10-Q: BioForce Nanosciences Holdings Reports No Revenue in Second Quarter 2024, Cites Ongoing Concerns

BioForce Nanosciences Holdings reported no revenue for the second quarter of 2024 and continues to face significant financial challenges.

Summary

• BioForce Nanosciences Holdings, Inc. reported its financial results for the second quarter of 2024, ending June 30th.
• The company recorded no sales revenue for both the three and six-month periods ending June 30, 2024 and 2023.
• Operating expenses totaled $114,440 for the three months and $245,253 for the six months ended June 30, 2024, primarily from board compensation and general administrative costs.
• The net loss for the three months ended June 30, 2024 was $114,440, and the net loss for the six months was $245,253.
• As of June 30, 2024, the company's assets were $667 in cash, with total liabilities of $2,065,075, resulting in a working capital deficit of $2,064,408.
• The company has an accumulated deficit of $160,874,982.
• The company's ability to continue as a going concern is dependent on its ability to generate revenue and raise additional funds.
• The company is currently focusing on marketing its BioForce Eclipse nutritional powder through social media and telemarketing, with plans to expand to direct marketing and B2B sales.

Sentiment

Score: 2

Explanation: The document indicates significant financial distress with no revenue, substantial losses, and a going concern warning. The company's reliance on related party loans and ineffective internal controls further contribute to a negative outlook.

Positives

• The company has a supplier agreement that provides non-exclusion rights to market its product.
• The company's distributor provides consignment terms, allowing payment only when the product is sold.
• The company has a written commitment from its CEO to advance funds as necessary to meet operating requirements for the next 12 months.

Negatives

• The company has not generated any revenue from its BioForce Eclipse vitamin supplements.
• The company has a significant working capital deficit of $2,064,408.
• The company has a substantial accumulated deficit of $160,874,982.
• The company's internal controls over financial reporting were deemed ineffective.
• The company is dependent on loans from officers to cover operating expenses.
• The company's ability to continue as a going concern is in doubt.

Risks

• The company's ability to continue as a going concern is dependent on generating revenue and raising additional funds.
• The company's current cash position may not be sufficient to support daily operations.
• The company's internal controls over financial reporting are not effective.
• The company is dependent on related party transactions to fund operations.
• The company may need to cease operations or substantially change its business plan if it cannot raise additional capital.
• The company faces risks related to the implementation of its business plan and marketing campaign.

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 is also seeking to expand its BioForce Eclipse nutritional powder into households throughout the U.S. and will approach retail stores to create vendor relationships.

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 operating in the competitive nutritional supplement market, which includes various retailers, online stores, and direct outlets. The company is attempting to establish a brand presence and distribution network to compete in this market.

Comparison to Industry Standards

• The company's lack of revenue is significantly below industry standards for companies that have been operating for several years.
• Most companies in the nutritional supplement industry would have established sales channels and generated revenue within a similar timeframe.
• The company's reliance on related party loans and lack of external funding is not typical for established companies in this sector.
• The company's negative working capital and accumulated deficit are concerning when compared to industry benchmarks.
• Companies like GNC, Vitamin Shoppe, and Herbalife, which are established players in the nutritional supplement market, have significant revenue streams and established distribution networks, which BioForce currently lacks.

Related Party Transactions

• The company's Director, Secretary and CFO, Richard Kaiser, provides investor relations services through Yes International at no charge.
• During the six months ended June 30, 2024 and 2023, two board of directors paid expenses of the Company in the amount of $30,927 and $31,619, respectively.
• Due to related parties was $251,629 and $197,102 at June 30, 2024 and 2023, respectively.

Stakeholder Impact

• Shareholders face significant risk due to the company's financial instability and going concern issues.
• Employees may be impacted by potential changes in operations or the company's ability to continue as a going concern.
• Customers may be affected by the company's ability to maintain product supply and quality.
• Suppliers may face uncertainty regarding payment and future business relationships.
• Creditors face increased risk due to the company's financial difficulties.

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, nutritional supplements, vitamin, mineral, BioForce Eclipse, going concern, operating expenses, net loss, working capital, accumulated deficit, internal controls, related party transactions