RMHB letter to share holders 01/04: January 4,2
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January 4,2016 To the Shareholders of Rocky Mountain High Brands, Inc: On December 24, 2015, we posted our much-awaited 2015 Financial Statements and Accompanying Notes for the Years Ended June 30, 2015 [FY 2015) and June 30, 2014, (FY 2014) along the Report of Independent Registered Public Accounting Firm (commonly referred to as the "Audit"
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Equity dilution on the balance sheet was driven by speculative convertible debt ?nancing. Eariy stage start-up OTC Pink public companies, such as RMHB, are speculative investments; therefore venture investors that ?nance these companies often require sizable opportunities for equity ownership in the ?rm. With the initial convertible debt funding, RMHB executed inventory production across two labeling strategies to cover all target channels. The Company generated enough revenue to pay off some of the initial debt
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?nancing and restructure the rest of the debt. This capital restructuring is bene?ting the Company in discussions with its next round of investment partners. The early and aggressive attention to pay down the convertible debt is also re?ective of our stewardship to all long-term investors in RMHB. The primary takeaways from audited ?nancial statements and notes for FY 2015 are not the temporary and arcane derivative liabilities and mark to market losses. As the Statement of Cash Flows show, RMHB deployed the capital raised, launched a superior consumer goods brand, and left cash reserved in the bank at the end of the ?scal year. The Company acted creatively to attract and retain talent, execute operational momentum, and generally 'just get the job done.' The Company is continuing to address challenges a day at a time, as we manufacture, market and distribute the Brand. On January 1, 2016 Michael Welch joined RMHB as Chief Financial Offcer of Rocky Mountain High Brands, Inc. Michael is a CPA who started his career as an Auditor with Deloitte and most recently served as CFO Managing Partner of Aventine Hill Partners, a Texas-based professional services ?rm.
Over the next few weeks Michael will: • Prepare a restatement of RMHB's FY 2016 l^t Quarter Financials based on the audited beginning balances and post to OTC Markets. • Complete RMHB's FY 2016 2"'^ Quarter Financials and post to OTC Markets.
• Draft RMHB's Form 10 for filing with the Securities and Exchange Commission. • Implement operational and internal controls for the Company that aligns with Sarbanes-Oxley requirements. All of these milestones are part of the process of moving the Company toward fully reporting SEC compliance.
Tom Shuman Chief Executive Of?ce Rocky Mountain High Brands, Inc.
http://www.otcmarkets.com/financialReportView...;id=149364
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