Delaware | 84-1070932 | |
(State or other jurisdiction of | (I.R.S. Employer | |
incorporation or organization) | Identification No.) | |
3800 North 28Th Way | ||
Hollywood, Florida | 33020 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | ☐ | Accelerated filer | ☐ |
Non-accelerated filer | ☒ | Smaller reporting company | ☒ |
Emerging growth company | ☐ |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||
Common Stock, par value $0.0001 per share | HCMC | OTC Pink Marketplace |
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September 30, 2022 (Unaudited) | December 31, 2021 | June 30, 2023 (Unaudited) | December 31, 2022 | ||||||||||
ASSETS | |||||||||||||
CURRENT ASSETS | |||||||||||||
Cash and cash equivalents | $ | 30,009,173 | $ | 26,496,404 | |||||||||
Cash | $ | 8,481,915 | $ | 22,911,892 | |||||||||
Accounts receivable, net | 53,439 | 28,481 | 92,649 | 55,815 | |||||||||
Notes receivable | 205,262 | 247,915 | 156,297 | 189,225 | |||||||||
Inventories | 2,401,903 | 1,521,199 | 3,765,070 | 3,817,192 | |||||||||
Prepaid expenses and vendor deposits | 295,823 | 456,397 | 826,611 | 322,182 | |||||||||
Investment | 17,143 | 23,143 | 1,371 | 9,771 | |||||||||
Other current assets | 1,004,809 | 1,224,171 | |||||||||||
Restricted cash | 1,325,000 | - | 628,232 | 1,778,232 | |||||||||
TOTAL CURRENT ASSETS | 34,307,743 | 28,773,539 | 14,956,954 | 30,308,480 | |||||||||
Property and equipment, net of accumulated depreciation | 1,528,300 | 176,988 | |||||||||||
Property, plant, and equipment, net of accumulated depreciation | 2,974,629 | 3,112,908 | |||||||||||
Intangible assets, net of accumulated amortization | 2,083,007 | 947,593 | 4,544,332 | 5,005,511 | |||||||||
Goodwill | 2,657,000 | 916,000 | 5,747,000 | 5,747,000 | |||||||||
Right of use asset – operating lease, net | 4,785,871 | 3,543,930 | 10,634,634 | 10,604,935 | |||||||||
Other assets | 108,565 | 85,437 | 481,426 | 476,196 | |||||||||
TOTAL ASSETS | $ | 45,470,486 | $ | 34,443,487 | $ | 39,338,975 | $ | 55,255,030 | |||||
LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY | |||||||||||||
CURRENT LIABILITIES | |||||||||||||
Accounts payable and accrued expenses | $ | 3,203,384 | $ | 1,642,848 | $ | 5,133,314 | $ | 5,715,234 | |||||
Contingent consideration | 372,000 | 774,900 | |||||||||||
Contract liabilities | 57,283 | 23,178 | 147,469 | 198,606 | |||||||||
Current portion of line of credit | 453,232 | 418,036 | |||||||||||
Line of credit | 453,232 | 453,232 | |||||||||||
Current portion of loan payment | 1,479 | 2,604 | 552,001 | 536,542 | |||||||||
Operating lease liability, current | 534,493 | 437,328 | 1,965,888 | 2,228,852 | |||||||||
TOTAL CURRENT LIABILITIES | 4,249,871 | 2,523,994 | 8,623,904 | 9,907,366 | |||||||||
Loan payable, net of current portion | - | 815 | 2,097,932 | 2,378,061 | |||||||||
Operating lease liability, net of current | 3,885,543 | 2,685,021 | 8,395,274 | 8,041,504 | |||||||||
TOTAL LIABILITIES | 8,135,414 | 5,209,830 | 19,117,110 | 20,326,931 | |||||||||
COMMITMENTS AND CONTINGENCIES (SEE NOTE 13) | |||||||||||||
CONVERTIBLE PREFERRED STOCK | |||||||||||||
Series E convertible preferred stock, $1,000 par value per share, 14,722 and 0 shares authorized, issued and outstanding as of September 30, 2022 and December 31, 2021, respectively; aggregate liquidation preference of $14.7 million | 14,722,075 | - | |||||||||||
Series E redeemable convertible preferred stock, $1,000 par value per share, 14,722 shares authorized, 1,944 shares and 14,722 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively; aggregate liquidation preference of $1.9 million and $14.7 million as of June 30, 2023 and December 31, 2022, respectively | 1,944,425 | 14,722,075 | |||||||||||
STOCKHOLDERS’ EQUITY | |||||||||||||
Series D convertible preferred stock, $1,000 par value per share, 5,000 shares authorized; 800 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively; aggregate liquidation preference of $0.8 million | 800,000 | 800,000 | |||||||||||
Common Stock, $0.0001 par value per share, 750,000,000,000 shares authorized; 339,741,632,384 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively | 33,974,163 | 33,974,163 | |||||||||||
Series D convertible preferred stock, $1,000 par value per share, 5,000 shares authorized; 800 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively; aggregate liquidation preference of $0.8 million | 800,000 | 800,000 | |||||||||||
Common Stock, $0.0001 par value per share, 750,000,000,000 shares authorized; 463,266,632,384 and 339,741,632,384 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively | 46,326,663 | 33,974,163 | |||||||||||
Additional paid-in capital | 28,973,580 | 30,855,824 | 19,324,774 | 29,045,802 | |||||||||
Accumulated deficit | (41,134,746 | ) | (36,396,330 | ) | (48,173,997) | (43,613,941) | |||||||
TOTAL STOCKHOLDERS’ EQUITY | 22,612,997 | 29,233,657 | 18,277,440 | 20,206,024 | |||||||||
TOTAL LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY | $ | 45,470,486 | $ | 34,443,487 | $ | 39,338,975 | $ | 55,255,030 |
Three Months Ended | Nine Months Ended | Three Months Ended | Six Months Ended | ||||||||||||||||||||||||
September 30, | September 30, | June 30, | June 30, | ||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
SALES | |||||||||||||||||||||||||||
Vapor sales, net | $ | 1,187 | $ | 466,181 | $ | 256,747 | $ | 1,671,098 | $ | - | $ | 5,997 | $ | 38 | $ | 255,560 | |||||||||||
Grocery sales, net | 5,775,543 | 2,803,327 | 16,700,596 | 8,450,055 | 13,574,896 | 6,126,063 | 27,134,602 | 10,925,053 | |||||||||||||||||||
TOTAL SALES, NET | 5,776,730 | 3,269,508 | 16,957,343 | 10,121,153 | 13,574,896 | 6,132,060 | 27,134,640 | 11,180,613 | |||||||||||||||||||
Cost of sales vapor | 364 | 186,522 | 112,610 | 657,171 | - | 562 | 653 | 112,246 | |||||||||||||||||||
Cost of sales grocery | 3,909,190 | 1,706,597 | 10,674,170 | 5,133,228 | 8,493,213 | 3,800,625 | 17,137,913 | 6,764,980 | |||||||||||||||||||
GROSS PROFIT | 1,867,176 | 1,376,389 | 6,170,563 | 4,330,754 | 5,081,683 | 2,330,873 | 9,996,074 | 4,303,387 | |||||||||||||||||||
OPERATING EXPENSES | 3,985,377 | 2,427,256 | 11,012,070 | 6,599,224 | 8,261,343 | 3,699,273 | 15,158,780 | 7,026,693 | |||||||||||||||||||
LOSS FROM OPERATIONS | (2,118,201 | ) | (1,050,867 | ) | (4,841,507 | ) | (2,268,470 | ) | (3,179,660) | (1,368,400) | (5,162,706) | (2,723,306) | |||||||||||||||
OTHER INCOME (EXPENSE) | |||||||||||||||||||||||||||
Loss (gain) on investment | (11,314 | ) | (557 | ) | (6,000 | ) | 10,954 | ||||||||||||||||||||
(Loss) gain on investment | (3,943) | 1,800 | (8,400) | 5,314 | |||||||||||||||||||||||
Change in contingent consideration | 425,000 | - | 402,900 | - | |||||||||||||||||||||||
Other income, net | 4,327 | - | 27,376 | - | 4,600 | 6,175 | 9,250 | 23,049 | |||||||||||||||||||
Interest income (expense), net | 50,202 | 1,543 | 81,715 | (76,888 | ) | ||||||||||||||||||||||
Gain on debt extinguishment, net | - | - | - | 767,930 | |||||||||||||||||||||||
Interest income, net | 101,248 | 14,910 | 198,900 | 31,513 | |||||||||||||||||||||||
Total other income (expense), net | 43,215 | 986 | 103,091 | 701,996 | 526,905 | 22,885 | 602,650 | 59,876 | |||||||||||||||||||
NET LOSS | $ | (2,074,986 | ) | $ | (1,049,881 | ) | $ | (4,738,416 | ) | $ | (1,566,474 | ) | $ | (2,652,755) | $ | (1,345,515) | $ | (4,560,056) | $ | (2,663,430) | |||||||
Induced conversions of preferred stock | (91,500) | - | (152,500) | - | |||||||||||||||||||||||
Net loss attributable to common stockholders | (2,744,255) | - | (4,712,556) | - | |||||||||||||||||||||||
NET LOSS PER SHARE-BASIC AND DILUTED | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | |||||||||||
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING-BASIC AND DILUTED | 339,741,632,384 | 336,603,045,428 | 339,741,632,384 | 297,439,560,396 | 353,854,819,196 | 339,741,632,384 | 347,796,604,758 | 339,741,632,384 | |||||||||||||||||||
Series E Convertible Preferred Stock | Convertible Preferred Stock | Common Stock | Additional Paid-In | Accumulated | ||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Capital | Deficit | Total | ||||||||||||||||||||||||||||
Balance – July 1, 2022 | - | $ | - | 800 | $ | 800,000 | 339,741,632,384 | $ | 33,974,163 | $ | 30,855,824 | $ | (39,059,760 | ) | $ | 26,570,227 | ||||||||||||||||||||
Issuance of Series E Convertible Preferred stock in connection with the Securities Purchase Agreement, net of offering costs | 14,722 | 14,722,075 | - | - | - | - | (1,882,244 | ) | - | (1,882,244 | ) | |||||||||||||||||||||||||
Net loss | - | - | - | - | - | - | - | (2,074,986 | ) | (2,074,986 | ) | |||||||||||||||||||||||||
Balance – September 30, 2022 | 14,722 | $ | 14,722,075 | 800 | $ | 800,000 | 339,741,632,384 | $ | 33,974,163 | $ | 28,973,580 | $ | (41,134,746 | ) | $ | 22,612,997 |
Series E Convertible Preferred Stock | Convertible Preferred Stock | Common Stock | Additional Paid-In | Accumulated | ||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Capital | Deficit | Total | ||||||||||||||||||||||||||||
Balance – April 1, 2023 | 13,496 | $ | 13,496,525 | 800 | $ | 800,000 | 346,441,632,384 | $ | 34,644,163 | $ | 29,034,802 | $ | (45,521,242 | ) | $ | 18,957,723 | ||||||||||||||||||||
Series E convertible preferred stock redeemed | (10,637 | ) | (10,637,100 | ) | - | - | - | - | 22,222 | - | 22,222 | |||||||||||||||||||||||||
Conversion of series E convertible preferred stock | (915 | ) | (915,000 | ) | - | - | 9,150,000,000 | 915,000 | - | - | 915,000 | |||||||||||||||||||||||||
Issuance of award stock | - | - | - | - | 107,675,000,000 | 10,767,500 | (10,767,500 | ) | - | - | ||||||||||||||||||||||||||
Induced conversions of preferred stock | - | - | - | - | - | - | (91,500 | ) | - | (91,500 | ) | |||||||||||||||||||||||||
Stock-based compensation expense | - | - | - | - | - | - | 1,126,750 | - | 1,126,750 | |||||||||||||||||||||||||||
Net loss | - | - | - | - | - | - | - | (2,652,755 | ) | (2,652,755 | ) | |||||||||||||||||||||||||
Balance – June 30, 2023 | 1,944 | $ | 1,944,425 | 800 | $ | 800,000 | 463,266,632,384 | $ | 46,326,663 | $ | 19,324,774 | $ | (48,173,997 | ) | $ | 18,277,440 |
Series E Convertible Preferred Stock | Convertible Preferred Stock | Common Stock | Additional Paid-In | Accumulated | ||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Capital | Deficit | Total | ||||||||||||||||||||||||||||
Balance – July 1, 2021 | - | - | 5,000 | $ | 5,000,000 | 333,179,132,384 | $ | 33,317,913 | $ | 26,546,415 | $ | (32,875,464 | ) | $ | 31,988,864 | |||||||||||||||||||||
Series D Convertible Preferred Stock exercised | - | - | (4,200 | ) | (4,200,000 | ) | 6,562,500,000 | 656,250 | 3,543,750 | - | - | |||||||||||||||||||||||||
Issuance of common stock in connection with the Rights Offering, net of offering expenses | - | - | - | - | - | - | 765,659 | - | 765,659 | |||||||||||||||||||||||||||
Net loss | - | - | - | - | - | - | - | (1,049,881 | ) | (1,049,881 | ) | |||||||||||||||||||||||||
Balance – September 30, 2021 | - | - | 800 | $ | 800,000 | 339,741,632,384 | $ | 33,974,163 | $ | 30,855,824 | $ | (33,925,345 | ) | $ | 31,704,642 |
Series E Convertible Preferred Stock | Convertible Preferred Stock | Common Stock | Additional Paid-In | Accumulated | ||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Capital | Deficit | Total | ||||||||||||||||||||||||||||
Balance – April 1, 2022 | - | $ | - | 800 | $ | 800,000 | 339,741,632,384 | $ | 33,974,163 | $ | 30,855,824 | $ | (37,714,245 | ) | $ | 27,915,742 | ||||||||||||||||||||
Net loss | - | - | - | - | - | - | - | (1,345,515 | ) | (1,345,515 | ) | |||||||||||||||||||||||||
Balance – June 30, 2022 | - | $ | - | 800 | $ | 800,000 | 339,741,632,384 | $ | 33,974,163 | $ | 30,855,824 | $ | (39,059,760 | ) | $ | 26,570,227 |
Series E Convertible Preferred Stock | Convertible Preferred Stock | Common Stock | Additional Paid-In | Accumulated | ||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Capital | Deficit | Total | ||||||||||||||||||||||||||||
Balance – January 1, 2022 | - | $ | - | 800 | $ | 800,000 | 339,741,632,384 | $ | 33,974,163 | $ | 30,855,824 | $ | (36,396,330 | ) | $ | 29,233,657 | ||||||||||||||||||||
Issuance of Series E Convertible Preferred stock in connection with the Securities Purchase Agreement, net of offering costs | 14,722 | 14,722,075 | - | - | - | - | (1,882,244 | ) | - | (1,882,244 | ) | |||||||||||||||||||||||||
Net loss | - | - | - | - | - | - | - | (4,738,416 | ) | (4,738,416 | ) | |||||||||||||||||||||||||
Balance – September 30, 2022 | 14,722 | $ | 14,722,075 | 800 | $ | 800,000 | 339,741,632,384 | $ | 33,974,163 | $ | 28,973,580 | $ | (41,134,746 | ) | $ | 22,612,997 |
Series E Convertible Preferred Stock | Convertible Preferred Stock | Common Stock | Additional Paid-In | Accumulated | ||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Capital | Deficit | Total | ||||||||||||||||||
Balance – January 1, 2023 | 14,722 | $ | 14,722,075 | 800 | $ | 800,000 | 339,741,632,384 | $ | 33,974,163 | $ | 29,045,802 | $ | (43,613,941) | $ | 20,206,024 | |||||||||||
Series E convertible preferred stock redeemed | (11,193) | (11,192,650) | - | - | - | - | 22,222 | - | 22,222 | |||||||||||||||||
Conversion of series E convertible preferred stock | (1,585) | (1,585,000) | - | - | 15,850,000,000 | 1,585,000 | - | - | 1,585,000 | |||||||||||||||||
Issuance of awarded stock | - | - | - | - | 107,675,000,000 | 10,767,500 | (10,767,500) | - | - | |||||||||||||||||
Induced conversions of preferred stock | - | - | - | - | - | - | (152,500) | - | (152,500) | |||||||||||||||||
Stock-based compensation | - | - | - | - | - | - | 1,176,750 | - | 1,176,750 | |||||||||||||||||
Net loss | - | - | - | - | - | - | - | (4,560,056) | (4,560,056) | |||||||||||||||||
Balance – June 30, 2023 | 1,944 | $ | 1,944,425 | 800 | $ | 800,000 | 463,266,632,384 | $ | 46,326,663 | $ | 19,324,774 | $ | (48,173,997) | $ | 18,277,440 |
Series E Convertible Preferred Stock | Convertible Preferred Stock | Common Stock | Additional Paid-In | Accumulated | ||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Capital | Deficit | Total | ||||||||||||||||||||||||||||
Balance – January 1, 2021 | - | $ | - | 16,277 | $ | 16,277,116 | 143,840,848,017 | $ | 14,384,084 | $ | 3,955,039 | $ | (32,358,871 | ) | $ | 2,257,368 | ||||||||||||||||||||
Series C Preferred stock exercised | - | - | (16,277 | ) | (16,277,116 | ) | 162,771,153,001 | 16,277,116 | - | - | - | |||||||||||||||||||||||||
Stock options exercised | - | - | - | - | 2,275,000,000 | 227,500 | - | - | 227,500 | |||||||||||||||||||||||||||
Stock-based compensation expense | - | - | - | - | - | - | 34,375 | - | 34,375 | |||||||||||||||||||||||||||
Issuance of Series D Convertible Preferred stock in connection with the Securities Purchase Agreement | - | - | 5,000 | 5,000,000 | - | - | - | - | 5,000,000 | |||||||||||||||||||||||||||
Series D Convertible Preferred Stock exercised | - | - | (4,200 | ) | (4,200,000 | ) | 6,562,500,000 | 656,250 | 3,543,750 | - | - | |||||||||||||||||||||||||
Issuance of common stock | - | - | - | - | 1,182,831,056 | 118,283 | 1,289,273 | - | 1,407,556 | |||||||||||||||||||||||||||
Issuance of common stock in connection with the Rights Offering, net of offering cost | - | - | - | - | 27,046,800,310 | 2,704,680 | 21,639,637 | - | 24,344,317 | |||||||||||||||||||||||||||
Issuance of awarded stock for officers and board member | - | - | - | - | 2,250,000,000 | 225,000 | (225,000 | ) | - | - | ||||||||||||||||||||||||||
Cancellation of awarded stock for officers and board member | - | - | - | - | (6,187,500,000 | ) | (618,750 | ) | 618,750 | - | - | |||||||||||||||||||||||||
Net loss | - | - | - | - | - | - | - | (1,566,474 | ) | (1,566,474 | ) | |||||||||||||||||||||||||
Balance – September 30, 2021 | - | $ | - | 800 | $ | 800,000 | 339,741,632,384 | $ | 33,974,163 | $ | 30,855,824 | $ | (33,925,345 | ) | $ | 31,704,642 |
Series E Convertible Preferred Stock | Convertible Preferred Stock | Common Stock | Additional Paid-In | Accumulated | ||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Capital | Deficit | Total | ||||||||||||||||||
Balance – January 1, 2022 | - | $ | - | 800 | $ | 800,000 | 339,741,632,384 | $ | 33,974,163 | $ | 30,855,824 | $ | (36,396,330) | $ | 29,233,657 | |||||||||||
Net loss | - | - | - | - | - | - | - | (2,663,430) | (2,663,430) | |||||||||||||||||
Balance – June 30, 2022 | - | $ | - | 800 | $ | 800,000 | 339,741,632,384 | $ | 33,974,163 | $ | 30,855,824 | $ | (39,059,760) | $ | 26,570,227 |
Nine Months Ended September 30, | Six Months Ended June 30, | ||||||||||||
2022 | 2021 | 2023 | 2022 | ||||||||||
OPERATING ACTIVITIES | |||||||||||||
Net loss | $ | (4,738,416 | ) | $ | (1,566,474 | ) | $ | (4,560,056) | $ | (2,663,430) | |||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||||
Depreciation and amortization | 652,162 | 379,536 | 747,485 | 422,078 | |||||||||
Gain (loss) on investment | 6,000 | (10,954 | ) | ||||||||||
Loss (gain) on investment | 8,400 | (5,314) | |||||||||||
Amortization of right-of-use asset | 555,726 | 400,334 | 1,063,591 | 377,216 | |||||||||
Write-down of obsolete and slow moving inventory | 533,343 | 265,635 | |||||||||||
Gain on debt settlement | - | (767,930 | ) | ||||||||||
Accrued interest on loan | - | 60,809 | |||||||||||
Write-down of obsolete and slow-moving inventory | 951,373 | 73,640 | |||||||||||
Stock-based compensation expense | - | 34,375 | 1,176,750 | - | |||||||||
Change in contingent consideration | (402,900) | - | |||||||||||
Changes in operating assets and liabilities: | |||||||||||||
Accounts receivable | (24,958 | ) | (34,465 | ) | (36,834) | (2,157) | |||||||
Inventories | (609,468 | ) | (460,232 | ) | (899,251) | (189,138) | |||||||
Prepaid expenses and vendor deposits | 160,574 | (11,779 | ) | (670,178) | 212,226 | ||||||||
Other current assets | 219,362 | - | |||||||||||
Other assets | (23,128 | ) | 4,162 | (5,230) | (33,941) | ||||||||
Accounts payable and accrued expenses | 1,560,536 | 11,405 | (197,306) | 528,247 | |||||||||
Contract liabilities | (248,522 | ) | (145 | ) | (51,137) | (249,700) | |||||||
Lease liability | (499,980 | ) | (348,424 | ) | (1,002,484) | (340,611) | |||||||
NET CASH USED IN OPERATING ACTIVITIES | (2,676,131 | ) | (2,044,147 | ) | (3,658,415) | (1,870,884) | |||||||
INVESTING ACTIVITIES | |||||||||||||
Acquisition of Mother Earth's Storehouse | (5,150,000 | ) | - | ||||||||||
Acquisition of Mother Earth’s Storehouse | - | (5,150,000) | |||||||||||
Collection of note receivable | 42,653 | 40,831 | 32,928 | 27,122 | |||||||||
Purchases of property and equipment | (251,840 | ) | (53,437 | ) | (148,027) | (213,133) | |||||||
Purchase of patent | - | (12,500 | ) | ||||||||||
NET CASH USED IN INVESTING ACTIVITIES | (5,359,187 | ) | (25,106 | ) | (115,099) | (5,336,011) | |||||||
FINANCING ACTIVITIES | |||||||||||||
Proceeds from line of credit | 35,196 | - | - | 35,196 | |||||||||
Principal payments on loan payable | (1,940 | ) | (255,592 | ) | (264,670) | (1,285) | |||||||
Principal payment on the line of credit | - | (2,000,000 | ) | ||||||||||
Proceeds from Rights Offering | - | 24,344,317 | |||||||||||
Proceeds from preferred stock, net of issuance costs | 12,839,831 | 5,000,000 | |||||||||||
Proceeds from exercise of stock options | - | 227,500 | |||||||||||
NET CASH PROVIDED BY FINANCING ACTIVITIES | 12,873,087 | 27,316,225 | |||||||||||
Payment of induced conversions of preferred stock | (152,500) | - | |||||||||||
Payments for deferred offering costs | (218,865) | - | |||||||||||
Payment for series E preferred stock redemption | (11,170,428) | - | |||||||||||
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES | (11,806,463) | 33,911 | |||||||||||
NET INCREASE IN CASH, CASH EQUIVALENT AND RESTRICTED CASH | 4,837,769 | 25,246,972 | |||||||||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH— BEGINNING OF PERIOD | 26,496,404 | 2,925,475 | |||||||||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH — END OF PERIOD | $ | 31,334,173 | $ | 28,172,447 | |||||||||
NET DECREASE IN CASH AND RESTRICTED CASH | (15,579,977) | (7,172,984) | |||||||||||
CASH AND RESTRICTED CASH— BEGINNING OF PERIOD | 24,690,124 | 26,496,404 | |||||||||||
CASH AND RESTRICTED CASH — END OF PERIOD | $ | 9,110,147 | $ | 19,323,420 | |||||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||||||||||||
Cash paid for interest | $ | 4,383 | $ | 36,792 | $ | 87,008 | $ | 2,910 | |||||
Cash paid for income tax | $ | - | $ | - | $ | - | $ | - | |||||
NON-CASH INVESTING AND FINANCING ACTIVITIES | |||||||||||||
Issuance of common stock | $ | - | $ | 1,290,260 | |||||||||
Lease acquired | $ | 1,797,667 | $ | - | |||||||||
Issuance of common stock in connection with series E preferred stock conversion | $ | 1,585,000 | $ | - | |||||||||
Right-of-use assets obtained in exchange for operating lease liabilities | $ | 1,093,290 | $ | 1,797,667 | |||||||||
1% stated value reduction on preferred stock redemption | $ | 22,222 | $ | - | |||||||||
Non-cash deferred offering cost | $ | 384,614 | $ | - |
September 30, 2022 | December 31, 2021 | |||||||
Total cash, cash equivalents and restricted cash in excess of FDIC limits of $250,000 | $ | 30,749,550 | $ | 26,023,593 |
June 30, 2023 | December 31, 2022 | |||||||
Total cash in excess of FDIC limits of $250,000 | $ | 7,458,162 | $ | 21,682,144 |
June 30, 2023 | June 30, 2022 | |||||||
Cash | $ | 8,481,915 | $ | 19,323,420 | ||||
Restricted cash | 628,232 | - | ||||||
Total cash and restricted cash | $ | 9,110,147 | $ | 19,323,420 |
September 30, 2022 | September 30, 2021 | |||||||
Cash and Cash Equivalent | $ | 30,009,173 | $ | 28,172,447 | ||||
Restricted cash | 1,325,000 | - | ||||||
Total cash, cash equivalents and restricted cash | $ | 31,334,173 | $ | 28,172,447 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Vapor | $ | 1,187 | $ | 466,181 | $ | 256,747 | $ | 1,671,098 | ||||||||
Grocery | 5,775,543 | 2,803,327 | 16,700,596 | 8,450,055 | ||||||||||||
Total revenue | $ | 5,776,730 | $ | 3,269,508 | $ | 16,957,343 | $ | 10,121,153 | ||||||||
Retail Vapor | $ | 1,187 | $ | 466,153 | $ | 256,747 | $ | 1,671,029 | ||||||||
Retail Grocery | 5,187,540 | 2,475,887 | 14,944,074 | 7,438,115 | ||||||||||||
Food service/restaurant | 584,382 | 305,626 | 1,743,228 | 908,476 | ||||||||||||
Online/eCommerce | 3,621 | 15,199 | 13,294 | 85,174 | ||||||||||||
Wholesale Grocery | - | 6,615 | - | 18,290 | ||||||||||||
Wholesale Vapor | - | 28 | - | 69 | ||||||||||||
Total revenue | $ | 5,776,730 | $ | 3,269,508 | $ | 16,957,343 | $ | 10,121,153 | ||||||||
(Loss) income from operations-Vapor | (4,998 | ) | 66,306 | (39,460 | ) | 300,573 | ||||||||||
(Loss) income from operations-Grocery | (289,653 | ) | 52,923 | 20,397 | 172,564 | |||||||||||
Corporate items | (1,823,550 | ) | (1,170,096 | ) | (4,822,444 | ) | (2,741,607 | ) | ||||||||
Total loss | $ | (2,118,201 | ) | $ | (1,050,867 | ) | $ | (4,841,507 | ) | $ | (2,268,470 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Vapor | $ | - | $ | 5,997 | $ | 38 | $ | 255,560 | ||||||||
Grocery | 13,574,896 | 6,126,063 | 27,134,602 | 10,925,053 | ||||||||||||
Total revenue | $ | 13,574,896 | $ | 6,132,060 | $ | 27,134,640 | $ | 11,180,613 | ||||||||
Retail Vapor | $ | - | $ | 5,997 | $ | - | $ | 255,560 | ||||||||
Retail Grocery | 12,017,526 | 5,478,523 | 24,067,596 | 9,756,535 | ||||||||||||
Food service/restaurant | 1,555,372 | 643,760 | 3,062,948 | 1,158,846 | ||||||||||||
Online/eCommerce | 1,998 | 3,780 | 4,096 | 9,672 | ||||||||||||
Total revenue | $ | 13,574,896 | $ | 6,132,060 | $ | 27,134,640 | $ | 11,180,613 | ||||||||
Loss from operations-Vapor | (10,724 | ) | (15,495 | ) | (17,397 | ) | (34,462 | ) | ||||||||
(Loss) income from operations-Grocery | (185,923 | ) | 146,114 | (462,763 | ) | 310,049 | ||||||||||
Corporate items | (2,983,013 | ) | (1,499,019 | ) | (4,682,546 | ) | (2,998,893 | ) | ||||||||
Total loss from operations | $ | (3,179,660 | ) | $ | (1,368,400 | ) | $ | (5,162,706 | ) | $ | (2,723,306 | ) |
Description | September 30, 2022 | December 31, 2021 | June 30, 2023 | December 31, 2022 | ||||||||||
Promissory Note | $ | 205,262 | $ | 247,915 | $ | 156,297 | $ | 189,225 |
Fair Market Value - Level 3 | ||||
Balance as of October 14, 2022 | $ | 1,108,000 | ||
Remeasurement | (333,100 | ) | ||
Balance as of December 31, 2022 | 774,900 | |||
Remeasurement | (402,900 | ) | ||
Balance as of June 30, 2023 | $ | 372,000 |
Fair Market Value - Level 3 | ||||
Balance as of March 31, 2023 | $ | 797,000 | ||
Remeasurement | (425,000 | ) | ||
Balance as of June 30, 2023 | $ | 372,000 |
October 14, 2022 | ||||||||
Purchase Consideration | ||||||||
Cash Consideration paid | $ | 5,150,000 | ||||||
Cash consideration paid | $ | 5,142,000 | ||||||
Promissory note | 3,000,000 | |||||||
Contingent consideration issued to Green's Natural seller | 1,108,000 | |||||||
Total Purchase Consideration | $ | 9,250,000 | ||||||
Purchase price allocation | ||||||||
Inventory | 805,000 | $ | 1,642,000 | |||||
Property and equipment | 1,278,000 | 1,478,000 | ||||||
Intangible assets | 1,609,000 | 3,251,000 | ||||||
Right of use asset - operating lease | 1,797,667 | |||||||
Right of use asset - Operating lease | 6,427,000 | |||||||
Other liabilities | (283,000 | ) | (211,000 | ) | ||||
Operating lease liability | (1,797,667 | ) | (6,427,000 | ) | ||||
Goodwill | 1,741,000 | 3,090,000 | ||||||
Net assets acquired | $ | 5,150,000 | $ | 9,250,000 | ||||
Finite-lived intangible assets | ||||||||
Trade Names/Trademarks | $ | 513,000 | ||||||
Customer Relationships | 683,000 | |||||||
Non-Compete Agreement | 413,000 | |||||||
Trade Names (8 years) | $ | 1,133,000 | ||||||
Customer Relationships (6 years) | 1,103,000 | |||||||
Non-Compete Agreement (5 years) | 1,015,000 | |||||||
Total intangible assets | $ | 1,609,000 | $ | 3,251,000 |
For Three Months Ended June 30, 2022 | For Six Months Ended June 30, 2022 | |||||||
Sales | $ | 13,875,928 | $ | 27,032,375 | ||||
Net loss | $ | (1,769,171 | ) | $ | (3,354,452 | ) |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Sales | $ | 5,776,730 | $ | 6,842,549 | $ | 18,380,486 | $ | 20,840,277 | ||||||||
Net (loss) | (2,074,985 | ) | (665,288 | ) | (4,581,680 | ) | (412,696 | ) |
September 30, 2022 | December 31, 2021 | June 30, 2023 | December 31, 2022 | |||||||||||||
Displays | $ | 305,558 | $ | 305,558 | $ | 312,146 | $ | 312,146 | ||||||||
Building | 575,000 | - | 575,000 | 575,000 | ||||||||||||
Furniture and fixtures | 311,521 | 246,496 | 580,668 | 560,256 | ||||||||||||
Leasehold improvements | 727,469 | 136,504 | 1,910,719 | 1,910,719 | ||||||||||||
Computer hardware & equipment | 133,654 | 151,924 | 186,654 | 160,210 | ||||||||||||
Other | 345,708 | 315,788 | 688,773 | 587,602 | ||||||||||||
2,398,910 | 1,156,270 | 4,253,960 | 4,105,933 | |||||||||||||
Less: accumulated depreciation and amortization | (870,610 | ) | (979,282 | ) | (1,279,331 | ) | (993,025 | ) | ||||||||
Total property and equipment | $ | 1,528,300 | $ | 176,988 | ||||||||||||
Total property, plant, and equipment, net | $ | 2,974,629 | $ | 3,112,908 |
September 30, 2022 | Useful Lives (Years) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||||||
Trade names / Trademarks | 8-10 years | $ | 1,436,000 | $ | (650,568 | ) | $ | 785,432 | |||||||||||||||||
June 30, 2023 | Useful Lives (Years) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||||||
Trade names | 8-10 years | $ | 2,569,000 | $ | (876,036) | $ | 1,692,964 | ||||||||||||||||||
Customer relationships | 4-5 years | 1,566,000 | (916,024 | ) | 649,976 | 4-6 years | 2,669,000 | (1,182,139) | 1,486,861 | ||||||||||||||||
Patents | 10 years | 372,165 | (150,145 | ) | 222,020 | 10 years | 384,665 | (178,891) | 205,774 | ||||||||||||||||
Non-compete | 4-5 years | 651,000 | (233,338 | ) | 417,662 | 4-5 years | 1,602,000 | (443,267) | 1,158,733 | ||||||||||||||||
Website | 4 years | 10,000 | (2,083 | ) | 7,917 | ||||||||||||||||||||
Intangible assets, net | $ | 4,035,165 | $ | (1,952,158 | ) | $ | 2,083,007 | $ | 7,224,665 | $ | (2,680,333) | $ | 4,544,332 |
December 31, 2021 | Useful Lives (Years) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||||||
Trade names / Trademarks | 8-10 years | $ | 923,000 | (536,661 | ) | $ | 386,339 | ||||||||||||||||||
December 31, 2022 | Useful Lives (Years) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||||||
Trade names | 8-10 years | $ | 2,569,000 | (725,723) | $ | 1,843,277 | |||||||||||||||||||
Customer relationships | 4-5 years | 883,000 | (685,823 | ) | 197,177 | 4-6 years | 2,669,000 | (1,033,306) | 1,635,694 | ||||||||||||||||
Patents | 10 years | 372,165 | (122,233 | ) | 249,932 | 10 years | 384,665 | (159,658) | 225,007 | ||||||||||||||||
Non-compete | 4 years | 238,000 | (133,646 | ) | 104,354 | 4-5 years | 1,602,000 | (300,467) | 1,301,533 | ||||||||||||||||
Website | 4 years | 10,000 | (209 | ) | 9,791 | ||||||||||||||||||||
Intangible assets, net | $ | 2,426,165 | $ | (1,478,572 | ) | $ | 947,593 | $ | 7,224,665 | $ | (2,219,154) | $ | 5,005,511 |
Years ending December 31, | ||||||||
2022 (remaining three months) | $ | 154,715 | ||||||
2023 | 411,149 | |||||||
2023 (remaining six months) | $ | 461,179 | ||||||
2024 | 411,149 | 922,358 | ||||||
2025 | 404,107 | 916,858 | ||||||
2026 | 309,214 | 838,877 | ||||||
2027 | 694,457 | |||||||
Thereafter | 392,673 | 710,603 | ||||||
Total | $ | 2,083,007 | $ | 4,544,332 |
September 30, 2022 | December 31, 2021 | |||||||
Beginning balance as January 1, | $ | 23,178 | $ | 21,262 | ||||
Issued | 423,321 | 39,469 | ||||||
Redeemed | (362,108 | ) | (37,463 | ) | ||||
Breakage recognized | (27,108 | ) | (90 | ) | ||||
Ending balance | $ | 57,283 | $ | 23,178 |
June 30, 2023 | December 31, 2022 | |||||||
Beginning balance as January 1, | $ | 198,606 | $ | 23,178 | ||||
Issued | 638,501 | 859,383 | ||||||
Redeemed | (635,391 | ) | (628,012 | ) | ||||
Breakage recognized | (54,247 | ) | (55,943 | ) | ||||
Ending balance | $ | 147,469 | $ | 198,606 |
_ | September 30, 2022 | December 31, 2021 | ||||||
Line of Credit | $ | 453,232 | $ | 418,036 | ||||
Other debt | 1,479 | 3,419 | ||||||
Total debt | $ | 454,711 | 421,455 |
_ | June 30, 2023 | December 31, 2022 | ||||||
Promissory note | $ | 2,649,933 | $ | 2,913,788 | ||||
Other debt | - | 815 | ||||||
Total debt | $ | 2,649,933 | $ | 2,914,603 | ||||
Current portion of long-term debt | (552,001 | ) | (536,542 | ) | ||||
Long-term debt | $ | 2,097,932 | $ | 2,378,061 |
As of September 30, | As of June 30, | |||||||||||||||
2022 | 2021 | 2023 | 2022 | |||||||||||||
Preferred stock | 148,471,000,000 | 1,250,000,000 | 20,694,000,000 | 1,250,000,000 | ||||||||||||
Stock options | 68,587,000,000 | 68,587,000,000 | 67,587,000,000 | 67,587,000,000 | ||||||||||||
Restricted stock | 5,500,000,000 | - | ||||||||||||||
Total | 217,058,000,000 | 69,837,000,000 | 93,781,000,000 | 68,837,000,000 |
• | Green's Natural Foods’ eight stores in New York and New Jersey, offering a selection of 100% organic produce and all-natural, non-GMO groceries & bulk foods; a wide selection of local products; an organic juice and smoothie bar; a fresh foods department, which offers fresh and healthy “grab & go” foods; a full selection of vitamins & supplements; as well as health and beauty products (www.Greensnaturalfoods.com). |
Three Months Ended September 30, | 2022 to 2021 | Three Months Ended June 30, | 2023 to 2022 | |||||||||||||||||
2022 | 2021 | Change $ | 2023 | 2022 | Change $ | |||||||||||||||
SALES | ||||||||||||||||||||
Vapor sales, net | $ | 1,187 | $ | 466,181 | $ | (464,994 | ) | $ | - | $ | 5,997 | $ | (5,997) | |||||||
Grocery sales, net | 5,775,543 | 2,803,327 | 2,972,216 | 13,574,896 | 6,126,063 | 7,448,833 | ||||||||||||||
TOTAL SALES, NET | 5,776,730 | 3,269,508 | 2,507,222 | 13,574,896 | 6,132,060 | 7,442,836 | ||||||||||||||
Cost of sales vapor | 364 | 186,522 | (186,158 | ) | - | 562 | (562) | |||||||||||||
Cost of sales grocery | 3,909,190 | 1,706,597 | 2,202,593 | 8,493,213 | 3,800,625 | 4,692,588 | ||||||||||||||
GROSS PROFIT | 1,867,176 | 1,376,389 | 490,787 | 5,081,683 | 2,330,873 | 2,750,810 | ||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||
Selling, general and administrative | 3,985,377 | 2,427,256 | 1,558,121 | 8,261,343 | 3,699,273 | 4,562,070 | ||||||||||||||
LOSS FROM OPERATIONS | (2,118,201 | ) | (1,050,867 | ) | (1,067,334 | ) | (3,179,660) | (1,368,400) | (1,811,260) | |||||||||||
OTHER INCOME (EXPENSE) | ||||||||||||||||||||
Loss on investment | (11,314 | ) | (557 | ) | (10,757 | ) | ||||||||||||||
Other income | 4,327 | - | 4,327 | |||||||||||||||||
(Loss) gain on investment | (3,943) | 1,800 | (5,743) | |||||||||||||||||
Change in contingent consideration | 425,000 | - | 425,000 | |||||||||||||||||
Other income, net | 4,600 | 6,175 | (1,575) | |||||||||||||||||
Interest income | 50,202 | 1,543 | 48,659 | 101,248 | 14,910 | 86,338 | ||||||||||||||
Total other income (expense), net | 43,215 | 986 | 42,229 | 526,905 | 22,885 | 504,020 | ||||||||||||||
NET LOSS | $ | (2,074,986 | ) | $ | (1,049,881 | ) | $ | (1,025,105 | ) | $ | (2,652,755) | $ | (1,345,515) | $ | (1,307,240) |
Nine Months Ended September 30, | 2022 to 2021 | Six Months Ended June 30, | 2023 to 2022 | |||||||||||||||||
2022 | 2021 | Change $ | 2023 | 2022 | Change $ | |||||||||||||||
SALES | ||||||||||||||||||||
Vapor sales, net | $ | 256,747 | $ | 1,671,098 | $ | (1,414,351 | ) | $ | 38 | $ | 255,560 | $ | (255,522) | |||||||
Grocery sales, net | 16,700,596 | 8,450,055 | 8,250,541 | 27,134,602 | 10,925,053 | 16,209,549 | ||||||||||||||
TOTAL SALES, NET | 16,957,343 | 10,121,153 | 6,836,190 | 27,134,640 | 11,180,613 | 15,954,027 | ||||||||||||||
Cost of sales vapor | 112,610 | 657,171 | (544,561 | ) | 653 | 112,246 | (111,593) | |||||||||||||
Cost of sales grocery | 10,674,170 | 5,133,228 | 5,540,942 | 17,137,913 | 6,764,980 | 10,372,933 | ||||||||||||||
GROSS PROFIT | 6,170,563 | 4,330,754 | 1,839,809 | 9,996,074 | 4,303,387 | 5,692,687 | ||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||
Selling, general and administrative | 11,012,070 | 6,599,224 | 4,412,846 | 15,158,780 | 7,026,693 | 8,132,087 | ||||||||||||||
LOSS FROM OPERATIONS | (4,841,507 | ) | (2,268,470 | ) | (2,573,037 | ) | (5,162,706) | (2,723,306) | (2,439,400) | |||||||||||
OTHER INCOME (EXPENSE) | ||||||||||||||||||||
Gain (loss) on investment | (6,000 | ) | 10,954 | (16,954 | ) | (8,400) | 5,314 | (13,714) | ||||||||||||
Change in contingent consideration | 402,900 | - | 402,900 | |||||||||||||||||
Other income | 27,376 | - | 27,376 | 9,250 | 23,049 | (13,799) | ||||||||||||||
Interest income (expense), net | 81,715 | (76,888 | ) | 158,603 | 198,900 | 31,513 | 167,387 | |||||||||||||
Gain on extinguishment of debt, net | - | 767,930 | (767,930 | ) | ||||||||||||||||
Total other income (expense), net | 103,091 | 701,996 | (598,905 | ) | 602,650 | 59,876 | 542,774 | |||||||||||||
NET LOSS | $ | (4,738,416 | ) | $ | (1,566,474 | ) | $ | (3,171,942 | ) | $ | (4,560,056) | $ | (2,663,430) | $ | (1,896,626) |
Nine Months Ended September 30, | Six Months Ended June 30, | ||||||||||||
2022 | 2021 | 2023 | 2022 | ||||||||||
Net cash provided by (used in) | |||||||||||||
Net cash (used in) provided by | |||||||||||||
Operating activities | $ | (2,676,131 | ) | $ | (2,044,147 | ) | $ | (3,658,415) | $ | (1,870,884) | |||
Investing activities | (5,359,187 | ) | (25,106 | ) | (115,099) | (5,336,011) | |||||||
Financing activities | 12,873,087 | 27,316,225 | (11,806,463) | 33,911 | |||||||||
$ | 4,837,769 | $ | 25,246,972 | $ | (15,579,977) | $ | (7,172,984) |
September 30, 2022 | December 31, 2021 | June 30, 2023 | December 31, 2022 | ||||||||||
Cash | $ | 30,009,173 | $ | 26,496,404 | $ | 8,481,915 | $ | 22,911,892 | |||||
Total assets | $ | 45,470,486 | $ | 34,443,487 | $ | 39,338,975 | $ | 55,255,030 | |||||
Percentage of total assets | 66.00 | % | 76.93 | % | 21.56% | 41.47% |
● | Failure to have properly documented and designed disclosure controls and procedures and testing of the operating effectiveness of our internal control over financial reporting. |
● | Failure to perform periodic and year-end inventory observations in a timely manner and adequate controls to sufficiently perform required rollback procedures of inventory counts to the year-end. |
● | Weakness around our purchase orders and inventory procedures, inclusive of year-end physical inventory observation procedures as well as physical count procedures. |
● | Segregation of duties due to lack of personnel. |
● | Information technology general controls (ITGCs) were not designed effectively to ensure that appropriate access security controls, change management and data center and network operations ITGCs were in place. |
● | Continuing to increase headcount across the Company, with a particular focus on hiring individuals with strong internal control backgrounds and inventory expertise. |
● | Increasing its focus on the Company’s purchase order process in order to better manage inventory thereby improving cash management and ultimately leading to more reliable and precise financial reporting. The Company implemented an open to buy program by comparing purchases with sales to better control overall inventory purchases. |
● | Using business intelligence to combine business analytics, data tools and infrastructure to help the Company quickly identify the issues in POS system and facilitate internal control over financial reporting. |
● | Establishing policies and procedures in the IT area to mitigate data breach, unauthorized access, and address segregation of duties. |
Exhibit | Incorporated by Reference | Filed or Furnished | ||||||||
No. | Exhibit Description | Form | Date | Number | Herewith | |||||
31.1 | Filed | |||||||||
31.2 | Filed | |||||||||
32.1 | Furnished * | |||||||||
32.2 | Furnished * | |||||||||
101.INS | XBRL Instance Document | Filed | ||||||||
101.SCH | XBRL Taxonomy Extension Schema Document | Filed | ||||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | Filed | ||||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | Filed | ||||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | Filed | ||||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | Filed | ||||||||
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) | Filed |
* | This exhibit is being furnished rather than filed and shall not be deemed incorporated by reference into any filing, in accordance with Item 601 of Regulation S-K. |
HEALTHIER CHOICES MANAGEMENT CORP. | ||
Date: | By: | /s/ Jeffrey Holman |
Jeffrey Holman | ||
Chief Executive Officer | ||
Date: | By: | /s/ John Ollet |
John Ollet | ||
Chief Financial Officer |