UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C.D.C. 20549


FORM 10-K


[X] (Mark One)

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


For the fiscal year ended December 31, 20172018


[ ] Or

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


For the transition period from to

Commission File No. file number:000-54917


FUTURE HEALTHCARE OF AMERICA

Natur International Corp.

(Exact name of registrant as specified in its charter)


WYOMING

45-5547692

Wyoming45-5547692
State or other jurisdiction of
incorporation or organization
(I.R.S. Employer
Identification No.)

(State or other jurisdiction ofJachthavenweg 124

 (I.R.S. Employer1081 KJ Amsterdam

incorporation or organization)

 Identification No.)


5001 Baum Blvd, Suite 770

Pittsburgh, PA 15213The Netherlands

(Address of Principal Executive Offices)principal executive offices)


Registrant's Telephone Number:  (412) 621-0902Registrant’s telephone number, including area code:011 31 20 578 7700


Securities Registeredregistered pursuant to Section 12(b) of the Act:None

NONE

Title of each className of each exchange on which registered


Securities Registeredregistered pursuant to Sectionsection 12(g) of the Act:

Common Stock, $0.001 par value $0.001 per share



Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. ☐ Yes þ No

Yes [  ]  No [X]


Indicate by checkmarkcheck mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. ☐ Yes þ No

Yes [  ]  No [X]


Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.þ Yes ☐ No

Yes [X]  No [  ]


Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).þ Yes ☐ No

Yes [X]  No [  ]


Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405 of this chapter) is not contained herein and will not be contained, to the best of registrant'sregistrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment toof this Form 10-K. [ ]þ





Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of ‘‘large“large accelerated filer,” “accelerated filer,’’ “smaller reporting company,”company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):


Large accelerated filer    [   ]   Accelerated filed [   ]    Non-accelerated filer  [   ]    Smaller reporting company  [X]

 Emerging growth company  [X]

Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting companyþ
Emerging growth company


If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act [  ]Act. ☐


Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No þ

Yes [  ]  No [X]


State the aggregate market valueAs of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average bid and asked price of such common equity, as ofJune 29, 2018, the last business day of the registrant’s most recently completed second fiscal quarter:  $1,520,286,quarter, the aggregate market value of the common stock held by non- affiliates of the issuer was $622,238. This amount is based on the closing bid price of $0.06 per share of the registrant’s common stock as of such date, as reported on June 30, 2017.the OTCQB.


As of March 27, 2018, there were 11,265,631April 12, 2019, the registrant has a total of 131,765,194 shares of common stock,Common Stock, $0.001 par value $0.001, of the registrant issued and outstanding.



DOCUMENTS INCORPORATED BY REFERENCE


None

A description of "Documents Incorporated by Reference" is contained

TABLE OF CONTENTS

PART I
Item 1.Business1
Item 1A.Risk Factors14
Item 1B.Unresolved Staff Comments
Item 2.Description of Property20
Item 3.Legal Proceedings20
Item 4.Mine Safety Disclosure20
PART II
Item 5.Market for Common Equity, Related Stockholder Matters and Small Business Issuer Purchases of Equity Securities21
Item 6.Selected Financial Data21
Item 7.Management’s Discussion and Analysis or Plan of Operations21
Item 7A.Quantitative and Qualitative Disclosure about Market Risk24
Item 8.Financial Statements25
Item 9.Changes in and Disagreements with Accountants on Accounting and Financial Disclosure25
Item 9A.Controls and Procedures25
Item 9B.Other Information26
PART III
Item 10.Directors, Executive Officers, Promoters and Control Persons and Corporate Governance; Compliance with Section 16 (a) of the Exchange Act27
Item 11.Executive Compensation29
Item 12.Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters31
Item 13.Certain Relationships and Related Transactions, and Director Independence32
Item 14.Principal Accounting Fees and Services34
PART IV
Item 15.Exhibits and Financial Statement Schedules35
SIGNATURES36

i

FORWARD LOOKING STATEMENTS

Unless the context requires otherwise, in Part IV, Item 15 of this Annual Report.


PART I


Item 1.  Business.


OVERVIEW


Founded in 2012,Report Natur International Corp., formerly Future Healthcare of America (“FHA”Parent”) and Natur Holding B.V. (“Natur” or “Subsidiary”) shall collectively be referred to as “NIC”, “the Company”, “we”, “us”, and “our” unless otherwise noted.

This Annual Report contains “forward-looking statements,” within the “Company,” “we,” or “us” and wordsmeaning of similar import), a Wyoming corporation, provides services inSection 27A of the Healthcare Industry through its wholly-owned subsidiary Future Healthcare Services Corp., a Wyoming corporation (“FHS”Securities Act of 1933, as amended (the “Securities Act”), and InterimSection 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements relate to future events or future performance and include, without limitation, statements concerning the Company’s business strategy, future revenues, market growth, capital requirements, product introductions and expansion plans and the adequacy of the Company’s funding. Other statements contained in this Annual Report that are not historical facts are also forward-looking statements. The Company has tried, wherever possible, to identify forward-looking statements by terminology such as “may,” “will,” “could,” “should,” “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and other comparable terminology.

You are cautioned that any forward-looking statements presented in this Annual Report are based on the beliefs of, assumptions made by, and information currently available to, the Company. Such statements are based on assumptions, and the actual outcome will be affected by known and unknown risks, trends, uncertainties and factors that are beyond the Company’s control or ability to predict. Although the Company believes that its assumptions are reasonable, they are not guarantees of future performance, and some will inevitably prove to be incorrect. As a result, the Company’s actual future results can be expected to differ from its expectations, and those differences may be material. Accordingly, you should use caution in relying on forward-looking statements, which are based only on known results and trends at the time they are made, to anticipate future results or trends. Certain risks are discussed in this Annual Report and also from time to time in the Company’s other filings with the Securities and Exchange Commission.

Some of our trademarks, including our product logo, are used in this Annual Report, which are intellectual property owned by the Company. This Annual Report also includes trademarks, tradenames, and service marks that are the property of other organizations. Solely for convenience, our trademarks and tradenames referred to in this Annual Report appear without theTM symbol, but those references are not intended to indicate, in any way, that we will not assert, to the fullest extent under applicable law, our rights, or the right of the applicable licensor to these trademarks and tradenames.

ii

PART I

Item 1.Business

Company mission and overview.

Natur’s vision is for technology to be the force of our innovation as we build culturally relevant consumer products that nurture the human body. The mission of Natur is to deliver 100% natural products that are good for everyone and for nature, with an aim to sell products that meet or exceed consumer expectations for health, wellness and good taste. Natur specially selects plant-based ingredients, including Hemp Cannabidiol (CBD), fruits and vegetables, committing not to use concentrates, preservatives, stabilizers or additives in our products. Natur further invests in sustainability projects to reduce the environmental impact of our own activities.

Business Overview

Natur integrates new manufacturing technologies with standard practices to extend the shelf life of its products and yet remain Naturalicious (natural & delicious) to build out its value chain for the burgeoning market of nutritious beverages and healthy snacks with and without CBD or other nutrient dense fusions. It has delivered its products in the Netherlands and the United Kingdom and plans on expanding in Europe and ultimately the United States. Our understanding and application of the technological aspects of manufacturing assures a pathogen-free food and beverage experience that preserves the nutrients and enzymes to the maximum level possible, while retaining the raw fresh nature of the products. The result is what we believe to be the best tasting product with the maximum “goodness” and highest nutrient density -- something the consumer seeks more and more in our target markets.

Our commitment to deliver to consumers the best products possible in the market is strengthened with the market experience of our business partner, that is also a significant shareholder, the AMC Group, which is one of the leading European suppliers of “white label” natural juices to over 70 of the largest retail chains in Europe. AMC is well known as the sector’s innovation leader with proprietary manufacturing, software and production technologies.

The AMC proprietary technologies, which at the core of the proposition incorporate HPP (Cold High-Pressure Processing) and SNFC (Super Not From Concentrate), hold in the taste of freshness and yet extends shelf life to over 6 months.  AMC was one of the company’s founders that invested initially in AMC NT to lock in the strategic links between the businesses.

The clear differentiator of the Company is the natur brand which is supported by its disruptive marketing. Yes, we are branding nature. The Company finds that consumers are interested in “what we produce and how we voice this to the market” more than how it is made.  From an investment perspective, this is a fundamental component of our business model as we are not having to commit very significant capex to building our own modern production and bottling facilities to deliver into the increasing demand for our product.

In the future we anticipate delivering documented nutrigenomic (precision nutrition) properties that we believe will be an aid to personal weight management, increase energy, lower cholesterol, counter sleep disorders and boost immunity response. We believe that these product aspects will position the Natur products at the top of the European market at a mid-market price point.  This profile will be accessible internationally, as we have already undertaken preliminary discussions with distributors in major international markets outside Europe.

Our market profile will be further enhanced with the new Natur personalized snacking/juicing experience that will accelerate the trend towards “snackification” already present in more mature markets in the United States and Europe.

This all reflects the Naturbrand characteristics, shaped by the management vision of becoming a leader in the “hi-tech health” food and beverage marketplace; achieved by responding to changing market needs and staying continuously ahead of emerging trends. Natur also intends to address the demand of the consumer for knowledge about what he/she consumes with a greater level of supply chain transparency.


Corporate Management

The Company and Natur have gathered a top team of experienced management and consultants in the field of food and beverage, who have an in-depth knowledge of the market arena for our products and yet have the right fit of discipline and entrepreneurial vision and drive.

The Natur Holding non-executive board has top industry relevant experience and has a hands-on drive to make the company successful and to gain a leadership position in the healthy product food and beverage market place through the offering of a palette of products that not only are natural and delicious but with functional beneficial properties and can also be supplied as organic.  Their expertise and insights in the digital world will also help drive the Natur to embrace these new delivery frontiers.

From Farm to Fridge

The founders and management believe Natur will evolve to become one of the leaders in the European market and later in the United States farm to fridge market segment, supplying superior fruit and vegetable juices, smoothies, and natural and organic snacks.  Natur is able to accommodate a great speed of market innovation and is able to meet market demands quickly; therefore, Natur believes that it is well positioned to establish its market share and partner with the major international leaders to distribute our products.

Products

The Company divides its products in five categories: 1) Fruit and Vegetable Blend Juices, 250ml, Cold Pressed, High Pressure Processed with 50 Days shelf life, 2) Fruit and Vegetable Blend Shots, 100 ml, Cold Pressed, High Pressure Processed with 50 Days shelf life, 3) Not From Concentrate, Fruit and Vegetable Juice Blends, 250ml, Mildly Pasteurized, with 180 Days shelf life, 4) Not From Concentrate Fruit Smoothies, 250ml, Mildly Pasteurized, with 180 Days shelf life, and 5) Innovative Snacking Occasions low in calories and high in daily requirements for fruits and vegetables. Below is a product description within the categories.

Fruit and Vegetable Blend Juices, 250ml, Cold Pressed, High Pressure Processed with 50 Days shelf life

natur. Spicy Greens 6x 250ml NL/UK HPP ‘Grab and Go’

Spicy Greens is a savory blend of cucumber, kale, spinach, lime, mint and ginger on an apple and pear base. The juice is high in vitamin C which activates the natural energy and contributes to the immune system.

natur. The Force 6x 250ml NL/UK HPP ‘Grab and Go’

The Force is a savory blend of beetroot, carrot, cucumber, apple, acerola, blueberries, lime and ginger. The juice is high in vitamin C which contributes to the normal function of the immune system.

natur. Pearfection 6x 250ml NL/UK HPP ‘Grab and Go’

Pearfection is a fresh blend of apple, pear and acerola. Pearfection contains potassium which is a mineral that contributes to the proper functioning of your muscles.

natur. Berrylicious 6x 250ml NL/UK HPP ‘Grab and Go’

Berrylicious is a sweet juice of mixed forest fruits and apple. The juice is high in vitamin C which supports the natural defense mechanism.

natur. Fountain of Youth 6x 250ml NL/UK

Fountain of Youth is based on carrot and mango with a touch of passion fruit and turmeric. The juice is high in vitamin A which nurtures the skin. Fountain of Youth also contains turmeric which is a natural painkiller with a powerful anti-inflammatory effect.

natur. Emperor of the Sun 6x 250ml NL/UK

Emperor of the Sun is a juice made from oranges with the highest nutritional values. This bottle contains more than 60% of the daily intake of vitamin C which supports the firmness of the skin.


natur. Vitamin Sea 6x 250ml NL/UK

Vitamin Sea is a juice made from oranges and kiwis with the highest nutritional values. This bottle contains more than 60% of the daily intake of vitamin C which supports the firmness of the skin.

natur. Strawberry Sunrise 6x 250ml NL/UK

Strawberry Sunrise is a juice made from oranges and strawberries with the highest nutritional values. This bottle contains more than 60% of the daily intake of vitamin C which supports the firmness of the skin.

Fruit and Vegetable Blend Shots, 100ml, Cold Pressed, High Pressure Processed with 50 Days shelf life

natur. The Charger 8x 100ml NL/UK HPP ’Shots’

The Charger is a savory blend of fennel, kale, spinach, cucumber, coriander, apple and lime. The juice is high in vitamin C which contributes to the reduction of tiredness and fatigue and increases iron absorption.

natur. The Clean 8x 100ml NL/UK HPP ’Shots’

The Clean is a savory blend of apple, beetroot, carrot, spinach, celery and lemon. The shot is high in vitamin C which contributes to the protection of cells and oxidative stress.

natur. The Glow 8x 100ml NL/UK HPP ’Shots’

The Glow is a blend based on carrot and mango with a touch of passion fruit and turmeric. The shot is high in vitamin A which nurtures the skin. It also contains turmeric which is a natural painkiller with a powerful anti-inflammatory effect.

Not From Concentrate, Fruit and Vegetable Juice Blends, 250ml, Mildly Pasteurized, with 180 Days shelf life

natur. Rocket Fuel 12x 250ml NL/UK

Rocket Fuel is a fruit and vegetable blend of apple, coconut water, beetroot, raspberry, and persimmon. Vitamin B1 & C activate the natural energy while vitamin A, B6, B12 and selenium contribute to the normal function of the immune system. Vitamin E contributes to the protection of cells from oxidative stress.

natur. Body Guard 12x 250ml NL/UK

Body Guard is a fruit and vegetable blend of apple, carrot, orange, coconut water, peach, passion fruit and persimmon. Vitamin B1 & C activate the natural energy while vitamin A, B6, B12 and selenium contribute to the normal function of the immune system. Vitamin E contributes to the protection of cells from oxidative stress.

natur. Power Plant 12x 250ml NL/UK

Power Plant is a fruit and vegetable blend of apple, coconut water, pear, spinach, cucumber and persimmon. Vitamin B1 & C activate the natural energy while vitamin A, B6, B12 and selenium contribute to the normal function of the immune system. Vitamin E contributes to the protection of cells from oxidative stress.

Not From Concentrate Fruit Smoothies, 250ml, Mildly Pasteurized, with 180 Days shelf life

natur. Goji Galore 12x 250ml NL/UK

Goji Galore is a fruit and vegetable smoothie with coconut water, strawberry, raspberry, goji, apple, kaki and blackcurrant. Vitamin B1 & C activate the natural energy while vitamin A, B6, B12 and selenium contribute to the normal function of the immune system. Vitamin E contributes to the protection of cells from oxidative stress.

natur. Matcha Madness 12x 250ml NL/UK

Matcha Madness is a fruit and vegetable smoothie with coconut water, pear, cucumber, spinach, banana, kaki, apple, spirulina and matcha. Vitamin B1 & C activate the natural energy while vitamin A, B6, B12 and selenium contribute to the normal function of the immune system. Vitamin E contributes to the protection of cells from oxidative stress.


natur. Turmeric Tiger 12x 250ml NL/UK

Turmeric Tiger is a fruit and vegetable smoothie with coconut water, banana, turmeric, pineapple, apple, lime and kaki. Vitamin B1 & C activate the natural energy while vitamin A, B6, B12 and selenium contribute to the normal function of the immune system. Vitamin E contributes to the protection of cells from oxidative stress.

Innovative Snacking Occasions

Filling the consumer need for guilt free products, the company is formulating an innovation without known equal. These will be made available in 3 flavor variants. Research has revealed these are fully on trend, with 100% fruit & vegetables, 100% natural, no additives, and rich in fiber.

natur. on-the-go snackbox
This healthy natur. box is filled with 8 granola bars and 4 snacks. Our snacks only contain natural ingredients and are high in fiber and protein. Perfect for on-the-go and suitable for the whole family.

natur. better bites box
This natur. snackbox is filled with 12 bites that are perfect as a topping for your yoghurt bowl or salad and great for on-the-go. Our snacks contain only natural ingredients and are high in fiber and protein.

Product Development

Since inception the Company has been defining and refining its market and its innovative products accordingly.

The target group is composed of health-conscious consumers looking for convenient fast-food alternatives. This drives product development toward delivering a healthy, tasty and refreshing experience with 100% natural plant-based, fruit and vegetable juices and smoothies and snacks to take away. Superior product quality and affordability allow the Company to broaden the consumer potential.

Initially the Company developed an extensive line of cold pressed HPP juices consisting of 23 SKU’s, with consumer trending monikers, including fruit and vegetable juices, coconut waters, coconut-water-based smoothies, dairy based smoothies, and nut milks.

Fruit & Vegetable JuicesCoconut WatersSmoothiesNutmilks
Tropical GreensLemon AidWhey CoolStrawberry Nut Fields
The CleanCoco BeachPowerhouseLa Vida
Power PlantBerry BlissChilling in the TropicsChoc Fix
Spicy GreensBerry’d TreasureNut-tritious
The ForceBlueberry HillNutcracker Sweet
Fountain of Youth
Beet the Blues
Refresher
Berrylicious
Pearfection

In 2016 operating with market and consumer responsiveness, the Company optimized the original SKUs for efficiency and simultaneously created four exclusive juices for a larger retail chain in The Netherlands. These were sold as the “SmartLine” and included Coco Beach, Refresher (later called Drunk in Love), Power Plant and The Force.


The Company further developed a tighter focused line of beverages to the rest of the market: Spicy Greens, The Clean, Berrylicious, Pearfection, Fountain of Youth, Beet the Blues, and Whey Cool.

Once the retailer exclusive period ended, it allowed the sale of the SmartLine to all other retailers the company again optimized the line around consumer needs resulting in the following flavors to be marketed:

In 250ml PET bottles - Spicy Greens, The Clean, Berrylicious, Pearfection, Fountain of Youth, Beet the Blues, Drunk in Love. In 100ml PET shots - The Charger, The Glow, and The Clean. The Company in 2017 made an entry in to the ’snack drinks’ arena with two 250 ml robust SKUs called Cereal Smoothie, and Morning Glory.

Each time the Company innovates, it considers the European markets best suited for distribution and labels its products accordingly. It is common for the Company to ensure that product can be sold with the proper labels in The Netherlands, France, and the UK; with opportunity assessments before label creation in other languages.

It is common to earn ‘rotations’ for brand presence in large, visible, multi-outlet transportation retailers. In such cases the Company innovates around the needs of those large retailers. In one such case the Company innovated a line of lemonades and orange juices in the single serve package and in multi-serve one-liter packaging.

The Company has an innovation pipeline for 2019 through 2021. These new innovations include CBD infused versions of our current product lines, and new entrants in Health and Beauty and Animal Care. Some of these CBD infused snacks have been introduced on the eCommerce site in the first quarter of 2019. Already formulated are the products and labels required for a US Market entry. Additionally, the Company is finalizing the Innovative Snacking Occasions product line and seasonal flavor varieties that bring new consumer trial to the brand.

The market shift toward acceptable functional additives is being vetted and innovated by the company so that product introductions might include plant waters, plant proteins, animal proteins (collagen), live cultures, and plant-based wellness supplements.

A helpful tool for the Company’s innovation process is its flagship store in the Amsterdam canal district, where consumer interactions can be noted and assessed by the marketing team. In the shop, the Company has introduced a CBD based shot in 30 ml and is formulating other edibles. This is the beginning of other innovations in Fruit Waters / Waters, Protein Drinks, Non-Dairy Nutmilks / Non-allergenic (alternative) Nutmilks, Vinegars, Alternative Sweeteners, Soups and other functional blends.

In the creation of a snack line, the Company has development work being performed in the areas of Chocolates, Crackers, Chips, Fruit, nut & granola bars, seaweed snacks, and cookies.

‘Next from Natur’

(A)Natur Breaks

In close conjunction with a third-party manufacturer in 2018, the Company has invested heavily in New Product Development (NPD). Consequently, the Company is proud to be ready to launch in Q2 2019 it’s innovation in Snacking: ‘Natur Break’. The product portfolio extension consists of three variants:

Natur. Mango-Carrot-Pumpkin Break
Natur. Strawberry-Raspberry-Beetroot Break
Natur. Apple-spinach-Avocado break

‘The delicious ‘better-for-you snack’ line:

100% fruit & veggies (225gr)
Crunchy separately packaged topping with nuts and seeds (20gr)
100% natural, no additives
Rich in fibers
Gluten free
Cold Pressed
One serving contains 33% of vegetables- and 50% fruit of the Recommended Daily Intake (RDI)


The introduction is fully on trend:

Increasing demand for healthy and honest food.
Increasing awareness about fructose sugars in fruit.
Opportunities for combining vegetables and fruit.
Growth of convenience and healthy ‘on-the-go’ solutions

This new range is in perfect complementary harmony with the vision and existing portfolio of Natur. Based on conducted extensive qualitative consumer panel research in January 2019 and initial trade response and acceptance, the Company believes this addition to the portfolio has the potential to add value to the category.

(B) Natur Functionals

The Company’s mission is to leverage technology as the driving force of innovation to build culturally relevant natural and/or organic consumer products that are beneficial to the human body and improve the general wellbeing. Putting this into practice the Company is developing two new product line extensions:

1.Beverages and snacks infused with Cannabidiol (CBD)

Cannabidiol (CBD) is the non-psychoactive cannabinoid of the cannabis plant, often known as hemp. CBD is not the THC cannabinoid of the plant that is intoxicating substance and is illegal in many jurisdictions. CBD is legal worldwide, although a controlled substance in Canada, we do not deal in any illegal substance.

CBD is extracted and separated from specific varieties of the industrial hemp plant. Although CBD can be found in other plants, it is the hemp plant that is used because of its abundance in the plant, typically representing up to 40% of its extracts. When separated into its pure form, it cannot provide the intoxication effects of THC.

CBD is typically used for health reasons. Although there is much research to be done in the field, it is believed that there are a wide range of health benefits. CBD products may be used for wellness purposes such as to aid sleep, or for pain or anxiety management: they do not require prescription.

The Company’s plans on developing and commercializing medicinal and health-focused Functional Natural Cannabis and hemp products that will embrace production transparency GMP product quality standards and novel technologies.

2.Beverages and snacks with Functional Nutraceuticals

A.Immunity
B.Anti-Stress
C.Appetite Control

Primary markets

The fruit juices market was valued globally at USD 71.31 billion in 2016 and is expected to grow at a CAGR of 6.14% during the forecast period, to reach an expected value of USD 121 billion by 2025. The global fruit and vegetable blends market was valued at USD 51.5 billion in 2016 and is expected to grow at a CAGR of 6.3% during the forecast period, to reach an expected value of USD 89.2 billion by 2025.  The vegetable juices market was valued at USD 31.37 billion in 2016 and is expected to grow at a CAGR of 4.63% during the forecast period, to reach an expected value of USD 46.86 billion by 20253.

3 Source: Grand View Research 2018 - WHO, U.S. CDC, FDA, NIH Journals, Investor Presentations, Primary Interviews.


We believe that the opportunity for the Natur products can be summarized as follows:

globally there is a generic shift towards a healthier lifestyle and healthier foods that is already well established in the more advanced North American and European markets;

there is a fast-growing European market for healthy natural juices and snack foods that are easy-to-consume products suited to the needs of a modern lifestyle;

illustrating these trends, within the Benelux and UK fruit juice market for example, there is a continuing shift to more complex and more expensive premium juices;

a steadily increasing number of consumers are willing to pay a premium for niche brands with superior quality, functional outcomes and special drinking experiences;

the major European retailers (including supermarket chains) are evaluating how they can differentiate their respective offerings and enhance consumer experience to attract customers; and

governments are legislating against carbonated soft drinks with added sugar reinforcing consumers’ negative opinions of these products and accelerating a shift to raw/fresh natural drinks for all family members.

In addition to the above characteristics of the market in which we operate, we believe there are other consumer trends that we need to take into consideration. These include the following:

increased availability of vegetarian and vegan products

demand for healthy and responsible snacks

increase of alternative ingredients from nature

‘pure nature’ provides ‘feeling good’ to the consumer

The consumer trends also suggest that persons are wanting healthier products generally. Typically, the following factors are taken into consideration:

untreated products that do not use artificial coloring, flavors or preservatives;

non-GMO;

Products that are better for the environment;

more demand for gluten-free, halal or Kosher products (‘free from’)

less sugar;

less salt;

less calories; and

no additives.

Consumers not only consume for taste, but also for the function of food. Natur is addressing these new factors in its products and marketing.

Craftmanship and Artisanship

more demand for artisan and fresh products

discovery to new flavors and ethnic origin
signature from the craftsman
Hero products and story telling
traceable to origin

Sharing Online - Products should look visually attractive to share on social media.

Sustainable

consumers are spending more on sustainable products every year
no waste, from either the packaging or the product itself

Clean Labels

call for transparency
honesty about the ingredients (‘from field to fork’)
simple: less ingredients
simple: ingredients that do what they have to do
who makes the product, where and how?

More Eating Occasions - with smaller and healthier portions

Blurring

sports drinks become mainstream. Reducing difference between on-the-go and retail
Food service becomes an important trigger.

More Direct Consumption - new eating occasions

Premiumization - food is lifestyle. Increasing demand for premium variants.

Convenience - the consumers are increasingly rushing and are looking for solutions.

Differentiated Packaging - smaller production batches in alternative packaging

Online Shopping - continued rapid growth. Regular grocery shopping shifting to online

Tailored Offers - personal advantage e.g. consumer loyalty card

Super Powders - maca, matcha, turmeric, spirulina, kale

Technology - shelf life extension without additives

The Company believes there is now mainstream acceptance in the Netherlands, UK and throughout Europe of ordering food over the internet supported by a well-established fulfillment infrastructure for local delivery; there is no current significant competition from large international players in either the Netherlands or UK, nor wider European markets, in the cold-pressed natural juices market to the best of our knowledge. In the NFC market segment, there is no other brand that can match Natur’s Super NFC line in nutrient density, with ambient delivery possibilities for up to four weeks while retaining the organoleptic properties and a shelf life of up to six months.

Customer Sales Authorizations

The Company markets its products through five distinct channels in Europe – chain grocery, petrol and other smaller retail stores, direct to consumer/business through e-commerce, caterers, and wholesalers (who reach independent retailers and Food Service locations). Additionally, the Company operates a branded experiential consumer immersion store overlooking the Prinsengracht, one of the main canals of Amsterdam providing heavy foot traffic by natives and tourists.


The Company is building the brand through a combination of permanent shelf space and promotional rotational spaces. Over the past two years, in the Netherlands, these have included presence in the 700-store chain Albert Heijn, the oldest organization owned and operated by the Dutch supermarket operator Ahold and dominating the Food Grocery Market by 34,7% Market Share4, the progressive all-natural retailer Marqt (18 stores), and Plus Supermarkets (256 stores), to name a few. In the petrol sector, the Company conducts business for example with the BP, Total and Avia petrol chains.

In the UK, during the past two years, the Company served hundreds of independent natural food stores through direct relationships from a staff of several sales and marketing personnel, while undertaking a branded takeover of WHSmith transportation retailers in a large-scale rotational promotion. The Company has streamlined the market development for the UK and is resetting its strategies for a distributor-oriented expansion. The company’s extended shelf life technologies will support the anticipated slowing at the border of a non-deal Brexit.

Presently, with distribution in several hundred Dutch retailers, and with a new distribution agreement with one of the UK’s most customer-centric natural foods distributors, the Company is poised for expansion to new authorizations in existing and new markets. An example of such expansion is an authorization pending with the 600-store chain Jumbo, 2nd largest Food Grocery Retailer with 19,1% Market Share,2which is expected to place Natur products in 60 of its ‘on the go’ stores in 2019.

In 2018 HMS Host and Albert Heijn each represented more than ten percent of company revenues, together representing 58% of our revenues. In 2017 no one represented more than ten percent of company revenues.

Direct to Consumer & Businesses

The Company has invested in an e-commerce platform from the https://nl.natur.eu/ buy now page that provides an end to end solution to direct-to-consumer sales as well as shipments to businesses. This meets the expanding need for healthy snacking where consumers live and work. Customers have the option to select a two-hour time window for when they want to receive their order. For these customers the Company is using an external logistics company providing warehousing and order fulfillment. For business direct customers the Company is using Leen Menken as logistics partner for the Netherlands.

Wholesale

Through wholesalers like Lekkerland (€13 billion turnover in 2017), Sligro (€3 billion turnover in 2017) and Bidfood (€700 million turnover in 2017) the Company is distributing its products to a large variety of smaller outlets in both on- and off-trade channels. From cafe to caterer, canteen to health care institution and from hotel to restaurant.

4 IRI 2018


Catering

The Company pursues the catering category with the goal of prestigious availability for brand building and commercial interest. The Company is selling to multiple sport clubs, offices, schools and many other public locations. This channel also includes airline catering companies. The Company is in final negotiations with a larger Dutch provider in this channel. This channel also includes outreach to convention centers where the Company has in place an agreement with RAI Amsterdam (largest in The Netherlands), exposing the brand to 1.6 million visitors each year. Through our partner Absolute Taste, the Company has provided healthy juices to The Ryder Cup, several Formula 1 races, Association of Tennis Professionals Finals and The Shard in London.

Festivals and Events

The Netherlands are famous for their festivals. Natur is attending the main dance festivals offering this crowd healthy refreshments, while also selling through regular bars and via mobile sales and sampling teams. Through the customers like Absolute Taste, the company delivers to international large festivals.

Anticipated new business authorizations

The Company is evaluating expansion in to additional European country markets and the US over the next twelve to twenty-four months.

The first such European expansion will be to Switzerland, which is anticipated to be through Migros, Switzerland’s largest retail company, its largest supermarket chain and largest employer. Migros is also one of the forty largest retailers in the world. With over 600 retail grocery stores, over 200 specialty markets and over 315 restaurants in 5 countries, the Company is working with Migros to select the ideal initial 200 outlets for a phase one implementation of Natur product availability.

The company is also in discussions with a distributor for France, which is expected to start in the second quarter of 2019

Also, in 2019, the Company is looking to extend the addressable market for its products with large distribution partners and/or retailers in Germany, Austria, Israel, Eastern Europe and the Middle East.

Entering the United States market will require a calculated expansion plan, beginning with the markets highest indexing in the development of healthy eating and drinking products. New York City is one such market, along with Los Angeles, San Francisco and Central Texas. The United States market is highly reliant on distribution agreements; and those distribution agreements are struck most easily when large natural foods chains authorize the Company’s product lines. The Company plans to rely heavily on innovation to foster success in the United States where working with functional supplements and innovating snacking allow for disruption and competitive advantage.

Distribution

The Company employs the practice of distributing product through independent, third party routes to market. In the Netherlands, the Company deploys product to market through a contract relationship with Leen Menken Food Service Logistics who delivers greater than 10% of the Company’s total Netherlands volume. This professional contract provider, from its distribution center in Zoetermeer, is centrally located in the Randstad, close to the port of Rotterdam and Schiphol Airport. With 15,000 pallet spaces, the Company’s relationship is scalable and efficient for refrigerated storage and transportation. Leen Menken applies work automation according to the latest technical development. On the other hand, for certain activities, dedicated human attention is needed, provided by a workforce of more than fifty people. Menken is certified, and the distribution center works according to the quality requirements of ISO 9001, BRC, SKAL, Lean and Green & AEO.

In the UK, the Company is using CLF Wholesaler to fulfill distribution requirements in that country. Founded in 1998, CLF are the leading UK wholesaler of premium products such as those in the categories of sports nutrition, organic and health food products, vitamins, minerals and supplements, personal care, household products and now chilled and frozen products. CLF offers a daily delivery service from their warehousing facility in Southampton, Hampshire, and successfully provides continuity of supply across over 15,000 products from over 750 leading brands. Their mission is to build upon their position as the wholesaler of choice to the independent health food trade.

10

Production

The Company relies on more than 10% of its salable product from its relationship with contract packer and investor AMC Group. This special contribution to the strategic business plan represents a high barrier to entry for any potential competing participant, as the scale and breadth of AMC’s operations are unmatched in Europe. Further, it is the platform on which the Company’s plans for the European market will be delivered.

The Company has an integrated product offering primarily using unique cold-pressed juices as a basis for (functional) supplements, boosters and natural snacks. The products are considered as “safe foods” due to our Pure Pulse (PEF 2.0) and High-Pressure Processing (HPP) processes. Pathogens receive a 5+Log reduction while all the goodness, minerals, nutrients and enzymes remain intact. Also, thanks to the extended shelf life and consumption period of the Company’s products the process produces less waste. The Company will deploy unique patented PEF 2.0 technology which creates a product that is not only cold pressed, but also actually enhances the natural flavors. The PEF processing technology allows the Company to be extremely price competitive as less factory workers are needed for this line production technology and, unlike with HPP production, no expensive refrigerated working environment is needed.

For products not produced by AMC, representing a very small percentage of current volume, the Company is working with other leading Dutch and European contract manufacturers.

Sourcing of Raw Materials

The Company relies on the expertise of the AMC Group for sourcing fruit and vegetable juice. The AMC processes begin with proprietary breeds of fruits and vegetables, taking the most advanced and many times patented proprietary extraction methods. Further, they have pioneered proprietary methods for shelf life extension with the greatest retention of enzymes, nutrient density and natural taste.

AMC Group accounted in the aggregate for more than 10.3% of the current accounts payable at December 31, 2018, and the AMC Group companies accounted for more than 21,5% of accounts payable at December 31, 2017.

Government Regulations

There are many food related regulations found in the laws of the different markets in which our products are distributed. The regulatory regime is likely to expand and become more complicated over time in each of our markets. Two principal governing bodies provide guidance and / or regulation in the human consumption food and beverage industry.

Europe’s European Food Safety Authority (EFSA), under Regulation (EC) No 178/2002 (General Food Law Regulation) lays down the general principles and requirements of food law, establishing the EFSA and laying down procedures in matters of food safety. The basic rule is that no food shall be placed on the market that is unsafe, injurious to health or unfit. Under Regulation (EC) No. 852/2004 there are additional food safety regulations based on the HACCP system, and businesses must maintain records of where the raw materials for their products originated. The basic food labeling law is found in Regulations (EU) 1169/2011 and 1924/2006, which set out the information that must be provide to consumers and indicates what can be provide as nutrition and health claims.

Member States of the EU also have locally applicable laws and regulations covering aspects of public health, product safety, fair trading and adequate information. Currently, because the products of the Company are sold in the Netherlands and the United Kingdom, the Company has to comply with those laws in addition to the EU regulations. As the Company sells products in other Member States, it will have to comply with any additional locally applicable laws.


Food that is not compliant with the food safety requirements of the EU or a Member State will be subject to recall for destruction. Retailers and distributors must help with the withdrawal of unsafe food and pass on information necessary to trace it. Consumers and regulators are to be notified about recalled foods. The recall is typically at the expense of the product producer and typically it can be very costly, not only in terms of monetary expense but also in terms of the reputation of a product.

While not applicable at this time, should the Company enter the United States market with natural, wholesome better for you food and beverages, it will be governed by the US Food and Drug Administration, and to some extent the United States Department of Agriculture. In addition, state regulation may apply to our products and their distribution. Additionally, in the United States, there is a substantial body of government regulation and case law that will impact what is deemed “natural” and other aspects of the content of our products, product recalls, food safety and labeling.

The failure to comply with any of the material provisions of the various applicable laws, regulations and other legal requirements may result in fines, product recalls, or termination of our ability to manufacture and distribute our products. Contaminated products may result in product liability claims. The result of these may have an adverse impact on our business reputation and our financial position. We do not believe that any business insurance that we may hold will be adequate to recompense us for our financial damages.

Competition

The Company has entered the very competitive space of better-for-you food and beverage products. There are a considerable number of competitors comprised of a select few multi-national beverage and food conglomerates and a greater number of upstart independent brands, many limited to specific markets.

The multi-nationals with which the Company competes head to head are PepsiCo with their beverage product line Naked distributed broadly in the United States and the European Union, and the Coca Cola Company, with their beverage line Innocent Drinks in the European Union and Odwalla in the United States. The Company’s ability to be swift to respond to market opportunity is a competitive advantage over the slower moving larger corporations. Also, Retailers’ own label beverages are considered as competition. Typically, at a lower price point, the offer is extensive and widely available.

The smaller, more nimble competitors in the beverage arena include the UK’s Savsé, Coolbest, grocery retailer private labels brands, and countless start up beverage labels in the UK, Netherlands, and Switzerland. In the near future, the Company expects to expand into the German, Moldavian, French, Swiss, and United States markets, and we will encounter further competition from competitors that are active in those markets. New products are introduced all the time, many of which will be directly competitive to our products or may be competitive on a tangential basis, but in all cases likely diluting our place in the market as a provider of cold-pressed juice and other fruit and vegetable products.

We also face competition from local outlets selling smoothie products and other fresh squeezed products. While we believe that we compete favorably with our competitors on factors including quality, nutritional integrity, food safety, merchandising, service, sales and distribution, multiple flavors, brand name recognition and loyalty, our products are typically sold at prices higher than most other competing beverage and bar products. Significant competitive pressure from these or other companies could negatively impact our sales and results of operations.

In the emerging CBD food, beverage, snacks, health & beauty and animal products categories the competition consists of many small players, all vying for leadership positions. The major food and beverage companies remain on the sidelines with experimental efforts but not full-scale rollouts.

Employees

On average Natur employed 16.3 employees. As of December 31, 2018, Natur had approximately 14 full time employees. Our employees are mostly engaged in corporate headquarters (11.5) activities and the shop in Amsterdam (2.5). We believe employee relations are generally good. Standard working hours are 40 hours a week.

On average, 3.2 full time employees were employed in the shop for 2018. The employees in the shop have a collective bargaining agreement. The employees work on an hourly rate basis, that includes vacation pay, holidays and a defined contribution pension scheme. The store manager has a monthly contract.


Discontinued Operations

Future Healthcare of America, prior to becoming known as Natur International Corp. operated primarily in the home healthcare and healthcare staffing services in Wyoming Inc.,and Montana. As a result of its acquisition of Natur, it has taken steps to discontinue its operations in this area of enterprise. Effective August 31, 2018 it had already closed its offices in Casper, Wyoming As of December 31, 2018, it has terminated all of is staffing services, sold off certain assets, and surrendered its professional servicing licenses. Its current primary activity is to continue to collect outstanding reimbursement claims from various insurance providers and governmental reimbursement organizations, addressing outstanding legal claims and terminating its business operations.

As part of the Company’s strategy to operate in a lean and mean manner, the Company decided to centralize all support functions at the headquarters in the Netherlands and to support global account management centrally. For that reason, effective November 30, 2018, the Company closed down the London office. The existing United Kingdom support functions were transferred to the headquarters in Amsterdam as part of the centralization of support staff initiative.

Corporate History and Information

Natur was founded to formulate, manufacture and market a premium cold pressed juices product line (under the brand name “Naturalicious” - natural + delicious) and associated natural organic snacks. Natur operates in the Netherlands under the name Natur Holding, B.V.

Our parent company was founded on June 22, 2012, as a Wyoming corporation (“Interim”) that is a wholly-owned operating subsidiarycorporation. It recently operated under the name “Future Healthcare of FHS.  FHA’s consolidated financial statements include the financial statementsAmerica.” That name was changed on December 28, 2018, when it was re-named “Natur International Corp.”

Future Healthcare of FHSAmerica operated two subsidiaries in Wyoming and Interim.   FHA’s core focus is on our Healthcare business, which consists ofMontana to provide home health services and nurse staffing in the Western part of the United States.

Our corporate offices consist of approximately 3,000 square feet of office space located at 5001 Baum Blvd, Suite 770, Pittsburgh, PA 15213.  Our telephone number is (412) 621-0902.  We also maintain officesAfter the share exchange transaction with Natur in Casper, Wyoming, and Billings, Montana.


BUSINESS


Based in Casper, Wyoming, and Billings, Montana, FHS’s wholly-owned operating subsidiary, Interim, is an independent franchisee of Interim HealthCare that has been serving its community for over 20 years and is partNovember 2018, the parent company commenced the discontinuance of the home health segmenthealthcare operations and began to take steps to dissolve its subsidiaries and wind up its home healthcare business. Currently, its principal activity is to collect outstanding receivables from the government agencies and insurance companies that insured the recipients of its services, terminate its home healthcare operations and manage a couple of law suits. This termination is close to being completed in April 2019.

Natur operated as a private enterprise in the Netherlands from its founding in 2015 through November 13, 2018, when it was acquired as a wholly owned subsidiary in a share exchange transaction by Future Healthcare of America on November 13, 2018, contemplated by that certain Share Exchange Agreement, among the Company and the former shareholders of Natur Holding, B.V. (the “Share Exchange Transaction”). In connection with the Share Exchange Transaction, the former shareholders of Natur received the equivalent of 215,759,999 shares of the healthcare industry, providing a wide rangeCommon Stock (the “Common Stock”), which was issued in part as 115,760,000 shares of visiting nurse servicesCommon Stock and in part as 100,000 shares of voting, convertible Series B Preferred Stock (the “Series B Preferred Stock”) representing 100,000,000 shares of Common Stock upon conversion. The Series B Preferred Stock will convert automatically upon the Company increasing the number of shares of Common Stock of its authorized capital, which it plans to do promptly so as to cause the conversion of the Series B Preferred Stock. Immediately after the Share Exchange Transaction, the former Natur shareholders collectively own the controlling position among the shareholders of the Company.

On September 21, 2018, the Company also executed the SPA to issue and sell to Alpha, the selling stockholder, 2,469.131 shares of non-voting, convertible Series A Preferred Stock, each share convertible into approximately 33,000 shares of Common Stock at the rate of $.030303. Alpha also purchased two warrants, one pursuant to the elderly, woundedSPA that is exercisable for 33,000,000 shares of Common Stock at $.060606 per share and sick. It is one pursuant to a debt cancellation agreement exercisable for 6,000,000 shares of Common Stock at $.15 per share. The aggregate purchase price for the Series A Preferred Stock and the two warrants was $2,000,000 in cash and conversion of approximately $769,000 of principal debt and interest due Alpha from the Company under a prior loan agreement. Alpha also cancelled approximately $651,000 of principal debt and interest due from the Company. These transactions eliminated $1,420,000 of principal debt and interest of the 300 independent home health agencies that compriseCompany. Alpha has also agreed to reimburse up to $100,000 of the Interim HealthCare network.liabilities of the Company existing at the closing date. In connection with the SPA, the Company and Alpha also entered into a registration rights agreement providing for the registration of the Common Stock issuable upon conversion of the Series A Stock and upon exercise of the two warrants.


Item 1A.Risk Factors

You should carefully consider the following risk factors in addition to the other information contained in this Annual Report. Our business, consistsfinancial condition, results of providing healthcare servicesoperations and stock price could be materially adversely affected by any of these risks.

Risks Related to Our Business

Because our business and marketing plans may be unsuccessful, we may not be able to continue operations as a going concern. Our ability to continue as a going concern is dependent upon our generating cash flow that is sufficient to fund operations or finding adequate investment or borrowed capital to support our operations. Our business and marketing plans may not be successful in achieving a sustainable business and generating revenues. We have no arrangements in place for those in need.  We recordsufficient financing to be able to fully implement our business plan. If we are unable to continue as planned currently, we may have to curtail some or all revenue and expenses and provide all services under one umbrella.  Below is a description of our Home Healthcarebusiness plan and Staffing operations. In such case, investors will lose all or a portion of their investment.


Interim Healthcare of Wyoming, Inc., isThe audit report for our financial statements and our financial statements have a corporation started“going concern” disclosure. The Company has concluded that its negative working capital and decreased cash flows from operations are conditions that raised substantial doubt about the Company’s ability to continue as a going concern. Without a successful plan in September 1991.  In March of 2007, Interim acquiredplace from management these conditions could negatively impact the assets of Professional Nursing Personal Pool, which is now our Billings, Montana location.




2




Home Healthcare


Through trained health care professionals,Company’s ability to meet its financial obligations over the next year. The Company has implemented a plan to address the going concern situation as follows: (i) the Company provides home care services including senior carewill continue to generate additional revenue (and cash flows from operations) partly as a result of the Company’s expansion into new product lines during 2019 and pediatric nursing; physical, occupationalpartly from Company wide sales initiatives; and speech therapy.  (ii) the Company has instituted cost saving initiatives and an organization restructuring program that is designed to have an additional positive impact on the cost-basis of the organization. Notwithstanding the foregoing, there is no assurance that the Company will not continue to have a going concern note or disclosure.

The Company offices deliver quality home careis undertaking a reorganization to reduce its debt, which if unsuccessful will have a continuing material effect on its ability to raise capital and treat each patient with genuine compassion, kindness and respect.fund operations. The Company provides health care professionals at all skill levels, including registered nurses, therapists, LPN'shas been in negotiations to restructure its debt and certified home health aides. FHA deriveseffectively has taken steps to convert some of it to equity. The Company has other debt that it is seeking to negotiate to reduce it or convert it to capital. The Company is considering using a court procedure to amend or cancel some of its revenue from multiple payer sources.  These include Medicare, Medicaid, Insurance, Medicaid LTW,debt and Private Payers.  Because our offices are locatedother payment obligations. This process will require the Company to raise new capital so as to implement the court reorganization. In such a court procedure, there is no assurance that the outcome will be as planned because the trustee has powers to reject the arrangement applied for or modify it. The trustee even could require a public sale of assets, in areaswhich case the Company may lose its operating assets and would have to cease its operations. No assurance can be given that do not contain a large population base (less than 200,000 residents), we continually explore opportunitiesthe Company will reorganize its debt sufficiently to increase our revenue with our current payer sourcesimprove its debt position and expand through new sources of revenue.   The healthcare team is utilized across all payer sources, including staffing services.  be able to continue its business plan as currently structured.

Our customer base comes from referrals from hospitals, rehab facilities, nursing homes, assisted living facilities and previous patients.


In additional to our professional team, we employ a management team at each facility to handle the day to day operations of the office.  This is completed by our Administrators in each location.  We alsoproducts have a Director of Nursinglimited shelf life. The Natur products are made with fresh ingredients, therefore they have a limited shelf life and must be transported and stored in each location.  This person is responsible for the day to day oversight of the service providerscooled locations and ensuring the certified professionals obtain the necessary trainingconsumer shelving. In order to maintain their certificates as well asour “day-of-production” flavor, we further restrict the training necessary to be in compliance with all regulating organizations.


Staffing


Interim offices provide nurses, nurse aidesshelf life of products through early expiration dates. The restricted shelf life means that we don’t have any significant finished goods inventory and management services to hospitals, prisons, schools, corporations and other health care facilities.  Interim’s success is basedour operating results are highly dependent on our ability to recruit the best health care professionals and the responsiveness of our local managers to fill the needs of our clients in a timely manner.   Additionally, we work with our clients should they decide they would like to hire our service professional on a full time basis.  Another key to our success is the personal relationship that our management andaccurately forecast near term sales team build with each of our existing and new clients.  As noted previously, in order to reduce turnoveradjust fresh fruit and vegetable sourcing and production. We do not have a long history of forecasting product demands, and we may not be able to accurately forecast product demand in the future. When we don’t accurately forecast product demand, we anticipate being either unable to meet higher than anticipated demand or producing excess inventory that cannot be profitably sold.

Our trade partners may have the right to return unsold products. Natur may enter into agreements with our service team by providing as many hours as possible, similartrade partners that provide a right to return unsold products. Due to the hours oflimited shelf life Natur might need to destroy the products because they can’t be sold anymore. This right may reduce the income due to Natur for the destroyed products, which will have a full-timenegative impact on its earnings.

Cost sensitivity. Our profitability is highly sensitive to increases in raw materials, labor, shipping and other operating costs. Unfavorable trends or developments related to inflation, raw material supply, labor and employee we utilizebenefit costs, including increases in hourly wage and minimum unemployment tax rates, rent increases resulting from the same service team members across all payer sources.


As each ofrent escalation provisions in our businesses is located in smaller based population areas of the country, the competition is significantly heightenedleases, and the relationships maintained with our clients become very critical to the continued success of our operations.


As we provide diversified services and accept payments from multiple payer sources, we are not heavily dependent on a few clients in order for our business to be successful.


Research and Development


None.


Necessary Material


None.


Licenses


None.


Patents Pending


None.


Environmental Compliance


None.




3




Governmental Regulations


Third-Party Coverage and Reimbursement


We are dependent on the availability of employees may also adversely affect our

results.


Typical of smaller companies at the early stage of development, we expect our quarterly results to fluctuate. Due to our limited scale and the need for expansion we expect that our results of operations will fluctuate on a quarterly basis and due to the total size of the Company, which may have a large effect on our total financial results.

Claims related to product liability. Because our products are not irradiated or chemically treated, they are perishable and contain certain naturally occurring microorganisms. We may receive complaints from consumers regarding ill effects allegedly caused by our products. These claims may result in monetary damages payable to persons that have had adverse reactions to our products. Also, these claims may result in adverse publicity. Either of these outcomes could seriously harm our business, our business reputation, sales and results of operations. Although we maintain product liability insurance, our coverage may not be sufficient to cover the cost of defense or related damages in the event of a significant product liability claim.

Claims related to our product assertions. Our products are sold as natural, cold pressed fruit and reimbursement from third-party payers,vegetable products containing substantial amounts of various ingredients. We also make various other assertions about our products, such as governmental programs including Medicareno additives, no sugar and Medicaid,no preservatives. Consumers and private insurance plans. Reimbursementother consumer groups often challenge these types of claims. The law in the area of what is contingentnatural and other aspects of our marketing our products is not settled and, in most cases, not statutory. In the US, there is a mixture of federal and state law that is not consistent. Therefore, we may be subject to various claims about our advertising and our products from time to time, which may cause us to pay monetary damages, change our advertising or change our products. Any of these actions may result in adverse consequences to our operations, our product placement and results of operations.

Sources of raw materials. We depend upon the fruit and vegetable produced in various locations, with a current dependence on established codingraw materials from Spain and a few other countries. The farming locations and the agricultural production may be damaged or limited as a result of windstorms, pests or plant disease. As our products are meant to be healthy options, our suppliers of raw materials are not able to use many agricultural chemicals, and therefore, they may not be able to maintain production in the quantities that we will need from time to time. Any decrease in the supply of fresh fruit and vegetables could have a material adverse effect on our business and results of operations.

We depend on one supplier for a given procedure, coveragesignificant amount of our raw materials and product development. We rely on one supplier for a majority of our raw materials. We also are largely dependent on this supplier for important aspects of our product development... This supplier is a significant shareholder of the codes byCompany. In the third-party payers and adequate payment for the resources used.


Coding for proceduresbelieved unlikely event that this supplier is established by the American Medical Association. The Centers for Medicare and Medicaid Services, or CMS, the agency responsible for administering Medicare and the National Center for Health Statistics, are jointly responsible for overseeing changes and modifications to billing codes used by home healthcare agencies for reporting procedures, and many private payers use coverage decisions and payment amounts determined by CMS for Medicare as guidelines in setting their coverage and reimbursement policies. All coding is subject to change which could impact coverage and reimbursement.  Each year however, CMS re-examines the reimbursement rates for our services and could either increase or decrease the reimbursement rates. We are unable to predict when legislation or regulation that affectsprovide us with the current level of raw materials and any increase in the raw materials due to an increase in our product requirements, our business may be proposedadversely impacted. Additionally, if we are not able to obtain the product development services that are currently provided, our business development and the innovation of our products will suffer, which may have an adverse impact on or enactedbusiness. We do not have any alternative suppliers or product developers from which we can obtain the quality or quantity of raw materials and services.

Concentration of production capacity. Virtually all of our juice production capacity is located at Murcia, Spain, which includes our cold pressing, blending and bottling capability. Because currently we maintain minimal finished goods inventory at our production location as part of our “day-of-production” production system, we could be challenged to continue to produce an adequate supply of products in the futureevent that production at or what effect any such legislationtransportation from our production facility were interrupted by fire, flood or regulationother natural disasters, work stoppages, regulatory actions or other causes. Any significant interruption would seriously harm our business and results of

operations.

Currently, our products are distributed in a limited geographic area. Our wholesale accounts and retail trade partners are located in the Netherlands and the United Kingdom. Most of our sales are in the metropolitan areas within that region. Due to this concentration, natural disasters, economic downturns and other conditions affecting the region may adversely affect our product distribution and our business generally, and our results of operations.

Brexit may have an adverse impact on our business.


For some governmental programs, such as Medicaid, coverage and reimbursement differ from statethe Company. The consequences to state, and some state Medicaid programs may not pay an adequate amount for the procedures performed,Company, if any, paymentof Brexit cannot be determined at this time. If there is made at all. Asan impact, it will depend on the portionquantity of products that are being sold by the U.S. population over the age of 65Company to distributors and eligible for Medicaid continues to grow, we may be more vulnerable to coverage and reimbursement limitations imposed by CMS. National and regional coverage policy decisions are subject to unforeseeable change.


Third-party payers carefully review, and increasingly challenge, the prices charged for procedures. In addition, an increasing percentage of insured individuals are receiving their medical care through managed care programs, which monitor and often require pre-approval or pre-authorization of the services that a member will receive. The percentage of individuals covered by managed care programs is expected to growconsumers located in the United States overKingdom, and what those sales represent of the next decade.


We believeoverall sales and revenues of the Company. Some of the consequences of Brexit may include (i) delays in the shipping and delivery of our products due to border conditions, which delay may have an impact on the limited shelf life of our products, thereby limiting their marketability, (ii) increased costs due to duties and other imposts imposed on the importation of goods into the United Kingdom, and (iii) other non-tariff barriers that the overall escalating costUnited Kingdom may impose, such as changing regulations concerning our products that are different than those of medicalthe European Union.


We have a limited range of products and services has ledtherefore have a limited diversification. Natur’s business is vertically integrated and centered around essentially one type of product, all-natural super-premium beverages and healthy snacks, sold primarily through our direct-store-delivery system and a limited number of distributors. Any significant disruption in our product supply to the consumer and will continueany decrease in the consumption of our products generally or specifically would have an adverse effect on our business and results of operations.

Risks related to lead to, increased pressures on the healthcare industry to reduceoutsourced product development. The Company obtains its finished products from third-party suppliers. Following any anticipated or unanticipated change, shortages could result in an increase of the costs of productsgoods, or adversely affect the Company’s ability bring a product to market. Price increases due to inflationary pressures or supply side shortages from a contract packer would directly affect the Company’s profitability if increases were not successfully passed on to customers.

Risks related to expansion of our product lines and services.distribution. Our continued growth depends in part upon our ability to expand into new geographic areas, either through internal growth or by acquisition. It also depends on having the necessary capital, being able to increase production, finding raw materials that satisfy our criteria, expanding distribution channels and securing consumers through our marketing efforts and those of others. Due to the extent of our operating losses in recent years, we currently anticipate limited expansion in during the next fiscal year and thereafter. There can be no assurance that third-party coverage and reimbursementwe will expand into new product lines or geographic areas or be able to invest in new markets. There can be no assurance that if expansion or investment is undertaken that it will be available or adequate,successful or that future legislation, regulation, or coverage and reimbursement policies of third-party payers will not adversely affect the demand for our services or our ability to provide these servicesexpansion can be accomplished on a profitable basis. Demands on management and working capital costs resulting from the perishable nature of our products may limit the ability, or increase the cost of, expansion into new regions. Furthermore, consumer tastes vary by region, and there can be no assurance that consumers located in other regions will be receptive to our products.

Acquisitions of existing businesses have many risks, many of which cannot be anticipated. Acquisitions of other businesses, assets or products typically involve a number of special risks, including the diversion of management’s resources, issues related to the assimilation of the operations and personnel of the acquired businesses, potential adverse effects on operating results and amortization of acquired intangible assets. In addition, gross margins may be negatively impacted to the extent that gross margins on acquired product lines are lower than our own product’s average gross margins. If we seek and find attractive acquisition candidates, we may not be able to complete the transaction on acceptable terms, to successfully integrate the acquisition into our operations, or to assure that the acquisition won’t have an adverse impact on our operations. Any plans to invest in new markets or to consider additional acquisitions may cause us to seek additional financing that may be dilutive to current investors or result in a higher debt-to-equity ratio than would otherwise be the case. Any financing we obtain may not be on terms favorable to us, even if it is available.

Competition.We currently compete with the following products distributed in our current markets: Innocent, Naked Juice, Savsé, Coolbest and Retailer’s own label. In the near future, we expect to expand into the German, Moldavian, French, Swiss, and United States markets and we will encounter further competition from competitors that are active in those markets. New products are introduced all the time, many of which will be directly competitive to our products or may be competitive on a tangential basis, but in all cases likely diluting our place in the market as a provider of cold-pressed juice and other fruit and vegetable products. There are efforts by large established companies, regional companies and local producers to address the healthy living and aging consumer goods products, such as Odwalla and Naked Juice. We also face competition from local outlets selling smoothie products and other fresh squeezed products and white label products offered by chain outlets. While we believe that we compete favorably with our competitors on factors including quality, nutritional integrity, food safety, merchandising, service, sales and distribution, multiple flavors, brand name recognition and loyalty, our products are typically sold at prices higher than most other competing beverage and bar products. Significant competitive pressure from these or other companies could negatively impact our sales and results of operations.


Shifting Consumer Tastes. Consumer acceptance and desire for existing and emerging healthy foods, snacks and beverages are continually changing and are extremely difficult to predict. The unavailabilityCompany is striving to be on the right side of this macro shift at all times. Increased consumer concerns about nutrition, healthy diets (some known as Paleo, KETO, Whole30, and GAPS regimens) and food allergies are ever changing. This brings to our business the risk that sales of our products may decline due to perceived health concerns, changes in consumer tastes or inadequacyother reasons beyond the control of third-party payer coveragethe Company. The consumer acceptance and resulting success of new products will be one of the keys to the success of the Company’s business plan. There can be no assurance that the Company will succeed in the development of any new products or reimbursementthat any new products developed by the Company will achieve market acceptance or generate meaningful revenue for the Company.

Brand Image. Company success is tied to its ability to maintain the brand image and product quality for the Company’s existing products, new products and brand extensions. The Company can give no assurance that the Company’s advertising, marketing and promotional programs will have the desired impact on its products’ brand image and on consumer preferences. Real or imagined product quality issues or contaminations, even if blatantly false, could adversely affect to the Company’s profitability and brand image. There is no assurance that the Company will not be party to product liability litigation. If the Company experiences product liability claims, the Company’s financial condition and business operations could be materially adversely affected.

Marketing Costs.Adequate retail authorization, distribution and shelf space for product availability, particularly in hypermarkets, are required for success in marketing health food, snack and beverage products. These authorizations can require additional marketing support spending to obtain additional shelf space. In general, this is a competitive condition the Company will meet, or choose otherwise. The Company may incur significant shelf space or other promotional costs as a necessary condition of entering into competition or maintaining market share in particular markets or stores, and, if incurred, such costs may materially affect the Company’s financial performance.

Our products may be contaminated, tainted or damaged by third parties acting beyond our control.Third parties, acting on behalf of the Company, manufacture and physically distribute the Company’s products. Therefore, our products could become contaminated, tainted or damaged by these other parties whose actions are beyond the control of the Company. The third parties that we engage for manufacturing and distributing our product and the retail outlets for our products must take adequate precautions not to contaminate, taint or damage the Company’s products. Although we have established handling protocols and we believe our manufacturer, distributors and retailers will follow these protocols and use good commercial sense in handling a perishable product, the Company cannot be certain that the its products will not be damaged in the ordinary course of business. In the event the Company’s products are damaged, contaminated or tainted, the Company may experience an adverse financial effect due to lost sales, the cost of a product recall, and product liability damages and an adverse business effect due to reputational damage and reluctance of consumers to trust our products. The Company, at this time, cannot estimate any cost or liability amounts that the Company might incur in connection damaged, contaminated or tainted products.

We are dependent on the continued services and on the performance of our senior management and other key personnel. The loss of the services of any of our executive officers, such as Robert Paladino, our ~Chief Executive Officer, or Ellen Berkers, our Chief Executive and Financial Officer, or other key employees could have a material adverse effect on our business, operating results and financial condition.


Healthcare Fraud We also depend on our ability to identify, attract, hire, train, retain and Abuse


Healthcare fraudmotivate other highly skilled technical, managerial, sales, operational, business development and abuse laws apply to our business when a customer submits a claimservice personnel. Competition for an item or service thatsuch personnel is reimbursed under Medicare, Medicaid or most other federally-funded healthcare programs. The federal Anti-Kickback Law prohibits unlawful inducements for the referral of business reimbursable under federally-funded healthcare programs, such as remuneration provided to induce clients to use our services reimbursable by Medicare or Medicaid. The Anti-Kickback Law is subject to evolving interpretations.


The majority of states also have anti-kickback laws which establish similar prohibitions that may apply to items or services reimbursed by any third-party payer, including commercial insurers. Further, the recently enacted Patient Protectionintense, and Affordable Care Act, as amended by the Health Care and Education Affordability Reconciliation Act, collectively, the PPACA, among other things, amends the intent requirement of the federal anti-kickback and criminal healthcare fraud statutes. A person or entitythere can be no longer needs to have actual knowledge of this statute or specific intent to violate it. In addition, the PPACA provides that the government may assert that a claim including items or services resulting from a violation of the federal anti-kickback statute constitutes a false or fraudulent claim for purposes of the false claims statutes.


If a governmental authority were to conclude that we are not in compliance with applicable laws and regulations, we and our officers and employees could be subject to severe criminal and civil penalties including, for example, exclusion from participation as a supplier of services to beneficiaries covered by Medicare or Medicaid.




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Additionally, the civil False Claims Act prohibits knowingly presenting or causing the presentation of a false, fictitious or fraudulent claim for payment to the U.S. government. Actions under the False Claims Act may be brought by the Attorney General or as a qui tam action by a private individual in the name of the government. Violations of the False Claims Act can result in very significant monetary penalties and treble damages. The federal government is using the False Claims Act, and the accompanying threat of significant liability, in its investigations of healthcare providers and suppliers throughout the country for a wide variety of Medicare billing practices.


We filed a Form 8-A with the SEC in March 2013.  This filing obligates us to comply with the proxy rules of the SEC, including the requirement that we provide an annual report containing audited financial statements to our stockholders in connection with annual stockholder meetings at which directors are elected.  We do not intend to voluntarily send annual reports containing audited financial statement to our stockholders.


The public may read and copy any materials filed with the SEC at the its Public Reference Room at 100 F Street, NE., Washington, DC 20549, on official business days during the hours of 10 a.m. to 3 p.m. The public may obtain information on the operation of the Public Reference Room by calling the Commission at 1–800–SEC–0330.  The SEC maintains an Internet site that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the Commission at http://www.sec.gov.


Employees


FHA and FHS do not conduct any material operations of their own.  Our operations are conducted through our wholly-owned subsidiary, Interim.  We currently have a total of 150 employees, of which 45 are full-time employees.   There are no employees that are represented by employee union(s).  Interim believes its relations with all of its employees are good.


Item 1A.  Risk Factors.


Risks Relating to Our Business


Our present and intended business operations are highly speculative and involve substantial risks.  Only investors who can bear the risk of losing their entire investment should consider buying our shares.  Among the risk factors that you should consider are the following:


We have a history of losses and we may never achieve profitability.


FHA's net loss available to common stockholders was $371,066, or $0.03 per share and $283,673, or $0.03 per share, for the years ended December 31, 2017 and 2016, respectively.  Because we need to cover incremental costs for increased billing code requirements, we expect to incur increasing expenses, and as a result, we will need to generate additional revenues to achieve and maintain profitability.  We cannot assure youassurance that we will ever be able to operate profitably.


FHA’s success will depend on its abilitysuccessfully attract, assimilate or retain sufficiently qualified personnel. The failure to attract and retain key employees and recruit key management personnel.


One of FHA’s primary assets is its highly-skilled personnel.  Thesenecessary skilled personnel could leave FHA and so deprive FHA of the skill and knowledge essential for performance of its existing and new business. Some of FHA’s employees may have additional or different responsibilities as a result of the fact that FHA is now an independent public company.  If any of FHA’s key personnel leaves for one of these or any other reason(s), it could harm FHA’s operating results and financial condition.


FHA may pursue acquisitions, investments or other strategic relationships or alliances, which may consume significant resources, may be unsuccessful and could dilute holders of its common stock.


Acquisitions, investments and other strategic relationships and alliances, if pursued, may involve significant cash expenditures, debt incurrence, operating losses, and expenses that could have a material adverse effect on FHA’sour business, operating results and financial conditioncondition.

If the protection of trademark, brands and operating results. Acquisitions involve numerous other risks, including:


·

Diversion of management timeproprietary rights is inadequate, we could lose our proprietary rights and attention from daily operations;

·

Difficulties integrating acquired businesses, technologies and personnel into FHA’s business;



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·

Inability to obtain required regulatory approvals and/or required financing on favorable terms;

·

Entry into new markets in which FHA has little previous experience;

·

Potentialexperience a loss of key employees, key contractual relationships or key customersrevenues. We rely on a combination of acquired companies or of FHA;copyright, trademark, trade dress and

·

Assumption of the liabilities trade secret laws, employee and exposurethird-party non-disclosure and invention assignment agreements and other methods to unforeseen liabilities of acquired companies.


Ifprotect our proprietary technology. Despite these types of transactions are pursued,precautions, it may be difficultpossible for FHAunauthorized third parties to complete these transactions quicklyobtain and use information that we regard as proprietary. In addition, the laws of some foreign countries do not protect proprietary rights to integrate these acquired operations efficiently into its currentthe same extent as do the laws of the United States. There can be no assurance that the steps taken by us to protect our proprietary rights will be adequate or that third parties will not infringe or misappropriate our trademarks, copyrights and similar proprietary rights. If we resort to legal proceedings to enforce our IP rights, those proceedings could be expensive and time-consuming and could distract our management from our business operations. Any acquisitions, investments


Intellectual property claims against us can be costly and could impair our business. We cannot predict whether third parties will assert claims of infringement against us, or other strategic relationships and alliances by FHA may ultimatelywhether any future assertions or prosecutions will harm our business. Although we take significant steps to make sure that our products do not infringe on the rights of others, there is always the possibility that another person or company may assert that we infringed on their proprietary rights. If we are forced to defend against any such claims, whether they are with or without merit or are determined in our favor, we may face costly litigation, diversion of management, or product launch delays, any of which could adversely impact our business. As a result of such a dispute, we may have to enter into royalty or licensing agreements. Such royalty or licensing agreements, if required, may be unavailable on terms acceptable to us, if at all. If there is a successful claim of intellectual property infringement against us and we are unable to license the infringed or similar IP on a timely basis, our business could be impaired.

Prior employers of our employees may assert violations of past employment arrangements. Prior employers of our employees may try to assert that our employees are breaching restrictive covenants and financial condition. In addition, future acquisitionsother limitations imposed by past employment arrangements. We believe that all of our employees are free to work for us in their various capacities and have not breached past employment arrangements. Notwithstanding our care in our employment practices, a prior employer may notassert a claim. Such claims will be as successful as originally anticipatedcostly to contest and highly disruptive to our work environment and may result in impairment charges.a detrimental effect on our operations.


FHA’s business activities are highly regulated and new and proposed government regulation or legislative reforms couldGovernment regulations may increase FHA’s costour costs of doing business.The adoption or modification of laws or regulations relating to our business reduce its revenues, profitabilitycould harm our operating results and liquidity or subject FHA to additional liability.


FHA’s reimbursements for home healthcare services are subject to substantial federalfinancial condition by increasing our costs and state regulation. These laws and regulations, along with the terms of FHA’s contracts and licenses, regulate how FHA does business, what services are offered and how FHA interacts with its customers, providers and the public.administrative burdens. Laws and regulations directly applicable our business is becoming more diverse and prevalent in all the markets where we are likely to FHA’s businesses are subject to frequent change and varying interpretations. Changesdistribute our products. We must comply with regulations in existingEurope, the United States, as well as any other regulations adopted by other countries where we do business. Compliance with any newly adopted laws or regulations may prove difficult for us and may harm our business, operating results and financial condition.

We will require additional capital in the future, which may not be available on terms acceptable to us, or their interpretations,at all. Our future liquidity and capital requirements will depend upon numerous factors, including the success of our products and market developments. We will to need to raise funds through public or the enactment of new lawsprivate financings, strategic relationships or other arrangements. There can be no assurance that such funding, will be available on terms acceptable to us, or at all. If funds are raised through the issuance of new regulations could adversely affect FHA’sequity securities, the percentage ownership of our stockholders will be reduced, stockholders may experience additional dilution in net book value per share, and such equity securities may have rights, preferences or privileges senior to those of the holders of our existing capital stock. Furthermore, any debt financing, if available, may involve restrictive covenants that may limit our operating flexibility with respect to certain business by, among other things:


·

Imposing additional licensematters. If adequate funds are not available on acceptable terms, we may not be able to continue to develop or registration requirements;

·

Increasing administrative and other costs;

·

Forcing FHAenhance our products, take advantage of future opportunities or respond to restructure its relationships with providers; or

·

Requiring FHA to implement additional or different programs and systems.


Although FHA believes it can structure its operations to comply with the laws and regulations applicable to it, government officials charged with responsibility for enforcing such laws and regulations are entitled to audit FHA’s operations and may in the future assert that FHA (or transactions incompetitive pressures, any of which it is involved) are in violation of these laws or courts may ultimately interpret such laws in a manner inconsistent with FHA’s interpretation. Therefore, it is possible that future legislation and regulation and the interpretation of existing and future laws and regulations could have a material adverse effect on FHA’s abilityour business, operating results and financial condition.

Risks Related to operate home healthcare agencies.Ownership of Our Common Stock


FHAThere is required to comply with laws governingnot an active market for our Common Stock. There has been no sustained activity in the transmission, securitymarket for our Common Stock and privacy of health informationwe cannot provide any assurances that require significant compliance costs, and any failure to comply with these laws could result in material criminal and civil penalties.


Regulations under the Health Insurance Portability and Accountability Act of 1996, or HIPAA, require FHA to comply with standards regarding the exchange of health information within the company itself and with third parties, including healthcare providers, business associates and FHA’s customers. These regulations include standardsan active market for common healthcare transactions, including claims information, plan eligibility, and payment information; unique identifiers for providers and employers; security; privacy; and enforcement. HIPAA also providesour Common Stock will ever develop. Investors should understand that to the extent that state laws impose stricter privacy standards than HIPAA privacy regulations, a state seeks and receives an exception from the Department of Health and Human Services regarding certain state laws, or state laws concern certain specified areas, such state standards and laws are not preempted.


FHA believes it can comply with the HIPAA guidelines for the adoption and implementation of appropriate policies and procedures for privacy, for transactions and code sets and for security standards. Given HIPAA’s complexity and the possibility that the regulations may change andthere may be subjectno alternative exit strategy for them to changing and perhaps conflicting interpretation, FHA’s ongoing abilityrecover or liquidate their investments in our Common Stock. Accordingly, investors must be prepared to comply withbear the HIPAA requirements is uncertain. Furthermore, a state’s ability to promulgate stricter laws, and uncertainty regarding many aspectsentire economic risk of such state requirements, make compliance with applicable health information laws more difficult. Sanctions for failing to comply with the HIPAA health information provisions include criminal penalties and civil sanctions, including significant monetary penalties.




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FHA’s business model is heavily dependent on its ability to forge and maintain mutually beneficial business relationships with physicians and physician organizations.


FHA’s healthcare services are dependent upon recommendations from physicians and physician organizations such as hospitals and patient treatment facilities. Physicians and discharge personnel in healthcare facilities are the key to FHA’s ability to competean investment in the marketplaceCompany for an indefinite period of time. If an active market ever develops for our Common Stock, we anticipate that our then financial condition and its financial performance.


FHA’s successproduct offerings will be dependent upon, among other factors, its ability to successfully foster relationships with physicians and discharge personnel. FHA cannot assure that it can maintain the relationships in the future to obtain the referrals necessary to be competitive. The failure of FHA personnel to perform these functions could have an adversegreatly impact on FHA’s competitive position, its growth and development, and its overall financial performance.


FHA’s products and services compete in segments of the healthcare market that are highly competitive.


The principal competitive factors that affect FHA include: marketing products and services, managing costs to maintain competitive pricing, recruiting nurses and certified nursing aides for home healthcare services, delivering superior customer service, and aggressively managing costs.  FHA cannot assure you that it will be able to successfully compete against current and future competitors and grow and maintain its market share.


Any substantial sale of stock by existing shareholders could depress the market value of our Common Stock. The market value at any point in time may not reflect the value of our business or our business prospects.

We are subject to the reporting requirements of the United States securities laws, which will require expenditure of capital and other resources. We are a public reporting company subject to the information and reporting requirements of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and other federal securities laws, including, without limitation, compliance with the Sarbanes-Oxley Act (“Sarbanes”). The costs of preparing and filing annual and quarterly reports, proxy statements and other information with the SEC and furnishing audited reports to stockholders will cause our expenses to be substantially higher than they would otherwise be if we were privately-held. It will be difficult, costly, and time-consuming for us to develop and implement internal controls and reporting procedures required by Sarbanes, and we will require additional staff and third-party assistance to develop and implement appropriate internal controls and procedures.


Because we are subject to the “penny stock” rules as our shares are quoted on the over-the-counter bulletin board, the level of trading activity in our stock may be reduced. If an active trading market does develop for our stock, it is likely that our stock will be subject to the regulations applicable to penny stocks. The regulations of FHA, thereby devaluingthe SEC promulgated under the Exchange Act that require additional disclosure relating to the market price and causing investorsfor penny stocks in connection with trades in any stock defined as a penny stock. The SEC regulations define penny stocks torisk losing all or part of their investment.


Stockholders, including our directors and officers hold be any non-exchange equity security that has a large number of FHA’s outstanding shares as of the date of this Annual Report.  We can make no prediction as to the effect, if any, that sales of shares, or the availability of shares for future sale, will have on the prevailing market price of our sharesless than $5.00 per share, subject to certain exceptions. Unless an exception is available, those regulations require the broker-dealer to deliver, prior to any transaction involving a penny stock, a standardized risk disclosure schedule prepared by the SEC, to provide the customer with current bid and offer quotations for the penny stock, the compensation of common stock. Sales of substantial amounts of sharesthe broker-dealer and its salesperson in the publictransaction, monthly account statements showing the market orvalue of each penny stock held in the perceptionpurchaser’s account, to make a special written determination that such sales could occur, could depress prevailing market pricesthe penny stock is a suitable investment for the shares. Such salespurchaser and receive the purchaser’s written agreement to the transaction. These disclosure requirements may alsohave the effect of reducing the level of trading activity, if any, in the secondary market for a stock that becomes subject to the penny stock rules. Consequently, these penny stock rules may affect the ability of broker-dealers to trade our securities. We believe that the penny stock rules discourage market investor interest in and limit the marketability of our Common Stock.

In addition to the “penny stock” rules promulgated by the Securities and Exchange Commission, the Financial Industry Regulatory Authority, Inc. (“FINRA”) has adopted rules that require that in recommending an investment to a customer, a broker-dealer must have reasonable grounds for believing that the investment is suitable for that customer. Prior to recommending speculative low-priced securities to their non-institutional customers, broker-dealers must make reasonable efforts to obtain information about the customer’s financial status, tax status, investment objectives and other information. Under interpretations of these rules, FINRA believes that there is a high probability that speculative low-priced securities will not be suitable for at least some customers. FINRA requirements make it more difficult for FHAbroker-dealers to sell equity securities or equity-related securities in the future at a time and pricerecommend that their customers buy our Common Stock, which it deems appropriate.


We face a higher risk of failure because we cannot accurately forecast our future revenues and operating results.


The rapidly changing nature of the markets in which we compete makes it difficult to accurately forecast our revenues and operating results.  Furthermore, we expect our revenues and operating results to fluctuate in the future due to a number of factors, including the following:


the timing of sales of our services;

unexpected delays in introducing new services;

increased expenses, whether related to sales and marketing, or administration;

the mix of licenses and services revenue; and

costs related to possible acquisitions of businesses.


Our expansion plans may not be cost-effective.


We have pursued, and may continue to pursue, strategic alliances with new or complementary businesses inlimit an effort to enter into new business areas, diversify our sources of revenue and expand our products and services.  If we pursue strategic alliances with new or complementary businesses, we may not be able to expand our product or service offerings and related operations in a cost-effective or timely way. We may experience increased costs, delays and diversions of management's attention when beginning any new businesses or services.  Also, any new business or service that users do not favorably receive could damage our reputation and brand name in the market place.  We also cannot be certain that we will obtain enough revenues from any expanded products or services to offset related costs.  Any expansion of our operations may require additional expenses.  These efforts may strain our management, financial and operational resources.


Our limited resources may make it harder for us to manage growth.


We have a limited basis upon which to evaluate our systems'investor’s ability to handle controlled or full commercial availability ofbuy and sell our services.  We anticipate that we will expand our operations in the near future, and we will have to expand further tostock.



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address the anticipated growth in our market opportunities.  To manage the expected growth of operations and personnel, we will need to improve existing systems, and implement new systems, procedures and controls.  In addition, we will need to expand, train and manage an increasing employee base.  We will also need to expand our finance, administrative and operations staff.  We may not be able to effectively manage this growth.  Our planned expansionattract the attention of major brokerage firms or securities analysts in our efforts to raise capital. In due course, we plan to seek to have our Common Stock quoted on a national securities exchange in the near future will place a significant strain on our managerial, operational and financial resources. Our planned personnel, systems, procedures and controls may be inadequate to support our future operations.  If we cannot manage growth effectively or if we experience disruptions during our expansion, the expansion may not be cost-effective.


Changes in reimbursement levels under Medicare, Medicaid or insurance reimbursement programs and any changes in applicable government regulations could have a material adverse effect on FHA’s net revenues.


As managed care assumes an increasingly significant role in markets in which FHA operates, FHA’s success will, in part, depend on retaining and obtaining managed care contracts.United States. There can be no assurance that we will retain or continuebe able to obtain such managed care contracts. In addition, reimbursement rates under managed care contracts are likely to continue experiencing downward pressure asgarner a result of payers' efforts to contain or reduce the costs of health care by increasing case management review of services and negotiating reduced contract pricing. Therefore, evenquote for our Common Stock on an exchange. Even if we are successful in retainingdoing so, security analysts and obtaining managed care contracts, unless wemajor brokerage houses may not provide coverage of us. We may also decreasenot be able to attract any brokerage houses to conduct secondary offerings with respect to our costsecurities.

Because future sales by our stockholders could cause the stock price to decline, our investors may lose money on their investment in our Common Stock. No predictions can be made of the effect, if any, that market sales of shares of our Common Stock or the availability of such shares for providing servicessale will have on the market price prevailing from time to time. Nevertheless, sales of significant amounts of our Common Stock could adversely affect the prevailing market price of our Common Stock, as well as impair our ability to raise capital through the issuance of additional equity securities.

Risks related to the corporate restructuring program

We maybe not be able to secure the required funding for the restructuring.Because the restructuring requires funding of Natur CBD BV, there is the risk that the company will not be able to secure the amount necessary to fund the acquisition of the assets and increases higher margin services, weaccept the liabilities in the reorganization, in which case the restructuring will experience declining profit margins.not result in the corporate objective sought, which is to reduce the debt of the company on a consolidated basis.


FHAWe will not be able to terminate the restructuring process. Once the trustee has been appointed, there is subjectno ability for the company to extensiveterminate the restructuring process as described above. The trustee could decide to take decisions that were not anticipated in respect of the assets and frequently changing federal, stateliabilities of Natur Holding, which may have an adverse impact on the restructuring and local regulation.therefore on the entire company. The trustee may even reject in its entirety the proposed restructuring plan.

Third parties may object to the restructuring process. If either because Natur CBD cannot complete its acquisition of the assets and acceptance of continuing liabilities, or there is objection to the restructuring by third parties, or the trustee on its own initiative rejects the restructuring plan, the trustee will have wide discretion in how to proceed. The trustee may sell the assets in a public sale in which case the company would lose the assets, including their value to the creditors of Natur Holding and the ability to use the assets. In addition, new laws and regulations are adopted periodicallythis event, the company would most likely not be able to regulate new and existingcontinue its operations as a producer of its products and serviceshave to terminate operations. In the event of no operations, the investors in the health care industry. Changescompany would lose the entirety of their investment.

The to be appointed trustee may nit discharge debts. There can be no assurance given that the trustee will discharge the debts that are sought to be terminated in lawsthe reorganization. Therefore, the company may retain more debt obligations than anticipated and not be able to service the debt. If the debt on the company is not reduced sufficiently, there is the risk that the company will not be able to operate profitably or regulations or new interpretations of existing laws or regulations can have a dramatic effect on operating methods, costs and reimbursement amounts provided by governmentbe able to continue its operations.

The company may face difficulties to finance the surviving liabilities in the future. The planned restructuring is anticipated to expunge all the debt other than certain trade obligations, tax obligations and other third-party payers. Federal laws governing our activities include regulations relatedgeneral obligations of the operations in the Netherlands amounting to Medicare reimbursement and certification and certain financial relationships with physicians and other health care providers. Although FHA intendsapproximately $ 800,000. The company anticipates being able to comply with all applicable fraud and abuse laws,service this amount of assumed liabilities after the reorganization, but there can be no assurance that administrativeit will be able to do so. In such event, the company may again face a reorganization or judicial interpretation of existing lawshave to otherwise change its business plan or regulations or enactments of new laws or regulationscease operations.

The company will not have a material adverse effect on its business. FHA is subjectneed to state laws governing Medicaid, professional training, licensure, financial relationships with physicianscontinue to raise capital. Although management and the dispensing and storageboard of pharmaceuticals. The facilities operated by FHA must comply with all applicable laws, regulations and licensing standards. In addition, many of our employees must maintain licensesdirectors believes that the restructuring will ultimately benefit the company, there is no certainty that the restructuring will result in the required improvement to provide somethe financial condition of the services that we offer.  There can be no assurance that federal, stateoverall company or local governmentsmake operational funding available. The company will not change existing standards or impose additional standards. Any failurecontinue to comply with existing or future standards could have a material adverse effect on our results of operations, financial condition or prospects.


If we lose our key personnel or are unableneed to hire additional personnel, we will have trouble growing our business.


We depend to a large extent on the abilities of our key management.  The loss of any key employee or our inability to attract or retain other qualified employees could seriously impair our results of operationsraise working capital and financial condition.


Our future success depends on our ability to attract, retain and motivate highly skilled technical, marketing, management, accounting and administrative personnel.  We plan to hire additional personnel in all areas of our business as we grow. Competition for qualified personnel is intense.  As a result, we may be unable to attract and retain qualified personnel.  We may also be unable to retain the employees that we currently employ or to attract additional technical personnel.  The failure to retain and attract the necessary personnel could seriously harm our business, financial condition and results of operations.


System and online security failures could harm our business and operating results.


The operation of our business depends on the efficient and uninterrupted operation of our computer and communications hardware systems.  Our systems and operations are vulnerable to damage or interruption from many sources, including fire, flood, power loss, telecommunications failure, break-ins, earthquakes and similar events.  Our servers are also vulnerable to computer viruses, physical or electronic break-ins and similar disruptions. Any substantial interruptionsobtain funding in the future, could result infor which no assurance can be given that the loss of data and could destroy our ability to generate revenues from operations.


The secure transmission of confidential information over public networks is a significant barrier to electronic commerce and communications.  Anyone who can circumvent our security measures could misappropriate confidential information or



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cause interruptions in our operations. We may have to spend large amounts of money and other resources to protect against potential security breaches or to alleviate problems caused by any breach.


There Are Substantial Risks Related to Our Common Stock and Management's Percentage of Ownership of Our Common Stock


Due to the instability in our common stock price, you may notcompany will be able to sell your sharesfind such funding on acceptable terms or at a profit.all.


Item 2.Properties


The public market for our common stock is limited and volatile.  As with many other companies, any market price for our shares is likely to continue to be very volatile.  In addition,We lease 666 square meters of office space at Jachthavenweg 124 1081 KJ in Amsterdam, the other risk factors disclosed in this Form 10-K may significantly affect our stock price.  The volatility and limited volume of our stock price may make it more difficult for you to resell shares when you want at prices you find attractive.


In addition, the stock market in generalNetherlands and the marketannual rent for small Home Healthcare companiesthis location is EUR 213,647. We believe the rent is competitive with other locations in particular, have experienced extreme priceAmsterdam, and volume fluctuations that have often been unrelatedthere is available, adequate alternative space available if we elect to change our business location. As we expand our business, we may establish additional office locations. Also, as we grow our business, we may acquire production facilities, warehousing and distribution facilities, either by purchase, lease or disproportionate to the operating performancesubcontracting specific space and facilities. As of these companies.  These broad market and industry factors may reduce our stock price, regardless of our operating performance.


Because our common stock is "penny stock," you may have greater difficulty selling your shares.


Our common stock is “penny stock” as defined in Rule 3a51-1March 1, 2019, part of the Securities and Exchange Commission.  Section 15(g) of the Exchange Act and Rule 15g-2 of the Securities and Exchange Commission require broker/dealers dealing in penny stocks to provide potential investorslease has been sublet with a document disclosing the riskslease period of penny stocksa year and to obtain a manually signed and dated written receipttermination period of the document before making any transaction in a penny stock for the investor's account.  In addition, Rule 15g-9 of the Securities and Exchange Commission requires broker/dealers in penny stocks to approve the account of any investor for transactions in these stocks before selling any penny stock to that investor.  Compliance with these requirements may make it harder for our selling stockholders and other stockholders to resell their shares.


The sale of already outstanding shares of our common stock could hurt our common stock market price.


The number of our shares available for resale in the public market may exceed the number of shares that purchasers wish to buy.  This imbalance may place downward pressure on our stock price.


Sales of substantial amounts of FHA common stock could harm the market price of its stock. This also could harm FHA’s ability to raise capital in the future.  Any sales of substantial amounts of FHA common stock in the public market, or the perception that those sales might occur, could harm the market price of FHA’s common stock.


Failure to meet financial expectations could have an adverse impact on the market price of FHA’s common stock.


FHA’s ability to achieve its financial targets is subject to a number of risks, uncertainties and other factors affecting its business and the home healthcare industry generally, many of which are beyond FHA’s control. These factors may cause actual results to differ materially. FHA describes a number of these factors throughout this document, including in these Risk Factors.  FHA cannot assure you that it will meet these targets. If FHA is not able to meet these targets, it could harm the market price of its common stock.6 months.

 

Item 1B.  Unresolved Staff Comments.


 Not applicable to smaller reporting companies.


Item 2.  Properties.


FHA’s corporate offices are located at 5001 Baum Blvd, Suite 770, Pittsburgh, PA 15213.  They consist of approximately 3,000 square feet of space.  FHA also maintains officesWe currently lease office space in Casper, Wyoming and Billings, Montana for our Interim Healthcare operation, which are rented for $4,892 and $1,525 pera month respectively.  The Casper lease ends June 2018, and the Billings lease endsthrough May 2020. We have notified the landlord of our plans to terminate the lease in the first quarter of 2019. A settlement offer has been made to terminate the lease.




We also lease two shops in Amsterdam for the exploitation of our Natur shops. One at the Prinsengracht, in one of the busiest areas in Amsterdam. The shop has been operational for a year now, and during this period the Company has used this location to further streamline the concept and to develop a real brand awareness experiential store. In this interim period the other shop was sublet. This shop also is situated in the center of Amsterdam.

9


We do not believe additional space will be required in the near-term.



Item 3.Legal Proceedings.Proceedings


On June 17, 2016 and June 30, 2016 two complaints were filed, one with the Federal Equal Employment Opportunity Commission (EEOC)(“EEOC”) and one with the Wyoming State Department of Labor against the Company, alleging discrimination on the basis of sex and disability. The complaints do not seek any specific monetary relief. The complaints are being mediated by the Wyoming State Department of Labor, and the U.S. Equal EmploymentEmployment.\ Opportunity Commission. The Wyoming State Department of Labor issued a notice of dismissal for one of the complaints. After reviewing the facts and circumstances, the Company believes the claims made are weak, at best, and the Company has retained counsel and intends to continue a vigorous defense. On March 6, 2018, which is subsequent to the end of the period covered by this Annual Report, a complaint was filed with the Wyoming Court of Natrona county,County, alleging violation of the Wyoming Fair Employment Practices Act of 1965 for discrimination based upon sex, disability and retaliation.  The complaint does not seek any specific monetary relief. At this time, management cannot reasonably estimate the cost to defend or the outcome of the complaints.

On June 1, 2018, The U.S. EEOC made a determination that Interim Healthcare of Wyoming violated the Wage discrimination laws (Title VII of the Civil Rights Act of 1964) by paying a male employee more than female employees. The EEOC has determined that back wages for these individuals plus liquidated damages total $43,593, and the Company has recorded an accrual for $17,593 of this amount, as the remainder is in dispute.  The company has voluntarily entered into the Conciliation Process with the EEOC to reach a resolution of the matter. On September 19, 2018, the Company attended the Conciliation meeting, which the EEOC presented a revised settlement of $133,575 for back wages plus liquidated damages.  The Company and the EEOC did not agree to a resolution.  On September 28, 2018, the EEOC filed a in the U.S. District Court for the District of Wyoming a complaint claiming Interim Healthcare of Wyoming violated the Wage discrimination laws (Title VII of the Civil Rights Act of 1964) by paying a male employee more than female employees. The Company recorded an accrual totaling $133,575 related to this matter.


Item 4.Mine Safety DisclosuresDisclosure


None; not applicableNot applicable.



PART II


Item 5.Market for Registrant’s Common Equity, and Related Stockholder Matters and Small Business Issuer Purchases of Equity Securities.Securities


Market Information

Until January 7, 2019, our common stock traded on the OTCQB under the symbol “FUTU,” when it was changed to “NTRU” to reflect the change in the corporate name to Natur International Corp. On January 18, 2019, our common stock began trading on the Pink Open Market. Any over-the-counter-market quotations reflect inter-dealer prices, without retail mark-up, mark-down or commissions and may not necessarily represent actual transactions.

Holders

We have approximately 7,000 stockholders.340 stockholders on record. This figure includesdoesn’t include an indeterminate number of stockholders who hold their shares in “street name”.  We cannot guarantee that the present market for our common stock will continue or be maintained.


The quarterly high and low closing sales prices for our shares of common stock since public trading of these shares began are as follows:Dividends


Fiscal Years 2016 and 2017

 

Low

 

High

January 1, 2016 through March 31, 2016

$

0.08

$

0.11

April 1, 2016 through June 30, 2016

$

0.0602

$

0.0807

July 1, 2016 through September 30, 2016

$

0.07

$

0.078

October 1, 2016 through December 31, 2016

$

0.07

$

0.20

January 1, 2017 through March 31, 2017

$

0.08

$

0.10

April 1, 2017 through June 30, 2017

$

0.04

$

0.0811

July 1, 2017 through September 30, 2017

$

0.0811

$

0.10

October 1, 2017 through December 31, 2017

$

0.0251

$

0.085


We have notnever declared anyor paid cash dividends on our common stock,stock. We currently intend to retain all available funds and any future earnings for use in the operation of our business and do not intend to declare dividends in the foreseeable future.  Management intends to use all available funds for the development of our plan of operation.  There are no material restrictions limiting, or that are likely to limit, our ability to payanticipate paying any dividends on our common stock.




Equity Compensation Plan Information

 

 

 

 

 

 

The following information is provided as of December 31, 2017:

 

 

 

 

 

 

Plan Category

Number of securities to be issued upon exercise of outstanding options, warrants and rights

 

Weighted average exercise price of outstanding options, warrants and rights

 

Number of securities remaining available for future issuance under equity compensation plans excluded securities reflected in column (a)

 

(a)

 

(b)

 

(c)

Equity compensation plans approved by stockholders

0

 

$ 0.00

 

0

 

 

 

 

 

 

Equity compensation plans not approved by stockholders

0

 

$ 0.00

 

0

 

 

 

 

 

 

Total

0

 

$ 0.00

 

0


Recent Sales of Unregistered Securities; Use of Proceeds from Registered Securities.


We have not issued any unregistered securities duringstock in the calendar year ended December 31, 2017 that have not already been reported in a Quarterly Report on Form 10-Q or a Current Report on Form 8-K.foreseeable future, if at all.


Purchases of Equity Securities by the Issuer and Affiliated Purchasers.


None; not applicable.


Item 6.Selected Financial Data


None; notNot applicable.


Item 7.  Management'sManagement’s Discussion and Analysis of Financial Condition and Results of Operations.Operations


The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the consolidated financial statements and the related notes includedcontained in this Annual Report on Form 10-K.


Safe Harbor Statement.


Statements made10-K (Annual Report). Our consolidated financial statements have been prepared and, unless otherwise stated, the information derived therefrom as presented in this Form 10-K which are not purelydiscussion and analysis is presented, in accordance with accounting principles generally accepted in the United States of America (GAAP). In addition to historical areinformation, the following discussion contains forward-looking statements based upon our current views, expectations and assumptions that are subject to risks and uncertainties. Actual results may differ substantially from those expressed or implied by any forward-looking statements due to a number of factors, including, among others, the risks described in the “Risk Factors” section and elsewhere in this Annual Report.


Executive overview

Natur International Corp was formerly named Future Healthcare of America. Future Healthcare of America was founded in 2012 and was traded with respect to the goals, plan objectives, intentions, expectations, financial condition, resultsstock ticker symbol FUTU. Future Healthcare of operations, future performance and business of FHA, FHS and Interim, including, without limitation, (i) our ability to gainAmerica was a larger share of the home healthcare industry in our chosen markets, our ability to continue to develop products and services acceptable to that industry, our ability to retain our business relationships, and our ability to raise capital and the growthprovider of home healthcare industry,services, including senior care, occupational and (ii) statements preceded by, followed byspeech therapy, and pediatric nursing services.

The name change took place following the consummation of acquisition of Natur Holding B.V. and became effective Monday, January 7. The stock ticker symbol has become NTRU. Currently the healthcare services are being wound down.

Natur Holding BV (The Company) was founded late 2015 and has its headquarters in Amsterdam, the Netherlands. Our current products include a range of cold pressed juices and healthy snacks. These products are currently sold either direct or that include the words "may", "would", "could", "should", "expects", "projects", "anticipates", "believes", "estimates", "plans", "intends", "targets" or similar expressions.


Forward-looking statements involve inherent risks and uncertainties, and important factors (many of which are beyond FHA's control) that could cause actual results to differ materially from those set forththrough distribution partners in the forward-looking statements, includingNetherlands and the following,United Kingdom, while formulating plans for further expansion in addition to those contained inEurope and North America.

Our products are produced by our reports on file withproduct supplier AMC Juices who is also the SEC: general economic or industry conditions, nationally and/or in the communities in which FHA conducts business, changes in the interest rate environment, legislation or regulatory requirements, conditionsparent company of the securities markets, changes in the home healthcare industry, the development of services that may be superior to the services offered by FHA, demand for home healthcare services, competition, changes in the quality or composition of FHA’s services, our ability to develop new services, our ability to raise



11




capital, changes in accounting principles, policies or guidelines, financial or political instability, acts of war or terrorism, other economic, competitive, governmental, regulatory and technical factors affecting FHA’s operations, services and prices.


Accordingly, results actually achieved may differ materially from expected results in these statements.  Forward-looking statements speak only as of the date they are made.  FHA does not undertake, and specifically disclaims, any obligation to update any forward-looking statements to reflect events or circumstances occurring after the date of such statements.


Company Overview


Based in Casper, Wyoming and Billings, Montana, our wholly-owned subsidiary, Interim Health Care of Wyoming, has been serving its community for over 20 years, and Interim is part of the home health segment of the healthcare industry, providing a wide range of visiting nurse services to the elderly, wounded and sick. Itshareholder SFI Gestion de Participaciones Minoritarias SL. AMC Juices is one of the 300 home health agencies that comprise Interim Health Care,leading European suppliers of “white label” natural juices to over 70 of the largest home healthcare franchiseretail chains in Europe. AMC is well known as the sector’s innovation leader in Europe with proprietary manufacturing and production technologies.

Our products are bottled or packed with technically advanced food safety measures, including cold pressed and high-pressure processing to bring fresh tasting fruit and vegetable blends to market through more than 15 product types.

AMC’s propriety technologies at the core of the proposition incorporate HPP (High Pressure Processing) and SNFC (Super non-from concentrate juices, that holds in the United States.taste of freshness and yet extends shelf life to over 6 months).

Natur’s product route to market combines direct-to-business, direct-to-consumer and through select distributors. We also operate our flagship branded store in the Amsterdam canal district to operate as a consumer experiential environment. Our direct to consumer distribution is done via our own ‘flagship’ store outlet, shop- in-shop solutions, supermarket chains, health clubs and online sales, in this regard we have created a robust multi-country e-commerce platform which can offer “curated” propositions and personalized delivery options to optimally increase our direct to consumer relationship. We also make use of tailored social media tools and slick viral marketing campaigns.

Natur operated as a private enterprise in the Netherlands from its founding in 2015 through November 13, 2018, when it was acquired as a wholly owned subsidiary in a share exchange transaction by Future Healthcare of America on November 13, 2018. Immediately after the Share Exchange Transaction, the former Natur shareholders collectively own the controlling position among the shareholders of the Company. In this transaction it was agreed that the (former) activities of Future Healthcare of America will be divested. The surviving activities will for the time being exclusively consist of the Natur Holding BV activities as described above. Future Healthcare of America was founded on June 22, 2012, as a Wyoming corporation. It recently operated under the name “Future Healthcare of America.” That name was changed on January 7, 2018, when it was re-named “Natur International Corp.”

This MD&A will cover the activities of Natur Holding BV for the years 2017 and 2018. The basis of this MD&A are the audited financial statements for the years 2017 and 2018. These statements are not an integral part of the financial statements.


1.Financial condition, changes in financial condition and results of operations

In 2015/2016 the Company developed together with related partner AMC Juices a range of cold-pressed juices and in the fourth quarter 2016 the first entry to the market was achieved. In 2017 the range of products was extended by adding a range of nearly not heated juices and coconut water-based smoothies with a shelf life of 180 days (SNFC). This with the aim of providing products at a lower price point and offering a product that can be shipped ambient for a certain period of time. We further extended our HPP line with shots, lemonades and breakfast drinks. The current product offering of juices includes 38 different products of which 18 are pro-actively offered to the market, after the company performed in 2019 a rationalization of its product offering to minimize waste.

The company is aiming to further expand its portfolio with additional functional juices infused with all-natural functional ingredients such as CBD and plant-based protein and nutrigenomics. These additions to our products are aimed for personalized health, which is fully on trend in the European Market.

Also, an additional range of snack offerings has been developed in 2018. The Company aims for adding those to its portfolio in the second quarter of 2019.

During 2018, management of the company was heavily involved in the negotiations with management and shareholders of Future Healthcare of America. A lack of free cash has limited the company to grow significantly in its home market (the Netherlands). As a consequence, management has been focused on cost cutting measures, that were effective in the short term to mitigate and control the cost development.

As part of the census (number of patients utilizing facilities)Company’s strategy to operate in a lean and mean manner, the Company has decided to centralize all support functions in the hospitals fluctuates, we continueheadquarters in the Netherlands and to take stepssupport global account management centrally. For that reason, effective November 30, 2018, the Company has closed down the London office. The existing support functions have been transferred to position ourselvesthe headquarters in Amsterdam as part of the centralization of support staff initiative. A distributor for the upsUK has been engaged, who will deliver to our current local customer base.

In the table below, the profit and downs ofloss account for the census for these facilities.  Our home healthcare service, while down during 2017, continued to provide a consistent stream of revenue through 2017, while our staffing business saw minimal growth in 2017.  We experienced a decline in revenue in our home healthcare business in both Billings, Montana and Casper, Wyoming.  We continued to see downward pressure on reimbursement rates throughoutperiods ended 31 December 2017 and competition continues31 December 2018 is displayed:

  December 31,
2018
  December 31,
2017
 
Revenues  1,675,160   526,339 
Gross Margin  622,086   93,434 
Sales, general and Admin  6,132,779   7,499,295 
Operating loss  (5,510,693)  (7,405,861)

Revenues for continued operations increased compared to increase from small startup healthcare agencies and providers.


In 2018, we are approaching our healthcare businessprior year by re-evaluating each payer source, competition and focusing our marketing on higher margin opportunities.  As for our operations in Billings, Montana and its focus on the medical staffing industry, we anticipate a similar level in the demand for our medical staffing services during the upcoming year.  As such, we will continue to evaluate opportunities to expand the realm of services we offer.  Promotional activities are being managed as the offices experience fluctuations in the day-to-day operations and as we embark on new business opportunities.  


Our home healthcare business continues to be the revenue generator for our Company as our country's population ages and new methods of patient data capture become critical components for delivering high quality, affordable healthcare services in a patient's home.  Although this has been a gradual process, we believe we have positioned our business to handle the fluctuations of the staffing business that we can encounter, and we will continue to look to obtain additional business that can deliver higher gross margins during 2018.


We record all revenue and expenses and provide all services under one umbrella.  Below is a description of our Home Healthcare and Staffing operations.


Description of Services


Home Care


Through trained health care professionals, FHA provides home care services including senior care and pediatric nursing; physical, occupational and speech therapy.  FHA offices deliver quality home care and treat each patient with genuine compassion, kindness and respect.  FHA provides health care professionals at all skill levels, including registered nurses, therapists, LPN's and certified home health aides. FHA derives its revenue from multiple payer sources.  These include Medicare, Medicaid, Insurance, Medicaid LTW, and Private Payers.  Because our offices are located in areas that do not contain a large population base (less than 200,000 residents), we continually explore opportunities to increase our revenue with our current payer sources and expand through new sources of revenue.   The healthcare team is utilized across all payer sources, including staffing services.  Our customer base comes from referrals from hospitals, rehab facilities, nursing homes, assisted living facilities and previous patients.


In additional to our professional team, we employ a management team at each facility to handle the day to day direction of the office.  This is provided by our Administrators.  We also have a Director of Nursing in each location.  This person is responsible for the day to day oversight of the service providers and ensuring the certified professionals obtain the necessary training to maintain their certificates as well as the training necessary to be in compliance with all regulating organizations.




12




Staffing


FHA offices provide nurses, nurse aides and management services to hospitals, prisons, schools, corporations and other health care facilities.  FHA success is based on our ability to recruit the best health care professionals and the responsiveness of our local managers to fill the needs of our clients in a timely manner.   Additionally, we work with our clients should they decide they would like to hire our service professional218% on a full year basis. At the same time, basis.  Another keyeconomies of scale and supply chain efficiency improvements have resulted in an improved margin. During 2018, various measures has been taken to mitigate the loss-making from operational activities, leading to a sharp decrease of our losses during the first 9 months of 2018. Wages and salaries have been under strict control by utilizing digital and automated solutions for our support functions. Due to cash restrictions we have not been able to invest in the marketing and activation of our products in the various channels. Nevertheless, we have exceeded our prior year revenues by $1.2 million. We have used guerilla marketing techniques and active sales to achieve this.

We will build our international presence from a solid position in the Dutch market place, and in parallel, expand the UK market, the French market and other European markets, to provide the Company with a good international platform and a blueprint for its further European roll-out.

Management of the Company is aware that the auditor expressed an opinion on the matter of going concern; management is continuously streamlining the operations, whilst at the same time increasing revenue by introducing new products and attracting new customers. The relative share of costs against this increase in revenue is significantly lower which has a positive effect on the development of the gross margin and cash flow from operations. Based on global developments and following the success of companies in the USA and Canada, the company also defined new growth objectives with complementary products based on CBD as a new revenue model. For this, the Company established a new sister company to Natur Holding BV, Natur CBD BV, which is wholly owned by Natur International Corp. and is seeking additional capital, that may be either equity or debt, or both. However, potential investors require a debt restructuring and therefore management developed a corporate restructuring program and started negotiations with the current debtholders of Natur Holding BV to convert their debt into equity of Natur International Corp. The main pillar of such a restructuring plan is the personal relationshiptransfer of certain assets and liabilities from Natur Holding BV to Natur CBD BV at arm’s length conditions and subsequently liquidate Natur Holding BV. As the intended restructuring is guided and controlled by legal specialists, management is reasonably assured that our managementa to-be appointed trustee by the applicable Court in the Netherlands will accept the assets and sales team build with eachliability transaction. The execution of our existing and new clients.  As noted previously,the intended restructuring program is conditional upon the ability of the Company to raise additional capitalprior to the implementation of the restructuring plan in order to supply the buying entity of the assets and liabilities with sufficient funds for the asset transaction and the financing of the daily operations. If this condition is not met, the restructuring will fail, and management will be forced to seek legal protection against its creditors and debtholders.

There are a number of risks associated with the restructuring. These include the following:

1. Because the restructuring requires funding of Natur CBD BV, there is the risk that the Company will not be able to secure the amount necessary to fund the acquisition of the assets and accept the liabilities in the reorganization, in which case the restructuring will not result in the corporate objective sought, which is to reduce turnoverthe debt of our service team by providingthe Company on a consolidated basis.

2. Once the trustee has been appointed, there is no ability for the Company to terminate the restructuring process as many hours as possible, similardescribed above. The trustee could take decisions that were not anticipated in respect of the assets and liabilities of Natur Holding, which may have an adverse impact on the restructuring and therefore on the entire Company. The trustee may even reject in its entirety the proposed restructuring plan.

23

3. If either because Natur CBD BV cannot complete its acquisition of the assets and acceptance of designated continuing liabilities, or there is objection to the hoursrestructuring by third parties, or the trustee on its own initiative rejects the restructuring plan, the trustee will have wide discretion in how to proceed. The trustee may sell the assets in a public sale, in which case the Company would lose the assets, including their value to the creditors of Natur Holding and the ability to use the assets. In this event, the Company would most likely not be able to continue its operations as a full-time employee, we utilizeproducer of its products and have to terminate operations. In the sameevent of no operations, the investors in the company would lose the entirety of their investment.

4. There can be no assurance given that the trustee will discharge the debts that are sought to be terminated in the reorganization. Therefore, the Company may retain more debt obligations than anticipated and not be able to service team members acrossthe debt. If the debt on the Company is not reduced sufficiently, there is the risk that the Company will not be able to operate profitably or be able to continue its operations.

5. The planned restructuring is anticipated to expunge all payer sources.


As each of our businesses is located in smaller based population areasthe debt other than certain trade obligations, tax obligations and other general obligations of the country,operations in the competition is significantly heightened and the relationships maintained with our clients become very criticalNetherlands amounting to the continued success of our operations.


As we provide diversified services and accept payments from multiple payer sources, we are not heavily dependent on a few clients in order for our business to be successful.


Critical Accounting Policies and Estimates


Revenue Recognition - Revenue is recognized when earned. The Company's revenue recognition policies are in compliance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 605, 985 Software — Revenue Recognition and the Securities and Exchange Commission Staff Accounting Bulletin No. 101 and 104.


approximately $ 800,000. The Company recognizes revenue from providing healthcare services when the services are provided and collection is probable.Revenue from non-recurring programming, consulting service, support arrangements and training programs are recognized when the services are provided.


Accounts Receivable – We evaluate the creditworthiness of our customers based on their financial information, if available, as well as information obtained from suppliers and past experiences with customers.  In some instances, we require new customers to make prepayments.  Accounts receivable consist of trade receivables arising in the normal course of business. Any allowance established is subject to judgment and estimates made by management.  The Company determines the allowance based on known troubled accounts, historical experience, and other currently available evidence. We established an allowance for doubtful accounts of $20,200 and $20,200 at December 31, 2017 and 2016, respectively.


Results of Operations.   


Year Ended December 31, 2017 Compared to Year Ended December 31, 2016


Fiscal year ended December 31, 2017 compared to fiscal year ended December 31, 2016:


During 2017, FHA recorded revenues of $3,613,662, a 6% decrease over revenues of $3,840,132 for the same period in 2016.  The decrease for 2017 reflects the impact of competition, the decrease in needs for our services in 2017, especially staffing services.


In 2017, cost of services totaled $2,655,000, a 10% decrease as compared to $2,942,512 in 2016. This is a reflection of the increased utilization of personnelanticipates being able to service our client base personnel levels being more properly managed during 2017 within our Casper, Wyoming location. As a result, FHA posted a gross profitthis amount of $958,662 during 2017, versus a gross profit of $897,620 for 2016, an increase of 7%.


FHA recorded total operating expenses of $1,247,488 during 2017, a 3% decrease as compared to operating expenses of $1,290,675 inassumed liabilities after the same period of 2016.  General and administrative expenses totaled $538,700 in 2017 versus $542,592 in 2016, a decrease of 1%, due to a focus on controlling expenses during 2017. Salaries, wages and related expenses decreased to $671,289 in 2017 from $711,593 in 2016, due to a decrease in personnel and a decrease in wages paid to management personnel during 2017.  Selling expenses in 2017 were $37,499 versus $36,490 in 2016.




13




FHA’s net loss available to common shareholders was $380,559 in 2017.  This represents an $96,886 increase from our net loss of $283,673 in 2016.  The increase in our net loss was driven by a decrease in gain on derivative liability of $200,282, offset by the $104,229 reduction in loss of operations year over year.


Liquidity and Capital Resources.


2017 compared to 2016


Cash on hand was $158,072 at December 31, 2017, a decrease of $48,280 over the $206,352 on hand at December 31, 2016.  Cash used by operations for 2017, was $48,280, a decrease of $226,483 over the $274,763 cash used by operations for 2016.  This decrease in cash used by operations was driven from our operating results coupled with a decrease in our accounts receivable balance at year end 2017 compared to 2016.


Cash on hand at December 31, 2017 is not sufficient to sustain operations for the next twelve months.  Whilereorganization, but there can be no guarantees,assurance that it will be able to do so. In such event, the Company may again face a reorganization or have to otherwise change its business plan or cease operations.

6. Although management and the board of directors believes it has sufficient accounts receivable balancesthat the restructuring will ultimately benefit the Company, there is no certainty that the restructuring will result in the required improvement to meet short term obligations, and will make necessary changes to operations to meet long term operating capital requirements.


Contractual Obligations


Not applicable to smaller reporting companies.


Off-Balance Sheet Arrangements


We have operating leases for certain facilities, but otherwise do not have any off-balance sheet arrangements that have, or are reasonably likely to have, a current or future material effect on ourthe financial condition results of operations, liquidity,the overall Company or make operational funding available. The Company will continue to need to raise working capital resources.and obtain funding in the future, for which no assurance can be given that the company will be able to find such funding on acceptable terms or at all.

2.Liquidity and capital resources

Total net cashflow for the year 2018 amounted to -$0.9 million. The 2018 operating loss before depreciation and currency translation differences was $5.3 mio. This was partly financed by Efficiency Life Fund and NL Life Sciences, who provided several loans to cover for these losses ($1.6 mio and $1.4 mio) to ensure continuity. The recapitalization and issuance of preferred shares at the close of the reversed merger lead to a further investment of $2.0 mio.

  December 31, 2018  December 31, 2017 
       
Net increase/(decrease) of cash position  (913,352)  954,370 
         
Cash position beginning of period  1,082,734   144,842 
Cash for discontinued operations  (41,018)  36,775 
Cash position end of period  128,364   1,082,734 
         

3.Unusual events that materially affected or are expected to materially affect income

As a start-up company, the first two years were mainly focused on developing the products, building a relationship with key-suppliers and contracting distributors. Whilst the global market for our key products developed according to the vision management had at the start, the capital requirements for this type of business appeared to be steeper than anticipated and the market adaptation to our products was less than we expected. The new product range that we launched at the end of 2017 made our general consumer base larger.

As a result, management of the company sought for a strategic partnership to strengthen the business model and to secure additional capital if and when needed. This search led to a series of discussions and meetings with management and shareholders of Future Healthcare of America. These activities distracted management significantly from the commercial and operational tasks and responsibilities. Per 13 November 2018 Future Healthcare of America and Natur Holding BV operate as one company, allowing management to refocus their attention on developing and growing the key business of the company.


Item 7A. Quantitative and Qualitative Disclosure about Market RiskQUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK


Not applicable to smaller reporting companies.applicable.



14




Item 8.Financial Statements and Supplementary Data.







FUTURE HEALTHCARE OF AMERICA AND SUBSIDIARIES

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

Page

Report of Independent Registered Public Accounting Firm

16

Consolidated Balance Sheets as of December 31, 2017 and 2016

17

Consolidated Statements of Operations for the years ended December 31, 2017 and 2016

18

Statement of Stockholders’ Equity for the years ended December 31, 2017 and 2016

19

Consolidated Statements of Cash Flows for the years ended December 31, 2017 and 2016

20

Notes to Consolidated Financial Statements

21




15




Gregory & Associates, LLC [Letterhead]

REPORT OF INDEPENDENT

REGISTERED PUBLIC ACCOUNTING FIRM


Board of Directors and Shareholders

FUTURE HEALTHCARE OF AMERICA AND SUBSIDIARIES

Pittsburgh, Pennsylvania 15213



Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets Future Healthcare of America and subsidiaries (“the Company”) as of  and , and the related consolidated statements of operations, stockholders’ equity (deficit), and cash flows for each of the years in the two year period ended  and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of  and , and the results of its operations and its cash flows for each of the years in the two year period ended , in conformity with accounting principles generally accepted in the United States of America.


Explanatory Paragraph Regarding Going Concern

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the consolidated financial statements, the Company has suffered net losses since inception, an accumulated significant deficit and has a short-term note payable in excess of assets. These factors raise substantial doubt about its ability to continue as a going concern. Management’s plans in regard to these matters are also described in Note 2. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.


Basis for Opinion

These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audits.  We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal security laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.


We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud.


Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks.  Such procedures included examining on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Our Audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.  We believe that our audits provide a reasonable basis for our opinion.  


Data

 

We have served as the Company’s auditor since 2009.

Salt Lake City, Utah

March 28, 2018  






16




FUTURE HEALTHCARE OF AMERICA AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS


 

December 31, 2017

 

December 31, 2016

 

   CURRENT ASSETS:

 

 

 

 

     Cash

$  158,072

 

$  206,352

 

     Accounts receivable

400,584

[1]

473,388

[1]

     Prepaid expenses

31,390

 

60,799

 

     Deferred tax asset, net

-

 

-

 

   Total current assets

590,046

 

740,539

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Total assets

$  590,046

 

$  740,539

 

 

 

 

 

 

   CURRENT LIABILITIES:

 

 

 

 

     Accounts payable

103,787

 

70,658

 

     Accrued expenses

548,052

 

350,715

 

     Derivative liability

43,726

 

53,488

 

     Deferred revenue

12,832

 

3,470

 

CONVERTIBLE SECURED DEBENTURE PAYABLE, net of discount of $0 and $0, respectively

1,010,000

 

1,010,000

 

   Total current liabilities

1,718,397

 

1,488,331

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Total liabilities

1,718,397

 

1,488,331

 

 

 

 

 

 

   STOCKHOLDERS' EQUITY

 

 

 

 

     Common stock

11,266

 

11,266

 

     Additional paid-in capital

1,313,160

 

1,313,160

 

     Retained Earnings (accumulated deficit)

(2,452,777)

 

(2,072,218)

 

   Total stockholders' equity

(1,128,351)

 

(747,792)

 

   Total liabilities and stockholders' equity

$  590,046

 

$  740,539

 





Future Healthcare of America and Subsidiaries Balance Sheet (Parenthetical)

 

 

 

Statement of Financial Position

 

December 31, 2017

 

 

December 31, 2016

   Allowance for doubtful accounts

 

20,200

 

 

20,200

   Common stock authorized

 

200,000,000

 

 

200,000,000

   Common stock par value

 

0.001

 

 

0.001

   Common stock outstanding

 

11,265,631

 

 

11,265,631




See accompanying notes to these unaudited consolidated financial statements.



17




FUTURE HEALTHCARE OF AMERICA AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS



 

Year ended

 

 

December 31, 2017

 

December 31, 2016

 

 

 

 

 

 

 

 

 

 

 

Revenue

$      3,613,662

 

$      3,840,132

 

Cost of Revenue

2,655,000

 

2,942,512

 

Gross Profit

958,662

 

897,620

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

     Selling expenses

37,499

 

36,490

 

     General and administrative

538,700

 

542,592

 

     Salaries, wages and related expenses

671,289

 

711,593

 

          Total Operating Expenses

1,247,488

 

1,290,675

 

  Loss from operation

(288,826)

 

(393,055)

 

 

 

 

 

 

   OTHER INCOME (EXPENSE):

 

 

 

 

 

 

 

 

 

     Interest income

523

 

338

 

     Gain on derivative instrument

9,762

 

210,044

 

     Interest expense

(102,014)

 

(101,000)

 

     Other expense

(4)

 

-

 

          Total Other Income (Expense)

(91,733)

 

109,382

 

   Loss from operations before tax

(380,559)

 

(283,673)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Current Income Tax Expense (Benefit)

-

 

-

 

   Deferred Income Tax Expense (Benefit)

-

 

-

 

   Net Loss

$    (380,559)

 

$    (283,673)

 

 

 

 

 

 

 

 

 

 

 

BASIC AND DILUTED LOSS PER COMMON SHARE AVAILABLE TO COMMON SHAREHOLDERS

$      ( 0.03)

 

$      ( 0.03)

 

BASIC AND DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING

11,265,631

 

11,265,631

 









See accompanying notes to these unaudited consolidated financial statements.




FUTURE HEALTHCARE OF AMERICA

STATEMENT OF STOCKHOLDERS’ EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2017 AND 2016

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

Common Stock

 

Paid In

 

Accumulated

 

Shares

 

Amount

 

Capital

 

Deficit

 

 

 

 

 

 

 

 

Balance at December 31, 2015

11,265,631

$

11,266

$

1,313,160

$

(1,788,545)

 

 

 

 

 

 

 

 

Net loss for the year ended December 31, 2016

-

 

-

 

-

 

(283,673)

 

 

 

 

 

 

 

 

Balance at December 31, 2016

11,265,631

$

11,266

$

1,313,160

$

(2,072,218)

 

 

 

 

 

 

 

 

Net loss for the year ended December 31, 2017

-

 

-

 

-

 

(380,559)

 

 

 

 

 

 

 

 

Balance at December 31, 2017

11,265,631

$

11,266

$

1,313,160

$

(2,443,284)






























See accompanying notes to these unaudited consolidated financial statements.



19




FUTURE HEALTHCARE OF AMERICA AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS


 

December 31, 2017

 

December 31, 2016

 

 

 

 

 

 

   Cash Flows from Operating Activities

 

 

 

 

     Net loss

$    (380,559)

 

$    (283,673)

 

     Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

          Loss (Gain) on derivative instruments

(9,762)

 

(210,044)

 

          Depreciation and amortization expense

-

 

36

 

          Change in assets and liabilities:

 

 

 

 

               Accounts receivable

72,804

 

96,085

 

               Prepaid expenses

29,409

 

(5,329)

 

               Accounts payable

33,129

 

4,989

 

               Accrued expense

197,338

 

104,689

 

               Deferred revenue

9,361

 

18,484

 

                    Net Cash Provided by (Used in) Operating Activities

(48,280)

 

(274,763)

 

 

 

 

 

 

   Cash Flows from Investing Activities:

 

 

 

 

                    Net Cash Used in Investing Activities

-

 

-

 

 

 

 

 

 

   Cash Flows from Financing Activities:

 

 

 

 

                    Net Cash Provided by (Used in) Financing Activities

-

 

-

 

 

 

 

 

 

   Net Increase (Decrease) in Cash

(48,280)

 

(274,763)

 

   Cash at Beginning of Period

206,352

 

481,115

 

   Cash at End of Period

$    158,072

 

$    206,352

 

   Supplemental Disclosures of Cash Flow Information

 

 

 

 

     Cash paid during the periods for:

 

 

 

 

          Interest

1,014

 

-

 

          Income taxes

-

 

-

 


Supplemental Disclosures of Non-Cash Investing and Financing Activities:


 

 

For the Years Ended

 

 

December 31,

NON-CASH EXPENDITURES

 

2017

 

2016

 

 

 

 

 

Depreciation expense

 

-

 

36

Interest expense to be paid with stock

 

101,000

 

101,000

Change in FMV of derivative liability

 

(9,762)

 

(210,044)

Total non-cash expenditures

 

(91,238)

 

(109,008)

 

 

 

 

 











The accompanying notes are an integral part of these consolidated financial statements.



20




FUTURE HEALTHCARE OF AMERICA AND SUBSIDIARIES

NOTES TO FINANCIAL STATEMENTS


NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES


Organization – Future Healthcare of America (“FHA”), a Wyoming corporation, was formed on June 22, 2012. On November 14, 2014, FHA organized Future Healthcare Services Corp. (“FHS”), and transferred all the shares of Interim to FHS. Interim Healthcare of Wyoming, Inc. (“Interim”), a Wyoming corporation, a wholly owned subsidiary of FHS, was organized on September 30, 1991.  Interim operates primarily in the home healthcare and healthcare staffing services in Wyoming and Montana.  On April 3, 2007, Interim purchased the operations of Professional Personnel, Inc., d.b.a., Professional Nursing Personnel Pool.  


Consolidation - The financial statements presented reflectand supplementary data required by this item are included in this Annual Report beginning on page F-1 immediately following the accounts of FHA, FHSsignature page hereto and Interim.  All inter-company transactions have been eliminated in consolidation.


Accounting Estimates – The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period.  Management made assumptions and estimates for determining reserve for accounts receivable, accrued liabilities, contingent liabilities and the fair market value of derivative liabilities.  Actual results could differ from those estimatedare incorporated herein by management.


Cash and Cash Equivalents – The Company considers all highly liquid investments with an original maturity date of three months or less when purchased to be cash equivalents.  At December 31, 2017, the Company had no cash balances in excess of federally insured limits.


Accounts Receivable – Accounts receivable consist of trade receivables arising in the normal course of business. At December 31, 2017 and 2016, the Company has an allowance for doubtful accounts of $20,200 and $20,200, respectively, which reflects the Company’s best estimate of probable losses inherent in the accounts receivable balance. The Company determines the allowance based on known troubled accounts, historical experience, and other currently available evidence. During the years ended December 31, 2017 and 2016, the Company adjusted the allowance for bad debt by $0.


Depreciation – Depreciation of property and equipment is provided on the straight-line method over the estimated useful lives.


Long-lived intangible assets – FHA evaluates its long-lived assets for impairment whenever events or change in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the asset to the future net undiscounted cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is the excess of the carrying amount over the fair value of the asset.


Leases The Company accounts for leases in accordance with Accounting Standards Codification (“ASC”) Topic 840, (formerly Statement of Financial Accounting Standards SFAS No. 13 "Accounting for Leases").  Leases that meet one or more of the capital lease criteria of standard are recorded as a capital lease, all other leases are operating leases.


Loss Per Share – The Company computes loss per share in accordance with FASB ASC Topic 260 Earnings Per Share, which requires the Company to present basic earnings per share and diluted earnings per share when the effect is dilutive (see Note 11).


Income Taxes – The Company accounts for income taxes in accordance with FASB ASC Topic 740 Accounting for Income Taxes.  This topic requires an asset and liability approach for accounting for income taxes (see Note 9).


Advertising Costs – Advertising costs are expensed as incurred and amounted to $37,499 and $35,454 for the periods ending December 31, 2017 and 2016, respectively.







FUTURE HEALTHCARE OF AMERICA AND SUBSIDIARIES

NOTES TO FINANCIAL STATEMENTS


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – continued


Fair Value of Financial Instruments – The Company accounts for fair value measurements for financial assets and financial liabilities in accordance with FASB ASC Topic 820. The authoritative guidance, which, among other things, defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis. Fair value is defined as the exit price, representing the amount that would either be received to sell an asset or be paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:reference.

 

Level 1. Observable inputs such as quoted prices in active markets for identical assets or liabilities;

Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and

Level 3. Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.


Unless otherwise disclosed, the fair value of the Company’s financial instruments including cash, accounts receivable, prepaid expenses, and accounts payable and accrued expenses approximates their recorded values due to their short-term maturities.


Revenue Recognition – Revenue is generated from various payer’s including Medicare, Medicaid, Insurance Companies, and various other entities and individuals.  In accordance with FASB ASC Topic 605, Revenue is recognized when persuasive evidence of an arrangement exists, services have been provided, the price of services is fixed or determinable, and collection is reasonably assured. Payments received prior to services being provided are recorded as a liability (deferred revenue) until such services are performed.  Revenue is recorded as net revenue where contractual adjustments and discounts are deducted from Gross Revenue to determine net revenue.


Derivative Financial Instruments – The Company is required to recognize all of its derivative instruments as either assets or liabilities in the Consolidated Balance Sheets at fair value. The accounting for changes in the fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated, and is effective, as a hedge and further, on the type of hedging relationship. For those derivative instruments that are designated and qualify as hedging instruments, a company must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, or cash flow hedge. Gains and losses related to a hedge are either recognized in income immediately to offset the gain or loss on the hedged item or are deferred and reported as a component of Accumulated Other Comprehensive Income in the Stockholders' Equity and subsequently recognized in Net income when the hedged item affects Net income. The change in fair value of the ineffective portion of a financial instrument is recognized in Net income immediately. The gain or loss related to financial instruments that are not designated as hedges are recognized immediately in Net income.


Recently Enacted Accounting Standards - In May 2014, the Financial Accounting Standards Board (FASB) issued a new standard to achieve a consistent application of revenue recognition within the U.S., resulting in a single revenue model to be applied by reporting companies under U.S. generally accepted accounting principles. Under the new model, recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the new standard requires that reporting companies disclose the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. On July 9, 2015, the FASB agreed to delay the effective date by one year; accordingly, the new standard is effective for us beginning in the first quarter of 2018 and we expect to adopt it at that time. The new standard is required to be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying it recognized at the date of initial application. Management does not believe the adoption of the standard will have a material impact on the Company’s present or future financial statements











FUTURE HEALTHCARE OF AMERICA AND SUBSIDIARIES

NOTES TO FINANCIAL STATEMENTS


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – continued


In February 2016, the FASB issued changes to the accounting for leases that primarily affect presentation and disclosure requirements. The new standard will require the recognition of a right to use asset and underlying lease liability for operating leases with an initial life in excess of one year. This standard is effective for us beginning in the first quarter of 2019. We have not yet determined the impact of the new standard on our consolidated financial statements.


Other recent accounting pronouncements issued by the FASB did not or are not believed by management to have a material impact on the Company’s present or future financial statements.


NOTE 2 - GOING CONCERN


The accompanying consolidated financial statements have been prepared in conformity with generally accepted accounting principles of the United States of America, which contemplate continuation of the Company as a going concern.  However, the Company has incurred losses, an accumulated deficit and has a short-term note payable in excess of assets.  These factors raise substantial doubt about the ability of the Company to continue as a going concern. There is no assurance that the Company will be successful in achieving profitable operations.  The financial statements do not include any adjustments that might result from the outcome of these uncertainties.


NOTE 3 - PROPERTY & EQUIPMENT


The following is a summary of property and equipment at:

 


Life

 

December 31,

2017

 

December 31,

2016

 

 

 

 

 

 

Furniture, fixtures and equipment

2-10 yrs

$

36,384

$

36,384

 

 

 

36,384

 

36,384

Less: Accumulated depreciation

 

 

(36,384)

 

(36,384)

Property & equipment, net

 

$

-

$

-


Depreciation expense for the periods ended December 31, 2017 and 2016 was $0 and $36, respectively.


NOTE 4 – VARIABLE RATE SENIOR SECURED CONVERTIBLE DEBENTURE


On September 9, 2013, the Company closed a Subscription Agreement by which one institutional investor purchased a) a Variable Rate Senior Secured Convertible Note payable having a total principal amount of $1,010,000, convertible into common shares of the Company at $0.25 per share and maturing March 9, 2015; b) Warrants to purchase a total of 3,030,000 shares of common stock, at $0.50 per share, exercisable for four years, and c) a greenshoe to purchase a total of 2,000,000 shares of common stock at $0.25 per share, exercisable for one year from the closing date. On September 9, 2014 the greenshoe expired unexercised.  On March 9, 2015, the Note matured. As the note has not been paid nor extended, the outstanding principal, plus accrued but unpaid interest, liquidated damages and other amounts, became due and payable at the election of the holder.  The holder has not made such an election. Effective December 14, 2017, the conversion price was reduced from $0.25 per share to $0.10 per share.


The fair value of the beneficial conversion feature of the warrants and greenshoe totaled $952,254 and was recorded as a derivative liability. The Company recorded a discount on the note for beneficial conversion feature of the note. The $952,254 discount on the beneficial conversion feature was amortized as interest expense over the term of the note. As of September 30, 2015, the Company amortized $952,254 of the discount, with no remaining unamortized discount being offset against the outstanding balance of the note in the accompanying balance sheet.  As of December 31, 2017 and 2016, the Company had accrued interest payable on the debenture of $334,802 and $233,802.










FUTURE HEALTHCARE OF AMERICA AND SUBSIDIARIES

NOTES TO FINANCIAL STATEMENTS


NOTE 5 – DERIVATIVE FINANCIAL INSTRUMENTS


The Company entered into a variable rate senior secured convertible debenture, wherein the Company agreed to register the underlying share, warrants and greenshoe.  The fair value of the beneficial conversion feature of the warrants and greenshoe was estimated using the Black Scholes pricing model and totaled $952,254 upon issuance and was recorded as a derivative liability until the registration of the shares becomes effective.  As of December 31, 2017, the fair value of warrants based on a binomial model using the following assumptions (Life 0.69 years, risk free interest rate 1.53%, volatility of 219.6%; stock price of $.05 and exercise price of $.50) was $43,726, resulting in the recording of a gain totaling $9,762 during 2017.


NOTE 6 – FAIR VALUE OF FINANCIAL INSTRUMENTS


The Fair Value Measurement and Disclosure Topic of FASB and ASC:

·

Defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, and establishes a framework for measuring fair value;

·

Establishes a three-level hierarchy for fair value measurement based upon the transparency of inputs to the valuation as of the measurement date;

·

Expands disclosures about financial instruments measured at fair value.


Financial assets and financial liabilities record on the Balance sheet at fair value are categorized based on the reliability of inputs to the valuation techniques as follows:


Level 1: Financial assets and financial liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that the Company can access.


Level 2: Financial assets and financial liabilities whose values are based on the following:


Quoted prices for similar assets or liabilities in active markets; Quoted prices for identical or similar assets or liabilities in non-active markets or Valuation models whose inputs are observable, directly or indirectly, for substantially the full term of the assets or liability.


Level 3: Financial assets and financial liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs may reflect our estimates of the assumptions that market participants would use in valuing the financial assets and financial liabilities.


The following tables summarize Level 1, 2 and 3 financial assets and financial (liabilities) by their classification in the Consolidated Balance Sheet:

Level 1

Level 2

Level 3


As of December 31, 2017

Derivative liability - Registration rights of

     Debenture and warrants

-

-

(43,726)


NOTE 7 - CAPITAL STOCK


Common Stock - The Company has authorized 200,000,000 shares of common stock, $0.001 par value.  As of December 31, 2017, 11,265,631 shares were issued and outstanding.  













FUTURE HEALTHCARE OF AMERICA AND SUBSIDIARIES

NOTES TO FINANCIAL STATEMENTS


NOTE 8 – WARRANTS


 A summary of the status of the warrants granted is presented below for the twelve months ended:


 

December 31, 2017

 

December 31, 2016

 

Shares

 

Weighted Average Exercise Price

 

Shares

 

Weighted Average Exercise Price

Outstanding at beginning of period

3,030,000

$

0.50

 

3,030,000

$

0.50

Granted

-

 

-

 

-

 

-

Exercised

-

 

-

 

-

 

-

Forfeited

-

 

-

 

-

 

-

Expired

-

 

-

 

-

 

-

Outstanding at end of period

3,030,000

$

0.50

 

3,030,000

$

0.50


On September 9, 2013, the Company closed a Subscription Agreement wherein the Company granted warrants to purchase a total of 3,030,000 shares of common stock, at $0.50 per share, exercisable for four years. On September 9, 2017 the expiration date of the warrants was extended to September 9, 2018.


NOTE 9 - INCOME TAXES


The Company accounts for income taxes in accordance with FASB ASC Topic 740, Accounting for Income Taxes which requires the Company to provide a net deferred tax asset or liability equal to the expected future tax benefit or expense of temporary reporting differences between book and tax accounting and any available operating loss or tax credit carryforwards.  At December 31, 2017 and 2016, the total of all deferred tax assets was $939,351 and $1,296,820, respectively, and the total of the deferred liabilities was $0 and $0, respectively.  The amount of and ultimate realization of the benefits from the deferred tax assets for income tax purposes is dependent, in part, upon the tax laws in effect, the Company’s future earnings, and other future events, the effects of which cannot be determined. . Because of the uncertainty surrounding the realization of the deferred tax assets the Company has established a valuation allowance of $939,351 and $1,296,820 for the years ended December 31, 2017 and 2016.  The change in the valuation allowance for the year ended December 31, 2017 and 2016 was $357,468 and $141,931, respectively.


The components of income tax expense (benefit) from continuing operations for the Years ended December 31, 2017 and 2016 consist of the following:


 

 

For the Years Ended

 

 

December 31,

 

 

2017

 

2016

Current tax expense:

 

 

 

 

    Federal

$

-

$

-

    State

 

-

 

-

Current tax expense

 

-

 

-

 

 

 

 

 

Deferred tax expense (benefit):

 

 

 

 

    Wage Accrual

 

(38.999)

 

-

    Goodwill

 

46,383

 

46,383

    Revaluation of deferred tax asset

 

498,576

 

-

    Valuation Allowance

 

(357,468)

 

141,931

    Net operating loss carryforward

 

(148,492)

 

(188,314)

Subtotal deferred tax expense/(benefit)

 

-

 

-

Income tax expense/(benefit)

$

-

$

-

FUTURE HEALTHCARE OF AMERICA AND SUBSIDIARIES

NOTES TO FINANCIAL STATEMENTS


NOTE 9 - INCOME TAXES – Continued


Deferred income tax expense/(benefit) results primarily from the reversal of temporary timing differences between tax and financial statement income.  A reconciliation of income tax expense at the federal statutory rate to income tax expense at the company’s effective rate is as follows:  

 

 

For the Years Ended

 

 

December 31,

 

 

2017

 

2016

 

 

 

 

 

Computed tax at the expected statutory rate

$

(129,390)

$

(96,449)

    State and local income taxes, net of federal

 

47,494

 

(8,727)

    Other non-deductible expenses

 

(3,042)

 

(36,755)

    Change in federal corporate tax rate

 

498,576

 

-

    Other items

 

(56,170)

 

-

    Valuation Allowance

 

(357,468)

 

141,931

Income tax expense/(benefit)

$

-

$

-


The temporary differences, tax credits and carryforwards gave rise to the following deferred tax asset December 31, 2017 and 2016:

 

 

December 31,

 

December 31,

 

 

2017

 

2016

Deferred tax assets (liabilities):

 

 

 

 

    Allowance for doubtful accounts

$

4,781

$

7,318

    Accrued wages

 

25,476

 

-

    Goodwill - impaired

 

454,507

 

695,744

    Goodwill – tax amortization

 

(346,687)

 

(484,313)

    Depreciation

 

73

 

112

    Net operating loss carryforward

 

801,201

 

1,077,959

    Valuation allowance

 

(939,351)

 

(1,296,820)

Net term deferred tax assets (liabilities)

$

-

$

-


At December 31, 2017, the company has loss carryforwards of approximately $3,375,920 that expire in various years through 2037.


We file U.S. federal, and U.S. states returns, and we are generally no longer subject to tax examinations for years prior to 2014 for U.S. federal and U.S. states tax returns.


NOTE 10 - LEASES


Operating Lease - The Company leases office space in Casper, Wyoming for $4,892 a month through June 2018.  The Company further leases space in Billings, Montana for $1,525 a month through May 2020.


The future minimum lease payments for non-cancelable operating leases having remaining terms in excess of one year as of December 31, 2017 are as follows:


Year ending December 31:

 

 

Lease Payments

2018

 

 

47,652

2019

 

 

18,300

2020

 

 

7,625

Thereafter

 

 

-

Total Minimum Lease Payment

 

$

73,577








FUTURE HEALTHCARE OF AMERICA AND SUBSIDIARIES

NOTES TO FINANCIAL STATEMENTS


NOTE 10 – LEASES – Continued


Lease expense charged to operations was $76,829 and $76,584 for the periods ended December 31, 2017 and 2016, respectively.


NOTE 11 –LOSS PER SHARE


The following data shows the amounts used in computing loss per share and the weighted average number of shares of common stock outstanding for the periods presented for the periods ended:


 

 

December 31, 2017

 

December 31, 2016

 

 

 

 

 

Loss from continuing operations available to common stockholders (numerator)

$

(380,559)

$

(283,673)

Loss available to common stockholders (numerator)

 

(380,559)

 

(283,673)

Weighted average number of common shares outstanding during the period used in loss per share (denominator)

 

11,265,631

 

11,265,631


At December 31, 2017 and 2016, the Company had 3,030,000 and 3,030,000, respectively warrants to purchase common stock of the Company at $0.50 per share, and a convertible debenture payable wherein the holder could convert the note and underlying accrued interest into a minimum of 14,241,759 and 6,568,564, respectively shares of common stock which were not included in the loss per share computation because their effect would be anti-dilutive.


NOTE 12 – COMMITEMENTS AND CONTINGENCIES


On June 17, 2016 and June 30, 2016 two complaints were filed with the Federal Equal Employment Opportunity Commission (EEOC) and the Wyoming State Department of Labor against the Company, alleging discrimination on the basis of sex and disability.  The complaints do not seek any specific monetary relief.  The complaints are being mediated by the Wyoming State Department of Labor. The Wyoming State Department of Labor issued a notice of dismissal for one of the complaints.  After reviewing the facts and circumstances, the Company believes the claims made are weak, at best, and the Company has retained counsel and intends to continue a vigorous defense. At this time, management cannot reasonably estimate the cost to defend or the outcome of the complaints, and we do not expect it will have a material financial impact on the Company.


On February 9, 2018, a former employee filed a lawsuit against Interim Healthcare of Wyoming, claiming wrongful termination.


On March 6, 2018, a complaint was filed with the Wyoming Court of Natrona county, alleging violation of the Wyoming Fair Employment Practices Act of 1965 for discrimination based upon sex, disability and retaliation.  The complaint does not seek any specific monetary relief. At this time, management cannot reasonably estimate the cost to defend or the outcome of the complaints.


















FUTURE HEALTHCARE OF AMERICA AND SUBSIDIARIES

NOTES TO FINANCIAL STATEMENTS


NOTE 13 - CONCENTRATION OF REVENUES


For 2017 and 2016, Medicare and Medicaid reimbursement was 37% and 36% of revenue, respectively.


The following is a break out of revenue by major customer:


 

 

 

 

 

2017

 

2016

Medicare

$     879,841

 

$     736,046

Medicaid

471,059

 

639,844

All Other

2,262,762

 

2,464,242

Total Sales

$  3,613,662

 

$  3,840,132

 

 

 

 


NOTE 14 - SUBSEQUENT EVENTS


Management has evaluated subsequent events through the date of the filing of this report


On February 9, 2018, a former employee filed a lawsuit against Interim Healthcare of Wyoming, claiming wrongful termination.


On March 6, 2018, a complaint was filed with the Wyoming Court of Natrona county, alleging violation of the Wyoming Fair Employment Practices Act of 1965 for discrimination based upon sex, disability and retaliation.  The complaint does not seek any specific monetary relief. At this time, management cannot reasonably estimate the cost to defend or the outcome of the complaints.


































Item 9.Changes in and Disagreements withWith Accountants on Accounting and Financial Disclosure


None; notNot applicable.


Item 9A.Controls and Procedures


Disclosure Controls and Procedures—We maintainProcedures

Our management, under the supervision and with the participation of our Chief Executive Officer (CEO), our principal executive officer, and our Chief Financial Officer (CFO), our principal financial and accounting officer, conducted an evaluation of the effectiveness of our disclosure controls and procedures as of December 31, 2018, the end of the period covered by this Annual Report, pursuant to Rules 13a-15(b) and 15d-15(b) under the Securities Exchange Act of 1934, as amended (Exchange Act).

In connection with that areevaluation, our CEO and CFO concluded that, as of December 31, 2018, our disclosure controls and procedures were effective. For the purpose of this review, disclosure controls and procedures means controls and procedures designed to ensure that information we are required to disclosebe disclosed by us in the reports that we file or submit under the Securities Exchange Act of 1934 (the “Exchange Act”), such as this Annual Report on Form 10-K, is recorded, processed, summarized and reported within the time periods specified by SECin the Securities and Exchange Commission’s rules and forms. DisclosureThese disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information we are required to disclosebe disclosed by us in the reports that we file or submit under the Exchange Act is accumulated and communicated to our management, including the Chief Executive Officer (“CEO”)our principal executive officer, principal financial officer and the Chief Financial Officer (“CFO”),principal accounting officer, as appropriate to allow timely decisions regarding required disclosure.


Our management evaluated, with the participation of our CEO and CFO, the effectiveness of our disclosure controls and procedures as of December 31, 2017, pursuant to paragraph (b) of Rules 13a-15 and 15d-15 under the Exchange Act. This evaluation included a review of the controls’ objectives and design, the operation of the controls, and the effect of the controlsManagement’s Annual Report on the information presented in this Annual Report. Our management, including the CEO and CFO, do not expect that disclosure controls can or will prevent or detect all errors and all fraud, if any. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Our disclosure controls and procedures are designed to provide such reasonable assurance of achieving their objectives. Also, the projection of any evaluation of the disclosure controls and procedures to future periods is subject to the risk that the disclosure controls and procedures may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.


Based on their review and evaluation, and subject to the inherent limitations described above, our CEO and CFO have concluded that our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) were effective as of December 31, 2017 at the above-described reasonable assurance level.


Internal Control over Financial Reporting—Management

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. Our internalInternal control over financial reporting is a process designed by, or under the supervision of, our CEO and CFO and effected by our Board of Directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted inaccounting principles. Our management, under the United Statessupervision and with the participation of America.


Becauseour CEO and CFO, conducted an evaluation of inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Therefore, even internal controls determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. Thethe effectiveness of our internal control over financial reporting is subject to various inherent limitations, including cost limitations, judgments usedbased on the framework in decision making, assumptions aboutInternal Control — Integrated Framework (2013) issued by the likelihoodCommittee of future events, the possibility of human error, and the risk of fraud. The projection of anySponsoring Organizations (COSO). Based on such evaluation, of effectiveness to future periods is subject to the riskmanagement concluded that controls may become inadequate because of changes in conditions, or that the degree of compliance with policies may deteriorate. Because of these limitations, there can be no assurance that any system ofour internal control over financial reporting will be successful in preventing all errors or fraud or in making allwas not fully effective as of December 31, 2018 because of material information known inweaknesses that include a timely mannerlack of segregation of duties, lack of controls over significant and unusual transaction such as the business combination and a lack of formal review process to the appropriateinclude multiple levels of management.review.


This annual reportAnnual Report does not include an attestation report of the company’sour independent registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation requirements by the company’sour independent registered public accounting firm pursuant to rules of the Securities and Exchange Commission that permit us to provide only management’s report in this Annual Report. We are a smaller reporting company and are exempt from the requirement for an attestation report on the Company’s internal controls over financial reporting by our registered public accounting firm.

Changes in Internal Control over Financial Reporting

At November 13, 2018 the company entered into a share exchange transaction with Natur Holding BV. At the moment of this requirement issuerstransaction the former Chief Financial Officer and the Chief Operating Officer resigned and were replaced.


Inherent Limitations on Effectiveness of Controls

Our management, including our CEO and CFO, do not expect that are neither accelerated filers nor large accelerated filers.


There has been no change inour disclosure controls or our internal control over financial reporting during the quarter ended December 31, 2017 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.











Management’s Report on Internal Control over Financial Reporting


Management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934). Our internal control over financial reporting is designed to provide reasonable assurance to management and the Board of Directors regarding the preparation and fair presentation of published financial statements. Because of its inherent limitations, internal control over financial reporting may notwill prevent or detect misstatements. Therefore, even those systems determined to be effectiveall errors and all fraud. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance with respectthat the control system’s objectives will be met. The design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to financial statement preparationtheir costs. Further, because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and presentation. Management assessedinstances of fraud, if any, have been detected. These inherent limitations include the effectivenessrealities that judgments in decision-making can be faulty and that breakdowns can occur because of our internal control over financial reporting as of December 31, 2017.  In making this assessment, management used the criteria set forthsimple error or mistake. Controls can also be circumvented by the Committeeindividual acts of Sponsoring Organizationssome persons, by collusion of two or more people, or by management override of the Treadway Commission (COSO)controls. The design of any system of controls is based in Internal Control — Integrated Framework. Basedpart on this assessment, management has determinedcertain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Projections of any evaluation of controls effectiveness to future periods are subject to risks. Over time, controls may become inadequate because of changes in conditions or deterioration in the Company’s internal control over financial reporting asdegree of December 31, 2017 was effective.  compliance with policies or procedures.

 

Item 9B.Other Information


None; not applicable.None.



PART III


Item 10.Directors, Executive Officers and Corporate Governance.


DIRECTORS AND EXECUTIVE OFFICERSGovernance

 

The following table sets forth:Executive Officers and Directors


·

Set forth below is information regarding the names of our current directors and executive officers

·

their ages of the Company as of March 27, 2018, which is the date for filing of this 10-K;Prospectus. Directors are to be elected each year by our stockholders at an annual meeting. Each director holds his office until his successor is elected and qualified or resignation or removal. Executive officers are appointed by our board of directors. Each executive officer holds his office until he resigns or is removed by the board of directors or his successor is appointed and qualified.

·

NameAgeTitle
Robert Paladino61Chief Executive Officer and Director
Ellen Berkers45Chief Financial Officer and Director
Christopher Spencer50Director
Anthony Joel Bay63Director
Rudolf Derk Huisman69Director
Nina Storms65Director
Frans van der Minne71Director

the capacities in which they currently serve FHA :



Name

  

Age

  

Position(s)

  

Served in Position Since

Christopher J. Spencer

 

49

 

Chief Executive Officer and Chairman of the Board

 

2012

John Busshaus

  

54

  

Chief Financial Officer

  

2012

Denis Yevstifeyev

 

36

 

Director

 

2012

Douglas Polinsky

 

58

 

Director

 

2012

J. Gregory Smith

 

48

 

Director

 

2012


Christopher SpencerRobert Paladinohas served as ourbeen the Chief Executive Officer President and as a director of FHAthe Company since its inceptionFebruary 8, 2019. Mr. Paladino joined the Company’s wholly-owned subsidiary, Natur Holding B.V., a Netherlands-based company (“Natur”), as the Chief Executive Officer in November 2018, after leading two different emerging brands in the U.S. beverage industry refrigerated juice categories. From January 2017 until November 2018, Mr. Paladino served as Chief Executive Officer of Pure Brazilian LLC, the U.S. marketing and distribution arm of The Pure Brazilian Company S.L. a Spanish holding company marketing coconut waters from Brazil with plantation and bottling assets in Brazil. From September 2014 through January 2017, Mr. Paladino served as Chief Executive Officer of World Waters LLC, the sales, marketing and distribution company for the breakout brand WTRMLN WTR and the first commercially available watermelon juice in the refrigerated section of grocery stores. For the period preceding his time with World Waters, he was an investor in, and independent advisor to, several entrepreneur-led ventures in Florida, California and Nevada. His earlier experience includes senior executive positions with PepsiCo and Coors Brewing Company.

Ellen Berkershas been the Chief Financial Officer and a director of the Company since the consummation of that certain Share Exchange Agreement among the Company and the former shareholders of the Company’s wholly-owned subsidiary, Natur, on November 13, 2018, and was Chief Executive Officer from such time until February 8, 2019. Ms. Berkers has been the Chief Financial Officer for Natur since November 2016. She has over 20 years of international finance experience and worked for various international companies, including being the Chief Financial Officer of Round Table Media since February 2017, an Interim Finance Director of KPMG Crimsonwing BV from June 22, 2012.2016 to November 2016, and Division Finance Director at Xerox Services from March 2012 to April 2016. She also held finance positions with Amtrada Holding B.V., Wolff Cinema Group, Delta Partners, Sara Lee Corporation and Nuon. Ms. Berkers was also the Sarbanes Oxley Compliance Manager at Xerox in Barcelona Spain from Many 2006 to 2007. Ms. Berkers began her career as an auditor at PricewaterhouseCoopers, holds an MSc from Erasmus University, Rotterdam and a post-graduate degree in auditing.

Christopher Spencerhas been a director of the Company since 2012 and served as the Company’s Chief Executive Officer and President from 2012 until November 13, 2018. From 2015 to the present, Mr. Spencer has been responsible for our overall direction since our inception and has been instrumental in leading us to our current position in the home healthcare industry.  From 2015 to present, Mr. Spencer servesserved as Chief Executive Officer and director of Liberated Syndication Inc., an issuer with securities registered under Section 12 of the Exchange Act. From and from 1996 to the present, Mr. Spencer serveshas served as Chief Executive Officer and director of FAB Universal Corp, an issuer with securities registered under Section 12 of the Exchange Act.Corp. Mr. Spencer also served as a member of the Board of Directors for Anpath Group Inc. from February 2013 throughuntil November 2015.

Anthony Joel Bay has been a director of the Company and of Natur since his appointment on January 16, 2019. Since April 2017 Mr. Bay has served as the CEO and Chairman of UPROAR Global Media, a global streaming platform operating from London, UK and Seattle, Washington. Prior to this Mr. Bay was the Global Head of Digital Video for Amazon.com in Seattle, Washington, and served in senior executive positions with Microsoft and Apple Mr. Bay has been appointed as a director of the Company for his knowledge and experience in technology, electronic commerce, digital media and supply chain logistics and for his experience as a senior executive at three of the most valuable technology companies in the world. In addition, his roles as a director of private and public companies brings strength in corporate governance and board oversight.


Rudolf Derk Huisman has been a director of the Company and of Natur since his appointment on January 16, 2019. Currently, Mr. Huisman is the strategic advisor of Arbor Media, a Dutch based leading suppliers of audio and video conferencing and archiving solutions and a strategic consultant for risk management. From May 2015 to September 2018, Mr. Huisman was the Global Transition Lead at FEDEX/TNT, responsible for the transition of 14 finance and non-finance processes from 53 countries to a BPO provider. From 2011 to March 2015, Mr. Huisman was the Finance Director of the BA Decorative Paints of AkzoNobel, where he was responsible for the development and successful implementation of a turn-around program of the European business. Mr. Huisman has been appointed as a director of the Company for his financial experience within the corporate context as a chief financial officer and for his familiarity with corporate governance structures and requirements. Additionally, he has experience in emerging entrepreneurships and in turn-around situations.

Nina Stormshas been a director of the Company and of Natur since her appointment on January 16, 2019. Ms. Storms is a well-known entrepreneur having led technology and telecommunication companies in Europe and has served as Advisory Board Member of Natur Holding B.V. from January 2014 to January 2019. In 1994 Mrs. Storms founded World Online, which became one of the largest Pan-European Internet telecommunication companies. By 2000 World Online was listed on the stock exchange with an enterprise value greater than EUR 12 billion. Afterwards, she invested in numerous Media and Internet companies. Mrs. Storms, who holds a PhD, is a published author on the subject of creative accounting / fraudulent reporting co-written with published Profs. Rob Kamerling and Henk Langendijk. Mrs. Storms has been appointed as a director of the Company for her role as a co-founder of Natur Holding B.V. and her knowledge of its operations and expansion in Europe and the UK. She is the primary strategist and innovator of the Company.

Frans van der Minnehas been a director of the Company and of Natur since the appointment on March 1, 2019. Mr. van der Minne has been serving in a strategic advisory role to Heineken NV from 2009 until 1996,his retirement in 2103. Prior to that role, Mr. Spencer founded and worked for ChinaWire, Inc.,van der Minne spent 35 years with Heineken NV in a high-technology company engaged in financial remittance between international locations and China.  Mr. Spencer worked for Lottoseries of increasingly responsible roles, including Chief Executive Officer of Heineken USA, Inc. from 1992-1994, where he was founder and Chief Executive Officer for the Pennsylvania computer networking company.  From 1990 until 1992,2000 to 2006. Mr. Spencer worked for John Valiant, Inc., and was responsible for business concept development and obtaining financing.  


John Busshaus has served as our Chief Financial Officer of FHA since its inception on June 22, 2012.  Mr. Busshausvan der Minne has been responsible for our overall accounting and financial reporting functions since joining FAB Universal, an issuer with securities registered under Section 12 of the Exchange Act, in April 2006 and currently serves as Chief Financial officer for FAB Universal Corp. From 2004 to 2006, Mr. Busshaus was an independent business consultant.  Mr. Busshaus’ efforts were assisting organizations with the implementation of Sarbanes Oxley, filing of SEC reports, and taking a company through an IPO.  Mr. Busshaus worked for Talanga International from 2001 to 2004, where he was the Chief Financial Officer for the company.  From 1999 to 2000, Mr. Busshaus worked for Mellon Bank as Controller and Vice President, and was responsible







for strategic planning and managing the annual and monthly budgeting within Global Security Services.  From 1994 to 1998, Mr. Busshaus worked for PepsiCo as Senior Business Planner, and was responsible for annual and quarterly budgets planning, as well as weekly, monthly and quarterly reporting of results.  As a member of management, Mr. Busshaus' efforts contributed to the revenue growth and market share increases in a market that was categorized as saturated.

Douglas Polinsky has served as a Director of FHA since its inception on June 22, 2012.  Mr. Polinsky currently servesappointed as a director of the Company for FAB Universal Corp.his knowledge of consumer goods development, commercialization and Liberated Syndication Inc.,probability.

Audit Committee

The Company is not required to have and currently does not have an Audit Committee. The Company’s Board of Directors performs the same functions of an Audit Committee, including recommending a subsidiaryfirm of FAB Universal Corp.  Mr. Polinsky servesindependent certified public accountants to audit the financial statements; reviewing the auditors’ independence, the financial statements and their audit report; and reviewing management’s administration of the system of internal accounting controls.

Although the Company does not have and is not required to have an Audit Committee, the directors have determined that Ms. Berkers qualifies as the President of Great North Capital Corp., a Minnesota-basedan “audit committee financial services company he founded in 1995.  Great North advises corporate clients on capital formation and other transaction-related financial matters.  Mr. Polinsky earned a Bachelor of Science degree in Hotel Administration at the University of Nevada at Las Vegas.


Greg Smith has servedexpert” as a Directorresult of FHA since its inception on June 22, 2012.  Mr. Smith currently serves as a director for FAB Universal Corp.her past business experience and Liberated Syndication Inc., a subsidiary of FAB Universal Corp.  Mr. Smith is an award-winning producer and entrepreneur with over 10 years of experience in Non-Fiction Television.  In 2000, Mr. Smith established The Solution Film Group, LLC and acts as the Company’s President.  Mr. Smith provides professional production and editorial support for various forms of non-fiction television entertainment, including the direction of media projects from development through production and post-production.  His clients include Discovery Channel, Science Channel, Discovery HD Theater, Animal Planet, The Military Channel, PBS, and Discovery Networks International.  Mr. Smith most recently won an Emmy in 2006 for the Discovery Channel’s animated special Before the Dinosaurs.  His other awards for excellence in production and editing include Emmys for the Discovery Channel’s Walking with Prehistoric Beasts and Allosaurus:  A Walking with Dinosaurs Special.  From 1997 to 2000, Mr. Smith worked for Discovery Communications, Inc. in the capacity of Supervising Producer from January 1998 to November 2000, and Producer/Editor from October 1997 to January 1998. From 1995 to 1996, Mr. Smith worked for Discovery Channel Pictures serving as Assistant Editor from March 1996 to October 1997, and Production Assistant from September 1995 to March 1996. From 1994 to 1995, Mr. Smith worked for Crawford Communications in Atlanta, Georgia as a Manager of Satellite Services for The Learning Channel.education.


Denis Yevstifeyev has served as a Director of FHA since its inception on June 22, 2012.  Mr. Yevstifeyev currently serves as a director for FAB Universal Corp. and Liberated Syndication Inc., a subsidiary of FAB Universal Corp.  From December 2017 to present, Mr. Yevstifeyev served as Vice President of Financial Planning & Analysis and Procurement for Dream Center Education Holdings. From 2009 to 2012, and from 2015 to 2017, Mr. Yevstifeyev served as the Director of Financial Planning & Analysis for Education Management Corporation.  From 2012 to 2015, Mr. Yevstifeyev owned and operated his commercial printing company.  From 2007 to 2008, Mr. Yevstifeyev served as Sr. FinancialSection 16(a) Beneficial Ownership Reporting Analyst for American Eagle Outfitters, Inc, in Pittsburgh.  His duties included: preparing and analyzing various internal and external financial reports; researching new accounting pronouncements and evaluating any impact on the financial statements.  He also reviewed accounting workpapers and prepared the company’s SEC filings for forms 8-K, 10-Q and 10-K.  From 2005 to 2007, Mr. Yevstifeyev worked for Schneider Downs, Inc., where he worked on Sarbanes-Oxley compliance engagements. In 2005, Mr. Yevstifeyev graduated with a Bachelor of Science degree in Business from Washington and Jefferson College.  He also graduated with honors from the Moscow Bank College of the Central Bank of Russia in Moscow with a degree in Finance in 2000.  From 2002 to 2003, Mr. Yevstifeyev served as the Settlement Department Manager for SDM BANK in Moscow, where he dealt with domestic and international corresponding banks, among other responsibilities. Compliance


There are no non-officer employees who are expected to make a significant contribution to the business.


Family Relationships.


There are no family relationships between any of our directors or executive officers.


Involvement in Certain Legal Proceedings.


During the past ten years, none of our present or former directors, executive officers or persons nominated to become directors or executive officers:


(1) A petition under the Federal bankruptcy laws or any state insolvency law was filed by or against, or a receiver, fiscal agent or similar officer was appointed by a court for the business or property of such person, or any partnership in which he was a general partner at or within two years before the time of such filing, or any corporation or business association of which he was an executive officer at or within two years before the time of such filing;








(2) Such person was convicted in a criminal proceeding or is a named subject of a pending criminal proceeding (excluding traffic violations and other minor offenses);


(3) Such person was the subject of any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining him from, or otherwise limiting, the following activities:


(i) Acting as a futures commission merchant, introducing broker, commodity trading advisor, commodity pool operator, floor broker, leverage transaction merchant, any other person regulated by the Commodity Futures Trading Commission, or an associated person of any of the foregoing, or as an investment adviser, underwriter, broker or dealer in securities, or as an affiliated person, director or employee of any investment company, bank, savings and loan association or insurance company, or engaging in or continuing any conduct or practice in connection with such activity;


(ii) Engaging in any type of business practice; or


(iii) Engaging in any activity in connection with the purchase or sale of any security or commodity or in connection with any violation of Federal or State securities laws or Federal commodities laws;


(4) Such person was the subject of any order, judgment or decree, not subsequently reversed, suspended or vacated, of any Federal or State authority barring, suspending or otherwise limiting for more than 60 days the right of such person to engage in any activity described in paragraph (f)(3)(i) of this section, or to be associated with persons engaged in any such activity;


(5) Such person was found by a court of competent jurisdiction in a civil action or by the Commission to have violated any Federal or State securities law, and the judgment in such civil action or finding by the Commission has not been subsequently reversed, suspended, or vacated;


(6) Such person was found by a court of competent jurisdiction in a civil action or by the Commodity Futures Trading Commission to have violated any Federal commodities law, and the judgment in such civil action or finding by the Commodity Futures Trading Commission has not been subsequently reversed, suspended or vacated;


(7) Such person was the subject of, or a party to, any Federal or State judicial or administrative order, judgment, decree, or finding, not subsequently reversed, suspended or vacated, relating to an alleged violation of:


(i) Any Federal or State securities or commodities law or regulation; or


(ii) Any law or regulation respecting financial institutions or insurance companies including, but not limited to, a temporary or permanent injunction, order of disgorgement or restitution, civil money penalty or temporary or permanent cease-and-desist order, or removal or prohibition order; or


(iii) Any law or regulation prohibiting mail or wire fraud or fraud in connection with any business entity; or


(8) Such person was the subject of, or a party to, any sanction or order, not subsequently reversed, suspended or vacated, of any self-regulatory organization (as defined in Section 3(a)(26) of the Exchange Act (15 U.S.C. 78c(a)(26))), any registered entity (as defined in Section 1(a)(29) of the Commodity Exchange Act (7 U.S.C. 1(a)(29))), or any equivalent exchange, association, entity or organization that has disciplinary authority over its members or persons associated with a member.


SECTION 16(a) BENEFICIAL OWNERSHIP REPORT COMPLIANCE


Section 16(a) of the Securities Exchange Act of 1934 requires our executive officers and directors, and persons who own more than 10%ten percent of a registered class of our equity securities, to file reports of ownership and changes in ownership with the SEC. Officers,Executive officers, directors and greater than 10%ten-percent stockholders are required by SEC regulationsregulation to furnish us with copies of all Section 16(a) forms they file. Based solely on a review of the copies of such forms furnished to us, with respect to fiscal 2017 and onor written representations that no other reportsForms 5 were required, we believe that during the 2017 fiscal year all applicable Section 16(a) filing requirements applicable to our officers and directors were met.complied with during the fiscal year ended December 31, 2018.








CORPORATE GOVERNANCE


Code of Ethics

 

We upholdManagement of the Company upholds a set of basic values to guide ourtheir actions and aremanagement is committed to maintaining the highest standards of business conduct and corporate governance. We haveManagement has adopted a Code of Business Conduct and Ethics for directors, officers (including ourthe principal executive officer and principal financial officer) and employees, which, in conjunction with our Certificateemployees. Copies of Incorporation, Bylaws and Board of Directors committee charters, form the framework for governance of FHA.  The Code of Ethics and Business Conduct Boardmay be obtained free of Directors committee charters, Bylaws and Article of Incorporation are available at our corporate offices. Stockholders maycharge by written request free printed copies of these documents from:


Future Healthcare of America

Attn: CFO

5001 Baum Blvd.to Natur International Corp., Suite 770

Pittsburgh, PA 15213


Board of Directors Independence


Jachthavenweg 124, 1081 KJ Amsterdam, The Board of Directors has determined that each of J. Gregory Smith, Denis Yevstifeyev and Douglas Polinsky has no material relationship with us (either directly or as a partner, stockholder or officer of an organization that has a relationship with us) and satisfies the independence requirements required by the SEC. The non-management independent directors meet in executive session, without management, at least annually. Mr. Polinsky, an independent non-management director, chairs all executive session meetings of directors.


Committees of the Board of Directors


The Board of Directors has adopted written charters for two standing committees: the Nominating Committee and the Audit Committee. The Board has determined that all members of the Nominating and Audit Committees are independent and satisfy the relevant SEC independence requirements for members of such committees.


Nominating Committee.    The Nominating Committee currently consists of Mr. Polinsky as chair, Mr. Yevstifeyev, and Mr. Smith. This committee provides assistance to the Board in identifies individuals qualified to become members of the Board of Directors consistent with Board criteria. The committee also oversees the evaluation of the Board of Directors and management.  There have not been any material changes to the procedures by which stockholders recommend nominees to the Board of Directors.


Audit Committee.    The Audit Committee currently consists of Mr. Polinsky as chair, Mr. Yevstifeyev, and Mr. Smith.  Mr. Yevstifeyev, the Board of Directors has determined, is an “audit committee financial expert” as defined under SEC rules. This committee oversees the integrity of our financial statements, disclosure controls and procedures, the systems of internal accounting and financial controls, compliance with legal and regulatory requirements, the qualifications and independence of the independent auditors and the performance of our internal audit function and independent auditors, and the quarterly reviews and annual independent audit of our financial statements. Gregory & Associates, our independent auditors, reports directly to the Audit Committee.


We will provide a free printed copy of any of the charters of any Board committee to any stockholder on request.


Compensation Committee.    The Compensation Committee currently consists of Mr. Polinsky as chair, Mr. Yevstifeyev, and Mr. Smith. This committee provides assistance to the Board of Directors in overseeing our compensation policies and practices. It reviews and approves the compensation levels and policies for the Board of Directors; reviews and approves corporate goals and objectives with respect to CEO compensation and, based upon these evaluations, determines and approves the CEO’s compensation; makes recommendations to the Board of Directors with respect to non-CEO executive officer compensation. The Compensation Committee also has the responsibility to provide the report to stockholders on executive officer compensation, which appears below.










Item 11.  Executive Compensation.


COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION


No member of the compensation committee (i) was an officer or employee of the Company or a subsidiary of the Company during 2017, (ii) was formerly an officer of the Company or a subsidiary of the Company, or (iii) had any relationship required to be disclosed pursuant to Item 404 of Regulation S-K.


During fiscal 2017, none of the Company’s executive officers served as (i) a member of a compensation committee of another company, one of whose executive officers served on the Company’s compensation committee; (ii) a director of another company, one of whose executive officers served on the Company’s compensation committee; or (iii) a member of a compensation committee of another company, one of whose executive officers served as one of the Company’s directors.


COMPENSATION DISCUSSION AND ANALYSIS


Overview and General PhilosophyNetherlands, attention: Chief Financial Officer.

 

At FHA, our focus is to create value through expanding the payers and services that can utilize the services we offer within the healthcare industry. We are also focused on growing home healthcare business through new education programs and services for our clients. Our executive compensation program supports this goal of value creation by:Item 11.Executive Compensation

 

·

rewarding executives for obtaining performance milestones;

·

aligning the interests of executives with the interests of stockholders; and

·

attracting and retaining highly motivated and talented executives.


 Our compensation elements simultaneously fulfill one or more of these three objectives. The elements include:

·

base salary;

·

discretionary bonuses (in the form of cash, restricted stock, and stock options);

·

benefits programs.


The type and amount of compensation is determined considering current pay, competitive pay data from the external talent market and the opportunity for future pay. We combine compensation elements for each executive in a manner that will meet the performance, alignment and retention goals listed above as well as eliciting the best possible contribution from the executive.

Compensation Objectives

Our executive compensation philosophy is built around two objectives: supporting stockholder value creation through, aligning the interests of executives with the interests of stockholders, and attracting and retaining highly motivated and talented executives.

We use general industry data of companies which are a similar size to us based on market capitalization to establish market pay levels.

Obtained Performance Milestones:

We construct our annual bonus opportunities to have appropriately aggressive targets that require significant achievement against performance milestones.

Aligned Interests:

Our base pay practices reduce fixed costs and emphasize performance-based incentive programs, which we believe are in the best interests of stockholders.










We base our annual bonus opportunities on performance milestones and value to the stockholder that focus executives on performance results that are of common interest to stockholders.

We award long-term equity incentive opportunities using restricted stock so that appreciating stock value is a significant factor in executive compensation.

Executive Retention:

We believe our use of lower base salary levels accompanied by an emphasis on incentive programs attracts executives that are appropriately aggressive, innovative, and willing to risk a larger share of their compensation on their own performance and the performance of the Company.

Discretionary bonuses allow us to adjust to unique market conditions in a timely fashion in order to retain key executives.

Compensation Administration

General Process.    Executive compensation decisions at FHA are the product of several factors, modified by judgment and discretion as necessary. The predominant factors include:

key performance measurements such as revenue, and key business developments;

strategic initiatives such as acquisitions, and implementation of process improvements;

achievement of specific operational goals relating to the sphere of influence led by the executive;

compensation of other executives within the Company (to ensure internal equity); and

For the CEO, these factors are judged and compensation is recommended by the Compensation Committee of the Board of Directors and approved by the Board. For the other executive officers (including all of the named executives in the Summary Compensation Table), the factors are considered by the CEO, who recommends compensation levels. These judgments and recommendations are then reviewed and approved or revised by the Compensation Committee.

Generally, the Compensation Committee reviews and makes adjustments to base compensation once per year, effective at the beginning of each fiscal year (January 1). Annual incentives are typically paid within two months of the fiscal year end, usually in mid-February.  

Role of Compensation Committee.    The Compensation Committee oversees the design, development and implementation of our compensation program. The Committee evaluates the performance of the CEO and determines CEO compensation consistent with the objectives of the compensation program. The Committee also approves all incentive compensation plans and approves or revises recommendations made by the CEO for compensation decisions affecting other executives. The Committee also approves all bonuses, awards and grants under all incentive plans.

Role of CEO.    Our CEO is responsible for the implementation and administration of our compensation program throughout the organization. The CEO evaluates the performance of executives and, consistent with the objectives of the compensation program, meets with the Compensation Committee to consider and recommend compensation programs, set and evaluate performance milestone, and make specific recommendations on the form and amount of compensation for named executives. 

Compensation Components

Short-Term Compensation.    Consistent with our stated compensation philosophy, our key metric for executive short-term compensation is annual total cash compensation. Discretionary bonuses provide significant upside potential which results in targeted annual total cash compensation.








Our performance for fiscal 2017 was not on targeted levels.  


Base Salary.    We consider base salary a tool to provide executives with a reasonable base level of income relative to the scope of the positions they hold. Base salaries are established based on the level of responsibility for the position. With the exception of the CEO and named executives all base salaries are reviewed annually, and are adjusted from time to time to reflect changes in responsibility level.

In 2017, our named executives’ annual salaries were zero.  There was no increase in salary during 2017.


Annual Bonus.    Currently, there is not an established annual incentive bonus plan.

Discretionary Bonuses.    Because there is not an annual incentive plan, the Compensation Committee may determine a discretionary bonus is to be awarded to appropriately reward senior executives.  In these cases, discretionary bonuses are used to assure that executives are appropriately rewarded. The Committee determines discretionary bonuses for the CEO. The CEO recommends discretionary bonuses for all other named executives, which are then approved or adjusted by the Committee.

In fiscal year 2017, discretionary bonuses were not awarded to the executive officers.

Our Compensation Committee believes that we have executed on our compensation philosophy given the level of Company performance in fiscal 2017.

Long-Term Incentive Compensation.   In 2017, we did not have any such compensation plan.

In fiscal 2018, we plan to execute a long-term incentive design that will utilize stock options or restricted stock. For senior management, including named executives, the primary emphasis will be on stock awards. This results primarily in senior management focus on stock price performance, directly aligning the interests of executives with the interests of stockholders. It also puts a higher percentage of long-term compensation at risk as the design delivers less immediate value to executives.

All stock granted to the named executives by the Company must have prior Compensation Committee approval. The exercise price for all stock-based awards coincides with the date the Committee approves the award grant. It is against Company policy to back-date stock-based awards or to try to time stock-based awards for any reason and we have never engaged in these practices.

Award Adjustment or Recovery.    We do not have a policy to recover or otherwise adjust payments made or awards earned as a result of changes in subsequent periods relating to performance measures upon which such payments or awards are based, sometimes referred to as a “clawback” policy. We have not required any named executive to return any award or repay any payment received in any fiscal year.

Tax Deductibility of Compensation.    Section 162(m) of the Internal Revenue Code of 1986, as amended, imposes a $1,000,000 limit on the amount that a public company may deduct for compensation paid to named executives unless compensation is based on an individual’s meeting pre-established performance goals determined by a compensation committee and approved by stockholders.

Retirement and Other Benefits

Generally, we view retirement savings as a personal matter. We currently do not offer any pre-tax retirement savings through the use of a traditional 401(k) plan; a deferred compensation plan; or other retirement programs.

Perquisites.    Eligible employees, including named executives, participate in various other employee benefit plans, including medical and dental care plans; flexible spending accounts for health care; life, accidental death and dismemberment and disability insurance; and vacation plans. The primary purpose of providing these plans and limited perquisites to senior executives is to attract and retain talented executives to manage the Company. With respect to non-insurance perquisites, we prefer to take a minimalist approach. For fiscal 2017, the Company did not have executive non-insurance perquisites.







Compensation Committee Report

The Compensation Committee has reviewed and discussed the Compensation Discussion and Analysis set forth in this Annual Report with our management. Based on such review and discussions, the Compensation Committee recommended to our Board of Directors that the Compensation Discussion and Analysis be included in this Annual Report on Form 10-K.

Compensation Committee

Douglas Polinsky, Chairman

J. Gregory Smith

Denis Yevstifeyev

Summary Compensation Table

The following sets forth the compensation of FHA’s Chief Executive Officer during fiscal 2017, and the other persons who served as executive officers during fiscal 2017. Unless otherwise noted, the amounts shown represent what was earned in fiscal 2017.


SUMMARY COMPENSATION TABLE – FISCAL 2017


Name and principal position

Year

Salary ($)

Bonus ($)

Stock awards ($)

Option awards ($)

Non-equity incentive plan compensation ($)

Change in Pension Value and Nonqualified deferred compensation earnings ($)

All other compensation ($)

Total ($)

Chris Spencer – CEO

2017

(1)50,000

0

0

0

0

0

0

50,000

 

2016

50,000

0

0

0

0

0

0

50,000

 

2015

50,000

0

0

0

0

0

0

50,000

 

 

 

 

 

 

 

 

 

 

John Busshaus – CFO

2017

(1)50,000

0

0

0

0

0

0

50,000

 

2016

50,000

0

0

0

0

0

0

50,000

 

2015

50,000

0

0

0

0

0

0

50,000

(1) Earned but not paid as of 12/31/17.

Restricted Stock Awards

There were no issuances of restricted stock award during fiscal 2017 to any named executive.

Outstanding Equity Awards at Fiscal Year End

 

The following table sets forth information concerning outstandingthe compensation awarded to, earned by or paid to those persons who were the Company’s Chief Executive Officer and Chief Financial Officer in 2017 and 2018 (collectively, the “Named Executive Officers”).  There were no other executive officers of the Company whose total salary and bonus exceeded $100,000 for the periods presented. 

Name and
Principal Position
 Year  Earnings  Option
Awards
  All Other
Compensation
  Total
Compensation
 
                
Ellen Berkers(1) 2018  $21,562  $          -  $           -  $21,562 
Chief Executive and Chief
Financial Officer
                   
                    
Christopher Spencer(2) 2018  $●   $-  $-   
Chief Executive Officer 2017  $50,000(3) $-  $-  $50,000 
                    
John Busshaus(4) 2018  $  $-  $-  $ 
Chief Financial Officer 2017  $50,000(5) $-  $-  $50,000 

(1)Ms. Berkers was appointed Chief Executive Officer and Chief Financial Officer on November 13, 2018. Prior to this date she was appointed Chief Financial Officer at Natur Holding B.V.. On February 6, 2019, Ms. Berkers resigned as Chief Executive Officer in connection with the appointment of Robert Paladino to such office.

(2)Mr. Spencer resigned as Chief Executive Officer effective November 13, 2018.

(3)Earned but not paid as of December 31, 2017. The salary amounts due as of November 13, 2018 were settled by the issuance of an aggregate of 1,011,781 shares of common stock to Mr. Spencer.

(4)Mr. Busshaus resigned as Chief Financial Officer effective November 13, 2018.

(5)Earned but not paid as of December 31, 2017. The salary amounts due as of November 13, 2018 were settled by the issuance of an aggregate of 1,011,781 shares of common stock to Mr. Busshaus

Employment Arrangements

Mr. Spencer, the former Chief Executive Officer of the Company, continues as a director of the Company, provides services to the Company under a consulting arrangement to help in the winding down of the operations of the Company prior to the acquisition of Natur Holding BV and facilitate the transition requirements of the acquisition of Natur Holding, B.V. by the Company. Mr. Spencer is paid a monthly amount of $2,000 for the disclosure letter services.

Mr. Robert Paladino, the current Chief Executive Officer, and Ms. Ellen Berkers, the current Chief Financial Officer, are employed under agreements with Natur Holding BV through their respective personal service companies. See Item 13 for a description of their employment agreements.

Mr. Anthony Joel Bay, Mr. Rudolf Derk Huisman, and Ms. Nina Storms are compensated as directors through their respective personal service companies. See Item 13 for a description of these contractual arrangements.


Outstanding Equity Awards at Fiscal Year 2018 End

There were no equity awards outstanding for the named executivesNamed Executive Officers as of December 31, 2017.2018.

















OUTSTANDING EQUITY AWARDS AT DECEMBER 31, 2017

 

Option awards

 

Stock awards

Name

 

Number
of securities
underlying
unexercised
options
(#)
exercisable

Number
of securities
underlying
unexercised
options
(#)
unexercisable

Equity incentive plan awards: number of securities underlying unexercised unearned options (#)

Option
exercise
price
($)

Option 
expiration date

 

Number
of shares
or units
of stock
that have
not vested
(#)

Market value
of shares
or units
of stock
that have
not vested
($)

Equity incentive plan awards: number of unearned shares, units or other rights that have not vested (#)

Equity incentive plan awards: market or payout value of unearned shares, units or other rights that have not vested ($)

John L. Busshaus

 

0

0

0

0

-

 

0

0

0

0

Chris Spencer

 

0

0

0

0

-

 

0

0

0

0


Grants of Plan-Based Awards for 2017Fiscal Year 2018


There were no plan-based equity awards made to our executive officersthe Named Executive Officers during fiscal 2017.2018.

 

Option Exercises and Stock Vested at Fiscal Year 2018 End

 

The following table sets forth information concerning fiscal 2017There were no option exercises and restricted stock that vested during fiscal 20172018 for the named executives.Named Executive Officers.

 

OPTION EXERCISES AND STOCK VESTED DURING FISCAL 2017Pension Benefits

 

 

 

Option awards

 

Stock awards

Name

 

Number

of shares

acquired

on exercise

(#)

 

Value

realized on

exercise

($)

 

Number

of shares

acquired
on vesting

(#)

 

Value

realized

on vesting

($)

Christopher Spencer

 

0

 

0

 

0

 

0

John L. Busshaus

 

0

 

0

 

0

 

0

Pension Benefits


TheAs of December 31, 2018, the Company does not have any plans that provide for payments or other benefits at, following, or in connection with retirement.


From the first quarter 2019, the Company is planning to offer its employees a defined contribution plan, on a 60% employer costs and 40% employee costs basis. The pension plan is offered through a pension plan insurance provider and is currently in the process of being agreed upon.

Nonqualified Deferred Compensation

 

The Company does not have a Deferred Compensation Plan for its executive officers.

 

Other Potential Post-Employment Payments for Fiscal Year 2018 End

 

As of December 31, 2017,2018, there were no named executivesNamed Executive Officers with employment contracts that require or required severance or other post-employment payments.


Summary Information about Equity Compensation Plans

 

As of December 31, 2017, we had noThe Company currently has a stock option plan to incentivize those that contribute to the development and operations of the Company. This plan will be available for employees, consultants, officers and directors or similarly positioned persons of the parent company. 16,240,000 shares currently have been allocated to equity award plans or similar arrangements; it is contemplated that approximately 40,000,000 shares of Common Stock will additionally be allocated to such plans or arrangements. The terms of any equity award plan or arrangement and the terms of specific awards are determined by the board of directors after having satisfied the requirements of any tax laws, national exchange requirements and corporate requirements.


 .

No Loans for Option Exercises.    It is our policy to not make loans to employees or officers for the purpose of paying for the exercise of stock options.Director Compensation

 







Stockholder Approval of Equity Compensation Plans.    The following table presents information as of December 31, 2017, about our common stock that may be issued upon the exercise of options granted to employees, consultants or members of the Board of Directors under all of our existing equity compensation plans and individual arrangements.


 

  

 

  

 

  

 

Plan Category

  

Maximum shares
to be issued upon
exercise of options

  

Weighted-average
exercise price of
outstanding options

  

Shares remaining
available for future
issuance under
existing equity
compensation plans
(excluding shares
reflected in
first column)

Plans approved by stockholders

  

0

  

$

0.00

  

0

Plans not approved by stockholders

  

0

  

 

0.00

  

0

 

  

 

  

 

 

  

 

Total

  

0

  

$

0.00

  

0

 

  

 

  

 

 

  

 

DIRECTOR COMPENSATION

In 2017, we did not pay our non-employee directors a cash retainer. In 2018, the Board of Directors will consider stock options or other appropriate equity incentive grants to the outside directors. We reimburse directors for out-of-pocket expenses they incur when attending meetings of the Board.Board either directly or through their personal service company arrangements. Salaried or otherwise compensated executives who serve as directors aredo not paidreceive any compensation for their services as directors and accordingly, Christopher Spencer is not included in the director compensation table below.

The following table sets forth the compensation we paid our non-employee directors in 2017. Unless otherwise noted, the amounts shown represent what was earned in fiscal 2017.

DIRECTOR COMPENSATION TABLE – FISCAL 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Name

  

Fees earned
or paid
in cash
($)

  

Stock awards 
($)

 

Option awards 
($)

 

Non-equity incentive plan compensation ($)

 

Nonqualified deferred compensation earnings ($)

 

All other compensation ($)

 

Total
($)

Doug Polinsky

  

0

  

0

 

0

 

0

 

0

 

0

 

0

J. Gregory Smith

  

0

  

0

 

0

 

0

 

0

 

0

 

0

Denis Yevstifeyev

  

0

  

0

 

0

 

0

 

0

 

0

 

0

directors. As of December 31, 2017,2018, there were no stock options outstanding that were granted to the outsideany of our directors.

 

The directors of Natur, when appointed or otherwise taking office, will be compensated at a rate to be determined by the board of directors of Natur, with the approval of the board of directors of the Company. The compensation arrangement may be through a wholly owned personal service company of the director in certain cases.


Item 12.Security Ownership of Certain Beneficial Owners and Management and Related StockholderStockholders Matters

 

Securities Authorized for Issuance Under Equity Compensation Plans

Plan Category

  

Number of securities
to be issued upon
exercise of outstanding options, warrants and rights

  

Weighted-average
exercise price of
outstanding options, warrants and rights

  

Number of securities remaining
available for future
issuance under
equity
compensation plans
(excluding securities
reflected in
column (a))

Equity compensation plans approved by stockholders

  

0

  

$

0

  

0

Equity compensation plans not approved by stockholders

  

0

  

 

0

  

0

Total

  

0

  

$

0

  

0








Security Ownership of Certain Beneficial Owners


The following table sets forth certain information as of March 27, 2018 regarding the beneficial ownership of our common stock, for:

Name of Beneficial Owner Amount and Nature of
Beneficial Ownership(1)
  Percentage(2) 
       
Executive Officers and Directors      
       
Robert Paladino(3)  -   - 
Ellen Berkers  -   - 
Christopher Spencer  1,561,590   1.21%
Nina Storms  -   - 
Rudolf Derk Huisman(4)  -   - 
Anthony Joel Bay(5)  -   - 
Directors and executive officers as a group (6 persons)  1,561,590   1.21%
         
Five Percent Stockholders        
         
Alpha Capital Anstalt(6)  

5,905,270

   4.99%
SFI Gestion de Participaciones Minoritarias, SL(7)  82,450,133   63.9%
NL Life Sciences Holding B.V.(8)  82,450,133   43.2%
Efficiency Investment Fund – 6th Wave SP(9)  32,367,213   21.1%
Stichting Apollo Investments Management(10)  18,492,520   12.9%

  

(1)

Unless otherwise indicated, each person (or grouphas sole investment and voting power with respect to the shares indicated, subject to community property laws, where applicable. Includes any securities that such person has the right to acquire within sixty (60) days of affiliated persons) who, insofar as we have beenApril 12, 2019 pursuant to options, warrants, conversion privileges or other rights.

(2)Based on 131,765,194 shares of Common Stock issued and outstanding.

(3)Excludes shares of Common Stock that are subject to a stock option held by a personal service company for Mr. Paladino for an aggregate of 7,319,321 shares of Common Stock that vests quarterly over the three years commencing March 31, 2019 and is exercisable commencing January 1, 2022.

(4)Excludes shares of Common Stock that are subject to a director compensatory option held by a personal service company for Mr. Huisman for an aggregate of 7,319,321 shares of Common Stock that vests quarterly over the three years commencing March 31, 2019 and is exercisable commencing January 1, 2022.

(5)Excludes shares of Common Stock that are subject to a director compensatory option held by the personal service company for Mr. Bay for an aggregate of 7,319,321 shares of Common Stock that vests quarterly over the three years commencing March 31, 2019 and is exercisable commencing January 1, 2022.

(6)Alpha holds 2,397.131 shares of Series A Preferred Stock which are currently convertible into an aggregate of 79,105,402 shares of common stock. Alpha also holds two warrants to acquire up to 39,000,000 shares of common stock. The total number of shares of common stock that Alpha is able to ascertain, beneficially owned more than 5%acquire is 118,105,402 shares. Under the terms of the outstandingSeries A Preferred Certificate of Designation and the terms of the warrants, the holder thereof may not own in excess of 4.9% of the common stock of the Company, subject to its ability to increase that ownership level to 9.9%, which 4.9% amount currently is equal to 5,905,270 shares of our common stock;

stock. The address for Alpha Capital Anstalt is Pradafant 7, Furstentums 9490, Vaduz, Liechtenstein. Konrad Ackermann holds voting and dispositive power over such shares.

 

(7)

each director;

each named executive;The address of this stockholder is Crta. Madrid – Cartagena, Km. 383, Espinardo, Murcia, Spain. Jose Miguel Uriona holds voting and

all directors and executive officers as a group.

dispositive power over these shares.


(8)Includes 61,849,000 shares of Common Stock issuable upon conversion of 61,849 shares of Series B Preferred Stock. The address of this stockholder is Jachthavenweg 124, 1081 KJ Amsterdam, The Netherlands. Karen Brink holds voting and dispositive power over these shares.

(9)Includes 24,280,000 shares of Common Stock issuable upon conversion of 24,280 shares of Series B Preferred Stock. The address of this stockholder is c/o Walkers Corporate Limited, Cayman Corporate Centre, 27 Hospital Road, Grand Cayman, KY1-9008 Cayman Islands. Tommaso Mingazzini and Stefano Zavaglia hold voting and dispositive power over these shares.

(10)Includes 13,871,000 shares of Common Stock issuable upon conversion of 13,871 shares of Series B Preferred Stock. The address of this stockholder is c/o Apollo Investments C.V., Jachthavenweg 124, 1081 KJ Amsterdam, The Netherlands. Albert Brink and Clayton Day hold voting and dispositive power over these shares.

We relied on information received from each stockholder as to beneficial ownership, including information contained on Schedules 13D and 13G and Forms 3, 4 and 5.  As of March 27, 2018 there were 11,265,631 shares of common stock outstanding.


Name and Address of

Beneficial Owner (1)

  

Amount and Nature of

Beneficial Ownership (2)

 

 

Percent of

Class

 

5% Stockholders:

  

 

 

 

 

 

Christopher Spencer, Chief Executive Officer

  

1,000,000

 

 

8.9%

 

 

 

 

Directors:

  

 

 

 

 

 

Douglas Polinsky

  

112,500

 

 

1.0%

 

J. Gregory Smith

  

112,500

 

 

1.0%

 

Denis Yevstifeyev

  

112,500

 

 

1.0%

 

 

 

 

Executive Officers:

  

 

 

 

 

 

John L. Busshaus, Chief Financial Officer

  

359,426

 

 

3.2%

 

All directors and executive officers as a group (5 Persons)

  

1,696,926

 

 

15.1%

 

 (1)

The address of each director and officer is c/o Future Healthcare of America, 5001 Baum Blvd, Suite 770, Pittsburgh, Pennsylvania, 15213.

 (2)

The persons named in this table have sole voting and investment power with respect to all shares of common stock reflected as beneficially owned by them. A person is deemed to be the beneficial owner of securities that can be acquired by such person within sixty (60) days from March 27, 2018, and the total outstanding shares used to calculate each beneficial owner’s percentage includes such shares, although such shares are not taken into account in the calculations of the total number of shares or percentage of outstanding shares. Beneficial ownership as reported does not include shares subject to option or conversion that are not exercisable within 60 days of March 27, 2018.


Changes in Control


There are no known arrangements known to the Company, including any pledge by any person of securities of the Company, the operation of which may at a subsequent date result in a change in control of the Company.


Item 13.Certain Relationships and Related Transactions, and Director Independence.Independence


Transactions with Related Persons.Persons


DuringParent Corporation

Since the beginning of the fiscal year ended December 31, 2017,2018, there were no transactions, and there are no currently proposed transactions in which the Company was or is to be a participant and the amount involved exceeds the lesser of $120,000 or one percent of the average of the Company’s total assets at year-end for the last two completed fiscal years, and in which any related person had or will have a direct or indirect material interest.


Parents of the Issuer.


The Company has no parents.


Promoters and certain control persons.


 None; not applicable.







Director independence.


The Board of Directors has determined that each of J. Gregory Smith, Denis Yevstifeyev and Douglas Polinsky has no material relationshipa consulting arrangement with us (either directly orChristopher Spencer for his services as a partner, stockholder or officer of an organization that has a relationship with us) and satisfies the independence requirements. The non-management independent directors meet in executive session, without management, at least annually. Mr. Polinsky, an independent non-management director chairs all executive session meetings of directors.


Item 14.  Principal Accountant Fees and Services.


The following is a summary of the fees billed to FHA by its principal auditor duringCompany, payable at the calendarmonthly rate of $2,000.

Subsidiary Corporation - Natur

During the fiscal years ended December 31, 2017 and 2016:2018, the following transactions were carried out in which Natur Holding was or is to be a participant and the amount involved exceeds $120,000 or one percent of the average of the Company’s total estimated revenues for full year 2018, and in which any related person had or will have a direct or indirect material interest.


Fee category

 

2017

 

2016

Audit Fees (1)

$

51,000

$

51,500

Audit – related fees

 

-

 

-

Tax fees

 

-

 

-

All other fees

 

-

 

-

Total fees

$

51,000

$

51,500

 

 

 

 

 

(1)

Consists of fees for audit of the Company's annual financial statements, audit of the financial statements of acquired subsidiaries, the review of interim financial statements included in the Company's quarterly reports, and the review of other documents filed with the Securities and Exchange Commission.


AMC Innova and AMC Novel Technologies has been the supplier of the juices that the Company is selling. Both AMC-companies are directly affiliated with SFI Gestion de Participaciones Minoritarias, a significant shareholder of the Company. Total purchased juices from AMC for the 12 months ended December 31, 2017 and December 31, 2018 were $0.9 million and $1.4 million, respectively, including inventory.

Efficiency Life Fund (“ELF”) provided loans to Natur during the fiscal years 2017 and 2018. As of December 31, 2018, the loans aggregated $11,671,743. No interest was charged to Natur on the loans. Natur has entered into a Debt Conversion and Extinguishment Agreement where the Company converts $3,000,000 of the aggregate balance into a long-term loan, due at December 31, 2022. For the remainder of the loan 78,832.399 shares of class Series C Preferred Stock will be issued at a current conversion rate being at $.1122. The agreement is pursuant to a “topping up” anti-dilution provision, which may result in a maximum of 213,092,756 additional shares of Common Stock being issued, the current conversion rate being at $.1122 per share of Common Stock and the maximum conversion rate being at $.030303 per share of Common Stock.


Employment Arrangements Through Subsidiary

Ellen Berkers, the Chief Financial Officer and director of the Company, through Montrose Executive Management BV, her personal service company in the Netherlands, has entered into a consulting agreement with the Company. The agreement complies with the consulting agreement provisions of Netherlands law and is governed by the law of that jurisdiction. Montrose Executive Management BV will be paid Euro 12,000 per month and will be reimbursed for expenses in providing the services. Ms. Berkers has been awarded with 5,400,000 stock option awards that vest annually and have an expiration date of December 31, 2020.

Rob Paladino, the Chief Executive Officer and director of the Company, through Cavalier Aire, his personal service company in the United States, has entered into a consulting agreement with the Company The agreement complies with the consulting agreement provisions of Netherlands law and is governed by the law of that jurisdiction. Cavalier Aire will be paid USD 16,000 per month and will be reimbursed for expenses in providing the services and will be issued a six-year option to purchase an aggregate of 7,319,321 shares of common stock of the Company. The agreement also has typical intellectual property, non-competition, and confidentiality provisions for the benefit of Natur and the Company. The option granted by the Company provides for equal quarterly vesting of the shares commencing March 31, 2019, over three years ending December 31, 2021, with the right to exercise vested shares at $.030303 per share at any time until March 31, 2025, the sixth-year anniversary. The option provides for cashless exercise and may be registered for resale at the election of the Company. If the service agreement is terminated for a breach thereof, all vested and unvested options will terminate, but if the service agreement is otherwise terminated, then only then vested options will continue to be exercisable for the full term. Any unvested options will accelerate if there is a change of control through the sale of 90% or more of the equity of the Company.

Anthony Joel Bay, a director of the Company, through La Bay Ventures Inc., his personal service company in the United States, has entered into a four-year agreement with Natur for all his services to it and the Company. The agreement complies with the corporate service agreement provisions of Netherlands law and is governed by the law of that jurisdiction. La Bay Ventures will be paid Euro 24,000 per annum, monthly, reimbursed for expenses in providing the services, and will be issued a six-year option to purchase an aggregate of 7,319,321 shares of common stock of the Company. The agreement also has typical intellectual property, non-competition, and confidentiality provisions for the benefit of both Natur and the Company. The option granted by the Company provides for equal quarterly vesting of the shares commencing March 31, 2019, over three years ending December 31, 2021, with the right to exercise vested shares at $.030303 per share at any time until March 31, 2025, the sixth-year anniversary. The option provides for cashless exercise and may be registered for resale at the election of the Company. If the service agreement is terminated for a breach thereof, all vested and unvested options will terminate, but if the service agreement is otherwise terminated, then only then vested options will continue to be exercisable for the full term. Any unvested options will accelerate if there is a change of control through the sale of 90% or more of the equity of the Company. The agreement assumes a number of standard hours to be worked. For any additional work performed beyond the director’s agreement, a separate consulting agreement will be established.

Rudolf Derk Huisman, a director of the Company, through Pas Beheer BV, his personal service company in the Netherlands, has entered into a four-year agreement with Natur for all his services to it and the Company. The agreement complies with the corporate service agreement provisions of Netherlands law and is governed by the law of that jurisdiction. Pas Beheer will be paid Euro 24,000 per annum, monthly, reimbursed for expenses in providing the services, and will be issued a six-year option to purchase an aggregate of 7,319,321 shares of common stock of the Company. The agreement also has typical intellectual property, non-competition, and confidentiality provisions for the benefit of Natur and the Company. The option granted by the Company provides for equal quarterly vesting of the shares commencing March 31, 2019, over three years ending December 31, 2021, with the right to exercise vested shares at $.030303 per share at any time until March 31, 2025, the sixth-year anniversary. The option provides for cashless exercise and may be registered for resale at the election of the Company. If the service agreement is terminated for a breach thereof, all vested and unvested options will terminate, but if the service agreement is otherwise terminated, then only then vested options will continue to be exercisable for the full term. Any unvested options will accelerate if there is a change of control through the sale of 90% or more of the equity of the Company. The agreement assumes a number of standard hours to be worked. For any additional work performed beyond the director’s agreement, a separate consulting agreement will be established.

Nina Storms, a director of the Company, is compensated through her personal service company with an annual payment of €24,000 and reimbursement of her expenses. Furthermore, it has been agreed that Ms. Storms can invoice the company for specific consulting activities for an amount of €15,000 per month.

Director Independence

The Board of Directors is currently composed of seven persons. The Company does not have securities listed on a national securities exchange that has director independence or committee independence requirements. Accordingly, the Company is not required to comply with any director independence requirements.


Item 14.Principal Accountant Fees and Services

Fees Billed For Audit and Non-Audit Services

Effective December 10, 2018, the Board of Directors engaged Malone Bailey LLP to replace Sadler, Gibb & Associates, L.L.C. as our principal accounting firm. The aggregate fees billed by our principal accounting firms for the years ended December 31, 2018 and 2017 are as follows: 

  2018  2017 
Audit Fees $147,364  $51,500 
Audit-Related Fees $-  $- 
Tax Fees $-  $- 
Other Fees $-  $- 
Total $147,364  $51,500 

Audit fees - Consists of fees for professional services rendered by our principal auditor for the audit of our annual financial statements and the review of financial statements included in our Forms 10-Q or services that are normally provided by our principal accountants in connection with statutory and regulatory filings or engagements.


Audit-related fees - Consists of fees for assurance and related services by our principal accountants that are reasonably related to the performance of the audit or review of FHA’sour financial statements and are not reported under "Audit“Audit fees."


Tax fees - Consists of fees for professional services rendered by our principal accountants for tax compliance, tax advice and tax planning.


All other fees - Consists of fees for products and services provided by our principal accountants, other than the services reported under "Audit“Audit fees," "Audit-related fees"” “Audit-related fees” and "Tax fees"“Tax fees” above.


Pre-Approval Policies and Procedures

The Audit Committee is informedCompany has not adopted any policies or procedures for the review, approval, or ratification of any transaction between the Company and approves all services Gregory & Associates provides. The Audit Committee pre-approves the annual audit fee, tax services, and non-routine SEC filing reviews, as well as the fees for all large projects that are expectedany executive officer, director, nominee to cost more than $35,000. In addition, it has pre-approved $10,000 for items that relate to routine accounting services related to items such as new, routine SEC filings requiring consents, and routine tax consultations. Upon performancebecome a director, 10% shareholder, or family member of such services, the Audit Committee is informedpersons, required to be reported under paragraph (a) of and approves the matters to which such consultations relate. Upon approvalItem 404 of Regulation S-K promulgated by the Audit Committee, the amount is added back to the pre-approved $10,000.SEC.



PART IV


Item 15. Exhibits and Financial Statement Schedules.


(a) Financial Statements.


Consolidated Balance Sheets of Future Healthcare of America and subsidiaries as of December 31, 2017 and 2016


Consolidated Statements of Operations of Future Healthcare of America and subsidiaries for the years ended December 31, 2017 and 2016


Consolidated Statements of Stockholders' Equity of Future Healthcare of America and subsidiaries for the years ended December 31, 2017 and 2016








Consolidated Statements of Cash Flows of Future Healthcare of America and subsidiaries for the years ended December 31, 2017 and 2016


Notes to Consolidated Financial Statements


(b)  Exhibits. (1)Schedules

 

Exhibit

NumberDescription


3.1

Articles(a) List of Incorporation (2)


3.2

Bylaws (2)


10.1

Interim HealthCare of Wyoming Franchise Agreement (Casper, Wyoming) (3)


10.2

Interim HealthCare of Wyoming Franchise Agreement (Billings, Montana) (3)


14

Code of Ethics (4)

31.1

302 Certification of Christopher J. Spencer


31.2

302 Certification of John Busshaus


32

906 Certification


(1)

Summaries of all exhibits contained within this Report are modified in their entirety by reference to these Exhibits.


(2)

Incorporated by reference from our Registration Statement on Form S-1 filed with the Securities and Exchange Commission on June 26, 2012.


(3)

Incorporated by reference from our amended Registration Statement on Form S-1/A2 filed with the Securities and Exchange Commission on August 15, 2012.


(4)

Incorporated by reference from our Annual Report on Form 10-K for the calendar year ended December 31, 2013, filed with the Securities and Exchange Commission on March 6, 2014.


(c)  Financial Statement Schedules.


The following documents are filed as part of the report:

(1) See the index to our consolidated financial statements on page F-1 for a list of the financial statements being filed in this Report:Annual Report.


1.

Consolidated Financial Statements


See Index to Consolidated Financial Statements


2.

Financial Statement Schedules:


(2) All financial statement schedules have beenare omitted because they are not applicable, or the required information is presentedshown in the consolidated financial statements or the notes to the consolidated financial statements.thereto.


(3) See Item 16.  Form 10-K Summary.15(b) below for all exhibits being filed or incorporated by reference herein.


None.(b) Exhibits:




ExhibitDescription
3.1Second Amended and Restated Articles of Incorporation of the Registrant (1)
3.2Articles of Amendment to the Restated Articles of Incorporation (name change) of Registrant (6)
3.3Articles of Amendment to the Restated Articles of Incorporation (Class C) of Registrant (7)
3.4

By-laws of the Registrant (2)

4.1Warrant, dated October 13, 2018, issued to Alpha Capital Anstalt (33,000,000 Shares) (8)
4.2Warrant, dated November 13, 2018, issued to Alpha Capital Anstalt (6,000,000 Shares) (9)
10.1Share Exchange Agreement, dated as of September 21, 2018, by and among the Registrant, Natur Holding B.V., a Netherlands-based holding company, and the several shareholders of Natur (3)
10.2Securities Purchase Agreement, dated as of September 21, 2018, by and between the Registrant and Alpha Capital Anstalt (4)
10.3Registration Rights Agreement, dated as of September 21, 2018, by and between the Registrant and Alpha Capital Anstalt (5)
10.4Distribution Agreement with Leen Menken Food Service Logistics (10)
10.5†Indemnification Agreement – Christopher Spencer (11)
10.6Articles of Amendment to the Restated Articles of Incorporation (Class C) of Registrant (7)
21.1

List of Subsidiaries, Ownership and Location of Incorporation (12)

24.1*Power of Attorney (included on signature page)
31.1*Rule 13a-14(a) Certification - Chief Executive Officer
31.2*Rule 13a-14(a) Certification - Chief Financial Officer
32.1**Section 1350 Certifications - Chief Executive Officer
32.2**Section 1350 Certifications - Chief Financial Officer
101.INS*XBRL Instant Document
101.SCH*XBRL Taxonomy Extension Schema Document
101.CAL*XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*XBRL Taxonomy Extension Label Linkbase Document
101.PRE*XBRL Taxonomy Extension Presentation Linkbase Document

*Filed herewith
**Furnished herewith
Management agreement

(1)Incorporated by reference to the Registrant’s Current Report on Form 8-K, filed on October 23, 2018.
(2)Incorporated by reference from the Registrant’s Registration Statement on Form S-1 filed with the Securities and Exchange Commission on June 26, 2012.
(3)Incorporated by reference to the Registrant’s Current Report on Form 8-K, filed on September 24, 2018.
(4)Incorporated by reference to the Registrant’s Current Report on Form 8-K, filed on September 24, 2018.
(5)Incorporated by reference to the Registrant’s Current Report on Form 8-K, filed on November 19, 2018.
(6)Incorporated by reference to the Registrant’s Current Report on Form 8-K, filed on January 4, 2019.  
(7)

Incorporated by reference to the Registrant’s Current Report on Form 8-K, filed on April 10, 2019.

(8)

Incorporated by reference from Exhibit 4.1 to the Registration Statement on Form S-1 filed by Registrant on January 11, 2019.

(9)

Incorporated by reference from Exhibit 4.2 to the Registration Statement on form S-1 filed by Registrant on January 11, 2019

(10)

Incorporated by reference from Exhibit 10.4 to the Registration Statement on Form S-1 filed by Registrant on January 11, 2019

(11)

Incorporated by reference from Exhibit 10.5 to the Registration Statement on Form S-1 filed by Registrant on January 11, 2019.

(12)

Incorporated by reference to the Registration Statement on Form S-1 filed by Registrant on January 11, 2019.





SIGNATURES


SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


FUTURE HEALTHCARE OF AMERICA



Date:

3/28/18

By:

/s/ Christopher J. Spencer

NATUR INTERNATIONAL CORP.

Christopher J. Spencer

By:

/s/ Robert Paladino

Robert Paladino,

Chief Executive Officer and President

Date: April 15, 2019


POWER OF ATTORNEY

KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below constitutes and appoints Robert Paladino and Ellen Berkers, and each of them individually, as his or her true and lawful attorneys-in-fact and agents with full power of substitution and resubstitution, for him or her and in his or her name, place and stead, in any and all capacities to any or all amendments to this Annual Report, and to file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents or any of them the full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the foregoing, as full to all intents and purposes as he or she might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents or any of them, or his or her substitutes, may lawfully do or cause to be done by virtue thereof.

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.



SignatureTitle

Date:

3/28/18

By:

/s/ Christopher J. Spencer

Date

Christopher J. Spencer

/s/ Robert Paladino

Chief Executive Officer and PresidentDirector

April 15, 2019
Robert Paladino(Principal Executive Officer)
/s/ Ellen BerkersChief Financial Officer and DirectorApril 15, 2019
Ellen Berkers(Principal Financial and Accounting Officer)
/s/ Robert PaladinoDirectorApril 15, 2019

Robert Paladino

/s/ Ellen BerkersDirectorApril 15, 2019

Ellen Berkers

/s/ Rudolf Derk HuismanDirectorApril 15, 2019
Rudolf Derk Huisman
/s/ Nina StormsDirectorApril 15, 2019
Nina Storms


FINANCIAL STATEMENTS

Nature International Corp.

Index to Consolidated Financial Statements

Page
Report of Independent Registered Public Accounting FirmF-1
Consolidated Balance Sheets as of December 31, 2017 and 2016F-2
Consolidated Statements of Operations for the years ended December 31, 2017 and 2016F-3
Statement of Stockholders’ Equity for the years ended December 31, 2017 and 2016F-4
Consolidated Statements of Cash Flows for the years ended December 31, 2017 and 2016F-5
Notes to Consolidated Financial StatementsF-6


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the members and Board of Directors of Natur International Corp.

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Natur International Corp. and its subsidiaries (collectively, the “Company”) as of December 31, 2018 and 2017, and the related consolidated statements of operations and comprehensive loss, stockholders’ deficit, and cash flows for the years then ended, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as December 31, 2018 and 2017, and the results of their operations and their cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

Going Concern Matter

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 3 to the financial statements, the Company has suffered recurring losses from operations and has a net capital deficiency that raises substantial doubt about its ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 3. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ MaloneBailey, LLP

www.malonebailey.com

We have served as the Company's auditor since 2018.

Houston, Texas

April 15, 2019


NATUR INTERNATIONAL CORP.

CONSOLIDATED BALANCE SHEETS

ASSETS NOTE December 31,
2018
  December 31,
2017
 
         
Current Assets        
Cash and cash equivalents    128,364   1,082,734 
Accounts receivable    42,744   39,165 
Related party receivable 4  1,833   131,749 
Inventories    179,072   269,469 
Other current assets 5  99,535   360,590 
Current assets held for disposal 14  377,628   401,747 
Total Current Assets    829,176   2,285,454 
           
Non-Current Assets          
Intangible assets    37,353   85,694 
Fixed assets 6  523,510   667,538 
Other assets 7  201,160   224,560 
Non-current assets held for disposal 14  51,165   61,719 
Total Non-Current Assets    813,188   1,039,511 
           
TOTAL ASSETS    1,642,364   3,324,965 
           
LIABILITIES AND SHAREHOLDERS’ DEFICIT          
           
Current Liabilities          
Accounts Payable    1,127,345   993,667 
Accrued Expenses & other contingent liabilities 8  583,161   672,622 
Related party other liabilities 9  2,032,705   1,195,627 
Related party other notes 10  1,072,849   552,061 
Convertible note payable 11  1,600,710   1,559,875 
Related party convertible notes payable 12  11,671,743   11,031,512 
Current liabilities held for disposal 14  887,126   252,841 
Total Current Liabilities    18,975,639   16,258,205 
           
Total liabilities    18,975,639   16,258,205 
           
Shareholders’ Deficit          
Common stock, $0.001 par value, 200,000,000 shares authorized, 129,049,192 and 115,759,999 issued and outstanding as of December 31, 2018 and December 31, 2017 respectively.    129,049   115,760 
Preferred stock A, $0.001 par value, 2,469.131 shares authorized, 2,469.131 and $Nil issued and outstanding as of December 31, 2018 and December 31, 2017 respectively. Convertible to common stock at a 1:33 ratio.    2   - 
Preferred stock B, $0.001 par value, 100,000 shares authorized, 100,000 and $Nil issued and outstanding as of December 31, 2018 and December 31, 2017 respectively. Convertible to common stock at a 1:1000 ratio.    100   - 
           
Additional paid in capital    5,174,269   3,316,560 
Total Shareholders’ deficit    (22,299,570)  (15,250,748)
Accumulated other comprehensive loss    (337,125)  (1,114,812)
TOTAL SHAREHOLDERS’ DEFICIT    (17,333,275)  (12,933,240)
           
LIABILITIES AND SHAREHOLDERS’ DEFICIT    1,642,364   3,324,965 

The accompanying notes are an integral part of these consolidated financial statements

F-2

NATUR INTERNATIONAL CORP.

CONSOLIDATED STATEMENTS OF OPERATIONS

  December 31,
2018
  December 31,
2017
 
       
REVENUE  1,675,160   526,339 
         

COST OF GOODS SOLD – RELATED PARTY

  

935,156

   

302,595

 
COST OF GOODS SOLD  117,918   130,310 
   1,053,074   432,905 
GROSS MARGIN  622,086   93,434 
         
         
OPERATING EXPENSES        
Wages & Salaries  1,309,965   1,873,130 
Selling, General & Administrative  4,613,549   5,455,188 
Amortization & depreciation  209,265   170,977 
         
Total operating expenses  6,132,779   7,499,295 
         
LOSS FROM OPERATIONS  (5,510,693)  (7,405,861)
         
Interest expense  194,064   327,769 
         
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES  (5,704,757)  (7,733,630)
         
Income taxes  -   - 
         
LOSS FROM CONTINUING OPERATIONS  (5,704,757)  (7,733,630)
         
Discontinued operations (Note 14)        
Loss on disposal of subsidiary  (56,762)  - 
Loss from operations of discontinued Component  (1,287,303)  (1,416,010)
         
NET LOSS  (7,048,822)  (9,149,640)
         
Earnings Per Share  (0.06)  (0.08)
Diluted Earnings Per Share  (0.06)  (0.08)
         
COMPREHENSIVE INCOME        
         
Net Loss  (7,048,822)  (9,149,640)
Other comprehensive income (loss)  777,687   (968,348)
         
COMPREHENSIVE LOSS  (6,271,135)  (10,117,988)

The accompanying notes are an integral part of these consolidated financial statements

F-3

NATUR INTERNATIONAL CORP.

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ DEFICIT

  Common stock  Preferred A  Preferred B  Other          
  Number of Shares  Amount
(.001 par)
  Issued
shares
  Amount
(.001 par)
  Issued
shares
  Amount
(.001 par)
  Paid in
Capital
  Retained
deficit
  Accumulated
OCI
  Total 
Balance at December 31, 2016  115,759,999   115,760   -   -   -   -   3,316,560   (6,101,108)  (146,464)  (2,815,252)
                                         
Net Loss                              (9,149,640)      (9,149,640)
Other comprehensive loss                                  (968,348)  (968,348)
Balance at December 31, 2017  115,759,999   115,760   -   -   -   -   3,316,560   (15,250,748)  (1,114,812)  (12,933,240)
                                         
Net Loss                              (7,048,822)      (7,048,822)
Recapitalization  13,289,193   13,289   2,469.131   2   100,000   100   1,857,709           1,871,100 
Other comprehensive income                                  777,687   777,687 
Balance at December 31, 2018  129,049,192   129,049   2,469.131   2   100,000   100   5,174,269   (22,299,570)  (337,125)  (17,333,275 

The accompanying notes are an integral part of these consolidated financial statements

F-4

NATUR INTERNATIONAL CORP.

CONSOLIDATED STATEMENTS OF CASH FLOWS

  December 31, 2018  December 31, 2017 
       
CASH FLOW FROM OPERATING ACTIVITIES      
Net Loss  (7,048,822)  (9,149,640)
Adjustments to reconcile net loss to net cash used in operating activities        
Amortization & depreciation  209,265   170,977 
Changes in:        
- Accounts receivable  (3,579)  95,287 
- Related party receivable  129,916   (65,184)
- Inventories  90,397   (216,017)
- Other current assets  261,055   933,149 
- Accounts payable  133,678   (765,934)
- Accrued Expenses  22,749   1,195,627 
- Accrued expenses – Related Parties  913,577   242,241 
Net cash used by operating activities  (5,291,764)  (7,559,494)
Net cash provided from operating activities - Discontinued operations  620,074   26,141 
         
CASH FLOW FROM INVESTING ACTIVITIES        
Cash received for sale of property and equipment  6,504   - 
Cash paid for purchase of property and equipment  -   (340,429)
Net cash from/(used) in investing activities  6,504   (340,429)
Net cash from/(used) in investing activities - Discontinued Operations  10,554   16,713 
         
CASH FLOW FROM FINANCING ACTIVITIES        
Related party loan repayments  -   (2,828,078)
Related party loan additions  400,750   - 
Cash received from acquisition  1,909,430   - 
Convertible note payable      1,559,875 
Related party convertible loan additions  1,145,452   11,031,512 
Net cash provided from financing activities  3,455,632   9,763,309 
Net cash from financing activities - Discontinued Operations  -   - 
         
Effect of foreign exchange rate changes on cash and cash equivalents  244,630   (968,348)
         
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS  (954,370)  937,892 
         
CASH AND CASH EQUIVALENTS beginning of period  1,082,734   144,842 
CASH AND CASH EQUIVALENTS end of period  128,364   1,082,734 

The accompanying notes are an integral part of these consolidated financial statements

F-5

NATUR INTERNATIONAL CORP.

NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 – ORGANIZATION AND NATURE OF BUSINESS

Natur International Corp was formerly named Future Healthcare of America. Future Healthcare of America was founded in 2012 and was traded with stock ticker symbol FUTU. Future Healthcare of America was a provider of home healthcare services, including senior care, occupational and speech therapy, and pediatric nursing services.

The name change took place following the consummation of acquisition of Natur Holding B.V. and became effective Monday, January 7. The stock ticker symbol has become NTRU. Currently the healthcare services are being wound down.

Natur Holding B,V. (“we”, “our”, “the Company” or “Natur”) was founded in late 2015 and has its headquarters in Amsterdam, the Netherlands.

Our current products include a range of cold pressed juices and healthy snacks. These products are currently sold either directly or through distribution partners in the Netherlands and the United Kingdom.

Through third party contract manufacturers, we apply patented technology to proprietary nutrient dense blends of fruit and vegetables. These are bottled or packed with technically advanced food safety measures and cold high-pressure processing to bring fresh tasting fruit and vegetable blends to market through more than fifteen product types. Natur’s distribution combines direct-to-business, direct-to-consumer and through select distributors. We also operate our flagship branded store in the Amsterdam canal district to operate as a consumer experiential environment.

The Company products value proposition is to affordably provide the most authentic fresh fruit and vegetable juice experiences to democratize clean, healthy, eating and drinking occasions.

Natur operated as a private enterprise in the Netherlands from its founding in 2015 through November 13, 2018, when it was acquired as a wholly owned subsidiary in a share exchange transaction by Future Healthcare of America on November 13, 2018, contemplated by that certain Share Exchange Agreement, among the Company and the former shareholders of Natur Holding, B.V. (the “Share Exchange Transaction”). In connection with the Share Exchange Transaction, the former shareholders of Natur received the equivalent of 215,759,999 shares of the Common Stock (the “Common Stock”), which was issued in part as 115,760,000 shares of Common Stock and in part as 100,000 shares of voting, convertible Series B Preferred Stock (the “Series B Preferred Stock”) representing 100,000,000 shares of Common Stock upon conversion. The Series B Preferred Stock will convert automatically upon the Company increasing the number of shares of Common Stock of its authorized capital, which it plans to do promptly so as to cause the conversion of the Series B Preferred Stock. Immediately after the Share Exchange Transaction, the former Natur shareholders collectively own the controlling position among the shareholders of the Company

The merger was accounted for as a reverse capitalization with Natur Holding BV being treated as the accounting acquirer. As such, the historical information for all periods presented prior to the merger date relate to Natur Holding BV. Subsequent to the merger date, the information relates to the consolidated entities of Natur with its subsidiary Natur Holding BV and the former subsidiaries of Future Healthcare of America, that are currently in the process of being wound down and presented as discontinued operations.

In connection with the acquisition, net cash received was $2,000,000 and costs incurred were $399,381 including professional fees for legal, accounting services and finance commission.

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation.The Company prepares its financial statements using the accrual basis of accounting in accordance with United States generally accepted accounting principles (“US GAAP”).

Consolidation -The financial statements presented reflect the accounts of Natur Holding B.V. and it’s direct or indirect subsidiaries. All inter-company transactions have been eliminated in consolidation.

Use of Estimates in Financial Statement Preparation.The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Customer Concentration and Credit Risk.Two customers accounted for more than 58% of revenues from continuing operations for 2018. One other customer exceeded 10% of revenues during the year ended December 31, 2017 accounting for 14% of revenue. No other customers exceeded 10% of revenues during the year ended December 31, 2018. The Company believes it will continue to reduce the customer concentration risks by engaging new customers and increasing activity of existing less active customers and smaller, newer customer relationships. The Company is also utilizing its ability to sell its receivable debts to a third party to reduce the recoverability risk of its larger accounts. While the Company continues to acquire new customers in an effort to grow and reduce its customer concentration risks, management believes these risks will continue for the foreseeable future especially regarding revenue concentration.

Two vendors accounted for more than 23% of accounts payable at December 31, 2018, and three vendors accounted for more than 22% of accounts payable at December 31, 2017. No other vendors exceeded 10% of accounts payable at December 31, 2018 and December 31, 2017.

Cash and Cash Equivalents. Cash equivalents include all highly liquid investments with original maturities of three months or less.

Accounts Receivable. Accounts receivable are comprised of unsecured amounts due from customers. The Company carries its accounts receivable at their face amounts less an allowance for bad debts. The allowance for bad debts is recognized based on management’s estimate of likely losses per year, based on past experience and review of customer profiles and the aging of receivable balances. As of December 31, 2018, and December 31, 2017, we did not record any allowance for bad debts. Selected account receivables are sold to a factoring company with a transfer of risk of non-collectability.


NATUR INTERNATIONAL CORP.

NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued

Inventory.Inventory, consisting of raw materials, work in progress and finished goods, is valued at the lower of the inventory’s costs or net realizable value, using the first in, first out method to determine the cost. Management compares the cost of inventory with its net realizable value and an allowance is made to write down inventory to net realizable value, if lower.

Property and Equipment. Property and equipment are valued at cost. Additions are capitalized and maintenance and repairs are charged to expense as incurred. Gains and losses on dispositions of equipment are reflected in operations. Depreciation is provided using the straight-line method over the estimated useful lives of the assets as follows:

CategoryEstimated Useful lives
Building and improvements5 years
Machines and installations5 years
Furniture and fixtures7 years
Hardware and software3 years

Intangible Assets, and Long-Lived Assets.The Company recognizes an acquired intangible asset apart from goodwill whenever the intangible asset arises from contractual or other legal rights, or when it can be separated or divided from the acquired entity and sold, transferred, licensed, rented or exchanged, either individually or in combination with a related contract, asset or liability. Such intangibles are amortized over their useful lives. Impairment losses are recognized if the carrying amount of an intangible asset subject to amortization is not recoverable from expected future cash flows and its carrying amount exceeds its fair value.

The Company’s long-lived assets, including intangibles, are reviewed for impairment whenever events or changes in circumstances indicate that the historical cost carrying value of an asset may no longer be appropriate. The Company assesses recoverability of the asset by comparing the undiscounted future net cash flows expected to result from the asset to its carrying value. If the carrying value exceeds the undiscounted future net cash flows of the asset, an impairment loss is measured and recognized. An impairment loss is measured as the difference between the net book value and the fair value of the long-lived asset. Long lived assets were evaluated for impairment and no impairment losses were incurred during the years ended December 31, 2018 and 2017, respectively.

Related Party Transactions.The Board of Directors has adopted a Related Party Transaction Policy for the review of related person transactions. Under these policies and procedures, the management reviews related person transactions in which we are or will be a participant to determine if they are fair and beneficial to the Company. Financial transactions, arrangements, relationships or any series of similar transactions, arrangements or relationships in which a related person has or will have a material interest and that exceeds the lesser of: (i) $10,000, and (ii) one percent of the average of the Company’s total assets at year-end for the last two completed fiscal years, in the aggregate per year are subject to the boards review. Any member of the board who is a related person with respect to a transaction under review may not participate in the deliberation or vote requesting approval or ratification of the transaction. Transactions that are subject to the policy include any transaction, arrangement or relationship (including indebtedness or guarantees of indebtedness) in which the Company is a participant with a related person. The related person may have a direct or indirect material interest in the transaction. It is Company policy that the board shall approve any related party transaction before the commencement of the transaction. However, if the transaction is not identified before commencement, it must still be presented to the board for their review and ratification. For more information regarding related party transactions, see the applicable related party disclosure notes below.

Revenue Recognition. Beginning on January 1, 2018, the Company recognizes revenue under ASC 606, Revenue from Contracts with Customers. The core principle of the revenue standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods and services transferred to the customer. The following five steps are applied to achieve that core principle:

Step 1: Identify the contract with the customer

Step 2: Identify the performance obligations in the contract

Step 3: Determine the transaction price

Step 4: Allocate the transaction price to the performance obligations in the contract

Step 5: Recognize revenue when the company satisfies a performance obligation

The Company’s performance obligations are satisfied at the point in time when products are received by the customer, which is when the customer has title and the significant risks and rewards of ownership. Therefore, the Company’s contracts have a single performance obligation (shipment of product). The Company primarily receives fixed consideration for sales of product.

The Company does not have any significant contracts with customers requiring performance beyond delivery, and contracts with customers contain no incentives or discounts that could cause revenue to be allocated or adjusted over time other than those discussed in Note 8. Shipping and handling activities are performed before the customer obtains control of the goods and therefore represent a fulfillment activity rather than a promised service to the customer. Revenue and costs of sales are recognized when control of the products transfers to our customer, which generally occurs upon delivery to the customer. The Company’s performance obligations are satisfied at that time.


NATUR INTERNATIONAL CORP.

NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued

Revenues do not include sales or other taxes collected from customers.

The Company’s products are sold and distributed through various channels, which include selling directly to retail stores and other outlets such as food markets, institutional accounts and independent outlets. The Company typically collects payment from customers within 30 days from the date of sale. The following table presents our continued revenues disaggregated by geographical region:

  2018  2017 
Netherlands  1,656,069   526,339 
France  6,281   - 
Iceland  12,810   - 
Total  1,675,160   526,339 

The Company sells its products and extends credit, generally without requiring collateral, based on an ongoing evaluation of the customer’s business prospects and financial condition. The Company evaluates the collectability of its trade accounts receivable based on a number of factors, including the Company’s historic collections pattern and changes to a specific customer’s ability to meet its financial obligations. The Company has established an allowance for doubtful accounts to adjust the recorded receivable to the estimated amount the Company believes will ultimately be collected.

The nature of the Company’s contracts does not give rise to variable consideration, such as prospective and retrospective rebates.

The Company experiences customer returns primarily as a result of damaged or out-of-date product. At any given time, the Company estimates less than 1% of bottle sales could be at risk for return by customers. As the company do not deem this amount to be material no provision has been recorded for either the year ended 2018 or 2017. Returned product is recognized as a reduction of net sales.

Recent Accounting Pronouncements

Compensation—Stock Compensation:On June 20, 2018, the FASB issued ASU No. 2018-07,Compensation—Stock Compensation (Topic 718) - Improvements to Nonemployee Share-Based Payment Accounting,which aligns the accounting for share-based payment awards issued to employees and nonemployees. Under ASU No. 2018-07, the existing employee guidance will apply to nonemployee share-based transactions (as long as the transaction is not effectively a form of financing), with the exception of specific guidance related to the attribution of compensation cost. The cost of nonemployee awards will continue to be recorded as if the grantor had paid cash for the goods or services. In addition, the contractual term will be able to be used in lieu of an expected term in the option-pricing model for nonemployee awards. The adoption had no impact on the Company’s historic financial statements.

Leases: In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (ASU 2016-02). Under ASU No. 2016-2, an entity will be required to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. ASU No. 2016-02 offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. For public companies, ASU No. 2016-02 is effective for annual reporting periods beginning after December 15, 2018, including interim reporting periods within that reporting period, and requires a modified retrospective adoption, with early adoption permitted. The Company adopted this standard on January 1, 2019. The new standard provides a number of optional practical expedients in transition. The Company expects to elect the ‘package of practical expedients’, which permits the Company not to reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct costs; the use of hindsight.; and all of the new standard’s available transition practical expedients. While the Company continues to assess all of the effects of adoption, the Company currently believe the adoption had no impact on the Company’s historical or future financial statements based on their current operating activities.


NATUR INTERNATIONAL CORP.

NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued

Income Statement – Reporting Comprehensive Income: In February 2018, the FASB issued ASU No. 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220)”, which amends the previous guidance to allow for certain tax effects “stranded” in accumulated other comprehensive income, which are impacted by the Tax Cuts and Jobs Act (the “Tax Reform Act”), to be reclassified from accumulated other comprehensive income into retained earnings. This amendment pertains only to those items impacted by the new tax law and will not apply to any future tax effects stranded in accumulated other comprehensive income. This standard is effective for fiscal years beginning after December 15, 2018 and allows for early adoption. The Company has completed its evaluation of the impact of ASU No. 2018-02 and determined that there are no “stranded” tax effects in accumulated other comprehensive income to be reclassified.

Revenue from contracts with customers: In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which superseded previous revenue recognition guidance. ASU No. 2014-09 and its amendments were included in Accounting Standards Codification (“ASC”) 606, “Revenue from Contracts with Customers”. ASC 606 requires that a company recognizes revenue at an amount that reflects the consideration to which the company expects to be entitled in exchange for transferring goods or services to a customer. The Company adopted ASC 606 effective January 1, 2018, using the modified retrospective approach, with no impact to the opening retained earnings. Results for periods beginning on or after January 1, 2018 are presented under ASC 606, while prior periods are not adjusted and continue to be reported in accordance with the prior accounting guidance under ASC 605, “Revenue Recognition”.

Foreign Currency Translation.The Company follows Section 830-10-45 of the FASB Accounting Standards Codification (“Section 830-10-45”) for foreign currency translation to translate the financial statements from the functional currency, generally the local currency, into U.S. Dollars. Section 830-10-45 sets out the guidance relating to how a reporting entity determines the functional currency of a foreign entity (including of a foreign entity in a highly inflationary economy), re-measures the books of record (if necessary), and characterizes transaction gains and losses. Pursuant to Section 830-10-45, the assets, liabilities, and operations of a foreign entity shall be measured using the functional currency of that entity. An entity’s functional currency is the currency of the primary economic environment in which the entity operates; normally, that is the currency of the environment, or local currency, in which an entity primarily generates and expends cash.

The financial records of the Company are maintained in its local currency, the euro (“EUR”), which is the functional currency. Assets and liabilities are translated from the local currency into the reporting currency, U.S. dollars, at the exchange rate prevailing at the balance sheet date. Revenues and expenses are translated at weighted average exchange rates for the period to approximate translation at the exchange rates prevailing at the dates those elements are recognized in the consolidated financial statements. Foreign currency translation gain (loss) resulting from the process of translating the local currency financial statements into U.S. dollars are included in determining accumulated other comprehensive income in the consolidated statement of stockholders’ equity.


NATUR INTERNATIONAL CORP.

NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued

Unless otherwise noted, the rate presented below per U.S. $1.00 was the midpoint of the interbank rate as quoted by OANDA Corporation (www.oanda.com) contained in its consolidated financial statements. Translation of amounts from EUR into U.S. dollars has been made at the following exchange rates for the respective periods:

  December 31, 2018  December 31, 2017 
Balance Sheets  0.8734   0.8334 
Statements of operations and comprehensive income (loss)  0.8464   0.8870 
Equity  0.9037   0.9037 

Cost of Revenues. Cost of revenue includes all direct expenses incurred to produce the revenue for the period. This includes, but is not limited to, costs for finished products, pick packing costs, storage costs and transportation costs. Cost of revenues are recorded in the same period as the resulting revenue.

Employee Benefits. Wages, salaries, bonuses and social security contributions are recognized as an expense in the year in which the associated services are rendered by employees. For any unused portion of vacation leave, an accrual is recorded for carry over to the following year.

Income Taxes. The Company is subject to US corporation tax. The US combined federal and state corporate tax rate is 23%. The company’s United States net operating losses totaled $3,483,928 as of December 31, 2017 and begin to expire in tax years 2032 and following. Net losses from US operating totaled $157,386 for 2018 and may be carried forward indefinitely. The company is subject to US Internal Revenue Code rules limiting the use of US net operating losses after the merger with Future Health Care of America during 2018 (described in Note 17). This limitation has no effect on the Company’s financial statements because the Company has recognized no deferred tax asset with respect to its net operating loss carryforwards. The NOLs are the cumulative NOL’s per the Company’s 2017 federal income tax return. The 382 limit will not be factored in until the company has income and the limit is therefore applicable.

Natur Holding, the Dutch subsidiary of Natur International Corp is structured as a Dutch limited liability company. Tax on the result is calculated based on the result before tax in the profit and loss account, taking into account losses available for set-off from previous years (to the extent that they have not already been included in the deferred tax assets) and exempt profit components and after the addition of non-deductible costs. Due account is also taken of changes which occur in the deferred tax assets and deferred tax liabilities in respect of changes in the applicable tax rate.

The corporate tax rate for profits above $238,812 (or €200,000) amounts to 25%. Below that amount the rate is 20%. Future profits can be carried back to prior year losses for a maximum of 9 years for the full amount of losses incurred.

We have the following Net Operating Losses that we will be able to offset against future profits with regards to corporation tax.

2016: $6,308,373 
2017: $7,733,630 
2018: $5,704,757 

In the financial statements of group companies, a tax charge is calculated on the basis of the accounting result. The corporate income tax that is due by these group companies is charged into the current accounts of the company.

Because of the compensable losses no deferred taxes are included in the financial statements. From incorporation of the company only the Corporation Tax return of 2015/2016 has been filed. All years are still subject to examination.

Fair Value of Financial Instruments.The carrying value of short-term instruments, including cash, accounts payable and accrued expenses, and short-term notes approximate fair value due to the relatively short period to maturity for these instruments. The long-term debt approximate fair value since the related rates of interest approximate current market rates.

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value maximize the use of observable inputs and minimize the use of unobservable inputs.

The Company does not have any assets or liabilities that are required to be measured and recorded at fair value on a recurring basis.

Income /(Loss) Per Share - The Company computes income (loss) per share in accordance with Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 260 Earnings Per Share, which requires the Company to present basic earnings per share and diluted earnings per share when the effect is dilutive (see Note 13).


NATUR INTERNATIONAL CORP.

NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 3 GOING CONCERN

The Company considered its going concern disclosure requirements in accordance with ASC 240-40-50. The Company concluded that its negative working capital and decreased cash flows from operations are conditions that raised substantial doubt about the Company’s ability to continue as a going concern. Without a successful plan in place from management these conditions could negatively impact the Company’s ability to meets its financial obligations over the next year. In response, the Company has implemented a plan to alleviate such reasonable doubt as follows: (i) the Company will continue to generate additional revenue (and positive cash flows from operations) partly related to the Company’s expansion into new product lines during 2019 and partly related to the Company wide sales initiatives already implemented; (ii) in addition cost saving initiatives and an organization restructuring program that is almost completed, will have an additional positive impact on the cost-basis of the organization. Notwithstanding the foregoing, the Company will seek capital as needed, which may be either equity or debt, or both. The Company does not have any capital sources determined at this time, and capital may not be available when sought. The accompanying financial statements have been prepared assuming that the company will continue as a going concern. The company is currently undertaking a corporate restructuring exercise, which is further disclosed in Note 16 – subsequent events.

NOTE 4 RELATED PARTY RECEIVABLES

Receivables of related parties at December 31, 2018 and December 31, 2017 consisted of the following:

  December 31,  December 31, 
  2018  2017 
       
NL Life Sciences B.V.  -   93,748 
Flare Media B.V.  -   37,156 
Other related party receivable  1,833   845 
   1,833   131,749 

NOTE 5 OTHER CURRENT ASSETS

Other current assets at December 31, 2018 and December 31, 2017 consisted of the following:

  December 31, 2018  December 31, 2017 
       
Value Added Tax receivable  67,388   162,687 
Prepaid expenses  32,054   197,812 
Other Receivables  93   91 
   99,535   360,590 


NATUR INTERNATIONAL CORP.

NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 6 FIXED ASSETS

Property and equipment at December 31, 2018 and December 31, 2017 consisted of the following:

  

December 31,

2018

  

December 31,

2017

 
       
Building and improvements  491,847   515,432 
Machines and installations  65,886   69,043 
Furniture and fixtures  200,508   206,260 
Hardware and software  80,163   46,090 
   838,404   836,825 
         
Less: Accumulated Depreciation  (314,894)  (169,287)
   523,510   667,538 

Depreciation expense for the period ended December 31, 2018 and the year ended December 31, 2017 was $179,600, and $157,534, respectively. The other movement in cost is related to translation from operational currency to reporting currency.

NOTE 7 OTHER ASSETS

Other assets are deposits for the head office rent and deposits for the shops in Amsterdam. They will be repaid upon expiration of the lease.

  

December 31,

2018

  

December 31,

2017

 
       
Head office Rental deposit  103,614   105,119 
Ferdinand Bolstraat store Rental deposit  34,651   35,154 
Prinsengracht store Rental deposit  18,711   18,983 
Credit card deposit  2,112   24,096 
Hay Hill Rental deposit  34,364   34,862 
Other  7,708   6,345 
Total  201,160   224,560 


NATUR INTERNATIONAL CORP.

NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 8 ACCRUED EXPENSES & OTHER CONTINGENT LIABILITIES

Accrued Expenses & other contingent liabilities at December 31, 2018 and December 31, 2017 consisted of the following:

  December 31, 2018  December 31, 2017 
       
Taxes payable  352,423   412,748 
Invoices to be received  3,972   185,488 
Holiday Allowance Payable  24,642   39,764 
Other accrued expenses & other contingent liabilities  

202,164

   34,662 
   583,161   672,622 

On November 13, 2018, the Company financed the premium for directors’ and officers’ insurance.  The Company borrowed $71,703.90 at 6.20% interest, and the note will be repaid in 10 equal installments of $6,120.39 after a first payment of $10,500. As of December 31, 2018, the balance of the note payable was $71,703.90.

NOTE 9 RELATED PARTY OTHER LIABILITIES

Related party other liabilities at December 31, 2018 and December 31, 2017 consisted of the following:

  December 31, 2018  December 31, 2017 
       
NL Life Sciences B.V.  563,118   - 
STB Family Offices SARL  200,234   185,012 
STB Family Offices B.V.  661,432   - 
Stichting Thank You Nature  16,913   - 
Flare Media B.V.  25,458   - 
AMC  325,382   789,148 
Management  142,154   - 
Yoomoo Limited  98,014   102,714 
Other related party debt  -   118,753 
   2,032,705   1,195,627 

For the outstanding amount relating to AMC this transaction relates to the purchase of bottled juices for resale. Total purchases relating to goods sold for the period ended December 31, 2018 and the year ended December 31, 2017 was $1,400,328, and $868,003, respectively.

For the loan from NL Life Sciences and STB Family Offices there is no repayment schedule in place. The interest rate is charged on the basis of EURIBOR + 3% on the average balance of the loan.

The other loans consist of the procurement of juices and consulting fees for the management team. No interest is being charged.


NATUR INTERNATIONAL CORP.

NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 10 RELATED PARTY OTHER NOTES

Loan from other related parties at December 31, 2018 and December 31, 2017 consisted of the following:

  December 31,  December 31, 
  2018  2017 
       
Efficiency Life Fund  400,750   - 
TriDutch Holding B.V.  672,099   552,061 
   1,072,849   552,061 

For the loan from Tridutch Holding B.V., there is no repayment schedule in place. The interest rate is charged on the basis of EURIBOR + 3% on the average balance of the loan. In 2017 no additional amounts were drawn down and accrued interest of $17,243 was added to the balance. In 2018 accrued interest of $17,249 was added to the balance and additional borrowings of $128,043 were drawn down, partly offset by a positive exchange rate difference of $25,283. No repayments were made on the balance in either 2017 or 2018.

For the loan from Efficiency Life Fund is a repayment schedule in place to repay the loan in 10 installments from July 2019 to April 2020. The entire balance of 400,750 was drawn down in 2018 with no repayments made on the balance to date.

NOTE 11 CONVERTIBLE NOTE PAYABLE

Convertible loans payable at December 31, 2018 and December 31, 2017 consisted of the following:

  December 31,  December 31, 
  2018  2017 
       
Convertible loan 1  629,750   599,952 
Convertible loan 2  970,960   959,923 
   1,600,710   1,559,875 

Loan 1

Party for loan 1 has granted a loan facility in the principle amount of $581,058 or €500,000 with the right, but not the obligation to convert the outstanding loan amounts into shares in the capital of Natur at a company valuation of $17.4 million or €15 million for a term from December 19, 2017, till the maturity date of December 31, 2018, at an interest rate of 10% per annum. No further drawdowns were made on the loan in 2018 and the increased balance is due to the accrued interest as no repayment for capital or interest have been made. As this date has now passed the loan is deemed to be in default but discussions are ongoing around conversion or extension options.

Loan 2

On October 20, 2017, an amount of $929,692 or €800,000 was advanced to the Company for a loan agreement that was drafted but never signed. An interest rate of 5% per annum is calculated and the loan has a maturity date of February 28, 2018. The loan is convertible to shares of Natur at a company valuation of $23.3 million or €20 million. The loan is in default and lender has demanded payment and does not want to convert. No further drawdowns were made on the loan in 2018 and the increased balance is due to the accrued interest as no repayment for capital or interest have been made.

NOTE 12 RELATED PARTY CONVERTIBLE NOTE PAYABLE

Related party convertible note payable at December 31, 2018 and December 31, 2017 consisted of the following:

  December 31,  December 31, 
  2018  2017 
         
Convertible loan Efficiency Life Fund  11,671,743   11,031,512 

The convertible loan has been converted. $8,671,743 of the balance was settled, using series C preferred shares and the remaining $3,000,000 was converted into long term debt. Please refer to Note 16, subsequent events.

In 2017 an additional amount of $7,199,424 was drawn down on the loan and accrued interest of $304,873 was added to the loan balance. $122,586 was repaid.

In 2018 an additional amount of $1,145,452 was drawn down on the convertible note payable and accrued interest of $Nil was added to the loan balance and $Nil was repaid. The remaining movement in the balance of ($505,221) is related to exchange rate differences.


NATUR INTERNATIONAL CORP.

NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 13 – LOSS PER SHARE

At December 31, 2018 the Company had 129,049,192 shares issues and outstanding at a nominal value of $.001. besides that, the Company has 2,469.131 preferred A shares and 100,000 preferred B shares.  Alpha capital Anstalt has two outstanding warrants issued at November 13, 2018 with 4 years term. The first warrant has an exercise price of $0.0606 for 36,000,000 shares the second warrant is 6,000,000 at $0.15 exercise price, the company has reserved 16,240,000 shares for management and Employee Stock Ownership Plan. At December 31, 2017, the Company had 115,760,000 shares of common stock issued and outstanding.

NOTE 14 – DISCONTINUED OPERATIONS AND ASSETS/LIABILITIES HELD FOR DISPOSAL

Effective November 30, 2018, the Company has closed down the London office and shops as part of the restructuring plan. Functionally the operations were shut down before December 31, 2018 and therefore we have qualified it as discontinued operations the sale of assets is in process. The existing support functions have been transferred to the headquarters in Amsterdam as part of the centralization of support staff initiative. A distributor for the UK has been engaged, who will deliver to our current customer base. In accordance with the guidance provided in ASC 205-20, the Company concluded that this sale qualified for presentation as discontinued operations. The Company has no ongoing or future plans to start a new operating entity in the United Kingdom. Prior period income statement balances applicable to the United Kingdom operations have been reclassified and are included under the Discontinued Operations caption in the statements of operations while related assets and liabilities were reclassified to Assets Held for Disposal and Liabilities Held for Disposal, respectively on the balance sheet.

Effective August 31, 2018, Natur International Corp closed the offices of its Casper, Wyoming operations. The increase in costs coupled with a decrease in business activity, lead to the decision to close the Casper, Wyoming operations. In closing the office, the Company transitioned its clients to new service providers, and terminated employees as the transition happened. The month to month lease was terminated with the landlord on August 31, 2018, and the office was closed the same day. We have one part-time employee, working remotely, primarily on the collection of accounts receivable.

The following table presents the carrying amounts of the major classes of assets and liabilities included in our discontinued operations as presented on our Consolidated Balance Sheet as of December 31, 2018.


NATUR INTERNATIONAL CORP.

NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 14 DISCONTINUED OPERATIONS AND ASSETS/LIABILITIES HELD FOR DISPOSAL - continued

NATUR INTERNATIONAL CORP

BALANCE SHEET OF DISCONTINUED OPERATIONS

  December 31, 2018  December 31, 2017 
Current assets      
Cash and cash equivalents  -   40,881 
Related party receivable  201,907   199,176 
Accounts receivable  124,016   - 
Inventories  -   69,370 
Other current assets  51,706   92,321 
Total current assets  377,629   401,748 
         
Fixed Assets        
Tangible fixed assets  27,547   46,473 
Financial Fixed Assets  23,618   15,246 
Total fixed assets  51,165   61,719 
         
TOTAL ASSETS  428,794   463,467 
         
Short term debt        
Accounts Payable  643,616   132,168 
Cash at banks and in hand  -   - 
Accrued expenses & other contingent liabilities  243,510   120,673 
Total short-term debt  887,126   252,841 

NATUR INTERNATIONAL CORP

INCOME STATEMENT OF DISCONTINUED OPERATIONS

  December 31, 2018  December 31, 2017 
       
REVENUE  314,822   568,975 
         
COST OF GOODS SOLD  278,485   254,531 
         
GROSS MARGIN  36,337   314,444 
         
OPERATING EXPENSES        
Wages & Salaries  442,730   641,218 
Selling, General & Administrative  862,869   1,072,523 
Amortization & depreciation  17,135   16,713 
         
Total operating expenses  1,322,734   1,730,454 
         
LOSS FROM OPERATIONS  (1,286,397)  (1,416,010)
         
Interest expense  (906)  - 
         
LOSS FROM DISCONTINUED OPERATIONS  (1,287,303)  (1,416,010)

NATUR INTERNATIONAL CORP.

NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 15 – COMMITMENTS AND CONTINGENCIES

The company has entered into a number of operating leases.Future minimum lease payments as of December 31, 2018 under non-cancelable operating leases are as follows:

2019  436,657 
2020  392,004 
2021  146,759 
2022  - 
2023  - 
Thereafter  - 
Total  975,430  

The total rental expense relating to operating leases for the period ended December 31, 2018 and the year ended December 31, 2017 was $356,600, and $389,857, respectively.

Jachthavenweg 124.The lease relates to the rental of the head office in Amsterdam. The rental contract ends on 30th June 2021 with no early-exit clause available. A Minimum notice period of 1-year before the contract end date is required otherwise the contract is extended by 5 years.

Ferdinand Bolstraat 65. The lease relates to the rental of retail space in Amsterdam. The rental contract ends on 31st December 2025 with an early-exit clause available on 31st December 2019. A Minimum notice period of 1-year is required before the lease is terminated.

Prinsengracht 455. The lease relates to the rental of retail space in Amsterdam. The rental contract ends on 31st December 2021 with an early-exit clause available on 30th July 2019. A Minimum notice period of 1-year and a fine payment of $13,740 is required before the lease is terminated.

Fiscal unity

For the corporate income tax, Natur Holding B.V., Naturalicious Rest of Europe B.V., Hi-tech Juices B.V., NL Juices Retail B.V., NL Juices Online B.V., NFF Trading B.V. and The Force of Nature B.V. are a fiscal unity. Pursuant to the Collection of State Taxes Act, the Company and its subsidiaries are severally and jointly liable for the tax payable by the combination.

For the value added tax purposes, Natur Holding B.V., NL Juices Retail. B.V., Hi-tech Juices B.V., NL Juices Online B.V., NFF Trading B.V. and The Force of Nature B.V. are a fiscal unity. Pursuant to the Collection of State Taxes Act, the Company and its subsidiaries are severally and jointly liable for the tax payable by the combination.


NATUR INTERNATIONAL CORP.

NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 16 SUBSEQUENT EVENTS

Discontinued operations

Effective March 31, 2019, Natur International Corp closed the offices of its Billings, Montana operations. These operations were discontinued during 2018. During 2018, the Company saw a continued decrease in the utilization of our home healthcare services in Billings, Montana. Additionally, we have seen an increase in competition, specifically for Medicare service providers in 2018. Also, there has been a shortage of Registered Nurses, Physical Therapists and management personnel, leading to higher costs due to having to source the required talent from staffing companies. This increase in costs coupled with a decrease in business activity, lead to the decision to close the Billings, Montana operations. In closing the office, the Company transitioned its clients to new service providers, and terminated employees as the transition happened. The month to month lease will be terminated with the landlord on March 31, 2019. We have one part-time employee, working remotely, primarily on the collection of accounts receivable.

Debt restructuring

Effective March 8, 2019 the Company and 6th Wave Efficiency Life Fund have agreed to settle a portion of the amounts owed by the Company to the Holder under the Debt Agreement, including principle, interest expenses, penalties and other charges of whatsoever nature, all in an amount equal to USD 8,846,208 (the “Converted Debt”) in exchange for and in consideration of the issuance to Holder or its designees by the Parent Company of an aggregate of 78,832,399 shares of Class C Preferred Stock (“Debt Repayment Shares”), convertible initially into the equivalent of 78,832,399 shares of Common Stock of the Parent Company (the “Conversion Shares”). The condition precedent to the agreement, the issuance of the Debt Repayment Shares was completed April 10, 2019.

The Holder 6th Wave Efficiency Life Fund agrees that if it sells any of the shares of Common Stock it was directly or beneficially issued by the Parent Company on November 13, 2018, either as shares of Common Stock or the Common Stock underlying the Class B Preferred Stock, in exchange for its equity interest in the Company and any of the Conversion Shares (together the Common Stock, the Common Stock underlying the Class B Preferred Stock and the Conversion Shares are referred to as the “Value Calculation Shares”) at any time prior to December 31, 2022, and the gross proceeds to the Holder or its affiliates from the sale (or deemed sale as provided herein) of any or all of the Value Calculation Shares exceeds USD $15,000,000, then the balance of the Debt, equal to USD $3,000,000 as of the date hereof and any interest, expenses, penalties, and other charges of any nature due thereon under the terms of the Debt Agreement (the “Debt Balance”), will be deemed fully paid, discharged and extinguished and the Debt Agreement in all respects will be terminated and of no further effect.

On March 19, 2019, the holder of the Series A Preferred Stock converted 72 of such shares with a stated value of $72,000 for 2,376,002 shares of common stock. The applicable conversion price was $0.030303. The company did not receive any payment on this conversion, having received the consideration for the Series A Preferred Shares on November 12, 2018. There are remaining an aggregate of 2,397,131 shares of Series A Preferred Stock issued and outstanding. The shares of common stock issued on conversion are registered for resale by the holder.

Corporate restructuring

In line with the objective to secure the continuity of the company, it was decided late 2018 to extend the product line with added functional extracts (Nutrigenomics, CBD). For this, the company established a NewCo as sister company of Natur Holding BV at March 13, 2019, wholly owned by Natur International Corp. Based on global developments and following the success of companies in the USA and Canada, the company defined new growth objectives with complementary products based on CBD as a new revenue model for this NewCo. Additional funding was sought in the market, but it became apparent that the willingness of new investors to provide the company with funding in debt or equity was dependent on the restructuring of the existing debt on the Balance Sheet of the Company. As most of this debt is held on the Balance Sheet of Natur Holding BV, it was decided to develop a restructuring plan to:

A.

Date:

3/28/18

/s/ John Busshaus

John Busshaus

Chief Financial Officer

Negotiate with the debtholders a conversion of their debt to equity of Natur International Corp; We successfully concluded a conversion of a large portion of the debt on 7 March, converting $ 8,846,208 of Debt into 78,832,399 preferred C shares. It is our intent, to convert all of the remaining debt to equity and negotiations are on-going to determine the terms and conditions for the conversion;


B.To establish an asset transfer from Natur Holding BV to Natur CBD BV, optimizing the proceeds for these assets and subsequently liquidate Natur Holding BV;

C.Continue the business in Natur CBD BV with an extended portfolio of functional products, including CBD infused food and beverages and deliver the objectives as set by the Board

D.Expeditiously seek new funding in the form of (long-term) or convertible Debt or equity. Discussions with Third parties are on-going. The execution of the intended restructuring program is conditional upon the ability of the company to raise additional capital prior to the implementation of the restructuring plan in order to supply the buying entity of the assets and liabilities with sufficient funds for the asset transaction and the financing of the daily operations. If this condition is not met, the restructuring will fail, and management will be forced to seek legal protection against its creditors and debtholders.


We expect to have finalized the intended actions before the midst of May 2019.


NATUR INTERNATIONAL CORP.


NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS



NOTE 17 - RECAPITALIZATION



As discussed in Note 1 – Organization and nature of business, effective November 13, 2018, Future Healthcare of America entered into a reverse capitalization transaction with Natur Holding BV. In conjunction with the transaction the Company was recapitalized, resulting in the capital structure outlined below. The main purpose of the merger is to raise additional capital for the purposes of growth. The historical number of common shares presented in our financial statements were converted to post merger shares on a 1 to 112 basis. As part of the recapitalization net assets of $1.9 million.




The following shares of common stock were issued subsequent to the reverse capitalization. Natur shareholders had a controlling voting percentage of 94% subsequent to the reversed merger:



- 115,759,999 shares of common stock for the Natur shareholders.


- 2,023,562 shares of common stock for release of accrued salaries of management

- 2,469,131 shares of preferred A for a capital investment of $2,000,000 and a debt forgiveness of $1,010,000 and accrued interest of $410,552. The preferred A shares will convert at a ratio of 1 preferred A share to 33 common shares. 

- 100,000 shares of preferred B were issued for Natur shareholders. They will convert at a ratio of 1 preferred B share to 1,000 common shares.

NOTE 18 – STOCKHOLDERS’ DEFICIT

On November 13, 2018, Future Healthcare of America (“Parent Company”) completed the transactions (the “Share Exchange Transaction”) contemplated by that certain Share Exchange Agreement, among Parent Company and the former shareholders of Natur Holdings, B.V., a Netherlands-based holding company (“Natur”). In connection with the Share Exchange Transaction, the former shareholders of Natur received the equivalent of 215,759,999 shares of the Common Stock of Parent Company (the “Common Stock”), which was issued in part as 115,760,000 shares of Common Stock and in part as 100,000 shares of voting, convertible Series B Preferred Stock of Parent Company (the “Series B Preferred Stock”) representing 100,000,000 shares of Common Stock upon conversion. The Series B Preferred Stock will convert automatically upon Parent Company increasing the number of shares of Common Stock of its authorized capital in sufficient amount to permit the conversion of the Series B Preferred Stock, which it plans to do promptly so as to cause the conversion of the Series B Preferred Stock. Immediately after the Share Exchange Transaction, the former Natur shareholders collectively have a controlling position among the shareholders of Parent Company, and Natur has become a wholly-owned subsidiary of Parent Company. At closing the number of common shares, issued and outstanding was 129,049,192.

On September 21, 2018, Parent Company also executed a Securities Purchase Agreement (the “SPA”) by which it agreed to privately issue and sell to Alpha Capital Anstalt (the “Alpha”) 2,469,131 shares of non-voting, convertible Series A Preferred Stock, each share convertible into approximately 33 shares of Common Stock at the rate of $.030303. Alpha also purchased two warrants, one pursuant to the SPA that is exercisable for 33,000,000 shares of Common Stock at $.060606 per share and one pursuant to a debt cancellation agreement exercisable for 6,000,000 shares of Common Stock at $.15 per share. The aggregate purchase price for the Series A Preferred Stock and the two warrants was $2,000,000 in cash and conversion of approximately $769,000 of debt and interest due Alpha from Parent Company under a prior loan agreement. Prior to the acquisition of Natur, Alpha also cancelled approximately $651,000 of debt principle and interest due from Parent Company. These transactions eliminated $1,420,000 of debt principle and interest of Parent Company and improved its balance sheet. As part of the SPA transaction, Alpha has also agreed to reimburse up to $100,000 of the liabilities of Parent Company existing at the closing date.

F-19