Technical420 analysis
Rocky Mountain High Brands Inc. (RMHB) filed a Form 10-K for the year that ended on June 30, 2015.
Financial Highlights
During the year, RMHB incurred a net loss of $16,624,202 after generating $489,849 in revenue during the period. The company started generating revenue in the third quarter of fiscal year 2015.
The cost of sales during the year was $212,458 or 43% of revenue.
Operating costs were $4,202,804 during the year
General and administrative expense were $2,439,302 during the year and this was driven primarily by officer compensation, payroll expense, and consulting expense.
During the year, interest expense was $1,090,285 as the company entered into a number of high interest convertible notes to fund operations.
Liquidity Highlights
As of December 31, 2015, RMHB had a working capital deficit of $1,385,301. Current assets consisted of cash in the amount of $67,137, accounts receivable of $371,557, inventory of $961,181, prepaid expenses of $916,607, and investments of $183,899.
as of December 31, 2015, current liabilities totaled $3,885,682 and consisted of accounts payable and accrued liabilities of $305,843, notes payable of $192,500, convertible notes payable, net of discount, in the amount of $486,986, accrued interest of $13,794, deferred revenue of $500,000, and derivative liability of $2,386,559.
Recently, RMHB operations have been funded primarily through the issuance of convertible promissory notes, which are convertible to common stock at fixed prices ranging from $0.001 to $0.04, at discounts to market price ranging from 50% to 80%, or combinations thereof.
Outlook
Technical420 remains on the sidelines with shares following this report and although we are glad to see that the company filed its financial statements, we can see why they delayed it as long as possible. We do not expect to see a favorable reaction from the market and we plan to dig dip into the shares issuances over the weekend to find out what the dilution potential is. We are on the sidelines and will keep you updated!
Rocky Mountain High Brands Inc. (RMHB) filed a Form 10-K for the year that ended on June 30, 2015.
Financial Highlights
During the year, RMHB incurred a net loss of $16,624,202 after generating $489,849 in revenue during the period. The company started generating revenue in the third quarter of fiscal year 2015.
The cost of sales during the year was $212,458 or 43% of revenue.
Operating costs were $4,202,804 during the year
General and administrative expense were $2,439,302 during the year and this was driven primarily by officer compensation, payroll expense, and consulting expense.
During the year, interest expense was $1,090,285 as the company entered into a number of high interest convertible notes to fund operations.
Liquidity Highlights
As of December 31, 2015, RMHB had a working capital deficit of $1,385,301. Current assets consisted of cash in the amount of $67,137, accounts receivable of $371,557, inventory of $961,181, prepaid expenses of $916,607, and investments of $183,899.
as of December 31, 2015, current liabilities totaled $3,885,682 and consisted of accounts payable and accrued liabilities of $305,843, notes payable of $192,500, convertible notes payable, net of discount, in the amount of $486,986, accrued interest of $13,794, deferred revenue of $500,000, and derivative liability of $2,386,559.
Recently, RMHB operations have been funded primarily through the issuance of convertible promissory notes, which are convertible to common stock at fixed prices ranging from $0.001 to $0.04, at discounts to market price ranging from 50% to 80%, or combinations thereof.
Outlook
Technical420 remains on the sidelines with shares following this report and although we are glad to see that the company filed its financial statements, we can see why they delayed it as long as possible. We do not expect to see a favorable reaction from the market and we plan to dig dip into the shares issuances over the weekend to find out what the dilution potential is. We are on the sidelines and will keep you updated!
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