Did you read the information provided in the filing? ---->
They are showing $199,000 in OTHER INCOME
Other Income. The increase of $199,910 in other income during the three month period ending March 31, 2017 was due to the ***derecognition of $199,910 in accounts payable with $46,638 resulting from agreed settlements with vendors and $153,272 resulting from the Company’s decision to derecognize certain non-current accounts payable which the Company did not feel legally obligated to pay.
Additionally, they booked Gain from disposal of non-strategic assets (74,099)
These is further addressed in the Notes to Consolidated Financial Statements on page 7
Our revenues for the quarter ended March 31, 2017 and for the fiscal years ended December 31, 2016 and 2015 have been insufficient to attain repeatable profitable operations and to provide adequate levels of cash flow from operations. While the Company reported net income of $244,807 for the quarter ended March 31, 2017, our profit included two non-recurring items. These non-recurring items were a gain of $199,910 from derecognition of accounts payable and a gain of $74,099 from disposal of non-strategic assets. Without these two non-recurring gains, we would have reported a net loss of $29,202 for the quarter ended March 31, 2017. Our near term liquidity and ability to continue as a going concern is dependent on our ability to generate sufficient revenues from our store operations to provide sufficient cash flow from operations to pay our current level of operating expenses, provide for inventory purchases and to reduce past due amounts owed to vendors and service providers. No assurances can be given that the Company will be able to achieve sufficient levels of revenues in the near term to provide adequate levels of cash flow from operations. Should an increase in revenues not materialize, we will seek to further reduce operating costs to bring them in line with reduced revenue levels. If the Company is unable to achieve near term profitability and generate sufficient cash flow from operations, and if the Company is unable to sufficiently reduce operating costs, we would need to raise additional capital or obtain additional borrowings beyond our existing credit facilities. We currently have very limited access to capital, including the public and private placement of equity securities and additional debt financing. No assurances can be given that additional capital or borrowings would be available or, if available, that we would be able to complete a capital raise or financing on satisfactory terms, to allow us to continue as a going concern. As a result of the Company’s history of losses and financial condition, there is substantial doubt about the ability of the Company to continue as a going concern. If the Company is unable to continue as a going concern, our shareholders will likely lose all of their investment in the Company.
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On a positive not sales were up around 1.035% yoy.
