BRGO.OTC.PinkBergio International, INC
10-Q: Bergio International Reports Q2 2024 Results: Revenue Declines, Focus Shifts to Cost Management
Sentiment:
Quarterly Report
Bergio International's Q2 2024 results reveal a decrease in revenue compared to the previous year, prompting a focus on cost-saving measures and strategic business adjustments.
Worse than expectedThe company's revenue, gross profit, and operating income decreased compared to the same period last year.
Summary
- Bergio International reported net revenues of $728,683 for the three months ended June 30, 2024, a decrease of 32.50% compared to $1,079,598 for the same period in 2023.
- For the six months ended June 30, 2024, net revenues were $1,353,538, a decrease of 32.67% compared to $2,010,184 for the same period in 2023.
- The company's cost of revenues for the three months ended June 30, 2024, increased by 4.01% to $543,954, while for the six months ended June 30, 2024, it decreased by 11.49% to $984,198.
- Gross profit for the three months ended June 30, 2024, decreased by 66.81% to $184,729, and for the six months ended June 30, 2024, it decreased by 58.88% to $369,340.
- Operating expenses for the three months ended June 30, 2024, decreased by 33.70% to $485,566, and for the six months ended June 30, 2024, it decreased by 26.38% to $1,015,620.
- The company reported a loss from operations of $300,837 for the three months ended June 30, 2024, and $646,280 for the six months ended June 30, 2024.
- Bergio International had other income, net of $98,634 for the three months ended June 30, 2024, and $99,010 for the six months ended June 30, 2024.
- The company's net loss attributable to Bergio International, Inc. from continuing operations was $150,490 for the three months ended June 30, 2024, and $402,249 for the six months ended June 30, 2024.
- The company is planning a reverse stock split in the range of 1 for 10,000 and 1 for 15,000.
- The company's working capital deficit was $4,978,361 at June 30, 2024, compared to $4,351,014 at December 31, 2023.
- The company is selling Aphrodites Marketing for $1,000,000.
Sentiment
Score: 4
Explanation: The sentiment is slightly negative due to declining revenues and a significant working capital deficit, raising concerns about the company's financial stability. However, cost-cutting measures and the sale of Aphrodites Marketing offer some positive aspects.
Positives
- Operating expenses decreased due to cost-cutting measures, indicating improved efficiency.
- The company had other income, net of $98,634 for the three months ended June 30, 2024, and $99,010 for the six months ended June 30, 2024.
- The company is selling Aphrodites Marketing for $1,000,000.
Negatives
- Net revenues decreased by 32.50% for the three months ended June 30, 2024, and 32.67% for the six months ended June 30, 2024.
- Gross profit decreased by 66.81% for the three months ended June 30, 2024, and 58.88% for the six months ended June 30, 2024.
- The company had a loss from operations of $300,837 for the three months ended June 30, 2024, and $646,280 for the six months ended June 30, 2024.
- The company's working capital deficit was $4,978,361 at June 30, 2024, compared to $4,351,014 at December 31, 2023.
Risks
- The company's ability to continue as a going concern is in substantial doubt due to recurring losses and a significant accumulated deficit.
- The company's future operations are contingent upon increasing revenues and raising capital.
- The company's retail operations may be affected by potential future outbreaks of COVID-19.
- The company's disclosure controls and procedures were not effective.
Future Outlook
The company's future operations are contingent upon increasing revenues and raising capital for ongoing operations and expansion of product lines. The company is in negotiations with some potential partners and remains positive about its prospects.
Management Comments
- It is our intention to establish Bergio as a holding company for the purpose of establishing retails stores worldwide.
- Our branded product lines are products and/or collections designed by our designer and CEO Berge Abajian and will be the centerpiece of our retail stores.
- We also intend to complement our own quality-designed jewelry with other products and our own specially designed handbags.
- This is in line with our strategy and belief that a brand name can create an association with innovation, design and quality which helps add value to the individual products as well as facilitate the introduction of new products.
- It is our intention to open elegant stores in high-end areas and provide excellent service in our stores which will be staffed with knowledgeable professionals.
Industry Context
The document does not provide specific details on broader industry trends or competitors. However, it mentions the impact of COVID-19 on retail operations, which is a common challenge faced by many companies in the retail sector.
Comparison to Industry Standards
- The document does not provide specific comparisons to industry standards or comparable companies.
- Without industry benchmarks, it's difficult to assess whether Bergio's performance is in line with or deviates from typical results for similar businesses.
Related Party Transactions
- The Company receives periodic advances from the Company's Chief Executive Officer (CEO) based upon the Company's cash flow needs.
- The Companys majority owned subsidiary, Aphrodites Marketing, has a loan with Jonathan Foltz, the President and CEO of Digital Age Business.
- Through the Companys majority owned subsidiary, Aphrodites Marketing, has loan agreements with Nationwide dated in October 2020 and November 2020.
- During the six months ended June 30, 2024 and the year ended December 31, 2023, the Company, through the Companys majority owned subsidiary, Aphrodites Marketing and GearBubble Tech, purchased inventory for a total of $0 and $108,412 from an affiliated company which was majority owned (50% interest) by the CEO of the Company.
Stakeholder Impact
- Shareholders may be concerned about the declining revenues and the company's ability to continue as a going concern.
- Employees may be affected by cost-cutting measures and potential restructuring.
- Customers may experience changes in product offerings and retail operations.
- Creditors face increased risk due to the company's financial difficulties.
Next Steps
- The company 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 company is selling Aphrodites Marketing for $1,000,000.
- The company is in negotiations with some potential partners.
Key Dates
| Date | Description |
|---|---|
| 2007-07-24 | Bergio International, Inc. was incorporated in the State of Delaware. |
| 2009-10-21 | The corporation's name was changed to Bergio International, Inc. |
| 2011-09-01 | The Company authorized and issued 51 shares of Series A Preferred Stock to the Company's CEO. |
| 2020-02-19 | The Company changed its state of incorporation to Wyoming. |
| 2020-07-06 | Entered into a Loan Authorization and Agreement with the Small Business Association (SBA). |
| 2021-02-10 | Bergio International, Inc. entered into an Acquisition Agreement with Digital Age Business, Inc. |
| 2021-03-24 | The Company filed a Certificate of Amendment to increase the authorized shares of common stock from 1,000,000,000 shares to 3,000,000,000 shares. |
| 2021-07-01 | The Company entered into an Agreement and Plan of Merger with GearBubble, Inc. |
| 2021-07-09 | The Company filed a Certificate of Amendment to increase the authorized shares of common stock from 3,000,000,000 shares to 6,000,000,000 shares. |
| 2022-04-28 | The Company filed a Certificate of Amendment to increase the authorized shares of common stock from 6,000,000,000 shares to 9,000,000,000 shares. |
| 2022-09-26 | The Company filed a Certificate of Amendment to increase the authorized shares of common stock from 9,000,000,000 shares to 15,000,000,000 shares. |
| 2022-10-03 | The Company entered into an 8% convertible note with Boot Capital LLC. |
| 2023-03-01 | The Company filed a Certificate of Amendment to increase the authorized shares of common stock from 15,000,000,000 shares to 25,000,000,000 shares and filed for a reverse split of the Company's common stock, at the ratio of 1 for 500. |
| 2023-04-17 | The reverse split of the Company's common stock was declared effective by FINRA. |
| 2023-04-24 | The Company entered into a 13% promissory note with 1800 Diagonal Lending, LLC. |
| 2023-08-10 | The Company entered into a securities purchase agreement with Trillium Partners LP and J.P. Carey Limited Partners LP. |
| 2023-10-26 | The Company entered into a securities purchase agreement with Trillium Partners LP. |
| 2023-12-18 | The Company entered into a securities purchase agreement with Trillium Partners LP. |
| 2024-06-19 | The Company entered into a Purchase Agreement with a buyer to purchase all the assets of Aphrodites Marketing. |
| 2024-06-29 | The Company and the owners of the 49% interest in Aphrodites Marketing entered into an Assignment of Interest and Assets Agreement. |
| 2024-06-30 | End of the quarterly period. |
| 2024-07-30 | 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 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. |
| 2024-08-12 | As of August 12, 2024 there were 2,898,329,407 shares outstanding of the registrants common stock. |
| 2024-08-14 | Date of report. |
Keywords
financial results, revenue, net loss, operating expenses, Bergio International, reverse stock split, going concern, Aphrodites Marketing, GearBubble
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