10-Q: BioForce Nanosciences Holdings Reports Third Quarter 2024 Results with No Revenue and Continued Losses

BioForce Nanosciences Holdings reported no revenue and a net loss for the third quarter of 2024, with ongoing concerns about its ability to continue as a going concern.

Summary

• BioForce Nanosciences Holdings reported its financial results for the third quarter of 2024, showing no sales revenue for both the three and nine-month periods ending September 30, 2024.
• The company incurred a net loss of $122,024 for the three months ended September 30, 2024, and a net loss of $367,277 for the nine months ended September 30, 2024.
• Operating expenses totaled $122,024 for the three months and $367,277 for the nine months, primarily due to board of director compensation and general and administrative costs.
• As of September 30, 2024, the company's assets were $1,635, consisting of cash, while total liabilities were $2,180,067, resulting in a working capital deficit of $2,178,432.
• The company has an accumulated deficit of $160,997,006 and is facing significant challenges in generating revenue and maintaining operations.
• Management has expressed concerns about the company's ability to continue as a going concern without additional capital.

Sentiment

Score: 2

Explanation: The document paints a very negative picture of the company's financial health and operational performance. The lack of revenue, significant losses, and ineffective internal controls, coupled with concerns about going concern, indicate a high level of risk and a low likelihood of near-term success.

Positives

• The company has a written commitment from its Chairman to advance funds as necessary to meet operating requirements for the next 12 months.
• The company is actively working on a dynamic marketing campaign to increase brand awareness and drive sales of its nutritional supplements.

Negatives

• The company has reported no sales revenue for the current and prior year periods.
• The company has incurred significant net losses for both the three and nine-month periods.
• The company has a substantial working capital deficit and accumulated deficit.
• The company's internal controls over financial reporting are ineffective.
• There are concerns about the company's ability to continue as a going concern without additional capital.

Risks

• The company's ability to continue as a going concern is dependent on its ability to generate revenue and raise additional funds.
• The company's current cash position may not be sufficient to support daily operations.
• The company's internal control deficiencies could result in material misstatements in financial statements.
• The company faces the risk of ceasing operations or substantially changing its business plan if it cannot secure additional capital.
• The company's reliance on related party transactions and loans from officers to cover expenses poses a risk.

Future Outlook

The company plans to expand its marketing efforts with a direct marketing and B2B sales campaign, with the eventual expectation to expand throughout the entire United States. The company also intends to redomicile BioForce Nanosciences Holdings, Inc., a Nevada corporation, into a Wyoming corporation using its wholly-owned BioForce Nanosciences Holdings, Inc., a Wyoming corporation as the entity for the redomicile corporate action.

Management Comments

• Management believes that the actions presently being taken to further implement the Company's business plan; to expand sales with a dynamic marketing campaign and generate revenues provide the opportunity for the Company to continue as a going concern.
• Management has expressed concerns about the company's ability to continue as a going concern without additional capital.
• The company's management is responsible for establishing and maintaining adequate internal control over financial reporting.

Industry Context

The company is attempting to transition from a technology business to a nutritional supplement provider, which is a competitive market with established players. The company's lack of revenue and significant losses indicate it is struggling to gain traction in this new market. The company's reliance on private labeling and consignment terms suggests it is still in the early stages of establishing its supply chain and brand.

Comparison to Industry Standards

• The company's lack of revenue is significantly below industry standards for nutritional supplement companies, which typically generate revenue through product sales.
• The company's negative working capital and accumulated deficit are concerning compared to industry benchmarks, which often show positive working capital and retained earnings for established companies.
• The company's reliance on related party transactions and loans from officers is not typical for publicly traded companies and raises concerns about financial stability.
• The company's ineffective internal controls over financial reporting are a significant deviation from industry best practices, which emphasize robust internal controls to ensure accurate financial reporting.
• Compared to companies like GNC or Vitamin Shoppe, which have established retail networks and strong brand recognition, BioForce is in a very early stage of development and faces significant challenges in gaining market share.

Related Party Transactions

• The company's Director, Secretary and Acting CFO, Richard Kaiser, provides investor relations services through Yes International at no charge.
• During the nine months ended September 30, 2024 and 2023, two board of directors paid expenses of the Company in the amount of $ 39,338 and $ 39,568 , respectively.
• Due to related parties was $ 260,039 and $ 213,664 at September 30, 2024 and 2023, respectively.

Stakeholder Impact

• Shareholders face significant risk due to the company's poor financial performance and going concern issues.
• Employees may be impacted by potential operational changes or the risk of the company ceasing operations.
• Customers may be affected by the company's ability to deliver products and services.
• Suppliers and creditors face the risk of non-payment due to the company's financial instability.

Next Steps

• The company plans to implement a dynamic marketing campaign to increase brand awareness and drive sales.
• The company intends to expand its marketing efforts with a direct marketing and B2B sales campaign.
• The company plans to redomicile from Nevada to Wyoming.
• The company will approach retail stores to create vendor relationships.

Key Dates

Keywords

financial results, net loss, revenue, nutritional supplements, going concern, internal controls, working capital, operating expenses, marketing campaign, related party transactions