Attached files
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| 8-K - CURRENT REPORT - Life On Earth, Inc. | hisp8k.htm |
Exhibit 99.1
Company Achieves Record Revenues of Over One Million in Sales for
the First Quarter
NEW
YORK, New York- October 17, 2017- Hispanica International, Inc.
(OTCQB: HISP) a brand accelerator company focused on proprietary
brands in the beverage and snack industry, today announced results
for its 2018 fiscal first quarter ended August 31,
2017.
First
Quarter 2018 Financial Highlights:
●
HISP surpassed over
$1M in revenues for its first quarter of fiscal 2018.
●
HISP attained a 60%
revenue increase from the comparable quarter a year ago (Q1 2018 vs
Q1 2017).
●
Operating losses
decreased by almost 70%.
●
Proprietary brands
generated nearly 30% of revenues (up from 17% from last year's
comparable quarter).
●
HISP will continue
to grow sales of its proprietary brands by increasing distribution,
both directly through its DSD operations, as well through other
distributors and directly to chain retailers.
●
Existing
shareholders Shircoo Inc. and JH Brech, LLC, increased their
positions by financing the next stage of development with a new
funding round.
●
HISP has initiated
the process to remove convertible debt from its balance
sheet.
Fiscal
2018 first quarter net sales were $1.03 million up from $649,411 in
the comparable quarter in 2017 and net losses were ($529,244),
compared to ($1.03) million in 2017. Operating losses for the quarter were $145,000
compared to $249,000 in the year ago period. In addition,
operating expenses decreased by $322,000 during the three months
ended August 31, 2017 as compared to the three months ended August
31, 2016.
The
acquisition of Energy Source Distributors, Inc. (ESD) in July 2016
allowed HISP to expand distribution. Sales through the ESD
subsidiary increased by $196,000 during the three months ended
August 31, 2017 as compared to the three months ended August 31,
2016. Sales through the HISP channel increased by $191,000 during
the three months ended August 31, 2017 from the comparable period a year
ago.
"In the
first quarter, we hit a major milestone, surpassing $1M in revenues
in one quarter, while reducing operating losses by 70%," said
Fernando Oswaldo Leonzo, Chairman and CEO of Hispanica. "The
investments from existing shareholders enable us to move forward without convertible debt and
focus on growing our brands while making key acquisitions. Looking
ahead, we expect to improve sales execution in the second quarter
while maintaining our focus on fiscal discipline. We remain
committed to our goal of continued
revenue growth from organic operations, Improving our product mix
as well as growing Hispanica’s portfolio of accretive
assets.”
Hispanica
anticipates closing the acquisition of Giant Beverage Company, Inc.
of New York City during the second quarter, subject to the
satisfaction of certain closing conditions.
For
more information, please read the 10-Q filed with the SEC on
October 16, 2017.
-1-
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Hispanica International, Inc.
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Condensed Consolidated Balance Sheets
|
|
|
August
31,
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May
31,
|
|
|
2017
|
2017
|
|
ASSETS
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(Unaudited)
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|
|
|
|
|
|
Current
Assets:
|
|
|
|
Cash and cash
equivalents
|
$249,834
|
$217,598
|
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Accounts
receivable
|
153,553
|
160,306
|
|
Inventory
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308,070
|
293,207
|
|
Total current
assets
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711,457
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671,111
|
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|
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Other
Assets:
|
|
|
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Equipment, net of
accumulated depreciation of $19,508 and $14,508 at August 31 and
May 31, 2017, respectively
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55,492
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60,492
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Customer list, net
of accumulated amortization of $43,750 and 35,625 at August 31 and
May 31, 2017, respectively
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331,250
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339,375
|
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Security
deposits
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5,245
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5,245
|
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$1,103,444
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$1,076,223
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LIABILITIES
AND STOCKHOLDERS' DEFICIENCY
|
|
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Current
Liabilities
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|
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Lines of
credit
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$22,583
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$11,413
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Loans payable -
related party
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20,000
|
-
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Loans payable, net
of unamortized deferred financing costs of $60,169 and $100,322 at
August 31 and May 31, 2017, respectively
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163,922
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278,865
|
|
Note payable, net
of unamortized deferred financing costs of $75,833 and $129,208 at
August 31 and May 31, 2017, respectively
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284,881
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229,506
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Convertible notes
payable, net of unamortized deferred financing costs of $54,634 and
$246,213 at August 31 and May 31, 2017, respectively
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748,365
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556,787
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Accounts payable
and accrued expenses
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1,063,978
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719,193
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Total Current
Liabilities
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2,303,729
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1,795,764
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Commitments and
contingencies
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Stockholders'
Deficiency:
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Series A Preferred
stock, $0.001 par value; 10,000,000 shares authorized, 1,200,000
shares issued and outstanding
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1,200
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1,200
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Common stock,
$0.001 par value; 100,000,000 shares authorized, 19,283,170 and
18,717,922 shares issued and outstanding at August 31 and May 31,
2017, respectively
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19,282
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18,717
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Additional paid in
capital
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3,103,056
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3,055,121
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Accumulated
deficit
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(4,323,823)
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(3,794,579)
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(1,200,285)
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(719,541)
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$1,103,444
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$1,076,223
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The
accompanying notes are an integral part of these condensed
consolidated financial statements.
-2-
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Hispanica
International, Inc.
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Condensed
Consolidated Statements of Operations
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(Unaudtied)
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For
the three months ended August 31,
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2017
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2016
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Sales,
net
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$1,036,044
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$649,411
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Cost of goods
sold
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818,526
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501,257
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Gross
profit
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217,518
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148,154
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Expenses:
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Officers'
compensation
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9,493
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3,750
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Salaries and
benefits
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128,363
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63,340
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Repairs and
maintenance
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25,452
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4,210
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Professional
fees
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91,731
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259,712
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Consultancy - share
based compensation
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48,500
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336,176
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Advertising and
promotion
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1,333
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759
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Travel
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18,929
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24,971
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Rent
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11,363
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13,064
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Depreciation and
amortization
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13,125
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10,000
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Other
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63,440
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17,772
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411,729
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733,754
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Loss before other
income and expenses
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(194,211)
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(585,600)
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Other income and
expenses
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Interest and
financing costs
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(335,033)
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(441,659)
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Net
loss
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$(529,244)
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$(1,027,259)
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Basic and diluted
loss per share
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$(0.03)
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$(0.07)
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Basic and diluted
weighted average number of shares outstanding
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18,925,515
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13,710,632
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The
accompanying notes are an integral part of these condensed
consolidated financial statements.
-3-
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Hispanica International, Inc.
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Condensed Consolidated Statements of Cash Flows
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(Unaudited)
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For
the three months ended August 31,
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2017
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2016
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Cash Flows From Operating Activities
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Net
loss
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$(529,244)
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$(1,027,259)
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Adjustments to
reconcile net loss to net cash provided by (used in) operating
activities:
|
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Stock based
compensation
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48,500
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656,676
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Depreciation and
amortization
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13,125
|
10,000
|
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Interest and
financing costs
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287,105
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169,152
|
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Changes in
operating assets and liabilities:
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(Increase) decrease in:
|
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Accounts
receivable
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6,753
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(262,661
|
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Inventory
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(14,863)
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(237,186
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Prepaid expenses
and other current assets
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-
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14,740
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Increase (decrease) in:
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Accounts payable
and accrued expenses
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344,785
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396,172
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Customer
advances
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-
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(20,880)
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156,161
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(301,246)
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Cash Flows From Investing Activities
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Equipment
acquired
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-
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(75,000)
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Customer list
acquired
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-
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(375,000)
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-
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(450,000)
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Cash Flows From Financing Activities
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Repayment of note
payable
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-
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(18,500)
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Proceeds from loans
payable, net of financing costs
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-
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364,820
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Repayment of loans
payable
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(155,095)
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(49,450)
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Repayment of
convertible notes payable
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-
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(14,082
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Proceeds from lines
of credit, net of financing costs
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25,088
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557,000
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Payment of line of
credit
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(13,918)
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Proceeds from loan
payable - related party
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20,000
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-
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(123,925)
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839,788
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Net Increase in Cash and Cash Equivalents
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32,236
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88,542
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Cash and Cash
Equivalents - beginning
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217,598
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27,241
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Cash and Cash
Equivalents - end
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$249,834
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$115,783
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Supplemental Disclosures of Cash Flow Information
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Cash paid for:
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Interest
|
$-
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$36,374
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Noncash investing and financing activities:
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Conversion of debt
to common stock and additional paid in capital
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$-
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$27,500
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Common stock and
warrants issued for financing costs
|
$-
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$350,000
|
-4-
About Hispanica International, Inc.
Hispanic
International, Inc. (HISP) is a public company founded in 2013.
Formed as an ethnic food and beverage company, HISP has leveraged
innovation to re-shift its focus into a brand accelerator with the
goal of expanding beyond ethnic flavors. The HISP accelerator backs
beverage/snack companies, which it can acquire, by building a
proprietary distribution platform to enhance its own brands and
position for mass market entry.
Based
in New York, HISP plans to continue investing in companies focused
primarily in the beverage sector, while adding snacks to their
portfolio over time. HISP will continue to focus on ethnic flavors,
as well as health and wellness-related products, consumer snacking,
grocery and health trends. HISP will continue to accelerate
beverage and snack companies at different stages, from start-ups to
established brands.
HISP is
also committed in building long-term relationships with its
consumers by offering superior, high quality products at
competitive prices. HISP is headquartered in New York and currently
has distribution operations in the New York City Tri-State region,
Washington DC metro area, as well as in Los Angeles and the
Northern California region.
For
more information on Hispanica International, Inc. please visit
http://www.hispanicadelights.com
SAFE HARBOR STATEMENT
Forward-Looking
Statements: This release contains statements that constitute
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. These statements
appear in a number of places in this release and include all
statements that are not statements of historical fact regarding the
intent, belief or current expectations of Hispanica International,
Inc. its directors or its officers with respect to, among other
things: (i) financing plans; (ii) trends affecting its financial
condition or results of operations; (iii) growth strategy and
operating strategy. The words “may,”
“would,” “will,” “expect,”
“estimate,” “can,” “believe,”
“potential” and similar expressions and variations
thereof are intended to identify forward-looking statements.
Investors are cautioned that any such forward-looking statements
including those relating to the Company’s financing being
adequate for the Company to close acquisitions, decrease
indebtedness, being able to place its products in the retail
stores, to launch its growth and expansion plans among others, are
not guarantees of future performance and involve risks and
uncertainties, many of which are beyond Hispanica International,
Inc.’s ability to control, and actual results may differ
materially from those projected in the forward-looking statements
as a result of various factors. No information in this press
release should be construed in any way whatsoever as an indication
of Hispanica’s future revenues, financial performance or
stock price. More information about the potential factors that
could affect the business and financial results is and will be
included in Hispanica International, Inc.’s filings with the
Securities and Exchange Commission at www.sec.gov.
Investors
and Corporate Relations
Please
Contact: corporaterelations@hidainc.com
info@hida.com
1(866)
928-5070
-5-