10-Q/A: Artisan Consumer Goods Files Amended Quarterly Report Following Accounting Firm Change

Artisan Consumer Goods files an amended 10-Q report to reflect a review by a new independent accounting firm after the previous firm's registration was revoked.

Summary

• Artisan Consumer Goods, Inc. filed an amendment to its quarterly report on Form 10-Q for the period ended September 30, 2024.
• The amendment was filed due to a review by the company's new independent registered public accounting firm, Fruci & Associations II, PLLC, after the SEC notified the company that the Public Company Accounting Oversight Board revoked the registration of the previous firm, Yusufali & Associates, LLC.
• Fruci will reaudit the company's financial statements for the years ending June 30, 2024 and 2023, and review all subsequent interim periods.
• The company's cash balance decreased from $1,795 at June 30, 2024, to $1,263 at September 30, 2024.
• The company reported a net loss of $8,692 for the three months ended September 30, 2024, compared to a net loss of $5,935 for the same period in 2023.
• The company's accumulated deficit increased to $19,285,853 as of September 30, 2024.
• The company is searching for a new manufacturer to produce smaller batches of its Within / Without Granola products.
• The company plans to raise additional funds through debt or equity offerings.
• The company's disclosure controls and procedures were deemed not effective as of September 30, 2024.
• Amber Finney, the Company CEO, assumed Mr. Drury's duties after William Drury, the Company's secretary, passed away.

Sentiment

Score: 3

Explanation: The sentiment is negative due to the increased net loss, decreased cash balance, growing accumulated deficit, and the uncertainty surrounding the company's ability to continue as a going concern. The change in accounting firms adds further uncertainty.

Positives

• The company is actively seeking a new manufacturer for its Within / Without Granola products, indicating a commitment to continuing the brand.
• The company is exploring options to raise additional funds through debt or equity offerings, which could provide necessary capital for operations and growth.

Negatives

• The company's cash balance decreased to $1,263 as of September 30, 2024.
• The company reported a net loss of $8,692 for the three months ended September 30, 2024.
• The accumulated deficit increased to $19,285,853.
• The company's disclosure controls and procedures were deemed not effective as of September 30, 2024.
• The company has negative working capital and cash flows from operating activities, raising substantial doubt about its ability to continue as a going concern.

Risks

• The company's ability to continue as a going concern is dependent on generating profitable operations and/or obtaining necessary financing.
• There is no guarantee that the company will be able to raise capital through debt or equity offerings.
• Failure to raise sufficient funds could result in the company ceasing business operations.
• The company's disclosure controls and procedures were deemed not effective, indicating potential weaknesses in financial reporting.
• The company is dependent on the success of an anticipated private placement offering, and failure thereof would result in the Company having to seek capital from other sources such as debt financing, which may not even be available to the Company.

Future Outlook

The company plans to raise additional funds through debt or equity offerings and believes that if successful in raising $100,000, it will be able to generate sales revenue within the following twelve months.

Management Comments

• Management intends to finance operating costs over the next twelve months with existing cash on hand, loans from directors and/or private placement of common stock.
• Management believes our current cash balance will not be sufficient to fund our operations for the next twelve months.

Industry Context

The company operates in the consumer goods sector, specifically in the granola market. The company is attempting to restart the Within / Without Granola (WWG) brand acquired on July 15, 2021.

Comparison to Industry Standards

• It is difficult to compare Artisan Consumer Goods to industry standards due to its limited operations and lack of significant revenue.
• Companies like Kellogg's and General Mills, which operate in the broader consumer foods industry, have significantly larger revenue and resources.
• Smaller, niche granola brands may be more comparable, but their financial information is often not publicly available.

Management Changes

Related Party Transactions

• Since September 2016, the Company's President, Amber Finney, advanced the Company $210,666 as a related party loan.
• These loans are unsecured, due on demand and carry no interest or collateral.

Stakeholder Impact

• Shareholders face the risk of losing their investment if the company is unable to raise additional capital and continue operations.
• Employees may be impacted if the company is forced to cease operations.
• Creditors may face the risk of non-payment if the company is unable to generate sufficient revenue or secure financing.

Next Steps

• The company needs to find a new manufacturer for its Within / Without Granola products.
• The company needs to raise additional capital through debt or equity offerings.
• The company needs to improve its disclosure controls and procedures.

Key Dates