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

BioForce Nanosciences Holdings reported a net loss of $130,813 for the first quarter of 2024, with no revenue generated from product sales.

Summary

• BioForce Nanosciences Holdings reported its financial results for the first quarter of 2024, ending March 31st.
• The company experienced a net loss of $130,813 for the quarter, consistent with the $130,005 loss in the same period of 2023.
• There were no sales revenue generated during the quarter, with zero units of the BioForce Eclipse supplement product sold.
• Operating expenses totaled $130,813, primarily from board of director compensation and general and administrative costs.
• The company's total assets were $640, consisting of cash, while total liabilities reached $1,950,683.
• BioForce has an accumulated deficit of $160,760,542 and a working capital deficit of $1,950,043.
• The company is relying on related party loans to fund operations and has a going concern warning due to recurring losses and lack of revenue.

Sentiment

Score: 2

Explanation: The document paints a very negative picture due to the lack of revenue, significant losses, going concern warning, and ineffective internal controls. The company is heavily reliant on related party funding and has not demonstrated an ability to generate sales.

Positives

• The company has a written commitment from its CEO to advance funds as necessary to meet operating requirements for the next 12 months.
• The company is actively working on a business model and marketing campaign to drive sales of its nutrition supplements.
• The company has a supplier agreement with a manufacturer that provides non-exclusion rights to market its product.

Negatives

• The company reported no sales revenue for the quarter.
• The company has a significant accumulated deficit of $160,760,542.
• The company has a working capital deficit of $1,950,043.
• The company's internal controls over financial reporting were deemed ineffective.
• The company is reliant on related party loans to fund operations.
• The company has a going concern warning due to recurring losses and lack of revenue.

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 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 is dependent on related party loans to fund operations.
• The company faces the risk of ceasing operations or substantially changing its business plan if it cannot raise sufficient capital.

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.

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 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.

Industry Context

The company is attempting to transition from a technology company to a provider of nutritional supplements, which is a competitive market with established players. The company's lack of revenue and reliance on related party funding highlights the challenges it faces in this transition.

Comparison to Industry Standards

• The company's lack of revenue and significant losses are not in line with industry standards for established nutritional supplement companies.
• Companies like Herbalife, Nu Skin, and GNC, which are established players in the nutritional supplement industry, have significant revenue streams and established distribution networks.
• BioForce's current financial situation is more comparable to early-stage startups that are still in the process of developing their product and market strategy.

Related Party Transactions

• The company's Director, Secretary and CFO, Richard Kaiser, provides investor relations services, office space, phones and computers use through Yes International for the Company at no charge.
• During the three months ended March 31, 2024 and 2023, two board of directors paid expenses of the Company in the amount of $ 17,583 and $ 23,006 , respectively.
• Due to related parties was $ 238,285 and $ 197,102 at March 31, 2024 and 2023, respectively.

Stakeholder Impact

• Shareholders face significant risk due to the company's financial instability and going concern warning.
• Employees may be impacted by potential changes in operations or business plan.
• Customers are not currently impacted as the company has not generated any sales.
• Suppliers may be impacted by the company's ability to pay for goods and services.
• Creditors face risk due to the company's high liabilities and lack of revenue.

Next Steps

• The company plans to expand marketing efforts with a direct marketing and B2B sales campaign.
• The company will approach retail stores to create vendor relationships.
• The company will continue to advance its social media platform with direct online and targeted advertisements.
• The company intends to redomicile BioForce Nanosciences Holdings, Inc., a Nevada corporation, into a Wyoming corporation.

Key Dates

Keywords

financial results, net loss, no revenue, going concern, internal controls, nutritional supplements, related party transactions, working capital, accumulated deficit, BioForce Eclipse