Results of Operations
Year Ended June 30, 2016 Compared to Year Ended June 30, 2015
Financial Summary
The Company’s net income for the year ended June 30, 2016 was $2,325,726 compared to a net loss of ($16,624,202) for the year ended June 30, 2015. The Company was reorganized in July of 2014, under bankruptcy according to Chapter 11 of the United States Bankruptcy Code. The Statement of Operations for June 30, 2015 is presented in compliance with ACS 852.
Our sales for the year ended June 30, 2016, were $1,075,476 versus $489,849 for the year ended June 30, 2015. The sales increase was driven by distributor and online sales beginning late in the third quarter of fiscal year 2015, which increased in 2016.
Sales
For the year ended June 30, 2016, sales were $1,075,476 compared to $489,849 for the year ended June 30, 2015, an increase of $585,627 or 120%. The increase was driven by the launch of four beverage SKUs in March 2015, which resulted in a full year of sales for 2016 as compared to only 4 months for 2015, and the addition of a fifth SKU in November 2015. The Company also added several distributors in 2016. In 2016, sales consisted of 93% distributor sales and 7% online sales compared to 2015 when 72% of sales was to distributors and 28% of sales was online.
Cost of Sales
For the year ended June 30, 2016, cost of sales was $1,134,636 or 105% of sales, versus $212,458 or 43% of sales for the year ended June 30, 2015. Cost of sales increased in 2016 due to inventory obsolescence write-downs and increased sales. Inventory obsolescence write-downs in 2016 were $725,718 compared to $0 in 2015. The factors impacting inventory obsolescence were (1) two changes in can design during 2016, that rendered the previous designs less marketable to customers, (2) management’s decision to move the brand to a 16 ounce can to broaden its market appeal and lower production costs and (3) prior management’s decision to date code all production runs prior to May 2016 with a shorter than necessary one-year shelf-life when a two-year shelf-life was applicable. Cost of sales in 2016 before the write-downs was $408,918 or 38% of sales.
Year Ended June 30, 2016 Compared to Year Ended June 30, 2015
Financial Summary
The Company’s net income for the year ended June 30, 2016 was $2,325,726 compared to a net loss of ($16,624,202) for the year ended June 30, 2015. The Company was reorganized in July of 2014, under bankruptcy according to Chapter 11 of the United States Bankruptcy Code. The Statement of Operations for June 30, 2015 is presented in compliance with ACS 852.
Our sales for the year ended June 30, 2016, were $1,075,476 versus $489,849 for the year ended June 30, 2015. The sales increase was driven by distributor and online sales beginning late in the third quarter of fiscal year 2015, which increased in 2016.
Sales
For the year ended June 30, 2016, sales were $1,075,476 compared to $489,849 for the year ended June 30, 2015, an increase of $585,627 or 120%. The increase was driven by the launch of four beverage SKUs in March 2015, which resulted in a full year of sales for 2016 as compared to only 4 months for 2015, and the addition of a fifth SKU in November 2015. The Company also added several distributors in 2016. In 2016, sales consisted of 93% distributor sales and 7% online sales compared to 2015 when 72% of sales was to distributors and 28% of sales was online.
Cost of Sales
For the year ended June 30, 2016, cost of sales was $1,134,636 or 105% of sales, versus $212,458 or 43% of sales for the year ended June 30, 2015. Cost of sales increased in 2016 due to inventory obsolescence write-downs and increased sales. Inventory obsolescence write-downs in 2016 were $725,718 compared to $0 in 2015. The factors impacting inventory obsolescence were (1) two changes in can design during 2016, that rendered the previous designs less marketable to customers, (2) management’s decision to move the brand to a 16 ounce can to broaden its market appeal and lower production costs and (3) prior management’s decision to date code all production runs prior to May 2016 with a shorter than necessary one-year shelf-life when a two-year shelf-life was applicable. Cost of sales in 2016 before the write-downs was $408,918 or 38% of sales.
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