2021 Q3 Form 10-Q Financial Statement

#000165495421009102 Filed on August 16, 2021

View on sec.gov

Income Statement

Concept 2021 Q3 2021 Q2 2020 Q2
Revenue $0.00 $0.00
YoY Change
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin $2.183M $1.884M $347.4K
YoY Change 167.29% 442.27% 2.73%
% of Gross Profit
Research & Development $196.9K $0.00
YoY Change 147.48%
% of Gross Profit
Depreciation & Amortization $404.3K $355.0K $10.78K
YoY Change 4442.47% 3192.83% -11.92%
% of Gross Profit
Operating Expenses $2.784M $2.238M $358.1K
YoY Change 399.15% 524.93% 2.22%
Operating Profit -$2.784M -$2.238M -$358.1K
YoY Change 399.15% 524.93%
Interest Expense $65.66K $81.54K $30.03K
YoY Change 122.66% 171.55% -108.6%
% of Operating Profit
Other Income/Expense, Net -$65.66K -$324.7K $120.8K
YoY Change 104.35% -368.67% -341.67%
Pretax Income -$2.850M -$2.563M -$479.0K
YoY Change 383.09% 435.06% -36.09%
Income Tax $0.00 $0.00
% Of Pretax Income
Net Earnings -$2.850M -$2.563M -$479.0K
YoY Change 384.47% 435.06% -36.09%
Net Earnings / Revenue
Basic Earnings Per Share $0.00 -$0.02
Diluted Earnings Per Share -$4.720K -$5.110K -$1.235K
COMMON SHARES
Basic Shares Outstanding 603.0M shares 501.5M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2021 Q3 2021 Q2 2020 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $800.5K $5.973M $1.113M
YoY Change 153.65% 436.76% 36.0%
Cash & Equivalents $800.5K $5.973M $1.113M
Short-Term Investments
Other Short-Term Assets $287.1K $578.8K $59.95K
YoY Change 86.26% 865.54% 9.14%
Inventory
Prepaid Expenses $287.1K $578.8K
Receivables
Other Receivables
Total Short-Term Assets $1.088M $6.551M $1.173M
YoY Change 131.54% 458.68% 33.41%
LONG-TERM ASSETS
Property, Plant & Equipment $12.27M $12.34M $1.099M
YoY Change 240.63% 1023.47% -48.1%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $21.13M $9.595M $807.1K
YoY Change 102314.0% 1088.79% 3812.17%
Total Long-Term Assets $33.40M $21.94M $1.906M
YoY Change 821.89% 1051.14% -10.85%
TOTAL ASSETS
Total Short-Term Assets $1.088M $6.551M $1.173M
Total Long-Term Assets $33.40M $21.94M $1.906M
Total Assets $34.49M $28.49M $3.078M
YoY Change 742.65% 825.45% 2.05%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $3.822M $656.2K $492.0K
YoY Change 372.02% 33.38% -13.19%
Accrued Expenses $544.0K $568.5K $881.4K
YoY Change -0.94% -35.5% -12.16%
Deferred Revenue
YoY Change
Short-Term Debt $515.5K $516.3K $1.792M
YoY Change -71.76% -71.19% -8.54%
Long-Term Debt Due $106.4K $104.7K $390.2K
YoY Change -61.96% -73.16% -62.54%
Total Short-Term Liabilities $6.208M $2.107M $3.644M
YoY Change 74.49% -42.19% -24.17%
LONG-TERM LIABILITIES
Long-Term Debt $5.368M $5.396M $221.8K
YoY Change 1032.22% 2333.12%
Other Long-Term Liabilities $321.3K $0.00 $275.4K
YoY Change 16.68% -100.0% 0.0%
Total Long-Term Liabilities $5.689M $5.396M $497.2K
YoY Change 659.07% 985.3% 80.52%
TOTAL LIABILITIES
Total Short-Term Liabilities $6.208M $2.107M $3.644M
Total Long-Term Liabilities $5.689M $5.396M $497.2K
Total Liabilities $11.90M $7.502M $4.057M
YoY Change 181.81% 84.93% -20.15%
SHAREHOLDERS EQUITY
Retained Earnings -$67.41M $62.86M
YoY Change
Common Stock $60.68K $60.27K
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $19.21M $18.95M -$1.062M
YoY Change
Total Liabilities & Shareholders Equity $34.49M $28.49M $3.078M
YoY Change 742.65% 825.45% 2.05%

Cashflow Statement

Concept 2021 Q3 2021 Q2 2020 Q2
OPERATING ACTIVITIES
Net Income -$2.850M -$2.563M -$479.0K
YoY Change 384.47% 435.06% -36.09%
Depreciation, Depletion And Amortization $404.3K $355.0K $10.78K
YoY Change 4442.47% 3192.83% -11.92%
Cash From Operating Activities -$2.013M -$2.141M -$1.187M
YoY Change -699.12% 80.35% 151.5%
INVESTING ACTIVITIES
Capital Expenditures -$782.6K $411.3K $126.2K
YoY Change -66.77% 226.01% -142.39%
Acquisitions $2.000M $0.00
YoY Change
Other Investing Activities -$2.350M -$1.000M $917.2K
YoY Change -209.03%
Cash From Investing Activities -$3.133M -$4.161M $791.1K
YoY Change 33.02% -626.0% -365.79%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $17.28M
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -26.86K $12.12M $1.399M
YoY Change -102.2% 766.1% -6.47%
NET CHANGE
Cash From Operating Activities -2.013M -$2.141M -$1.187M
Cash From Investing Activities -3.133M -$4.161M $791.1K
Cash From Financing Activities -26.86K $12.12M $1.399M
Net Change In Cash -5.172M $5.817M $1.003M
YoY Change 548.85% 479.81% 38.1%
FREE CASH FLOW
Cash From Operating Activities -$2.013M -$2.141M -$1.187M
Capital Expenditures -$782.6K $411.3K $126.2K
Free Cash Flow -$1.230M -$2.552M -$1.313M
YoY Change -145.71% 94.34% 653.15%

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CY2020Q2 us-gaap Increase Decrease In Accrued Liabilities
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CY2020Q2 us-gaap Increase Decrease In Interest Payable Net
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CY2021Q2 us-gaap Payments To Acquire Businesses Net Of Cash Acquired
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CY2021Q2 shmp Repayment Of Short Term Promissory Note And Lines Of Credit
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CY2020Q2 shmp Repayment Of Short Term Promissory Note And Lines Of Credit
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1250000 USD
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CY2020Q2 us-gaap Repayments Of Convertible Debt
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CY2020Q2 shmp Redemption Of Series D Ps
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CY2021Q2 shmp Proceeds From Issuance Of Preferred Stock And Preference Stock Other
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CY2020Q2 shmp Proceeds From Issuance Of Preferred Stock And Preference Stock Other
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CY2020Q2 us-gaap Net Cash Provided By Used In Financing Activities
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CY2021Q2 us-gaap Cash And Cash Equivalents Period Increase Decrease
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CY2020Q2 us-gaap Cash And Cash Equivalents Period Increase Decrease
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CY2021Q1 us-gaap Cash And Cash Equivalents At Carrying Value
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CY2020Q1 us-gaap Cash And Cash Equivalents At Carrying Value
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CY2020Q2 us-gaap Cash And Cash Equivalents At Carrying Value
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CY2021Q2 shmp Shares Issued Upon Conversion
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CY2020Q2 shmp Shares Issued Upon Conversion
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CY2021Q2 us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
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CY2020Q2 us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
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CY2021Q2 us-gaap Dividends Preferred Stock Paidinkind
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CY2020Q2 us-gaap Dividends Preferred Stock Paidinkind
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CY2021Q2 us-gaap Stock Issued During Period Value Other
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<p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; TEXT-INDENT: 45px; text-align:justify;">Preparing financial statements in conformity with accounting principles generally accepted in the United States of America 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. Actual results could differ from those estimates.</p>
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CY2020Q2 shmp Shares To Be Issued As Consideration For Patent Acquisition
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<p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"><strong>NOTE 1 – NATURE OF THE ORGANIZATION AND BUSINESS</strong></p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"><em>Nature of the Business</em></p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; TEXT-INDENT: 45px; text-align:justify;">NaturalShrimp Incorporated (“NaturalShrimp” or the “Company”), a Nevada corporation, is a biotechnology company and has developed a proprietary technology that allows it to grow Pacific White shrimp (Litopenaeus vannamei, formerly Penaeus vannamei) in an ecologically controlled, high-density, low-cost environment, and in fully contained and independent production facilities. The Company’s system uses technology which allows it to produce a naturally-grown shrimp “crop” weekly and accomplishes this without the use of antibiotics or toxic chemicals. The Company has developed several proprietary technology assets, including a knowledge base that allows it to produce commercial quantities of shrimp in a closed system with a computer monitoring system that automates, monitors and maintains proper levels of oxygen, salinity and temperature for optimal shrimp production. Its initial production facility is located outside of San Antonio, Texas.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; TEXT-INDENT: 45px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; TEXT-INDENT: 45px; text-align:justify;">On December 15, 2020, the Company entered into an Asset Purchase Agreement (“APA”) between VeroBlue Farms USA, Inc., a Nevada corporation (“VBF”), VBF Transport, Inc., a Delaware corporation (“Transport”), and Iowa’s First, Inc., an Iowa corporation (“Iowa’s First”) (each a “Seller” and collectively, “Sellers”). Transport and Iowa’s First were wholly-owned subsidiaries of VBF. The agreement called for the Company to purchase all of the tangible assets of VBF, the motor vehicles of Transport and the real property (together with all plants, buildings, structures, fixtures, fittings, systems and other improvements located on such real property) of Iowa’s First. The facility was originally designed as an aquaculture facility, with the company having production issues. The Company began a modification process to convert the plant to produce shrimp, which will allow them to scale faster without having to build new facilities. The three Iowa facilities contain the tanks and infrastructure that will be used to support the production of shrimp with the incorporation of the Company's patented EC platform technology. On May 19, 2021, the Company entered into a Securities Purchase Agreement (the “SPA”) with F&amp;T Water Solutions, LLC (“F&amp;T”), for F&amp;T’s owned shares of Natural Aquatic Systems, Inc. Prior to entering into the SPA, the Company owned fifty-one percent (51%) and F&amp;T owned forty-nine percent (49%) of the issued and outstanding shares of common stock of NAS. After the SPA, NAS is a 100% owned subsidiary of the Company (See Note 8).</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; TEXT-INDENT: 45px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; TEXT-INDENT: 45px; text-align:justify;">The Company has three wholly-owned subsidiaries including NaturalShrimp Corporation, NaturalShrimp Global, Inc. and NAS.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"><em>Going Concern</em></p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; TEXT-INDENT: 45px; text-align:justify;">The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), assuming the Company will continue as a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. For the three months ended June 30, 2021, the Company had a net loss available for common stockholders of approximately $9,173,000. At June 30, 2021, the Company had an accumulated deficit of approximately $62,856,000. These factors raise substantial doubt about the Company’s ability to continue as a going concern, within one year from the issuance date of this filing. The Company’s ability to continue as a going concern is dependent on its ability to raise the required additional capital or debt financing to meet short and long-term operating requirements. During the three months ended June 30, 2021, the Company received net cash proceeds of approximately $17,277,000 from the sale of common shares (See Note 9). Management believes that private placements of equity capital will be needed to fund the Company’s long-term operating requirements. The Company may also encounter business endeavors that require significant cash commitments or unanticipated problems or expenses that could result in a requirement for additional cash. If the Company raises additional funds through the issuance of equity, the percentage ownership of its current shareholders could be reduced, and such securities might have rights, preferences or privileges senior to our common stock. Additional financing may not be available upon acceptable terms, or at all. If adequate funds are not available or are not available on acceptable terms, the Company may not be able to take advantage of prospective business endeavors or opportunities, which could significantly and materially restrict our operations. The Company continues to pursue external financing alternatives to improve its working capital position. If the Company is unable to obtain the necessary capital, the Company may be unable to develop its facilities and enter in production.</p>
CY2021Q2 us-gaap Convertible Preferred Stock Shares Issued Upon Conversion
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1560000 shares
CY2021Q2 shmp Derivative Liability Ending
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CY2021Q2 us-gaap Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Inputs Reconciliation Gain Loss Included In Earnings
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CY2021Q2 shmp Change In Fair Value
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29000 USD
CY2021Q2 shmp Balance At End Of Period
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0 USD
CY2021Q1 us-gaap Warrants And Rights Outstanding
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CY2021Q2 shmp Warrant Liability Reclass To Equity Upon Exercise
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CY2021Q2 shmp Gain Loss On Warrant Liability
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0 USD
CY2021Q2 shmp Warrant Liability Ending
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0 USD
CY2021Q1 us-gaap Property Plant And Equipment Net
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CY2020Q2 us-gaap Depreciation Expense On Reclassified Assets
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CY2021Q2 us-gaap Concentration Risk Credit Risk
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<p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; TEXT-INDENT: 45px; text-align:justify;">The Company maintains cash balances at two financial institutions. Accounts at this institution are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000. As of June 30, 2021 the Company’s cash balance exceeded FDIC coverage. As of March 31, 2021, the Company’s cash balance did not exceed FDIC coverage. The Company has not experienced any losses in such accounts and periodically evaluates the credit worthiness of the financial institutions and has determined the credit exposure to be negligible.</p>
CY2021Q2 us-gaap Depreciation Expense On Reclassified Assets
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306000 USD
CY2021Q2 us-gaap Proceeds From Secured Notes Payable
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789 USD
CY2016Q1 shmp Consulting Services
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655750 USD
CY2021Q1 us-gaap Other Liabilities Current
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54647 USD
CY2021Q2 shmp Borrowing Rate
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5%
CY2020Q3 shmp Promissory Note For Accrued Compensation And Debt
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383604 USD
CY2021Q2 shmp Monthly Rent
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7000 USD
CY2021Q2 us-gaap Operating Leases Rent Expense Net
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1727 USD
CY2021Q2 us-gaap Increase Decrease In Deposit Other Assets
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52362 USD
CY2021Q2 us-gaap Increase Decrease In Security Deposits
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17454 USD

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