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OFFON

CHARLIE'S HOLDINGS, INC.

(CHUC)
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CHARLIE : S HOLDINGS, INC. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (form 10-Q)

05/17/2021 | 04:36pm EDT

The following discussion of the financial condition and results of operations of Charlie's Holdings, Inc. should be read in conjunction with the financial statements and the notes to those statements appearing elsewhere in this Quarterly Report on Form 10-Q (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, includes forward-looking statements that involve risks and uncertainties. You should read the "Risk Factors" section in 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.

As used in this Report, unless otherwise stated or the context otherwise requires, references to the "Company", "we", "us", "our", or similar references mean Charlie's Holdings, Inc. (formerly True Drinks Holdings, Inc.), its subsidiaries and consolidated variable interest entity on a consolidated basis. References to "Charlie's" and "CCD" refer to Charlie's Chalk Dust, LLC, a California limited liability company and wholly-owned subsidiary of the Company, and "Don Polly" refers to Don Polly, LLC, a Nevada limited liability company that is owned by entities controlled by Brandon and Ryan Stump, the Company's Chief Executive Officer and Chief Operating Officer, respectively, and a consolidated variable interest"(VIE")for which the Company is the primary beneficiary.

Overview

Our objective is to become a significant leader in the rapidly growing, global e-cigarette segment of the broader nicotine related products industry. Through Charlie's, we formulate, market and distribute branded e-cigarette liquid for use in both open and closed e-cigarette and vaping systems. Charlie's products are mostly produced domestically through contract manufacturers for sale through select distributors, specialty retailers and third-party online resellers throughout the United States, as well as more than 80 countries worldwide. Charlie's primary international markets include the United Kingdom, Italy, Spain, Belgium, Australia, Sweden and Canada. In June 2019, we launched distribution, through Don Polly, of certain premium vapor, tincture and topical wellness products containing hemp-derived cannabidiol ("CBD") and we currently intend to develop and launch additional products containing hemp-derived CBD in the future.

Industry Specific Challenges

Beginning in late 2019, our industry experienced significant news stories and health alerts related to flavored nicotine vaping, leading to some states banning the sale of flavored nicotine products and causing the Food and Drug Administration ("FDA") to review its policies on controlling the sale of these products. Initial research indicated that a vitamin E acetate related compound could be causing the health-related issues. On November 8, 2019, officials at the Centers for Disease Control and Prevention ("CDC") reported a breakthrough in the investigation into the outbreak of vaping-related lung injuries. The CDC's principal deputy director, Dr. Anne Schuchat, in fact stated that "vitamin E acetate is a known additive used to dilute liquid in e-cigarettes or vaping products that contain THC", suggesting the possible culprit for the series of lung injuries across the U.S. All of Charlie's e-liquid products are tested by third party laboratories which have confirmed that none of our products contain any vitamin E acetate orTetrahydrocannabinol ("THC").

However, these developments have had a negative effect on our sales since mid-September 2019 (see further discussion below) and therefore, in response to these developments and while government regulators are formulating future polices, management has adopted the following plan of operation.

First, we plan to increase the sales of our CBD related products, including topicals and ingestibles. We feel there is a significant upside in the CBD space, and we have begun to focus on numerous vertical markets for the sale of our isolate, full and broad-spectrum products. These vertical markets include, but aren't limited to the medical and wellness markets. We have also dedicated an internal team as well as additional financial resources to increase direct-to-consumer e-commerce sales of CBD products.

Secondly, we continue to see a significant opportunity for sales growth in international markets for our e-liquid and other vapor products. Presently, approximately 20% of our vapor product sales come from the international market and we are well positioned to increase those sales in the countries that we presently sell, and in additional overseas markets, as we have already built an international distribution platform.



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Most importantly, we feel that the e-liquid and other vapor products will continue to be a significant growth opportunity, once all the rightful regulatory changes have been made. We are continuing with our plan to obtain marketing authorization for certain of our products through the completion of a Premarket Tobacco Application ("PMTA"), which we submitted in September 2020. Obtaining a marketing order from the United States Food and Drug Administration ("FDA") would, in our opinion, help to remediate the disruption caused by any perceived health issues related to vaping, and further position the Company as a trusted, industry leader. We feel that a significant amount of our competitors will not have the resources and/or expertise to complete the extensive and costly PMTA process and that once complete, we will be able to benefit from being one of only a select group of companies operating in the flavored vapor products space.

Recent Developments

March 2021 Private Placement

On March 19, 2021, the Company entered into Securities Purchase Agreements by and between the Company and certain family trusts in which Mr. Brandon Stump, the Company's Chief Executive Officer, and Mr. Ryan Stump, the Company's Chief Operating Officer are trustees and beneficiaries (the "Purchase Agreements"), for the private placement of an aggregate of 351,699,883 shares of its common stock, par value $0.001 ("Common Stock"), at a purchase price per share of $0.00853 (the "Private Placement"), which Private Placement was consummated on March 22, 2021. The Private Placement resulted in gross proceeds to the Company of approximately $3.0 million. The Private Placement was undertaken pursuant to Rule 506 promulgated under the Securities Act of 1933, as amended, and was consummated in a transaction approved by the Company's independent directors in accordance with Rule 16b-3(d)(1) of the Securities Exchange Act of 1934, as amended.

Red Beard Holdings, LLC Note Payable

On April 1, 2020, the Company, Charlie's and its VIE, Don Polly, issued a secured promissory note (the "Red Beard Note") to one of the Company's largest stockholders, Red Beard Holdings, LLC ("Red Beard") in the principal amount of $750,000 (the "Principal Amount"), requiring a guaranteed minimum interest amount of $75,000 ("Minimum Interest"), which Red Beard Note is secured by all assets of the Company pursuant to the terms of a Security Agreement entered into by and between the Company and Red Beard (the "Red Beard Note Financing"). Red Beard Note was subsequently amended on August 27, 2020, September 30, 2020, October 29, 2020, December 1, 2020, and January 19, 2021, ultimately increasing Principal Amount to $1,400,000 and Minimum Interest to $150,000.

On March 24, 2021, the Company and Red Beard entered into a Satisfaction and Release (the "Red Beard Release"), pursuant to which the Company made a payment to Red Beard in the amount of $1.55 million in exchange for an acknowledgment of satisfaction and full release of the Company by Red Beard from liability and obligations arising under the Red Beard Note.

Small Business Administration Loan Programs

On April 30, 2020, Charlie's, a wholly owned subsidiary of the Company, received approval to enter into a U.S. Small Business Administration ("SBA") Promissory Note (the " Charlie's PPP Loan") with TBK Bank, SSB (the "SBA Lender"), pursuant to the Paycheck Protection Program ("PPP") of the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") as administered by the SBA (the "PPP Loan Agreement").

The Charlie's PPP Loan provides for working capital to CCD in the amount of $650,761. The Charlie's PPP Loan will mature on April 30, 2022 and will accrue interest at a rate of 1.00% per annum. Payments of principal and interest will be deferred for six months from the date of the Charlie's PPP Loan, or until November 30, 2020. Interest, however, will continue to accrue during this time.

On April 14, 2020, Don Polly also obtained a loan pursuant to the PPP enacted under the CARES Act (the "Polly PPP Loan" and together with the Charlie's PPP Loan, the "PPP Loans") from Community Banks of Colorado, a division of NBH Bank (the "Polly Lender"). The Polly PPP Loan obtained by Don Polly provides for working capital to Don Polly in the amount of $215,600. The Polly PPP Loan will mature on April 14, 2022 and will accrue interest at a rate of 1.00% per annum. Payments of principal and interest will be deferred for six months from the date of the Polly PPP Loan, or until November 14, 2020. Interest, however, will continue to accrue during this time.


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The aforementioned PPP Loans were made under the PPP enacted by Congress under the CARES Act. The CARES Act (including the guidance issued by SBA and U.S. Department of the Treasury) provides that all or a portion of the PPP Loans may be forgiven upon request from the respective borrower to the SBA Lender or the Polly Lender, as the case may be, subject to requirements in the PPP Loans and under the CARES Act.

On February 19, 2021 Don Polly received notice from the Polly Lender, that the Polly PPP Loan was fully repaid, and its promissory note was cancelled as a result of the loan forgiveness process set forth by the U.S. Small Business Administration. There is no further action required on the part of Don Polly to satisfy this liability.

On March 17, 2021, Don Polly obtained a second draw PPP loan ("Polly PPP Loan 2") under the CARES Act from Polly Lender. The Polly PPP Loan 2 obtained by Don Polly provides general working capital in the amount of $184,200. The Polly PPP Loan 2 will mature on March 17, 2026 and will accrue interest at a rate of 1.00% per annum. Payments of principal and interest will be deferred for six months from the date of the Polly PPP Loan 2, however interest will continue to accrue during this time.

On April 28, 2021, Charlie's received notice from SBA Lender that the Charlie's PPP Loan was fully repaid, and its promissory note was cancelled as a result of the loan forgiveness process set forth by the U.S. Small Business Administration. There is no further action required on the part of Charlie's to satisfy this liability.

On June 24, 2020, SBA authorized (under Section 7(b) of the Small Business Act, as amended) an Economic Injury Disaster Loan ("EID Loan") to Don Polly in the amount of $150,000. Installment payments, including principal and interest of $731 monthly will begin twelve months from date of the EID Loan. The balance of principal and interest will be payable thirty years from the date of the EID Loan and interest will accrue at the rate of 3.75% per annum.

PMTA

During the quarter ended September 30, 2020, the United States Food and Drug Administration's ("FDA") Center for Tobacco Products informed us that our PMTA has received a valid submission tracking number, passed the FDA's filing review phase, and recently entered the substantive review phase. To date, Charlie's has invested over $4.4 million for our initial PMTA submission. We engaged a team of more than 200 professionals, including doctors, scientists, biostatisticians, data analysts, and numerous contract research organizations to create our comprehensive PMTA submission. This news highlights our progress toward achieving full regulatory compliance and our goal of providing customers with a trusted product portfolio.

Impact of COVID-19

The outbreak of a novel strain of COVID-19 ("Coronavirus") has had a negative impact on the global economy and the markets in which we operate. Beginning in March 2020, the Company transitioned nearly all employees to a remote working environment for their safety and to protect the integrity of Company operations. We have updated certain sales, accounting and administrative processes, and corresponding information technology platforms, in an effort to help facilitate the virtual work environment in which we now operate. During 2020, we engaged in periodic, informal testing of our business operations, and we do not believe that our financial position, work efficiency and overall operational integrity have been materially affected. However, we recognize that a certain degree of employee enthusiasm, teamwork, creativity, and support is normally generated by being present at a physical location, and we believe that prolonged remote working may have a negative impact over time on our business, and on employee productivity. Our Denver, CO office and Huntington Beach, CA warehouse locations have fully returned to on premise status, while our corporate headquarters in Costa Mesa, CA remains remote for most employees. We will continue to monitor the COVID-19 situation in all regions we operate and will maintain strict adherence to local health guidelines and mandates. We may have to take further actions that we determine are in the best interests of our employees or as required by federal, state, or local authorities.




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Risks and Uncertainties

The Company operates in an environment that is subject to rapid changes and developments in laws and regulations that could have a significant impact on the Company's ability to sell its products. Federal, state, and local governmental bodies across the United States have indicated that flavored e-cigarette liquid, vaporization products and certain other consumption accessories may become subject to new laws and regulations at the federal, state and local levels. Beginning in September 2019, certain states temporarily banned the sale of flavored e-cigarettes, and on January 2, 2020, the FDA issued an enforcement policy effectively banning the sale of flavored cartridge-based e-cigarettes marketed primarily by large manufacturers without prior authorization from the FDA. The application of any new laws or regulations that may be adopted in the future, at a federal, state, or local level, directly or indirectly implicating flavored e-cigarette liquid and products used for the vaporization of nicotine could significantly limit the Company's ability to sell such products, result in additional compliance expenses, and/or require the Company to change its labeling and/or methods of distribution. Any ban of the sale of flavored e-cigarettes directly limits the markets in which the Company may sell its products. In the event the prevalence of such bans and/or changes in laws and regulations increase across the United States, or internationally, the Company's business, results of operations and financial condition could be adversely impacted. In addition, the Company is presently seeking to obtain marketing authorization for certain of its nicotine-based e-liquid products. Our PMTA applications were submitted in September 2020 on a timely basis, which if approved, will allow the Company to continue to sell its products in the United States. The Company may also require additional financing in the future to support potential PMTA related expenses and general working capital. There is no assurance that regulatory approval to sell our products will be granted or that we can raise the additional financing required, and if not, this could have a significant impact on our sales.

On March 11, 2020, the World Health Organization designated the ongoing and evolving COVID-19 outbreak as a pandemic. The outbreak has caused substantial disruption in international and U.S. economies and markets as it continues to spread. The outbreak is having a temporary adverse impact on our industry as well as our business, with regards to certain supply chain disruptions and sales volume. While the disruption from COVID-19 is currently expected to be temporary, there is uncertainty around the duration.

Basis of Presentation

The unaudited interim condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC"). Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States ("U.S. GAAP") have been omitted pursuant to such SEC rules and regulations; nevertheless, the Company believes that the disclosures are adequate to make the information presented in this Quarterly Report on Form 10-Q (this "Report") not misleading.

Amounts related to disclosure of December 31, 2020 balances within the interim condensed consolidated financial statements were derived from audited financial statements and notes thereto included in the Company's Form 10-K for the year ended December 31, 2020, filed with the SEC on April 5, 2021. The operating results of Don Polly are also included.

Current Operating Trends and Financial Highlights

Management currently considers the following events, trends and uncertainties to be important in understanding the Company's results of operations and financial condition for the most recent calendar quarter and full year:

Regarding results from operations for the quarter ended March 31, 2021, we generated revenue of approximately $4,361,000, as compared to revenue of $4,405,000 for the three months ended March 31, 2020. This $44,000 decrease in revenue was due primarily to a $327,000 decrease in sales of our CBD based products, but was offset by a $283,000 increase in sales of nicotine-based e-liquid products.

We generated a net loss for the three months ended March 31, 2021 of approximately $20,137,000, as compared to net loss of approximately $3,916,000 for the three months ended March 31, 2020. The net loss for the three months ended March 31, 2021 includes non-cash stock-based compensation expense of approximately $359,000 and a non-cash loss in fair value of derivative liabilities of $20,102,000.




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A review of the three month period ended March 31, 2021 follows:


                                               For the three months ended


                                               March 31,                    Change


                                               2021           2020          Amount     Percentage
($ in thousands)


Revenues:
Product revenue, net                            $4,361         $4,405        $(44)      -1.0%
Total revenues                                  4,361          4,405         (44)       -1.0%
Operating costs and expenses:
Cost of goods sold - product revenue            1,943          1,963         (20)       -1.0%
General and administrative                      2,218          4,151         (1,933)    -46.6%
Sales and marketing                             420            419           1          0.2%
Research and development                        9              2,223         (2,214)    -99.6%
Total operating costs and expenses              4,590          8,756         (4,166)    -47.6%
Loss from operations                            (229)          (4,351)       4,122      -94.7%
Other income (expense):
Interest expense                                (28)           -             (28)       100%
Change in fair value of derivative liabilities  (20,102)       430           (20,532)   -4774.9%
Gain on debt extinguishment                     217            -             217        100%
Other income                                    5              5             -          0.0%
Total other income (expense)                    (19,908)       435           (20,343)   -4676.6%
Net loss                                        $(20,137)      $(3,916)      $(16,221)  414.2%



Results of Operations for the Three Months Ended March 31, 2021 Compared to the Three Months Ended March 31, 2020

Revenue

Revenue for the three months ended March 31, 2021 decreased approximately $44,000 or 1%, to approximately $4,361,000, as compared to approximately $4,405,000 for same period in 2020 due to a $283,000 increase in sales of our nicotine-based e-liquid products and a $327,000 decrease in sales of our CBD wellness products. The increase in our nicotine-based e-liquid sales is directly related to the launch of our Pachamama Disposable product line, which offers users a variety of flavors containing tobacco-free nicotine in a compact, disposable format. However, uncertainty surrounding the FDA's application review timeline, following the PMTA submission deadline, as well as the addition of vapor products to the Prevent All Cigarette Trafficking Act ("PACT Act") have affected buying patterns in the domestic vape market as customers reduce inventories of non-PMTA submitted products and adjust their business models to suit recent changes in regulation. Beginning in late February 2020, sales of our CBD wellness products began to experience a decrease as the effects of the global COVID-19 pandemic caused disruptions in the global economy and altered buying patterns for certain consumer discretionary goods. We have begun to streamline our CBD wellness product offering and narrow our sales and marketing focus, targeting our highest value customer types with the most desired product offerings.

Cost of Revenue

Cost of revenue, which consists of direct costs of materials, direct labor, third party subcontractor services, and other overhead costs decreased approximately $20,000, or 1%, to approximately $1,943,000, or 44.6% of revenue, for the three months ended March 31, 2021, as compared to approximately $1,963,000, or 44.6% of revenue, for the same period in 2020. This cost, as a percent of revenue, remained unchanged due to a favorable mix of higher margin sales for both Charlie's and Don Polly, but was marginally offset by a higher provision for obsolescence.

General and Administrative Expenses

For the three months ended March 31, 2021, total general and administrative expense decreased approximately $1,948,000 to $2,203,000 as compared to approximately $4,151,000 for the same period in 2020. This decrease is comprised of reductions of approximately $1,494,000 of non-cash, stock-based compensation, $262,000 in non-commission-based salary and benefits as well as $98,000 in other general and administrative expenses. The reduction in non-cash, stock-based compensation is primarily due to the forfeiture of stock awards by Brandon Stump and Ryan Stump pursuant to the adoption of the Amended Employment Agreements entered into February 12, 2020. The $262,000 decrease of non-commission-based salary and benefits, and the $98,000 decrease of other general administrative expenses were the result of headcount reduction, compensation adjustments and overall cost-cutting measures.



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Sales and Marketing Expense

For the three months ended March 31, 2021, total sales and marketing expense increased approximately $16,000, or 3.8%, to approximately $435,000 as compared to approximately $419,000 for the same period in 2020, which was primarily due to slightly lower commissions paid for reduced sales, but was offset by increased spending on several marketing programs in support of customer retention and product launches.

Research and Development Expense

For the three months ended March 31, 2021, total research and development expense decreased approximately $2,214,000, to approximately $9,000 as compared to $2,223,000 for the same period in 2020, which was primarily due to reduced costs associated with our PMTA registrations.

Loss from Operations

We had operating losses of approximately $229,000 for the three months ended March 31, 2021, due primarily to a $327,000 decrease in sales for our CBD products. We incurred certain general and administrative expenses that contributed to the loss from operations including a $359,000 of expenses related to non-cash, stock-based compensation. Net loss is determined by adjusting loss from operations by the following items:


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Change in Fair Value of Derivative Liabilities. For the three months ended March 31, 2021 and 2020, the loss and gain in fair value of derivative liabilities was $20,102,000 and $430,000 respectively. The derivative liability is associated with the issuance of the Investor Warrants and the Placement Agent Warrants (as defined in Note 3 of this Report) in connection with the Share Exchange. The loss for the quarter ended March 31, 2021 reflects the effect of the significant increase in stock price as of March 31, 2021 compared to December 31, 2020. During the quarter ended March 31, 2021, we experienced a substantial increase in trading volume for our stock, which may persist in the future. Due to the limited supply of shares freely trading, this could cause price volatility and therefore, considerable fluctuations in the value of our warrant derivative liability in the future. We had 4,033,769,341 warrants outstanding as of March 31, 2021.


?

Interest Expense.For the three months ended March 31, 2021 and 2020, we recorded interest expense related to notes payable of $28,000 and $0, respectively.


?

Other Income. For the three months ended March 31, 2021 and 2020, we recorded other income of $222,000 and $5,000, respectively. The increase was primarily related to a debt extinguishment gain of $217,000, including principal and accrued interest, related to the forgiveness of the Don Polly PPP Loan.

Net Loss

For the three months ended March 31, 2021, we had a net loss of $20,137,000 as compared to net loss of $3,916,000 for the same period in 2020.

Effects of Inflation

Inflation has not had a material impact on our business.

Liquidity and Capital Resources

As of March 31, 2021, we had negative working capital of approximately $22,716,000, which consisted of current assets of approximately $6,481,000 and current liabilities of approximately $29,197,000. This compares to negative working capital of approximately $6,020,000 at December 31, 2020. The current liabilities, as presented in the condensed consolidated balance sheet at March 31, 2021 included elsewhere in this Report primarily include approximately $2,187,000 of accounts payable and accrued expenses, approximately $442,000 of deferred revenue associated with product shipped but not yet received by customers, approximately $462,000 of lease liabilities, dividends payable of $1,560,000 and $24,546,000 of derivative liability associated with the Investor Warrants and Placement Agent Warrants (the derivative liability of $24,546,000 is included in determining the negative working capital of $22,716,000 but is not expected to use any cash to ultimately satisfy the liability). In addition, the effect of the COVID-19 pandemic may have a negative impact on our liquidity and capital reserves.



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Our cash and cash equivalents balance at March 31, 2021 was approximately $3,455,000.

For the three months ended March 31, 2021, net cash provided by operating activities was approximately $268,000, resulting from a net loss of $20,137,000, partially offset by $359,000 of share-based compensation, $20,102,000 of change in fair value of derivative liabilities and $10,000 changes in our operating assets and liabilities.

For the three months ended March 31, 2021, we used cash for investment activities of approximately $19,000 as compared to $43,000 for the same period in 2020. The cash used for investment activities is primarily for the on-going development and configuration of enterprise resource planning software during the three months ended March 31, 2021.

For the three months ended March 31, 2021 we generated approximately $1,784,000 cash from financing activities as compared to $0 for the same period in 2020. In the 2021 period, we generated cash from financing activities from the Polly PPP Loan 2 (as defined in Note 8 of Item 1, Part 1 of this Report) and the Private Placement (as defined in Note 10 of Item 1, Part 1 of this Report).

Going Concern Uncertainty Regarding the Legal and Regulatory Environment, Liquidity and Management's plan of operation.

Our financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The Company operates in a rapidly changing legal and regulatory environment; new laws and regulations or changes to existing laws and regulations could significantly limit the Company's ability to sell its products, and/or result in additional costs. Additionally, the Company was required to apply for FDA approval to continue selling and marketing its products used for the vaporization of nicotine in the United States. There is significant cost associated with the application process and there can be no assurance the FDA will approve the application(s). In addition, the recent outbreak of COVID-19 in March 2020 has had a negative impact on the global economy and markets which has negatively impacted the Company's supply chain and sales. For the three months ended March 31, 2021, the Company has incurred losses from operations of $229,000 and a consolidated net loss of approximately $20,137,000 and the Company has a stockholders' deficit of $22,684,000 as of March 31, 2021. These factors raise substantial doubt about the Company's ability to continue as a going concern. The financial statements do not include any adjustments to the carrying amount and classification of recorded assets and liabilities should the Company be unable to continue operations.

Our plans and growth depend on our ability to increase revenues and continue our business development efforts, including the expenditure of approximately $4,400,000 to date, to complete our PMTA registration process. On March 23, 2021, we closed a $3 million capital raise through the private sale of 351,669,883 shares of our common stock to the Company's founders Brandon Stump and Ryan Stump (see Recent Developments). We intend to use the proceeds to fund future growth, increase working capital, retire outstanding debt, and for other general corporate purposes. If in the future our plans or assumptions change or prove to be inaccurate, or there is a significant change in the regulatory environment or the recent outbreak of COVID-19 continues to impact the global economy, we will need to raise additional funds through public or private debt or equity offerings, financings, corporate collaborations, or other means. There can be no assurance that such financing will be available on acceptable terms, or at all, and there can be no assurance that any such arrangement, if required or otherwise sought, would be available on terms deemed to be commercially acceptable and in our best interests.

Off-Balance Sheet Arrangements

The Company has no off-balance sheet arrangements other than operating lease commitments.

Critical Accounting Policies

The condensed consolidated financial statements are prepared in conformity with U.S. GAAP, which require the use of estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities at the date of the financial statements, and the reported amounts of expense in the periods presented. We believe that the accounting estimates employed are appropriate and resulting balances are reasonable; however, due to inherent uncertainties in making estimates, actual results could differ from the original estimates, requiring adjustments to these balances in future periods. The critical accounting estimates that affect the consolidated financial statements and the judgments and assumptions used are consistent with those described under Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2020.




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Financials (USD)
Sales 2020 16,7 M - -
Net income 2020 -7,19 M - -
Net Debt 2020 2,21 M - -
P/E ratio 2020 -7,40x
Yield 2020 -
Capitalization 39,2 M 39,2 M -
EV / Sales 2019 1,47x
EV / Sales 2020 3,32x
Nbr of Employees 45
Free-Float 36,9%
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Managers and Directors
Ryan Stump Chairman, Chief Executive & Operating Officer
Henry Sicignano President
Matthew P. Montesano Chief Financial Officer
Adam Mirkovich Chief Information Officer
Scot J. Cohen Independent Director