The following information should be read in conjunction with our financial
statements and related notes thereto included in Part I, Item 1, above.
Forward Looking Statements
Certain matters discussed herein are forward-looking statements. Such
forward-looking statements contained in this Form 10-Q involve risks and
uncertainties, including statements as to:
·our future strategic plans
·our future operating results;
·our business prospects;
·our contractual arrangements and relationships with third parties;
·the dependence of our future success on the general economy;
·our possible future financing; and
·the adequacy of our cash resources and working capital.
·the Covid-19 Pandemic.
From time to time, we or our representatives have made or may make
forward-looking statements, orally or in writing. Such forward-looking
statements may be included in, but not limited to, press releases, oral
statements made with the approval of an authorized executive officer or in
various filings made by us with the Securities and Exchange Commission. Words or
phrases "will likely result", "are expected to", "will continue", "is
anticipated", "estimate", "project or projected", or similar expressions are
intended to identify "forward-looking statements". Such statements are qualified
in their entirety by reference to and are accompanied by the above discussion of
certain important factors that could cause actual results to differ materially
from such forward-looking statements.
Management is currently aware of the global and domestic issues arising from the
Covid-19 pandemic and the possible direct and indirect effects on the company's
operations which could have a material adverse effect on the company's current
financial position, future results of operations, or liquidity, because its
current operations are limited. However, investors should also be aware of
factors, which includes the possibility of Covid-19 effects on operational
status, could have a negative impact on the company's prospects and the
consistency of progress in the areas of revenue generation, liquidity, and
generation of capital resources, once it begins to implement its business plan.
These may include: (i) variations in revenue, (ii) possible inability to attract
investors for its equity securities or otherwise raise adequate funds from any
source should the company seek to do so, (iii) increased governmental regulation
or significant changes in that regulation, (iv) increased competition, (v)
unfavorable outcomes to litigation involving the company or to which the company
may become a party in the future, and (vi) a very competitive and rapidly
changing operating environment.
The risks identified here are not all inclusive. New risk factors emerge from
time to time and it is not possible for management to predict all of such risk
factors, nor can it assess the impact of all such risk factors on the company's
business or the extent to which any factor or combination of factors may cause
actual results to differ materially from those contained in any forward-looking
statements. Accordingly, forward-looking statements should not be relied upon as
a prediction of actual results.
The financial information set forth in the following discussion should be read
with the financial statements of BioForce NanoSciences Holdings, Inc. included
elsewhere herein.
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Business
BioForce Nanosciences Holdings, Inc. ("BioForce or the "Company") was previously
in the business of manufacturing nano-particular measurement devices and
molecular printers, but due to a lack of profitability, the subsidiary of the
company that owned that technology filed for bankruptcy. That subsidiary and
related technology was later bought out of bankruptcy by an unrelated third
party. Subsequently, new management came into the Company to pursue a better
business model and now the Company's mission is to become a leading provider of
natural vitamins, minerals and other nutritional supplements, powders and
beverages, formulated to promote a healthier lifestyle for active individuals in
all age ranges. The Company private labels products with key distributors and
manufacturing providers.
BioForce entered into the supplement business in or about 2015. These
supplements, powders and beverages offer vitamins and minerals to complement a
healthy intake of protein and carbohydrates for active individuals and
participants in sports.
BioForce recently changed its business plan and it is in the process of
establishing a dynamic marketing campaign to achieve brand awareness of its
product offerings to drive business growth through sales of nutrition
supplements to retailers, sporting goods retailers, supermarkets, mass
merchandisers, and online. BioForce currently markets its products through
social media and telemarketing. The Company plans to expand marketing efforts
with a direct marketing and B2B (Business to Business) sales campaign, with the
eventual expectation to expand throughout the entire United States.
The Company proactively seeks to expand its "BioForce Eclipse" nutritional
powder for use into households throughout the U.S., and the Company will
approach retail stores, including health food and sporting goods stores to
create a vendor relationship. During this phase, the Company will continue to
try to advance its social media platform with direct online and targeted
advertisements to health conscience individuals.
Nutrition retailers, grocery stores, retail pharmacies, and online stores, like
Amazon, will be important channels for the Company's Eclipse product-lines. In
The USA, there are thousands of direct outlets like grocery stores, pharmacies,
hospitals, department stores, medical clinics, surgery clinics, universities,
nursing homes, prisons, and other facilities which are all targets of potential
sales of the vitamin and mineral supplemental products.
BioForce Nanosciences Holdings, Inc. sells the BioForce Eclipse powder
multivitamin and mineral supplement without non-compete and non-disclosure
agreements. The Company currently private labels the powder through a
manufacturer located in Virginia. The Company has a Supplier Agreement with this
manufacturer that gives the Company non-exclusion rights to market the product.
The distributor owns the rights to the formula for this product. If the
Company can source product in a more cost-effective way without diminished
quality, the Company would evaluate such opportunities when presented.
Currently, the distributor who provides the private label powder provides
"Consignment Terms," which allows us to only pay for the product when it is
sold.
The FDA has rules regarding the fitness for consumption of foods as well as
vitamins and supplements sold to the public, and those laws apply to our
product. However, our product does not require pre-clearance like a drug in
order to be sold into the marketplace.
The Company in May 2020, formed a wholly-owned subsidiary, Element Acquisition
Corporation, a Wyoming corporation,with unlimited common shares authorized, par
value $0.001. Element Acquisition Corporation was formed to pursue potential
acquisitions in the media, entertainment, media technology and sports sectors.
The Company on October 15, 2020 changed the name of its wholly-owned subsidiary
Element Acquisition Corporation, a Wyoming corporation, to BioForce Nanosciences
Holdings, Inc, a Wyoming corporation. Management intends to redomicile BioForce
Nanosciences Holdings, Inc., a Nevada corporation, into a Wyoming corporation
using its wholly-owned BioForce Nanosciences Holdings, Inc., a Wyoming
corporation as the entity for the redomicile corporate action (See "Subsequent
Event," Part II, Item 5).
-14-
Transfer Agent
Our transfer agent is Transfer Online, Inc. whose address is 512 SE Salmon
Street, Portland, Oregon 97214, and telephone number (503) 227-2950.
Company Contact Information
Our principal executive and subsidiary offices are located at 2020 General Booth
Blvd., Unit 230, Virginia Beach, VA 23454, telephone (757) 306-6090. The
information to be contained in our Internet website, www.bravomultinational.com,
shall not constitute part of this report.
Current Directors
The following persons were elected to the board of directors to serve until the
next annual meeting or until their replacement is elected:
Merle Ferguson Director
Richard Kaiser Director
Management's Discussion and Analysis of Financial Condition and Results of
Operations
Overall Operating Results:
Three Months - September 30, 2020 and 2019 Statements
The Sales Revenue from the Company's BioForce Eclipse vitamin supplements for
the three months ended September 30, 2020 and for the three months ended
September 30, 2019 were $-0- and $5,962, respectively. During the three months
ended September 30, 2020 the Company received no orders, -0- units of its
Bioforce Eclipse supplement product, and for the same period ending September
30, 2019 the Company received one order for 265 units of its Bioforce Eclipse
supplement product.
The Cost of Goods Sold for the three months ended September 30, 2020 was $-0-
and the Cost of Goods Sold for the three months ended September 30, 2019 was
$4,240, the cost associated with the sales of its BioForce Eclipse supplement
product.
Gross Margins for the three months ended September 30, 2020 was 0% from the sale
of -0- units of the BioForce Eclipse supplement product, and during the same
period in September 30, 2019 was 29.78% from the sale of 265 units of the
BioForce Eclipse supplement product. The decrease for the three months ended
September 30, 2020 in comparison to three months ended September 30, 2019 is
contributed to no unit sales of supplement sold.
Gross Profit for the three months ended September 30, 2020 was $-0- and for the
three months ended September 30, 2019 was $1,722.
Operating expenses for three months ended September 30, 2020, totaled $117,922
from Board of Director compensation and General and Administrative Expenses,
compared to $8,056 for the three months ended September 30, 2019. This increase
in September 30, 2020 compared to the same period ended September 30, 2019 was
attributed to higher expenses with fees for Board of Director compensation.
-15-
Nine Months - September 30, 2020 and 2019 Statements
The Sales Revenue from the Company's "BioForce Eclipse" vitamin supplement for
the nine months ended September 30, 2020 and for the nine months ended September
30, 2019 were $-0- and $17,775, respectively. During the nine months ended
September 30, 2020 the Company sold -0- units of its "BioForce Eclipse" vitamin
supplement product for $-0- and during the nine months ended September 30, 2019
the Company sold 770 units of its "BioForce Eclipse" vitamin supplement product
for $17,775.
The Cost of Sales for the nine months ended September 30, 2020 was $-0- and for
the nine months ended September 30, 2019 was $13,415 respectively. For the nine
months ended September 30, 2020, the Company had $-0- in costs associated with
the sale of its "Bioforce Eclipse" vitamin supplement product, and for the nine
months ended September 30, 2019 the Company had $13,415 associated cost due to
sales of its vitamin supplement.
Gross Margins for the nine months ended September 30, 2020 was 0% from the sale
of -0- units of the "BioForce Eclipse" supplement product, and for nine months
ended September 30, 2019 was 24.53% from sale of 770 units of the supplement
product. The decrease for the nine months ended September 30, 2020 in comparison
to nine months ended September 30, 2019 is that no sales of the vitamin
supplement occurred during the nine months ended September 30, 2020.
Gross Profit for the nine months ended September 30, 2020 was $-0- and for the
nine months ended September 30, 2020 was $4,360. The Company had sales of -0-
units of the "BioForce Eclipse" vitamin supplement product for the nine months
ended September 30, 2020, and during nine months ended September 30, 2019 had
sales of 770 units of the vitamin supplement.
Operating expenses for nine months ended September 30, 2020, totaled
$158,285,990 for Board of Director Compensation and General and Administrative
Expenses, compared to $30,728 for the nine months ended September 30, 2019. This
increase during the same nine month period ended September 30, 2020 was
attributed to the cost of the issuance of convertible Preferred 'A' shares and
higher fees related to accounting and legal fees associated with the Company
being a full-reporting issuer.
-16-
Net Loss:
Net loss for the three months ended September 30, 2020 and 2019 were $117,922
and $6,334, respectively. Net loss for the nine months ended September 30, 2020
and 2019 were $158,285,990 and $26,368, respectively.
Liquidity and Capital Resources:
As of September 30, 2020, the Company's assets totaled $39,865, which consisted
of cash. Our total liabilities were $227,208 from accrued director compensation
expenses and amounts due to related parties. As of September 30, 2020, the
Company had an accumulated deficit of $159,047,742 and working capital deficit
of $237,343.
As indicated herein, we need capital for the implementation of our business
plan, and we will need additional capital for continuing our operations. We do
not have sufficient revenues to pay our operating expenses at this time. Unless
the Company is able to raise working capital, it is likely that the Company will
either have to cease operations or substantially change its methods of
operations or change its business plan (See Note 4 in Financial Statements). For
the next 12 months the Company has a written commitment from its CEO in Mr.
Merle Ferguson's employment contract (See Exhibit 10.01) to advance funds as
necessary in meeting the Company's operating requirements.
Cash (Used in) Operating Activities
Net cash used in operating activities for the nine months ended September 30,
2020 and 2019 was $69,048 and $14,123, respectively. The increase amount was
attributed to General and Administrative cost that were used in operational and
professional fee expenses.
Cash Flows from Investing Activities
Net cash used in investing activities was $-0- for both nine month periods ended
September 30, 2020 and 2019.
-17-
Cash Provided by Financing Activities
Net cash provided by financing activities was $56,018 for nine months ended
September 30, 2020 from proceeds from Related Parties, and was $31,663 for nine
months ended September 30, 2019 from the amount of Capital Contributions from
the Company's directors .
Critical Accounting Policies
Our financial statements and accompanying notes are prepared in accordance with
generally accepted accounting principles in the United States. Preparing
financial statements requires management to make estimates and assumptions that
impact the reported amounts of assets, liabilities, revenue, and expenses. These
estimates and assumptions are affected by management's application of accounting
policies. Critical accounting policies include revenue recognition and
stock-based compensation. The Company has implemented all new accounting
pronouncements that are in effect and is evaluating any that may impact its
financial statements, including revenue recognition. The Company does not
believe that there are any other new accounting pronouncements that have been
issued that might have a material impact on its financial position or results of
operations.
Revenue Recognition
In accordance with ASC Topic 606, Revenue from Contracts with Customers ("ASC
606"), revenues are recognized when control of the promised goods or services is
transferred to our clients, in an amount that reflects the consideration to
which we expect to be entitled in exchange for those goods and services. To
achieve this core principle, we apply the following five steps: (1) Identify the
contract with a client; (2) Identify the performance obligations in the
contract; (3) Determine the transaction price; (4) Allocate the transaction
price to performance obligations in the contract; and (5) Recognize revenues
when or as the company satisfies a performance obligation.
We adopted this ASC on January 1, 2018. Although the new revenue standard is
expected to have an immaterial impact, if any, on our ongoing net income, we did
implement changes to our processes related to revenue recognition and the
control activities within them.
Stock-Based Compensation
We account for employee and non-employee stock-based compensation in accordance
with the guidance of FASB ASC Topic 718, Compensation-Stock Compensation, which
requires all share-based payments, including grants of stock options, to be
recognized in the financial statements based on their fair values. The fair
value of the equity instrument is charged directly to compensation expense and
credited to additional paid-in capital over the period during which services are
rendered.
Recent Accounting Pronouncements
The Company has implemented all new accounting pronouncements that are in effect
and is evaluating any that may impact its financial statements, including
revenue recognition. The Company does not believe that there are any other new
accounting pronouncements that have been issued that might have a material
impact on its financial position or results of operations.
-18-
Off-Balance Sheet Arrangements
We do not have any off-balance sheet arrangements.
Reverse Stock Split
We were authorized to issue 900,000,000 shares of our common stock, of which
15,270,588 shares were outstanding taking into account the one-for-five
(1-for-5) reverse stock split effective February 28, 2020. Our shares of common
stock are held by approximately 231 stockholders of record. The number of
record holders was determined from the records of our transfer agent and does
not include beneficial owners of our common stock whose shares are held in the
names of various securities brokers, dealers, and registered clearing agencies.
In addition to our authorized common stock, BioForce Nanosciences Holdings,
Inc. is authorized to issue 100,000,000 shares of preferred stock, par value at
$0.001 per share. Based on the amended Articles of Incorporation the Company has
10,000,000 Series 'A' Preferred which have voting and conversion rights of 100
common shares, par value $0.001(see Exhibit 3.2); leaving a balance of
90,000,000 "Blank Check" Preferred.
Going Concern
We have incurred net losses since our inception. We anticipate incurring
additional losses before realizing growth in revenue and we will depend on
additional financing in order to meet our continuing obligations and ultimately
to attain profitability. Our ability to obtain additional financing, whether
through the issuance of additional equity or through the assumption of debt, is
uncertain. These conditions raise substantial doubt as to the Company's ability
to continue as a going concern. The financial statements do not include any
adjustments that might result from the uncertainty about our ability to continue
our business.
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