UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D. C.  20549


FORM 10-Q



[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


For the quarterly period ended September 30, 2018March 31, 2019


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


For the transition period from                        to                     

 to


Commission File No.   000-54917


FUTURE HEALTHCARE OF AMERICANATUR INTERNATIONAL CORP.

 (Exact(Exact name of registrant as specified in its charter)


WYOMING45-5547692

WYOMING

45-5547692

(State or other jurisdiction of
incorporation or organization)

(I.R.S. Employer
Identification No.)


5001 Baum Blvd, Suite 770Jachthavenweg 124

Pittsburgh, PA 152131081 KJ Amsterdam

The Netherlands

(Address of principal executive offices)

 (Address

Registrant’s telephone number, including area code: 011 31 20 578 7700

Securities registered pursuant to Section 12(b) of Principal Executive Offices)the Act: None


Registrant's Telephone Number:  (561) 693-1422



Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Sections 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.   (1) Yes [X] No [  ]


Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, 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). Yes ☒ No ☐

Yes [X]  No [  ]


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,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):


Large accelerated filer  [  ]

Accelerated filer [  ]

Non-accelerated filer  [  ]

Smaller reporting company  [ X ]

Emerging Growth company [X]


If an emerging growth company, indicate by check mark whether 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. [  ]  



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



Securities registered pursuant to Section 12(b) of the Act:

Title of each classTrading Symbol(s)Name of each exchange on which registered

common stock,

$0.001 par value per share 

NTRU 

 OTC Markets Group Inc

(OTCQB Market)

As of October 31, 2018,May 15, 2019, there were 11,265,631131,425,194 shares of common stock, par value $0.001, of the registrant issued and outstanding.






1





PART I - FINANCIAL INFORMATION


 

The Unaudited Consolidated Financial Statements of Future Healthcare of America,Natur International Corp., a Wyoming corporation (the “Company,” “FHA,“Natur,” “we,” “our,” “us” and words of similar import) were prepared by management and commence on the following page, together with related notes.  In the opinion of management, the Unaudited Consolidated Financial Statements fairly present the financial condition of the Company.



Natur International Corp.

 


Future Healthcare of America


Index to Unaudited Financial Statements


Page

Unaudited Condensed Consolidated Balance Sheets

3

2

Unaudited Condensed Consolidated Statements of Operations

4

3

Unaudited Condensed Consolidated Statements of Cash Flows

5

Notes to Unaudited Condensed Consolidated Financial Statements

6


NATUR INTERNATIONAL CORP.
























2




FUTURE HEALTHCARE OF AMERICA

 CONDENSEDUNAUDITED CONSOLIDATED BALANCE SHEETS

 

 

September 30,  2018 (Unaudited)

 

December 31, 2017

 

   CURRENT ASSETS:

 

 

 

 

     Cash

$     60,202

 

$  144,462

 

     Accounts receivable, net

182,360

 

198,670

 

     Prepaid expenses

13,694

 

27,218

 

     Current asset from discontinued operations

176,601

 

219,696

 

   Total current assets

432,857

 

590,046

 

 

 

 

 

 

   Deferred tax asset, net

-

 

-

 

   Total assets

$    432,857

 

$  590,046

 

 

 

 

 

 

   CURRENT LIABILITIES:

 

 

 

 

     Accounts payable

139,030

 

38,559

 

     Accrued expenses

660,476

 

495,540

 

     Derivative liability

-

 

43,726

 

     Notes payable

279,879

 

-

 

Convertible note payable

1,010,000

 

1,010,000

 

Current liabilities from discontinued operations

289,983

 

130,572

 

   Total current liabilities

2,379,368

 

1,718,397

 

 

 

 

 

 

 

 

 

 

 

   Total liabilities

2,379,368

 

1,718,397

 

 

 

 

 

 

COMMITMENTS & CONTINGENCIES

-

 

-

 

 

 

 

 

 

   STOCKHOLDERS' DEFICIT

 

 

 

 

     Common stock

11,266

 

11,266

 

     Additional paid-in capital

2,210,420

 

1,313,160

 

        Subscription receivable

(270,005)   

-    

     Accumulated deficit

(3,898,192)

 

(2,452,777)

 

   Total stockholders' deficit

(1,946,511)

 

(1,128,351)

 

   Total liabilities and stockholders' deficit

$  432,857

 

$  590,046

 

  NOTES March 31,
2019
(unaudited)
  December 31,
2018
 
ASSETS        
Current Assets        
Cash and cash equivalents    18,600   128,364 
Accounts receivable    8,619   42,744 
Related party receivable 4  1,796   1,833 
Inventories    103,396   179,072 
Other current assets 5  78,492   99,535 
           
Current assets held for disposal 13  339   377,628 
Total Current Assets    211,242   829,176 
           
Non-Current Assets          
Intangible asset    21,793   37,353 
Fixed assets    256,592   523,510 
Other assets    176,350   201,160 
Right-of-use asset    580,310   - 
Non-current assets held for disposal    -   51,165 
Total Non-Current Assets    1,035,045   813,188 
           
TOTAL ASSETS    1,246,287   1,642,364 
           
LIABILITIES AND MEMBERS’ DEFICIT          
           
Current Liabilities          
Accounts Payable    1,341,652   1,127,345 
Accrued expenses & other contingent liabilities 6  623,318   583,161 
Related party other liabilities 7  2,217,440   2,032,705 
Related party other notes 8  1,062,426   1,072,849 
Convertible note payable 9  2,159,680   1,600,710 
Related party convertible note payable 10  11,436,228   11,671,743 
Operating lease liabilities    263,013   - 
Current liabilities held for disposal 13  151,267   887,126 
Total Current Liabilities    19,255,024   18,975,639 
           
Non-Current Liabilities          
Operating lease liabilities    314,994   - 
Total Non-Current Liabilities    314,994   - 
           
TOTAL LIABILITIES    19,570,018   18,975,639 
           
Retained Deficit          
Common stock, $0.001 par value, 200,000,000 shares authorized, 131,424,194 and 129,049,192 issued and outstanding as of March 31, 2019 and December 31, 2018 respectively.    131,425   129,049 
Preferred stock A, $0.001 par value, 2,469.131 shares authorized, 2,397.131 and 2,469.131  issued and outstanding as of March 31, 2019 and December 31, 2018 respectively. Convertible to common stock at a 1:33,000 ratio.    2   2 
Preferred stock B, $0.001 par value, 100,000 shares authorized, 100,000 and 100,000 issued and outstanding as of March 31, 2019 and December 31, 2018 respectively. Convertible to common stock at a 1:1000 ratio.    100   100 
Additional Paid in Capital    5,575,055   5,174,269 
Total Shareholders’ deficit    (24,047,101)  (22,299,570)
Accumulated other comprehensive loss    16,788   (337,125)
TOTAL DEFICIT    (18,323,731)  (17,333,275)
           
LIABILITIES AND MEMBERS’ DEFICIT    1,246,287   1,642,364 

 


Future Healthcare of America Balance Sheet (Parenthetical)

 

 

Statement of Financial Position

 

September 30, 2018

 

December 31, 2017

Allowance for doubtful accounts included in current assets from discontinue operations

 

45,200

 

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







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


NATUR INTERNATIONAL CORP.



3




FUTURE HEALTHCARE OF AMERICA

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

For the Nine Months Ended

 

 

 

September 30, 2018

 

September 30, 2017

 

September 30, 2018

 

September 30, 2017

 

 

 

 

 

 

 

 

 

 

 

   REVENUE

 

 

 

 

 

 

 

 

 

          Total Revenue

$

363,607

$

423,306

$

1,138,825

$

1,433,838

 

 

 

 

 

 

 

 

 

 

 

   COST OF SERVICES

 

 

 

 

 

 

 

 

 

          Total Cost of Services

 

261,734

 

330,294

 

853,702

 

1,110,667

 

 

 

 

 

 

 

 

 

 

 

   Gross Profit

 

101,873

 

93,012

 

285,123

 

323,171

 

   OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

     Selling expenses

 

4,168

 

4,756

 

17,982

 

22,999

 

     General and administrative

 

35,617

 

44,259

 

122,529

 

142,241

 

     Salaries, wages and related expenses

 

110,829

 

100,122

 

306,356

 

305,352

 

     Professional and consulting fees

 

62,324

 

7,947

 

118,240

 

57,775

 

          Total Operating Expenses

 

212,938

 

157,084

 

565,107

 

528,367

 

   Loss from continuing operations

 

(111,065)

 

(64,072)

 

(279,984)

 

(205,196)

 

 

 

 

 

 

 

 

 

 

 

   OTHER INCOME (EXPENSE):

 

 

 

 

 

 

 

 

 

     Interest income

 

85

 

161

 

162

 

232

 

     Gain/(loss) on derivative

 

-

 

(79,124)

 

-

 

(34,065)

 

     Interest expense

 

(25,583)

 

(25,492)

 

(77,065)

 

(76,411)

 

     Other income (expense)

 

-

 

-

 

-

 

-

 

          Total Other Expense

 

(25,498)

 

(104,455)

 

(76,903)

 

(110,244)

 

   Loss from continuing operations before income

   tax

 

(136,563)

 

(168,527)

 

(356,887)

 

(315,440)

 

 

 

 

 

 

 

 

 

 

 

   Income tax provision

 

-

 

-

 

-

 

-

 

Net loss from continuing operations

 

(136,563)

 

(168,527)

 

(356,887)

 

(315,440)

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) from discontinued operations, net of tax

 

(158,375)

 

3,729

 

(234,994)

 

33,446

 

 

 

 

 

 

 

 

 

 

 

   NET LOSS

$

(294,938)

$

(164,798)

$

(591,881)

$

(281,994)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and Diluted Loss Per Common Share from continuing operations

$

(0.01)

$

(0.02)

$

(0.03)

$

(0.03)

 

Basic and Diluted Income (Loss) Per Common Share from discontinued operations

$

(0.02)

$

0.00

$

(0.02)

$

0.00

 

Basic and Diluted Loss Per Common Share

$

(0.03)

$

(0.02)

$

(0.05)

$

(0.03)

 

 

 

 

 

 

 

 

 

 

 

Basic and Diluted Weighted Average Common 

  Shares Outstanding

 

11,265,631

 

11,265,631

 

11,265,631

 

11,265,631

 



  

March 31,
2019

(unaudited)

  March 31,
2018
 
       
REVENUE  64,419   527,717 
         
COST OF GOODS SOLD - RELATED PARTY  30,881   200,354 
COST OF GOODS SOLD  63,896   73,398 
   94,777   273,752 
         
GROSS MARGIN  (30,358)  253,965 
         
OPERATING EXPENSES        
Wages & Salaries  264,729   443,381 
Selling, General & Administrative  1,402,410   1,114,867 
Amortization & depreciation  272,189   53,316 
         
Total operating expenses  1,939,328   1,611,564 
         
LOSS FROM OPERATIONS  (1,969,686)  (1,357,599)
         
Interest expense  39,233   28,848 
         
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES  (2,008,919)  (1,386,447)
         
Income taxes  -   - 
         
INCOME FROM CONTINUING OPERATIONS  (2,008,919)  (1,386,447)
         
Discontinued operations (note 14)        
Gain on disposal of subsidiary  300,798   - 
Loss from operations of discontinued Component  (39,410)  (792,737)
         
NET LOSS ATTRIBUTE TO SHAREHOLDERS  (1,747,531)  (2,179,184)
         
Earnings Per Share  (0.01)  (0.02)
Diluted Earnings Per Share  (0.01)  (0.02)
         
COMPREHENSIVE INCOME        
         
Net Loss  (1,747,531)  (2,179,184)
Other comprehensive income  353,913   157,681 
         
COMPREHENSIVE LOSS  (1,393,618)  (2,021,503)




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


NATUR INTERNATIONAL CORP.



4




FUTURE HEALTHCARE OF AMERICA

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


 

 

Nine Months Ended

 

 

September 30,

 

 

2018

 

2017

 

 

 

 

 

   Cash Flows from Operating Activities

 

 

 

 

     Net loss from continuing operations

$

(356,887)

$

(315,440)

     Adjustments to reconcile net loss from continuing

      operations to net cash used by operating activities:

 

 

 

 

          Loss on derivative instruments

 

-

 

34,065

          Change in assets and liabilities:

 

 

 

 

               Accounts receivable

 

16,310

 

69,514

               Prepaid expenses

 

62,675

 

46,125

               Accounts payable

 

100,470

 

7,806

               Accrued expense

 

164,936

 

100,130

                    Net Cash Used in continuing operations

 

(12,496)

 

(57,800)

                    Net Cash Used in discontinued operations

 

(32,487)

 

(19,546)

                    Net Cash Used in Operating Activities

 

(44,983)

 

(77,346)

 

 

 

 

 

   Cash Flows from Investing Activities:

 

 

 

 

                    Net Cash Used in Investing Activities

 

-

 

-

 

 

 

 

 

   Cash Flows from Financing Activities:

 

 

 

 

     Payments on subscription receivable

 

(270,005)

 

 

     Proceed from note payable

 

270,005

 

-

     Proceed from related party advance

 

23,000

 

-

     Re-payment of related party advance

 

(23,000)

 

-

     Re-payment of insurance financing

 

(39,277)

 

(15,420)

                    Net Cash Used in Financing Activities

 

(39,277)

 

(15,420)

 

 

 

 

 

   Net Decrease in Cash

 

(84,260)

 

(92,766)

   Cash at Beginning of Period

 

144,462

 

206,352

   Cash at End of Period

$

60,202

$

113,586

 

 

 

 

 

   Supplemental Disclosures of Cash Flow Information

 

 

 

 

     Cash paid during the periods for:

 

 

 

 

          Interest

 

1,315

 

735

          Income taxes

 

-

 

-


SHAREHOLDERS’ DEFICIT

 Supplemental Disclosures of Non-Cash Investing and Financing

     Activities:

  

 

For the Nine Months Ended

 

 

September 30,

NON-CASH EXPENDITURES

 

2018

 

2017

Prepaid insurance premiums financed

 

49,151

 

22,216

  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, 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 loss                                  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)
                                         
Net Loss                              (1,745,531)      (1,745,531)
Share-based compensation                          403,162           403,162 
Conversion of Preferred A to Common stock  2,376,002   2,376   (72)  -           (2,376)          - 
Other comprehensive income                                  353,913   353,913 
Balance at March 31, 2019  131,425,194   131,425   2,397   2   100,000   100   5,575,055   (24,047,101)  16,788   (18,323,731)

  





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


NATUR INTERNATIONAL CORP.



UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

5

  March 31,
2019 (unaudited)
  March 31,
2018
 
       
CASHFLOW FROM OPERATING ACTIVITIES      
Net Loss  (1,747,531)  (2,179,184)
Adjustments to reconcile net loss to net cash used in operating activities        
Lease expense  65,496   - 
Amortization & depreciation  267,819   53,316 
Stock based compensation  403,162   - 
Changes in:        
- Accounts receivable  34,125   212,016 
- Related party receivable  37   51,400 
- Inventories  75,676   383,483 
- Other current assets  21,043   (40,805)
- Accounts payable  214,307   307,533 
- Lease liabilities  (67,045)  - 
- Accrued expenses  152,367   (477,104)
- Accrued expenses - related parties  187,049   (401,747)
Net cash used in operating activities  (393,495)  (2,091,092)
Net cash used in operating activities - Discontinued operations  (358,570)  (237,599)
         
CASHFLOW FROM INVESTING ACTIVITIES        
Cash paid for purchase of property and equipment  -   - 
Cash received for sale of property and equipment  -   - 
Net cash from in investing activities  -   - 
Net cash from in investing activities - Discontinued Operations  51,165   - 
         
CASHFLOW FROM FINANCING ACTIVITIES        
         
Related party loan additions  -   12,330 
Convertible loan note additions  560,915   - 
Related party convertible loan note additions  -   1,233,046 
Net cash provided from financing activities  560,915   1,245,376 
Net cash from financing activities - Discontinued Operations  -   41,118 
         
Effect of foreign exchange rate changes on cash and cash equivalents  

30,221

   157,681 
         
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS  (109,764)  (884,516)
         
CASH AND CASH EQUIVALENTS beginning of period  128,364   1,082,734 
CASH AND CASH EQUIVALENTS end of period  18,600   198,218 

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


NATUR INTERNATIONAL CORP.




FUTURE HEALTHCARE OF AMERICA

NOTES TO UNAUDITED CONDENSED 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.

At the onset of the quarter, our product line up centered on a range of cold pressed juices and healthy snacks. These products were sold either directly or through distribution partners in the Netherlands and the United Kingdom. Beginning in the fourth quarter of 2018, and throughout the first quarter of 2019, the Company focus shifted from dependence on the legacy fruit and vegetable juices and snacks toward innovating a new line of hemp-derived natural food and beverage products. The Company products value proposition is to affordably provide the most culturally relevant, authentic, fresh fruit, vegetable and hemp-derived supplement consumer products to democratize clean, healthy, eating and drinking occasions, with plans to address the growing needs for products that address other personal needs in health, wellness and beauty care.

Through third party contract manufacturers, we apply patented technology to proprietary nutrient dense blends of fruit and vegetables, adding hemp-derived supplements. These are bottled or packed with technically advanced food and product safety measures and in some cases cold high-pressure processing to bring fresh tasting fruit, vegetable and hemp-derived supplement blends to market through more than fifteen product types. These newly innovated products are brought to market through Natur’s distribution channels of direct-to-business, direct-to-consumer and through select distributors.

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 1 -2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES


Organization – On June 22, 2012, FAB Universal (FAB) formed Future HealthcareBasis of Americapresentation.The Company prepares its financial statements using the accrual basis of accounting in accordance with United States generally accepted accounting principles (“FHA”US GAAP”), a wholly owned subsidiary. On October 1, 2012, FHA operations were spun-off in a 1 for 1 dividend to the shareholders of record of FAB on September 5, 2012, the record date. 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 reflect the accounts of FHA, FHSNatur Holding B.V. and Interim.it’s direct or indirect subsidiaries. All inter-company transactions have been eliminated in consolidation.


AccountingUse of Estimates in Financial Statement Preparation. - The preparation of financial statements in conformity with generally accepted accounting principlesUS GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosuresdisclosure 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, obsolete inventory and in determining the impairment of definite life intangible assets and goodwill.  Actual results could differ from those estimated by management.estimates.


Cash and Cash EquivalentsEquivalents. – The Company considersCash equivalents include all highly liquid investments with an original maturity datematurities of three months or less when purchased to be cash equivalents.  At September 30, 2018, the Company had no cash balances in excess of federally insured limits.less.


Accounts ReceivableReceivable. - Accounts receivable consistare comprised of trade receivables arising in the normal course of business. At September 30, 2018, theunsecured amounts due from customers. The Company hascarries its accounts receivable at their face amounts less an allowance for doubtful accounts of $45,200 in discontinued operations, which reflects the Company's bestbad debts. The allowance for bad debts is recognized based on management’s estimate of probablelikely losses inherent in the accounts receivable balance. The Company determines the allowanceper year, based on known troubled accounts, historicalpast experience and other currently available evidence. Duringreview of customer profiles and the nine months ended September 30, 2018 and 2017, the Company recorded bad debt expenseaging of $25,000 and $0, respectively.receivable balances.


NATUR INTERNATIONAL CORP.


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


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 9).


Leases - The Company accounts for leases in accordance with Financial FASB 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.


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 7).


Advertising Costs - Advertising costs are expensed as incurred and amounted to $19,391 and $27,653 for the periods ending September 30, 2018 and 2017, respectively.




6




FUTURE HEALTHCARE OF AMERICA

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


NOTE 1 -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 are evaluated on a yearly basis and no impairment losses were incurred during the three months ended March 31, 2019. 

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.


NATUR INTERNATIONAL CORP.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued

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. 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.

Share-Based Payment Arrangement. The Company measures the cost of employee services received in exchange for an award of equity instruments (share-based payments, or SBP) based on the grant-date fair value of the award. That cost is recognized over the period during which an employee is required to provide service in exchange for the SBP award—the requisite service period (vesting period). For SBP awards subject to conditions, compensation is not recognized until the performance condition is probable of occurrence. The grant-date fair value of share options is estimated using the Black-Scholes-Merton option-pricing model. The Company adopted ASU 2018-07 in the first quarter of 2019 which aligns the accounting for share-based payment awards issued to employees and non-employees.

The fair value of each option granted during the period ended March 31, 2019 was estimated on the date of grant using the Black-Scholes-Merton option-pricing model with the weighted average assumptions in the following table:

2019
Expected dividend yield0%
Expected option term (years)6
Expected volatility382%
Risk-free interest rate3%

The expected term of options granted represents the period of time that options granted are expected to be outstanding. The expected volatility was based on the volatility in the trading of the Company’s common stock. The assumed discount rate was the default risk-free six-year interest rate in the Netherlands.


NATUR INTERNATIONAL CORP.

NOTES TO UNAUDITED 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 for the period ended March 31, 2019:

March 31,

2019

Netherlands64,419
France-
Iceland-
Total64,419

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 sales could be at risk for return by customers. As the company do not deem this amount to be material no provision was recorded for the period ended 31 March, 2019. 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)”. This update requires the recognition of lease assets and lease liabilities on the balance sheet for leases classified as operating leases under previous guidance. The accounting for finance leases (capital leases) was substantially unchanged. The original guidance required application on a modified retrospective basis with adjustments to the earliest comparative period presented. In August 2018, the FASB issued ASU No. 2018-11, “Targeted Improvements to ASC 842,” which included an option to not restate comparative periods in transition and elect to use the effective date of ASU No. 2016-02 as the date of initial application, which the Company elected. As a result, the consolidated balance sheet prior to January 1, 2019 was not restated, and continues to be reported under previous guidance that did not require the recognition of operating lease liabilities and corresponding lease assets on the consolidated balance sheet. As a result of the adoption of ASU No. 2016-02 on January 1, 2019, the Company recorded operating lease right-of-use assets of $580,310 and operating lease liabilities of $578,007. The adoption of ASU No. 2016-02 had an immaterial impact on the Company’s condensed consolidated statement of income and c consolidated statement of cash flows for the three-month period ended March 31, 2019. In addition, the Company elected the package of practical expedients permitted under the transition guidance within the new standard, which allowed the Company to carry forward the historical lease classification, not reassess prior conclusions related to expired or existing contracts that are or that contain leases, and not reassess the accounting for initial direct costs.


NATUR INTERNATIONAL CORP.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued

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 UNAUDITED 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:

  March 31,
2019
  December 31,
2018
 
Balance Sheets  0.8914   0.8734 
Statements of operations and comprehensive income (loss)  0.8805   0.8464 
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.

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 InstrumentsInstruments.The Companycarrying value of short-term instruments, including cash, accounts forpayable and accrued expenses, and short-term notes approximate fair value measurementsdue to the relatively short period to maturity for financial assets and financial liabilities in accordance with FASB ASC Topic 820.these instruments. The authoritative guidance, which, among other things, defineslong-term debt approximate 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. since the related rates of interest approximate current market rates.

Fair value is defined as the exitexchange price representing the amount that would either be received to sellfor an asset or be 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. As such,participants on the measurement date. Valuation techniques used to measure fair value is a market-based measurement that should be determined based on assumptions that market participants wouldmaximize the use in pricing an asset or liability. As a basis for considering such assumptions,of observable inputs and minimize the guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:use of unobservable inputs.

 

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 - On January 1, 2018, the Company adopted Accounting Standards Codification Topic 606, “Revenue from Contracts with Customers,” which includes clarifying ASUs issued in 2015, 2016 and 2017 (“new revenue standard”).  The new revenue standard did not have a material impact on revenue recognition.  The Company does not expect the impact of the adoption of the new standardhave any assets or liabilities that are required to be materialmeasured 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 net income on an ongoing basis.


Revenue is recognized when performance obligations with the customer are satisfied which occurs when services are provided to the customer. Revenue is measured as the amount of consideration expected to be received in exchange for providing services. The Company's sales contain performance obligations satisfied at a point in timepresent basic earnings per share and diluted earnings per share when the services are provided.effect is dilutive (see Note 13).


NATUR INTERNATIONAL CORP.


Generally, the time between when revenue is recognized and when payment is due is not significant. Pre-payments received prior to satisfaction of performance obligations through the Recovery Audit Program or RAP payments from Medicare are recorded as a deferred revenue liability. Given the insignificant days between revenue recognition and receipt of payment, financing components do not exist between the Company and its customers.


The following table disaggregates revenue by category:


 

 

For the nine months ended September 30, 2018

 

Medicare

 

Private Pay

Medicaid

Staffing

Ins.

Total

Montana

-

 

 

215,015

 

138,629

 

704,591

 

80,590

 

1,138,825








7




FUTURE HEALTHCARE OF AMERICA

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued3 – GOING CONCERN


 

 

For the three months ended September 30, 2018

 

Medicare

 

Private Pay

 

Medicaid

 

Staffing

Ins.

Total

Montana

-

 

 

70,194

 

 

46,975

 

 

219,286

 

27,152

 

363,607


Derivative Financial InstrumentsThe 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 July 2017, the FASB issued ASU No. 2017-11, (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception. The new standard applies to issuers of financial instruments with down-round features. A down-round provision is a term in an equity-linked financial instrument (i.e. a freestanding warrant contract or an equity conversion feature embedded within a host debt or equity contract) that triggers a downward adjustment to the instrument’s strike price (or conversion price) if equity shares are issued at a lower price (or equity-linked financial instruments are issued at a lower strike price) than the instrument’s then-current strike price. The purpose of the feature is typically to protect the instrument’s counterparty from future issuances of equity shares at a more favorable price. The ASU amends (1) the classification of such instruments as liabilities or equity by revising the certain guidance relative to evaluating if they must be accounted for as derivative instruments and (2) the guidance on recognition and measurement of freestanding equity-classified instruments. Forresponse, the Company this ASU is effective January 1, 2019, with early adoption permitted.


Duringhas implemented a plan to alleviate such reasonable doubt as follows: (i) the period ending September 30, 2018, we adopted the requirements of the new guidance as of January 1, 2018, utilizing the modified retrospective method of transition. As a result, we recorded a cumulative adjustmentCompany will continue to retained earnings as of January 1, 2018, to reflect the effect of the new guidance.


The impact of adopting the new guidance resulted in a decrease in the previously recorded derivative liability, an increase ingenerate additional paid-in capital and a reduction of retained earningsrevenue (and positive cash flows from operations) partly related to the down-round provisions in the Convertible Note PayableCompany’s expansion into new product lines during 2019 and warrants (see Note 4).


The modified retrospective method of transition requires us to disclose the effect of applying the new guidance on each item included in our 2018 financial statements.


Following are the line items from our balance sheet as of September 30, 2018, that were affected, the amounts that would have been reported under the former guidance, the effects of applying the new guidance, and the balances reported under the new guidance:


 

Amounts that

Effects of

Balance

 

would have

applying

As  

 

been reported

new guidance

reported

Assets:

                     -   

                     -   

                     -   

Liabilities

 

 

 

Derivative liability

            (21,632)

              21,632

                     -   

Stockholder’s Deficit

 

 

 

Accumulated Deficit

        3,022,564

            875,628

        3,898,192

Additional Paid-In Capital

       (1,313,160)

          (897,260)

       (2,210,420)




8




FUTURE HEALTHCARE OF AMERICA

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued


The following are the line items from the statement of operations for the nine-month period ending September 30, 2018, that were affected, the amounts that would have been reported under the former guidance, the effects of applying the new guidance, and the amounts reported under the new guidance:


Statement of operations

Amounts that would have been reported

Effects of applying new guidance

Balance As Reported

Interest expense

             54,971

              22,094

             77,065

Net income

          (569,787)

            (22,094)

          (591,881)


The following are the line items from the statement of operations for the three-month period ending September 30, 2018, that were affected, the amounts that would have been reported under the former guidance, the effects of applying the new guidance, and the amounts reported under the new guidance:


Statement of operations

Amounts that would have been reported

Effects of applying new guidance

Balance As Reported

Interest expense

             9,647

              15,936

25,583

Net income

          (279,002)

            (15,936)

          (294,938)


Recently Enacted Accounting Standards - In February 2016, the FASB issued changespartly related to the accounting for leasesCompany wide sales initiatives already implemented; (ii) in addition cost saving initiatives and an organization restructuring program that primarily affect presentation and disclosure requirements. The new standardis almost completed, will require the recognition of a right to use asset and underlying lease liability for operating leases withhave 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 materialadditional positive impact on the Company’s presentcost-basis of the organization. Notwithstanding the foregoing, the Company will seek capital as needed, which may be either equity or future financial statements.


NOTE 2 - GOING CONCERN


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 consolidated financial statements have been prepared in conformity with generally accepted accounting principles ofassuming that the United States of America, which contemplate continuation of the Companycompany will continue as a going concern. However,The company is currently undertaking a corporate restructuring exercise, which is further disclosed in Note 15 – subsequent events.

NOTE 4 – RELATED PARTY RECEIVABLES

Receivables of related parties at March 31, 2019 and December 31, 2018 consisted of the following:

  March 31,
2019
  December 31,
2018
 
       
Micknifisent B.V.  1,796   1,833 
   1,796   1,833 

NOTE 5 – OTHER CURRENT ASSETS

Other current assets at March 31, 2019 and December 31, 2018 consisted of the following:

  March 31,
2019
  December 31,
2018
 
       
Value Added Tax receivable  62,851   67,388 
Prepaid expenses  15,550   32,054 
Other Receivables  91   93 
   78,492   99,535 

NATUR INTERNATIONAL CORP.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 6 – ACCRUED EXPENSES & OTHER CONTINGENT LIABILITIES

Accrued expenses & other contingent liabilities at March 31, 2019 and December 31, 2018 consisted of the following:

  March 31,
2019
  December 31,
2018
 
       
Taxes payable  534,254   352,423 
Invoices to be received  25,572   3,972 
Holiday Allowance Payable  33,584   24,642 
Other accrued expenses & other contingent liabilities  29,908   202,124 
   623,318   583,161 

NOTE 7 – RELATED PARTY OTHER LIABILITIES

Related party other liabilities at March 31, 2019 and December 31, 2018 consisted of the following:

  March 31,
2019
  December 31,
2018
 
       
NL Life Sciences B.V.  829,942   563,118 
STB Family Offices SARL  196,193   200,234 
STB Family Offices B.V.  653,190   661,432 
Stichting Thank You Nature  -   16,913 
Flare Media B.V.  24,944   25,458 
AMC  238,945   325,382 
Management & Board Fees  251,910   142,154 
Yoomoo Limited  -   98,014 
Dynamic Health B.V.  22,316   - 
   2,217,440   2,032,705 

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 three-month period ended March 31, 2019 and the three-month period ended March 31, 2018 was $31,726, and $581,997, 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 UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 8 – RELATED PARTY OTHER NOTES

Loan from other related parties at March 31, 2019 and December 31, 2018 consisted of the following:

  March 31,
2019
  December 31,
2018
 
       
Efficiency Life Fund  392,641   400,750 
TriDutch Holding B.V.  669,785   672,099 
   1,062,426   1,072,849 

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 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. In 2019 accrued interest of $2,314 was added to the balance and no additional borrowings were drawn down, no repayments were made on the balance in either 2018 or 2019.

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. The movement in 2019 relates wholly to exchange rate difference.

NOTE 9 – CONVERTIBLE NOTE PAYABLE

Convertible loans payable at March 31, 2019 and December 31, 2018 consisted of the following:

  March 31,
2019
  December 31,
2018
 
       
Convertible loan 1  632,695   629,750 
Convertible loan 2  962,285   970,960 
Convertible loan 3  564,700   - 
   2,159,680   1,600,710 

Convertible 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 or 2019 and the increased balance is due to the accrued interest as no repayment for capital or interest have been made. The lender has agreed to a term sheet for conversion of the debt into common stock at May 7, 2019. Please refer to Note 15, subsequent events.

Convertible 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 or 2019 and the decreased balance is due to favorable movement in the exchange rate offsetting the additional accrued interest as no repayment for capital or interest have been made.

Convertible Loan 3

Natur Holding BV, the principle subsidiary of Natur International Corp, entered into a loan agreement with Dam! Holding BV, under which Natur Holding may borrow up to US$560,915 or €500,000. The final terms of the agreement were concluded on February 18, 2019.The full drawdown of US$560,915 was made in three tranches throughout January and February 2019 and was used for general expenses of Natur Holding and a partial repayment of their major supplier, as provided in the loan agreement. The loan amount can be made in Euros, in the same numeric amounts if certain additional conditions are met by Natur Holdings related to further capital restructuring of Natur Holdings, which the company has already undertaken.

Repayment is due after six months from the date of receipt of the initial funds in the Natur Holding’s account. The loan may be pre-paid in full or in part at any time. Interest, at the rate of 5% per annum, is due and payable quarterly. The loan carries a default interest rate of 11% per annum. The loan has the typical default provisions of a borrowing arrangement, including breach of the borrower obligations, bankruptcy of the borrower, significant changes in the borrower’s business, and dissolution of the borrower. The full amount of the loan is covered by the grant of a security interest in Natur Holdings.

The loan amount, if unpaid at maturity, may be converted into common stock of Natur International Corp. at the conversion price of $0.05 per common stock. The lender has agreed to a term sheet for conversion of the debt into common stock at April 29, 2019. Please refer to Note 15, subsequent events.


NATUR INTERNATIONAL CORP.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 10 – RELATED PARTY CONVERTIBLE NOTE PAYABLE

Related party convertible note payable at March 31, 2019 and December 31, 2018 consisted of the following:

  March 31,
2019
  December 31,
2018
 
Convertible loan Efficiency Life Fund  11,436,228   11,671,743 

The convertible loan has been converted in the subsequent period. $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 15, subsequent events.

NOTE 11 – OPTIONS & WARRANTS

On November 13, 2018, the Company closed a Subscription Agreement with Alpha Capital Anstalt wherein the Company granted the following warrants to purchase:

-A total of 33,000,000 shares of common stock, at $0.0606060 per share, exercisable for four years.

-A total of 6,000,000 shares of common stock, at $0.15 per share, exercisable for four years.

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

  March 31, 2019  December 31, 2018 
  Shares  Weighted
Average
Exercise Price
  Shares  Weighted
Average
Exercise Price
 
Outstanding at beginning of period  39,000,000  $0.074   -  $- 
Granted  -   -   39,000,000   0.074 
Exercised  -   -   -   - 
Expired  -   -   -   - 
Outstanding at end of period  39,000,000  $0.074   39,000,000  $0.074 

On January 16, 2019, the company completed compensatory arrangements with three board members of Natur International Corp. with the following terms:

Mr. Anthony Joel Bay, through La Bay Ventures Inc., will be issued a six-year option to purchase an aggregate of 7,319,321 shares of common stock of NTRU. The option granted by NTRU 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 NTRU. 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.

Mr. Rudolf Derk Huisman, through Pas Beheer BV, will be issued a six-year option to purchase an aggregate of 7,319,321 shares of common stock of NTRU. The option granted by NTRU 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 NTRU. 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.


NATUR INTERNATIONAL CORP.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 11 – OPTIONS & WARRANTS - continued

Mr. Robert A. Paladino, through Cavalier Aire LLC., will be issued a six-year option to purchase an aggregate of 7,319,321 shares of common stock of NTRU. The option granted by NTRU 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 NTRU. 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.

A summary of the status of the share options is presented below for the three months ended:

  March 31, 2019  December 31, 2018 
  Shares  Weighted Average Fair Value  Shares  Weighted Average Fair Value 
Outstanding at beginning of period  -  $-   -  $- 
Vested  1,829,844   0.071   -   - 
Unvested  20,128,119             
Exercised  -   0.071   -   - 
Expired  -   -   -   - 
Outstanding at end of period  21,957,963  $0.071   -  $- 

The fair value of all stock options outstanding at 31 March, 2019 is $1,559,013 at a weighted average fair value of $0.071 per option.

NOTE 12 – LEASES

The Company leases identified assets comprising real estate.  Real estate leases consist primarily of office space. At the inception of a contract, the Company assesses whether the contract is, or contains, a lease. The Company’s assessment is based on: (1) whether the contract involves the use of a distinct identified asset, (2) whether the Company obtains the right to substantially all the economic benefit from the use of the asset throughout the term, and (3) whether the Company has incurred losses, an accumulated deficit and has a short-term note payable in excess of anticipated cash.  These factors raise substantial doubt about the abilityright to direct the use of the asset. At inception of a lease, the Company allocates the consideration in the contract to continueeach lease and non-lease component based on the component’s relative stand-alone price to determine the lease payments. Lease and non-lease components are accounted for separately.

Leases are classified as a going concern for a periodeither finance leases or operating leases based on criteria in Accounting Standards Codification (“ASC”) 842. The Company’s operating leases are generally comprised of one year fromreal estate. Operating leases are included shown separately in the issuanceunaudited consolidated balance sheet. On adoption of these financial statements. ThereASC 842 the Company recorded operating lease right-of-use assets of $580,310 and operating lease liabilities of $578,007. We do not believe the standard will materially affect our consolidated net earnings.

Right-of-use (“ROU”) assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As the Company’s leases generally do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the lease commencement date if the implicit rate cannot be determined. ROU assets also include any lease payments made and exclude lease incentives. Lease terms may include options to extend or terminate the lease when it is no assurancereasonably certain that the Company will exercise that option.

Lease expense for operating leases, consisting of lease payments, is recognized on a straight-line basis over the lease term. Included in lease expense are any variable lease payments incurred in the period that were not included in the initial lease liability. Lease expense for finance leases consists of the amortization of the ROU asset on a straight-line basis over the asset’s estimated useful life and interest expense calculated using the amortized cost basis.

The Company’s leases have remaining lease terms of less than 3 years, which include options to extend the leases for up to five years, and some of which include options to terminate the leases within one year.  The Company has elected not to recognize ROU assets and lease liabilities for short-term operating leases that have a term of 12 months or less. The effect of short-term leases on the Company’s ROU assets and lease liabilities was not material.

Operating Lease Assets and Liabilities

  March 31, 2019  Balance Sheet Classification
Lease Assets $580,310  Right-of-use Asset
       
Current lease liabilities  263,013  Operating lease liabilities
Non-current lease liabilities  314,994  Operating lease liabilities
Total Lease Liabilities $578,007   

Maturity of Operating Lease Liabilities

 March 31, 2019 
2019 $196,034 
2020  270,649 
2021  178,323 
     
Total lease payments  645,006 
Less imputed interest  66,999 
     
Present value of lease liabilities $578,007 

As of March 31, 2019, our operating leases have a weighted-average remaining lease term of 2.25 years and a weighted-average discount rate of 4%.

The future minimum obligations under operating leases in effect as of December 31, 2018 having a noncancelable term in excess of one year as determined prior to the adoption of ASC 842 are as follows:

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


NATUR INTERNATIONAL CORP.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 13 – LOSS PER SHARE

At March 31, 2019 the Company had 131,425,194 shares issues and outstanding at a nominal value of $.001. besides that, the Company has 2,397.130 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, 2018, the Company had 129,049,192 shares of common stock issued and outstanding.

Because the company is in a net loss position, basic and diluted earnings per share are the same as the inclusion of potential dilutable shares would be successfulanti-dilutive.

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 achieving profitable operations.process. The financial statements do not includeexisting support functions have been transferred to the headquarters in Amsterdam as part of the centralization of support staff initiative.

As of March 22, 2019 the company Naturalicious UK Limited has been put into liquidation and the matters are being dealt with by a qualified administration firm in the United Kingdom. A board meeting was held on March 22, 2019 with all creditors and it was agreed to liquidate the company. At this moment in time the rights & obligations of the company are handled by the administration firm and the legal obligation over the liabilities are extinguished. As the parent company no longer has any adjustments that might resultrights or obligations to the subsidiary it has been removed from the outcomeconsolidation and the net liability position of these uncertainties.the company is released and recognized as a gain on disposal.


NOTE 3 – DISCONTINUED OPERATIONS


Effective August 31, 2018, Future Healthcare of AmericaNatur International Corp closed the offices of its Casper, Wyoming operations. During 2018, the Company saw a continued decrease in the utilization of our home healthcare services in Casper, Wyoming. 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.  ThisThe 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.




NATUR INTERNATIONAL CORP.

9




FUTURE HEALTHCARE OF AMERICA

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


NOTE 314 – DISCONTINUED OPERATIONS AND ASSETS/LIABILITIES HELD FOR DISPOSAL - continued


ReconciliationThe following table presents the carrying amounts of the Carrying Amountsmajor classes of Major Classesassets and liabilities included in our discontinued operations as presented on our Unaudited Consolidated Balance Sheet as of Asset and Liabilities of the Discontinue Operation to Total Assets and Liabilities That are Presented Separately in the Balance Sheet


 

September 30,  2018

 

December 31, 2017

 

   Carrying amounts of major classes of assets included as part of discontinued operations:

 

 

 

 

     Cash

$     1,044

 

$  13,610

 

     Accounts receivable, net

170,396

 

201,914

 

     Prepaid expenses

5,161

 

4,172

 

   Total current assets of discontinued operations

176,601

 

219,696

 

   Other assets held for sale

-

 

-

 

   Total assets of discontinued operations

$    176,601

 

$  219,696

 

 

 

 

 

 

   Carrying amounts of major classes of liabilities included as part of discontinue operations:

 

 

 

 

     Accounts payable

107,626

 

65,228

 

     Accrued expenses

142,275

 

52,512

 

     Deferred revenue

40,082

 

12,832

 

   Total current liabilities of discontinued operations

289,983

 

130,572

 

   Other liabilities held for sale

-

 

-

 

   Total liabilities of discontinued operations

$  289,983

 

$  130,572

 

 

 

 

 

 


Reconciliation of the Major Classes of Line Items Constituting Pretax Profit (Loss) of Discontinued Operations That are Presented Separately in the Statement of Operations


 

 

For the Three Months Ended

 

For the Nine Months Ended

 

 

September 30, 2018

 

September 30, 2017

 

September 30, 2018

 

September 30, 2017

 

 

 

 

 

 

 

 

 

Major classes of line items constituting pretax income (loss) of discontinued operations

 

 

 

 

 

 

 

 

Revenue

$

123,740

$

416,279

$

763,260

$

1,356,598

Cost of Services

 

229,421

 

278,005

 

676,169

 

908,383

Operating Expenses

 

54,285

 

134,522

 

323,718

 

414,808

Other Income

 

(1,591)

 

23

 

(1,633)

 

(39)

Income (loss) of discontinued operations before income tax

 

(158,375)

 

3,729

 

(234,994)

 

33,446

Gain on disposal of discontinued operation before tax

 

-

 

-

 

-

 

-

Total income (loss) on discontinued operations before income tax

 

(158,375)

 

3,729

 

(234,994)

 

33,446

Income tax expense or benefit

 

-

 

-

 

-

 

-

Total profit or loss on discontinue operations that is presented in the statement where net income is presented

$

(158,375)

$

3,729

$

(234,994)

$

33,446

 

 

 

 

 

 

 

 

 

10March 31, 2019.

 

NATUR INTERNATIONAL CORP



UNAUDITED BALANCE SHEET OF DISCONTINUED OPERATIONS

  March 31,
2019
  December 31,
2018
 
Current assets      
Cash and cash equivalents  -   - 
Related party receivable  -   201,907 
Accounts receivable  339   124,016 
Inventories  -   - 
Other current assets  -   51,705 
Total current assets  339   377,628 
         
Fixed Assets        
Tangible fixed assets  -   27,547 
Financial Fixed Assets  -   23,618 
Total fixed assets  -   51,165 
         
TOTAL ASSETS  339   428,794 
         
Current Liabilities        
Accounts Payable  25,692   643,616 
Accrued expenses & other contingent liabilities  125,575   243,510 
Total Liabilities  151,267   887,126 

FUTURE HEALTHCARENATUR INTERNATIONAL CORP

UNAUDITED INCOME STATEMENT OF AMERICADISCONTINUED OPERATIONS

March 31,
2019
REVENUE-
COST OF GOODS SOLD-
GROSS MARGIN-
OPERATING EXPENSES
Wages & Salaries-
Selling, General & Administrative39,410
Amortization & depreciation-
Total operating expenses39,410
LOSS FROM OPERATIONS(39,410)
Interest expense-
LOSS FROM DISCONTINUED OPERATIONS(39,410)

NATUR INTERNATIONAL CORP.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


NOTE 4 – NOTES PAYABLE AND 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. The note and warrants have a down-round provision, wherein if the Company issues common stock or equity-based instruments with lower prices or strike prices, the note and warrants exercise prices will be adjusted to match the lower prices. 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 note payable was amended to reduce the conversion price from $0.25 per share to $0.10 per share.


As of September 30, 2018, the Company had accrued interest payable on the debenture of $410,552.


On January 2, 2018, the Company financed the premium for directors’ and officers’ insurance.  The Company borrowed $26,921 at 6.00% interest, and the note will be repaid in 10 equal installments of $3,079.  As of September 30, 2018, the balance of the note payable was $3,061.


On January 25, 2018, the Company financed the premium for liability insurance.  The Company borrowed $22,230 at 6.00% interest, and the note will be repaid in 10 equal installments of $2,287.  As of September 30, 2018, the balance of the note payable was $6,813.


On September 21, 2018 the Company executed a Promissory Note for $275,000 with Alpha Capital Anstalt (“Alpha”). The value of the note received shall be exchanges for Series A Preferred Stock of the Company at the time of closing of the Share Exchange Agreement between the Company and the shareholders of Natur Holdings, NV, a Netherlands corporation (“Natur”), pursuant to a Securities Purchase Agreement.  On September 28, 2018, the Company received $270,005 from Alpha and on the same date, wired $270,005 to Natur.  The difference in the face of the note payable and the amount received was due to an error in amount of funds transferred by Alpha.


NOTE 5 - CAPITAL STOCK


Common Stock - The Company has authorized 200,000,000 shares of common stock, $0.001 par value.  As of September 30, 2018, 11,265,631 shares were issued and outstanding.


On September 21, 2018, the Company executed a Promissory Note for $275,000 with Natur. The note shall be exchanged for Series A Preferred Stock of the Company at the time of closing of the Share Exchange Agreement between the Company and Natur.  On September 28, 2018, the Company received $270,005 from Alpha and on the same date, wired $270,005 to Natur for working capital.  The note is recorded as a subscription receivable while the Share Exchange Agreement is pending.


NOTE 6 – WARRANTS


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. On September 9, 2018 the warrants expired.




11





FUTURE HEALTHCARE OF AMERICA

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


NOTE 6 – WARRANTS - Continued


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


 

September 30, 2018

 

December 31, 2017

 

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

-

 

-

 

-

 

-

Expired

3,030,000

 

0.50

 

-

 

-

Outstanding at end of period

-

$

-

 

3,030,000

$

0.50


NOTE 7 - 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.


Because of the uncertainty surrounding the realization of the loss carryforwards and significant changes in the ownership of the Company, a valuation allowance has been established equal to the tax effect of the loss carryforwards and, therefore, no deferred tax asset has been recognized for the loss carryforwards.  The net deferred tax assets are approximately $1,400,000 as of September 30, 2018, with an offsetting valuation allowance of the same amount.


NOTE 8 – LEASES


Operating Lease - The Company leases office 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 September 30, 2018 are as follows:


Twelve months ending September 30

 

 

Lease Payments

 

2019

 

 

18,300

 

2020

 

 

12,200

 

Total Minimum Lease Payments

 

$

30,500

 


Lease expense charged to operations was $49,077 and $57,578 for the nine months ended September 30, 2018 and 2017, respectively.


NOTE 9 – INCOME/ (LOSS) PER SHARE


At September 30, 2018 and 2017, the Company had zero 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 10,100,000 and 4,040,000, respectively shares of common stock which were not included in the loss per share computation because their effect would be anti-dilutive.




12




FUTURE HEALTHCARE OF AMERICA

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


NOTE 10 – COMMITMENTS AND CONTINGENCIES


On June 17, 2016 a complaint was filed with the Wyoming State Department of Labor against the Company, alleging discrimination on the basis of sex and disability.  The complaint did not seek any specific monetary relief.  The complaint was mediated by the Wyoming State Department of Labor. The Wyoming State Department of Labor issued a notice of dismissal for the complaint.  On February 9, 2018, this former employee filed a lawsuit against Interim Healthcare of Wyoming, claiming wrongful termination. 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 June 30, 2016 a complaint was filed with the Federal Equal Employment Opportunity Commission (EEOC) against the Company, alleging wage discrimination on the basis of sex.  


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, the EEOC file 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. This accrual is included in the discontinued operations of the Company.


NOTE 11 – RELATED PARTY


During the first six months of 2018, an officer of the Company advanced $23,000 to the company for operating purposes.  The advance bears no interest or maturity.  The advance was repaid during the third quarter of 2018.  


NOTE 12 -15 – SUBSEQUENT EVENTS


On October 23,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 amendedsaw 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 Articlesclients 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 Incorporation as follows. Theaccounts receivable.

Debt restructuring

Effective April 9, 2019 the Company authorized 2,469.131and 6th Wave Efficiency Life Fund have agreed & executed a contract 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 Series A ConvertibleClass C Preferred Stock $.001 par value(“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 9, 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 $1,000 stated value.  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.

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, hemp-derived extracts). 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

19

NATUR INTERNATIONAL CORP.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 15 – SUBSEQUENT EVENTS – continued

complementary products based on hemp-derived extracts 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.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;

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

C.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.

The related party loan of Tridutch Holding BV and related party liabilities of STB Family Offices BV and Flare Media BV totaling $1,382,472 were transferred to NL Life Sciences BV at May 8, 2019 as part of a debt transfer agreement.


NATUR INTERNATIONAL CORP.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 16 – 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 authorizedwas 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 17 – 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 $.001 par value and $1,000 stated value.


of Parent Company (the “Series B Preferred Stock”) representing 100,000,000 shares of Common Stock upon conversion. The Series A ConvertibleB Preferred Stock have no voting rights with liquidation rights of stated value plus unpaid dividends and damages.  The Series A Convertible Preferred Stock is convertible into common shares at $0.030303 per common shares subject to limitations.  A total of 757.575 are convertible at the option of the holder at any time after the original issue date, and a total of 1,711.556 are convertible at any time after the original issue datewill convert automatically upon the Corporation amending its Articles of Incorporation to adjustParent Company increasing the number of shares of Common Stock of its authorized capital in sufficient for the conversion of the 1,711.556 the Preferred Stock.  

The Series B Preferred Stock has voting rights equal to the number of whole shares of Common Stock into which the shares would be converted as of the record date with liquidation rights $.01 per share after the rights of the Series A Preferred Shareholders have been satisfied.  Each share of Series B Preferred Stock is convertible into 1,000 shares of common stock.  Each share of Series B Preferred Stock will convert automatically, without any further action on the part of the holder, upon the Corporation amending its Articles of Incorporation to adjust the number of authorized shares of Common Stock to permit the Corporation to issue a sufficient number of shares of



13




FUTURE HEALTHCARE OF AMERICA

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 12 - SUBSEQUENT EVENTS - Continued

Common Stock in conversion of the Series B Preferred Stock.  The Corporation undertakes to use its best efforts to adjust the number of authorized shares of Common Stock so asamount to permit the conversion of the Series B Preferred Stock, within one year ofwhich it plans to do promptly so as to cause the issuanceconversion 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.



14On 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.





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.


Item 2.   Management's Discussion and Analysis of Financial Condition and Results of OperationsITEM 2 – MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS..


General

Safe Harbor Statement.


Statements made in this Form 10-Q which are not purely historical are forward-looking statements with respect to the goals, plan objectives, intentions, expectations, financial condition, results of operations, future performance and business of the Company, including, without limitation, (i) our ability to gain a larger share of the home healthcare industry, our ability to continue to develop services acceptable to our industry, our ability to retain our business relationships, and our ability to raise capital and the growth of the home healthcare industry, and (ii) statements preceded by, followed by or that include the words "may"“may”, "would"“would”, "could"“could”, "should"“should”, "expects"“expects”, "projects"“projects”, "anticipates"“anticipates”, "believes"“believes”, "estimates"“estimates”, "plans"“plans”, "intends"“intends”, "targets"“targets”, "tend"“tend” or similar expressions.


Forward-looking statements involve inherent risks and uncertainties, and important factors (many of which are beyond the Company'sCompany’s control) that could cause actual results to differ materially from those set forth in the forward-looking statements, including the following, in addition to those contained in the Company'sCompany’s reports on file with the Securities and Exchange Commission: general economic or industry conditions, nationally and/or in the communities in which the Company conducts business, changes in the interest rate environment, legislation or regulatory requirements, conditions of the securities markets, changes in the home healthcare industry, the development of services that may be superior to the services offered by the Company, competition, changes in the quality or composition of the Company'sCompany’s services, our ability to develop new services, our ability to raise 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 the Company’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.  The Company 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.


Business HighlightsNTRU New Vision & Mission


FHA’s subsidiary, Interim HealthcareNatur is committing to meet the demands of the burgeoning market for healthy food & beverage products beyond our award-winning fruit and vegetable juices and snacks. The Company is preparing for launch of a wider range of foods and beverages that are effectively functional. With consumers in increasing numbers eating more frequently, eating socially and being focused on the wellness derived from their choices, Natur is offering choices that can boost their immune system, support a sense of equilibrium in a stressful life, help to resist foods that are not healthy, and more.

Natur brings the forces of nature, existing naturally and organically, as functional supplements in our branded foods and beverages. The first of nature’s superfoods to join our line is hemp. We are preparing for launch in the Spring of our line of juices and snacks infused with hemp-derived extracts that are intended to offer improvement in quality of life. The human body’s endo-cannabinoid system is starved for sources of external cannabinoids. When fed, this system fires up the forces of immunity, pain management, heart health, a sense of equilibrium and much more. The Forces of Nature, from the industrial hemp plant, in their purest form, provide the best source for these important cannabinoids. These hemp-derived extracts are the non-psychoactive cannabinoid in the hemp plant that, in increasing numbers, is gain consumer fans for its potential role in treating many common health issues, including pain, inflammation, anxiety, depression, acne and heart disease.

Anticipating growing demand, Natur is developing collaborations in hemp cultivation, extraction and innovation – with growers, greenhouses, research and development scientists driving new products in the fields of hemp-derived medication, edibles and beverages, human and animal topicals and wellness products.


Share Option Agreements

The 2019 Plan provides for grants of both incentive stock options, or “ISOs”, which are subject to special income tax treatment, and non-statutory options, or “NSOs.” Eligibility for ISOs is limited to employees of the Company and its subsidiaries. The exercise price of an ISO cannot be less than the fair market value of the common stock at the time of grant. In addition, the expiration date of an ISO cannot be more than ten years after the date of the original grant. In the case of NSOs, the exercise price and the expiration date are determined in the discretion of the administrator. The administrator also determines all other terms and conditions related to the exercise of an option, including the consideration to be paid, if any, for the grant of the option, the time at which options may be exercised and conditions related to the exercise of options.

The 2019 Plan also provides for awards of shares of restricted common stock. Awards of restricted stock may be made in exchange for past services or other lawful consideration. Generally, awards of restricted stock are subject to the requirement that the shares be forfeited or resold to the Company unless specified conditions are met. Subject to these restrictions, conditions and forfeiture provisions, any recipient of an award of restricted stock will have all the rights of a stockholder of the Company, including the right to vote the shares and to receive dividends. The 2019 Plan also provides for deferred grants (“deferred stock”) entitling the recipient to receive shares of common stock in the future on such conditions as the administrator may specify.

Amendment to Articles of Incorporation

On April 4, 2019, the Company filed an Articles of Amendment in the State of Wyoming Inc.,to create a Wyoming corporation (“Interim”), is an independent franchiseenew class of Interim HealthCare thatSeries C Preferred Stock, which was returned as of April 9, 2019. The Series C Preferred Stock has been serving its community for over 20 years, providing a wide rangeliquidation preference of visiting nurse services$112.20 per share. Each share of Series C Preferred Stock may be converted into 1,000 shares of Common Stock (subject to appropriate adjustment in the elderly, wounded and sick. It is oneevent of any stock dividend, stock split, combination or other similar recapitalization) without the payment of any additional consideration by the holders thereof. The Series C Preferred Stock automatically converts into 78,832,399 shares of Common Stock upon the six-month anniversary of the 300 independent home health agencies that comprise the Interim HealthCare network. Our business consists of providing healthcare services for those in need.  We record all revenue and expenses and provide all services under one umbrella.  Below is a description of our Home Healthcare and Staffing operations.


Our business is driven by a number of different factors and fluctuates significantly as they change.


Our revenue during the first nine months of 2018Conversion Agreement if there has decreased significantly from the previous year. The decrease in business has been driven by the following factors.


As the need for labor diminishes with the gas and oil wells shutting down in Wyoming, our business has seen dramatic negative impacts with the resulting decrease in population, both in number of clients as well as available personnel. Historically, as the price of gas decreases, the drilling operations stop, and the population has moved to another area to support themselves.  Our operations are also heavily influenced by increases in minimum wage as well as starting wages being offered by all employers in the region.  With the multiple businesses paying higher starting wages, we have seen a decrease in individuals wanting and needing to take employment in the healthcare profession, and we have been unable to continue increasing our starting wages.  Additionally, we have seen an increase in direct competition in the market place forcommon stock capitalization of the business and clients we serve.Company. The holders of Series C Preferred Stock are entitled to cast the number of votes equal to the number of whole shares of Common Stock into which the shares of Series C Preferred Stock are convertible on all matters presented to the shareholders.


We have also seen the impact of turn-over in senior management with our clients. As these positions are filled by new personnel, their decisions on utilization of services impacts our businesses, and we have seen a significant decrease in the utilization of our services.Business Highlights



15




As a result of financial impact of these factors, we closed the operations in Casper, Wyoming on August 31, 2018.


During the nine monthsquarter ended March 31, 2019, the Company completed seating its newly installed board of 2018, FHA’s continuing operations experienceddirectors and appointed a 21% decrease in revenuenew Chief Executive Officer, adopting a fresh direction for the Company. Practical decisions were made with regard to the existing business and customer base based on the contribution to the new vision and mission and to profitability.

For the quarter, while sales revenues were considerably lower year over year, operating losses were also lower. Contributing to negative margins was the first nine monthsreduction of 2017.  This was driven by decreases in both our Billings, Montana businesses. We do not foresee a change in this trendinventories through the endliquidation.

Results of 2018.  We continue to see increased costs to provide servicesOperations and decreases in reimbursement rates, reducing margins, and difficulty in retaining qualified personnel, making it difficult to cover overhead costs.  This can be seen in our results during the first nine months of 2018.Financial Condition


Three Months Ended 31 March, 2019 versus Three Months Ended 31 March 2018

During the nine months of 2018, we have seen a significant decrease in the utilization staffing services in Billings, Montana as facilities that use our services receive directives to remove and reduce the use of staffing services. We’ve also seen significant decreases within our home healthcare services. As for our operations, we anticipate the trends seen in the first nine months of 2018 to continue throughout 2018.  We anticipate a continued slowing of the use of our staffing services.  We also anticipate a continued slowing of the utilization of our home healthcare business.  As such, we are evaluating other options outside the home healthcare industry.  Promotional activities and operations are being managed as the offices experience fluctuations in the day-to-day activities and as we embark on new business opportunities.  


Home Healthcare


Through trained health care professionals, the Company provides home care services including senior care and pediatric nursing; physical, occupational and speech therapy.  The Company offices deliver quality home care and treat each patient with genuine compassion, kindness and respect.  The Company provides health care professionals at all skill levels, including registered nurses, therapists, LPN's and certified home health aides. FHA derives is 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 operations of the office.  This is completed by our Administrators in each location.  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.


Staffing


Interim offices provide nurses, nurse aides and management services to hospitals, prisons, schools, corporations and other health care facilities.  Interim’s 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 professionals on a full time basis.  Another key to our success is the personal relationship that our management and sales team build with each of our existing and new clients.  As noted previously, in order to reduce turnover of our service team by providing as many hours as possible, similar to the hours of a full-time employee, we utilize the same service team members across all payer sources.


As each of our businesses is located in smaller based population areas of the country, the competition is significantly heightened 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.




16




Results of Operations


Nine Months Ended September 30, 2018 and 2017.


During the ninethree months ended September 30, 2018, FHAMarch 31, 2019, Natur recorded revenues of $1,138,825, a 21%$64,419, an 88% decrease over revenues of $1,433,838$527,717 for the same period in 2017.2018. The decrease forin 2019 is attributed to the decision the company made to discontinue selling to less profitable customers while developing its new culturally relevant product lines. It should be noted that in Q1 2018, was driventhe introduction of two large customers generated initial opening orders, filling the supply chain. Both of these customers proved to be less beneficial to the business than planned and by a significant decreasethe beginning of Q1 2019 sales to these customers were discontinued.

With the lower revenues in the use of our staffing services and our home healthcare services in Billings, Montana.  The Casper, Wyoming location was closed on August 31, 2018.


For the nine months ended September 30, 2018,quarter, cost of servicesgoods sold included unleveraged warehousing, inventory reduction and product discard costs and totaled $853,702,$94,777, a 23%65% decrease as compared to $1,110,667$273,752 in the comparable period of 2017.2018. Natur posted a gross loss of $30,358 during the first quarter 2019, versus a gross profit of $253,965 for the first quarter of 2018.


Natur made year over year improvements in some controllable costs while recording total operating expenses of $1,939,328 during the first quarter of 2019, a 17% increase as compared to operating expenses of $1,611,564 in the same period of 2018. Wages & Salaries showed improvement, totaling $264,729 in the first quarter of 2019 versus $443,381 in the first quarter 2018, a decrease of 40% driven by significantly streamlined head-count compared to Q1 of 2018. A contributing factor is the discontinuation of retail store activities in the UK and the Netherlands. Selling, General & Administrative costs increased to $1,402,410 from $1,114,867 when comparing the first quarter of 2019 versus 2018, or 26%. This iswas driven mainly by an increase in the overall costs incurred by the business due to the administration costs of maintaining a reflectionpublic listing such as legal, board & accountancy fees. The company also introduced a stock option scheme in 2019 with no similar such costs in the first quarter of 2018. Amortization & Depreciation costs increased to $272,189 from $53,316 when comparing the first quarter of 2019 versus 2018, or 411%. This was driven mainly by the company taking a prudent measure to write down all assets in the retail stores (roughly $200k) to Nil. As the company cannot comfortably assume we will receive any proceeds for these assets it will therefore only take gains on disposal in future periods should they be realized.

Natur’s net loss available to common shareholders was $1,747,531 for the first quarter of 2019.  This represents a 20% decrease from our net loss of $2,179,184 in the first quarter of 2018. The decrease in the loss was partially offset due to the liquidation of the UK business which allowed a gain on disposal of $300,798 to be realized.

Three Months Ended 31 March, 2019 versus Three Months Ended 31 December 2018

During the three months ended March 31, 2019, Natur recorded revenues of $64,419, a 63% decrease over revenues of $173,378 for the preceding period. The decrease for 2019 was driven by the fact that in Q4 2018 we received wind-down revenues from two former customers of $102,000. We have received no such orders in Q1 2019 due to the strategic focus change of the business.

For the quarter ended March 31, 2019, cost of goods sold totaled $94,777, a 48% decrease as compared to $183,777 in the preceding period of 2018. This reflects the costs associated with the overall reduction of revenue. FHArevenue and due to the reduction in sales the company has experienced higher marginal costs for our warehousing. We have also experienced higher disposal costs due to the perishable nature of our products. Natur posted a gross profitloss of $285,123$30,358 during the first nine months of 2018,quarter 2019, versus a gross profitloss of $323,171$10,039 for the first nine monthspreceding quarter of 2017, a decrease of 12%.  2018.


FHANatur recorded total operating expenses of $565,107$1,939,328 during the first nine monthsquarter of 2018,2019, a 7%17% increase as compared to operating expenses of $528,367$1,598,974 in the same period of 2017.  General and administrative expensespreceding period.  Wages & Salaries totaled $122,529$264,729 in the first nine monthsquarter of 20182019 versus $142,241$267,511 in the first nine months of 2017,preceding quarter a decrease of 14%,1%. Selling, General & Administrative costs increased to $1,402,410 from $1,279,731 when comparing the preceding quarter, or 21%. This was driven mainly by an increase in the overall costs incurred by the business due to the administration costs of maintaining a decreasepublic listing such as legal & accountancy fees. The company also introduced a stock option scheme in recruiting expense.  Consulting fees2019 with no similar such costs in the last quarter of 2018. Amortization & Depreciation costs increased to $272,189 from $57,775 to $118,240$51,732 when comparing the first nine monthsquarter of 20172019 versus the fourth quarter of 2018, or 426%. This was driven mainly by an increase in legal fees.   Salaries, wages and related expenses increased 0%the company taking a prudent measure to $306,356write down all assets in the first nine months of 2018 from $305,352retail stores (roughly $200k) to Nil. As the company cannot comfortably assume we will receive any proceeds for these assets it will therefore only take gains on disposal in 2017.  Selling expenses in the first nine months of 2018 were $17,982 versus $22,999 in the comparable period of 2017, driven by a decrease in advertising.future periods should they be realized.


For the first nine months of 2018, other expense included $77,065 of interest expense on the notes payable.  By way of comparison, for the first nine months of 2017, other income and expense included $34,065 for recognition of a loss on the derivative liability and $76,411 of interest expense on the notes payable.  


FHA’sNatur’s net loss available to common shareholders was $591,881$1,747,531 for the first nine monthsquarter of 2018.2019.  This represents a 110%21% increase from our net loss of $281,994$2,144,114 in the first nine months of 2017.


Three Months Ended September 30, 2018 and 2017.


During the three months ended September 30, 2018, FHA recorded revenues of $363,607, a 14% decrease over revenues of $423,306 for the same period in 2017.  The decrease for 2018 was driven by a decrease in the use of our staffing services and our home healthcare services in Billings, Montana.


For the quarter ended September 30, 2018, cost of services totaled $261,734, a 21% decrease as compared to $330,294 in the comparable period of 2017. This is a reflection of the costs associated with the overall reduction of revenue.  FHA posted gross profit of $101,873 during the third quarter 2018, versus a gross profit of $93,012 for the third quarter of 2017, an increase of 10%.


FHA recorded total operating expenses of $212,938 during the third quarter of 2018, a 36% increase as compared to operating expenses of $157,084 in the same period of 2017.  General and administrative expenses totaled $35,617 in the third quarter of 2018 versus $44,259 in the third quarter 2017, a decrease of 20% driven by a decrease in liability insurance and recruiting fees.  Consulting fees increased to $62,324 from $7,947 when comparing the third quarter of 2018 versus 2017, driven by an increase in legal fees.  Salaries, wages and related expenses increased to $110,829 in the third quarter of 2018 from $100,122 in 2017, an increase of 11%, driven by an increase in accrued wages.  Selling expenses in the third quarter of 2018 were $4,168 versus $4,756 in the comparable quarter of 2017.


FHA’s net loss available to common shareholders was $294,938 for the thirdlast quarter of 2018. This represents a 79%The increase from our net loss of $164,798 in the third quarterloss was partially offset due to the liquidation of 2017.the UK business which allowed a gain on disposal of $300,798 to be realized.


LiquidityRestructuring Activities

Debt restructuring - Effective April 9, 2019 the Company and Capital Resources6th Wave Efficiency Life Fund have agreed & executed a contract 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 9, 2019.


The company has made further agreements, subject to board approval, confirming to agree to the principle of debt conversion to shares of the company to the following debtholders:

Cash

Name of debtholder Currency  Amount in Euros  USD/EURO  Amount of debt in $  price per share in $  number of shares  Type of
share
 
6th Wave Efficiency Life Fund USD           3,450,000   0.05   69,000,000   preferred 
Dam! Holding BV EUR   505,487   1.12   566,145   0.05   11,264,700   common 
Ghassan Akeel USD           571,236   0.055   11,632,445   common 
NL Life Sciences BV EUR   2,020,000   1.12   2,262,400   0.0303031   74,659,028   preferred 
STB Family Office SARL EUR   202,877   1.12   227,222   0.0303031   

7,498,309

   preferred 
      2,728,364       7,077,004       174,054,490     

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, hemp-derived). For this, the company established a NewCo as a sister company of Natur Holding BV at March 13, 2019, wholly owned by Natur International Corp. Based on handglobal developments and following the success of companies in the USA and Canada, the company defined new growth objectives with complementary products based on hemp-derived extracts as a new revenue model for this NewCo. Additional funding was $60,202 at September 30,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.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;

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

C.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.

Accounting Policies

ASC 842: In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)”. This update requires the recognition of lease assets and lease liabilities on the balance sheet for leases classified as operating leases under previous guidance. The accounting for finance leases (capital leases) was substantially unchanged. The original guidance required application on a modified retrospective basis with adjustments to the earliest comparative period presented. In August 2018, the FASB issued ASU No. 2018-11, “Targeted Improvements to ASC 842,” which included an option to not restate comparative periods in transition and elect to use the effective date of ASU No. 2016-02 as the date of initial application, which the Company elected. As a decreaseresult, the consolidated balance sheet prior to January 1, 2019 was not restated, and continues to be reported under previous guidance that did not require the recognition of $84,260 fromoperating lease liabilities and corresponding lease assets on the $144,462 on hand at December 31, 2017.  Cash used in operations for the nine months ended September 30, 2018, was $44,983, versus cash used in



17




operation of $77,346 for the nine months ended September 30, 2017.  The decrease isconsolidated balance sheet. As a result of the increase collectionadoption of accounts receivables, couple with our operating results.


On September 21, 2018,ASU No. 2016-02 on January 1, 2019, the Company executed a Promissory Noterecorded operating lease right-of-use assets of $580,310 and operating lease liabilities of $578,007. The adoption of ASU No. 2016-02 had an immaterial impact on the Company’s condensed consolidated statement of income and consolidated statement of cash flows for $275,000 with Natur. The note shall be exchanged for Series A Preferred Stock ofthe three-month period ended March 31, 2019. In addition, the Company atelected the timepackage of closing ofpractical expedients permitted under the Share Exchange Agreement betweentransition guidance within the Company and Natur.  On September 28, 2018, the Company received $270,005 from Alpha and on the same date, wired $270,005 to Natur for working capital.  The note is recorded as a subscription receivable while the Share Exchange Agreement is pending.


The Company has insufficient cash to finance operations and continues to incur losses and accumulated deficit and has a short-term note payable in default in excess of anticipated cash.  These factors raise substantial doubt about the ability ofnew standard, which allowed the Company to continue as a going concern. There is no assurancecarry forward the historical lease classification, not reassess prior conclusions related to expired or existing contracts that are or that contain leases, and not reassess the Company will be successful in achieving profitable operations or finding additional equity or debt financing.accounting for initial direct costs.


Item 3. Quantitative and Qualitative Disclosures About Market Risk.


Not required for smaller reporting companies.


Item 4. Controls and Procedures.


(a)  Evaluation of Disclosure Controls and Procedures


Our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934 (the "Exchange Act"“Exchange Act”)), which we refer to as disclosure controls, are controls and procedures that are designed with the objective of ensuring that information required to be disclosed in our reports filed under the Exchange Act, such as this report, is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission'sCommission’s rules and forms. Disclosure controls are also designed with the objective of ensuring that such information is accumulated and communicated to our management, including the Chief Executive Officer and the Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. There are inherent limitations to the effectiveness of any control system. A control system, no matter how well conceived and operated, can provide only reasonable assurance that its objectives are met. No evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within our company have been detected.


As of September 30, 2018,March 31, 2019, an evaluation was carried out under the supervision and with the participation of our management, including the Chief Executive Officer and the Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls.  Based upon that evaluation, the Chief Executive Officer and the Chief Financial Officer concluded that, as of such date, the design and operation of these disclosure controls were effective to accomplish their objectives at the reasonable assurance level.


(b) Changes in Internal Control over Financial Reporting


No change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act), occurred during the fiscal quarter ended September 30, 2018March 31, 2019 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.reporting


PART II - OTHER INFORMATION


You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and related notes included in Part I, Item 1.   Legal Proceedings.1 of this Report. Some of the information contained in this discussion and analysis or set forth elsewhere in this Report, including information with respect to our plans and strategy for our business and related financing, includes forward-looking statements that involve risks and uncertainties. See “Special Note Regarding Forward-Looking Statements.” Our actual results may differ materially from those described below. You should read the “Risk Factors” section of this Report for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.


Certain figures, such as interest rates and other percentages included in this section have been rounded for ease of presentation. Percentage figures included in this section have not in all cases been calculated on the basis of such rounded figures but on the basis of such amounts prior to rounding. For this reason, percentage amounts in this section may vary slightly from those obtained by performing the same calculations using the figures in our consolidated financial statements or in the associated text. Certain other amounts that appear in this section may similarly not sum due to rounding.

ITEM 1 – LEGAL PROCEEDINGS

On June 17, 2016 and June 30, 2016 two complaints were filed, one with the Federal Equal Employment Opportunity Commission (“EEOC”) and one with the Wyoming State Department of Labor against the Company, alleging discrimination on the basis of sex and disability. The complaints dodid not seek any specific monetary relief. The complaints are beingwere mediated by the Wyoming State Department of Labor, and the U.S. Equal Employment 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, a complaint



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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.


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 determinedinitially claimed 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.$43,593. On September 19, 2018, the Company attended thea Conciliation meeting, at 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 filefiled 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. It is too early to provide an educated opinion on the chances of a favorable outcome in this matter. There was a wage disparity present at Interim such that a male RN nurse employee was earning $1-$2 more per hour than all other RN nurse employees who were female. Interim employed approximately 6 female RN nurses, and this wage disparity existed for approximately 1 year of operation. We have asserted that this wage disparity was the result of market factors and not illegal gender discrimination, however whether we will be able to marshal sufficient evidence to overcome the presumption that arises from the admitted wage disparity. The Company recorded an accrual totaling $133,575 related to this matter.


Item 1A.   Risk FactorsITEM 1A – RISK FACTORS.


Not required for smaller reporting companies.


Item 2.   Unregistered Sales of Equity Securities and Use of ProceedsITEM 2 – UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.


None;None, not applicable.


Item 3.   Defaults Upon Senior SecuritiesITEM 3 – DEFAULTS UPON SENIOR SECURITIES.


None;None, not applicable.


Item 4.   Mine Safety DisclosuresITEM 4 – MINE SAFETY DISCLOSURES.


None;None, not applicable.


Item 5.   Other InformationITEM 5 – OTHER INFORMATION.


(a)  On May 18, 2018, the Company and Natur Holding B.V., a Netherlands-based holding company (“Natur”), executed a non-binding letter of intent for the Company to acquire all of Natur’s outstanding capital stock pursuant to a reverse triangular merger or share exchange on mutually agreeable terms. Natur is Europe's first hi-tech health food and beverage company with a mission to revolutionize natural juice and snack consumption, allowing consumers to afford a better quality of life through natural and functional nutrition.  See the Company’s Current Report on Form 8-K dated May 18, 2018 and filed with the Securities and Exchange Commission on May 21, 2018.


(b)  During the quarterly period ended September 30, 2018, there were no changes to the procedures by which shareholders may recommend nominees to the Company’s board of directors.


Item 6.   Exhibits.


Exhibit No.

Description


31.1

302 Certification of Christopher J. Spencer


31.2

302 Certification of John Busshaus


32

 906 Certification.



ITEM 6 – EXHIBITS

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Exhibit No.Description
31.1302 Certification of Robert A. Paladino
31.2302 Certification of Ellen Berkers
32906 Certification.
101.INSXBRL Instance Document
101.SCHXBRL Taxonomy Extension Schema
101.CALXBRL Taxonomy Extension Calculation
101.DEFXBRL Taxonomy Extension Definition
101.LABXBRL Taxonomy Extension Labels
101.PREXBRL Taxonomy Extension Presentation Linkbase




SIGNATURES


Pursuant to the requirements 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




NATUR INTERNATIONAL CORP.

Date:15/5/19

11/2/18

By:

/s/ Christopher J. SpencerRobert A. Paladino

Christopher J. SpencerRobert A. Paladino

Chief Executive Officer and President and Director




Date:15/5/19

11/2/18

/s/ John BusshausEllen Berkers

John BusshausEllen Berkers

Chief Financial Officer




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