares 40.29M shares
Diluted Shares Outstanding 39.97M shares

Balance Sheet

Concept 2023 Q4 2023 Q3 2022 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $133.9K $340.0K $1.000M
YoY Change -86.61% -68.45%
Cash & Equivalents $100.3K $200.4K $751.0K
Short-Term Investments $33.59K $130.0K $249.1K
Other Short-Term Assets
YoY Change
Inventory $6.979K
Prepaid Expenses
Receivables $572.7K $570.0K $525.1K
Other Receivables $100.0K $200.0K $200.7K
Total Short-Term Assets $806.6K $1.114M $1.726M
YoY Change -53.26% -33.72% -16.78%
LONG-TERM ASSETS
Property, Plant & Equipment $39.16K $80.35K $56.20K
YoY Change -30.31% 165.01% 1144.38%
Goodwill $815.5K $815.5K
YoY Change -77.57% -71.09%
Intangibles $0.00 $2.000K $2.750K
YoY Change -100.0% -99.88% -99.86%
Long-Term Investments
YoY Change
Other Assets $0.00
YoY Change
Total Long-Term Assets $263.5K $1.236M $1.214M
YoY Change -78.3% -78.42% -78.74%
TOTAL ASSETS
Total Short-Term Assets $806.6K $1.114M $1.726M
Total Long-Term Assets $263.5K $1.236M $1.214M
Total Assets $1.070M $2.350M $2.940M
YoY Change -63.6% -68.27% -62.23%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.154M $1.080M $738.4K
YoY Change 56.33% -31.95% -13.26%
Accrued Expenses $1.043M $667.4K $581.8K
YoY Change 79.32% 923.33% 44.83%
Deferred Revenue
YoY Change
Short-Term Debt $1.856M $1.790M $140.3K
YoY Change 1223.07% 1155.0%
Long-Term Debt Due $3.921M $3.630M $5.300K
YoY Change 73881.89% 68390.57%
Total Short-Term Liabilities $8.034M $7.258M $1.533M
YoY Change 424.14% 303.04% 8.18%
LONG-TERM LIABILITIES
Long-Term Debt $1.590K $0.00 $2.767M
YoY Change -99.94% -100.0%
Other Long-Term Liabilities $1.592K $2.839K $283.1K
YoY Change -99.44% -99.06%
Total Long-Term Liabilities $1.592K $2.839K $3.050M
YoY Change -99.95% -99.9%
TOTAL LIABILITIES
Total Short-Term Liabilities $8.034M $7.258M $1.533M
Total Long-Term Liabilities $1.592K $2.839K $3.050M
Total Liabilities $8.211M $7.513M $4.582M
YoY Change 79.19% 64.11% 93.24%
SHAREHOLDERS EQUITY
Retained Earnings -$30.13M -$26.62M -$19.03M
YoY Change 58.33% 41.38% 129.1%
Common Stock $39.97K $39.97K $38.29K
YoY Change 4.39% -0.79% 45.99%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity -$7.138M -$5.161M -$1.641M
YoY Change
Total Liabilities & Shareholders Equity $1.070M $2.350M $2.940M
YoY Change -63.6% -68.27% -62.23%

Cashflow Statement

Concept 2023 Q4 2023 Q3 2022 Q4
OPERATING ACTIVITIES
Net Income -$3.510M -$1.778M -$200.6K
YoY Change 1649.52% -42.46%
Depreciation, Depletion And Amortization $7.240K $7.774K $149.1K
YoY Change -95.14% -498.67%
Cash From Operating Activities -$516.7K -$880.0K -$1.005M
YoY Change -48.58% -0.01%
INVESTING ACTIVITIES
Capital Expenditures -$4.570K $20.00K $28.16K
YoY Change -116.23% -191.41%
Acquisitions
YoY Change
Other Investing Activities $2.710K $0.00 -$100.0K
YoY Change -102.71%
Cash From Investing Activities -$2.720K -$10.00K -$128.2K
YoY Change -97.88% -54.3%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 418.7K 900.0K 1.203M
YoY Change -65.2% 142.48%
NET CHANGE
Cash From Operating Activities -516.7K -880.0K -1.005M
Cash From Investing Activities -2.720K -10.00K -128.2K
Cash From Financing Activities 418.7K 900.0K 1.203M
Net Change In Cash -100.7K 10.00K 70.14K
YoY Change -243.56% -101.88%
FREE CASH FLOW
Cash From Operating Activities -$516.7K -$880.0K -$1.005M
Capital Expenditures -$4.570K $20.00K $28.16K
Free Cash Flow -$512.1K -$900.0K -$1.033M
YoY Change -50.42% 4.87%

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>4. Going concern</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company’s consolidated financial statements are prepared using the GAAP applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. At September 30, 2023 and December 31, 2022, the Company had $200,368 and $751,017 in cash and $6,144,575 in working capital deficit and $193,033 in working capital at September 30, 2023 and December 31, 2022, respectively.  For the nine months ended September 30, 2023 and 2022, the Company had a net loss of $7,592,961 and $10,524,330 respectively. For the three months ended September 30, 2023 and 2022, the Company had a net loss of $1,778,119 and $3,090,287, respectively. Continued losses may adversely affect the liquidity of the Company in the future. At September 30, 2023 and December 31, 2022, the Company had accumulated deficits of $26,624,036 and $19,032,561, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In view of the matters described in the preceding paragraph, recoverability of a major portion of the recorded asset amounts shown in the accompanying consolidated balance sheets is dependent upon continued operations of the Company, which in turn is dependent upon the Company’s ability to raise additional capital, obtain financing and to succeed in its future operations. These factors raise substantial doubt about the Company’s ability to continue as a going concern within one year of the date these financial statements are issued. The consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">The Company has a total of $4.4 million in aggregate principal convertible notes outstanding, of which $2.2 million each matures on May 25, 2024 and June 7, 2024 respectively, and also has a demand note outstanding of $1,650,000 at September 30, 2023. In addition, the Company has operating costs and expenses at the present time for development of its business activities for which the Company will be required to raise additional capital over the next twelve months to meet its current administrative expenses and any debt as it may come due, and it may do so in connection with or in anticipation of possible acquisition transactions. This financing may take the form of additional sales of its equity securities and/or convertible notes. There is no assurance that additional financing will be available, if required, or on terms favorable to the Company.</p>
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1000 usd
CY2022Q4 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
250 usd
CY2023Q3 us-gaap Finite Lived Intangible Assets Net
FiniteLivedIntangibleAssetsNet
2000 usd
CY2022Q4 us-gaap Finite Lived Intangible Assets Net
FiniteLivedIntangibleAssetsNet
2750 usd
CY2023Q3 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
250 usd
us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
750 usd
CY2022Q4 us-gaap Accrued Marketing Costs Current
AccruedMarketingCostsCurrent
327440 usd
CY2022 ohcs Gross Unrealized Loss
GrossUnrealizedLoss
-183241 usd
CY2022 us-gaap Equity Fair Value Adjustment
EquityFairValueAdjustment
144199 usd
us-gaap Gain Loss On Sale Of Investments
GainLossOnSaleOfInvestments
78510 usd
us-gaap Gain Loss On Sale Of Investments
GainLossOnSaleOfInvestments
-157590 usd
us-gaap Gain On Sale Of Investments
GainOnSaleOfInvestments
161269 usd
us-gaap Loss On Sale Of Investments
LossOnSaleOfInvestments
82759 usd
us-gaap Loss On Sale Of Investments
LossOnSaleOfInvestments
199725 usd
us-gaap Gain On Sale Of Investments
GainOnSaleOfInvestments
42135 usd
CY2023Q3 us-gaap Lines Of Credit Current
LinesOfCreditCurrent
136742 usd
CY2022Q4 us-gaap Lines Of Credit Current
LinesOfCreditCurrent
140060 usd
CY2023Q3 us-gaap Line Of Credit Facility Maximum Borrowing Capacity
LineOfCreditFacilityMaximumBorrowingCapacity
250000 usd
us-gaap Line Of Credit Facility Interest Rate During Period
LineOfCreditFacilityInterestRateDuringPeriod
0.0164 pure
us-gaap Line Of Credit Facility Periodic Payment
LineOfCreditFacilityPeriodicPayment
3318 usd
us-gaap Preferred Stock Dividend Rate Percentage
PreferredStockDividendRatePercentage
0.25 pure
us-gaap Stock Granted During Period Value Sharebased Compensation Forfeited
StockGrantedDuringPeriodValueSharebasedCompensationForfeited
389111 usd
CY2023Q3 us-gaap Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized Share Based Awards Other Than Options
EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedShareBasedAwardsOtherThanOptions
76889 usd
ohcs Coupon Percentage
CouponPercentage
0.12 pure
CY2022Q3 us-gaap Stock Issued During Period Shares Other
StockIssuedDuringPeriodSharesOther
362000 shares
us-gaap Extinguishment Of Debt Amount
ExtinguishmentOfDebtAmount
218238 usd
us-gaap Related Party Transaction Purchases From Related Party
RelatedPartyTransactionPurchasesFromRelatedParty
1650000 usd
CY2020Q2 us-gaap Loans Receivable With Fixed Rates Of Interest1
LoansReceivableWithFixedRatesOfInterest1
145683 usd
CY2020Q4 us-gaap Grants Receivable Current
GrantsReceivableCurrent
126546 usd
us-gaap Loans Receivable Description Of Variable Rate Basis
LoansReceivableDescriptionOfVariableRateBasis
The unforgiven portion of the PPP loan totaling $19,137 is payable over five years at an interest rate of 1%, with a deferral of payments for the first twelve months.
CY2023Q3 us-gaap Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
2839 usd
CY2023Q3 us-gaap Other Liabilities Current
OtherLiabilitiesCurrent
5304 usd
CY2023Q3 us-gaap Convertible Notes Payable
ConvertibleNotesPayable
3624414 usd
CY2022Q4 us-gaap Convertible Notes Payable
ConvertibleNotesPayable
2759961 usd
CY2023Q3 us-gaap Convertible Notes Payable Current
ConvertibleNotesPayableCurrent
3624414 usd
CY2023Q3 us-gaap Interest Expense Debt
InterestExpenseDebt
144499 usd
us-gaap Interest Expense Debt
InterestExpenseDebt
363083 usd
CY2022Q3 us-gaap Interest Expense Debt
InterestExpenseDebt
104291 usd
us-gaap Interest Expense Debt
InterestExpenseDebt
223015 usd
CY2023Q3 us-gaap Amortization Of Debt Discount Premium
AmortizationOfDebtDiscountPremium
291318 usd
us-gaap Amortization Of Debt Discount Premium
AmortizationOfDebtDiscountPremium
864454 usd
CY2022Q3 us-gaap Amortization Of Debt Discount Premium
AmortizationOfDebtDiscountPremium
291318 usd
us-gaap Amortization Of Debt Discount Premium
AmortizationOfDebtDiscountPremium
840311 usd
CY2021Q3 us-gaap Stock Issued During Period Shares New Issues
StockIssuedDuringPeriodSharesNewIssues
2000000 shares
CY2022Q2 us-gaap Stock Issued During Period Shares New Issues
StockIssuedDuringPeriodSharesNewIssues
5000000 shares
us-gaap Sale Of Stock Number Of Shares Issued In Transaction
SaleOfStockNumberOfSharesIssuedInTransaction
4341000 shares
CY2022 us-gaap Proceeds From Sale And Maturity Of Available For Sale Securities
ProceedsFromSaleAndMaturityOfAvailableForSaleSecurities
1956000 usd
us-gaap Proceeds From Sale And Maturity Of Available For Sale Securities
ProceedsFromSaleAndMaturityOfAvailableForSaleSecurities
925000 usd
us-gaap Common Stock Convertible Conversion Price Increase
CommonStockConvertibleConversionPriceIncrease
1.25
ohcs Preferred Stock Voting Rightsshare
PreferredStockVotingRightsshare
1.25
CY2020Q4 us-gaap Convertible Preferred Stock Shares Issued Upon Conversion
ConvertiblePreferredStockSharesIssuedUponConversion
9998899 shares
CY2020Q4 us-gaap Stock Issued During Period Shares Share Based Compensation
StockIssuedDuringPeriodSharesShareBasedCompensation
9998889 shares
CY2023Q2 us-gaap Stock Redeemed Or Called During Period Shares
StockRedeemedOrCalledDuringPeriodShares
250000 shares
CY2023Q3 us-gaap Share Price
SharePrice
1.25
CY2023Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice
1.25
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate
0 pure
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate
2.4516 pure
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate
0.0424 pure
us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1
P6Y
CY2022Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
5895000 shares
CY2022Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
1.69
CY2022 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Outstanding Weighted Average Remaining Contractual Term2
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2
P9Y1M24D
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross
6190000 shares
us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Grants In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice
1.25
ohcs Sharebased Compensation Arrangement By Sharebased Payment Award Options Weighted Average Remaining Term Options Granted
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsWeightedAverageRemainingTermOptionsGranted
P10Y
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Forfeitures In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod
1890000 shares
us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Forfeitures In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePrice
1.65
CY2023Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
10195000 shares
CY2023Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
1.43
us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Outstanding Weighted Average Remaining Contractual Term2
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2
P9Y2M1D
CY2023Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber
1075000 shares
CY2023Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice
1.24
us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Exercisable Weighted Average Remaining Contractual Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1
P9Y11M12D
us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
3283913 usd
us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
5191214 usd
CY2023Q3 us-gaap Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized Stock Options
EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedStockOptions
7815007 usd
CY2023Q3 us-gaap Debt Instrument Face Amount
DebtInstrumentFaceAmount
70000 usd
dei Current Fiscal Year End Date
CurrentFiscalYearEndDate
--12-31
CY2022Q4 us-gaap Inventory Net
InventoryNet
usd
CY2023Q3 us-gaap Marketable Securities Current
MarketableSecuritiesCurrent
usd
CY2022Q4 us-gaap Convertible Notes Payable Current
ConvertibleNotesPayableCurrent
usd
CY2023Q3 us-gaap Convertible Long Term Notes Payable
ConvertibleLongTermNotesPayable
usd
CY2022Q3 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
usd
CY2023Q3 us-gaap Income Loss From Continuing Operations Per Diluted Share
IncomeLossFromContinuingOperationsPerDilutedShare
-0.04
CY2022Q3 us-gaap Income Loss From Continuing Operations Per Diluted Share
IncomeLossFromContinuingOperationsPerDilutedShare
-0.08
us-gaap Income Loss From Continuing Operations Per Diluted Share
IncomeLossFromContinuingOperationsPerDilutedShare
-0.19
us-gaap Income Loss From Continuing Operations Per Diluted Share
IncomeLossFromContinuingOperationsPerDilutedShare
-0.27
CY2022Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
40173220 shares
CY2023Q1 us-gaap Stock Issued During Period Value Issued For Services
StockIssuedDuringPeriodValueIssuedForServices
usd
CY2022Q1 us-gaap Stock Issued During Period Value Conversion Of Convertible Securities
StockIssuedDuringPeriodValueConversionOfConvertibleSecurities
usd
CY2022Q3 us-gaap Stock Issued During Period Value Issued For Services
StockIssuedDuringPeriodValueIssuedForServices
usd
us-gaap Gains Losses On Extinguishment Of Debt
GainsLossesOnExtinguishmentOfDebt
usd
us-gaap Other Tax Expense Benefit
OtherTaxExpenseBenefit
usd
us-gaap Increase Decrease In Inventories
IncreaseDecreaseInInventories
usd
us-gaap Payments To Acquire Businesses Net Of Cash Acquired
PaymentsToAcquireBusinessesNetOfCashAcquired
usd
us-gaap Payments For Repurchase Of Common Stock
PaymentsForRepurchaseOfCommonStock
usd
us-gaap Proceeds From Notes Payable
ProceedsFromNotesPayable
usd
us-gaap Proceeds From Repayments Of Notes Payable
ProceedsFromRepaymentsOfNotesPayable
usd
CY2023Q3 us-gaap Advertising Expense
AdvertisingExpense
usd
us-gaap Advertising Expense
AdvertisingExpense
usd
CY2023Q3 us-gaap Accrued Marketing Costs Current
AccruedMarketingCostsCurrent
usd
ohcs Gross Unrealized Loss
GrossUnrealizedLoss
usd

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