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My birthday is in a week so let's both get a great aern present! Happy birthday!
What big buys are you talking about? I see 2-5,000 shares and a 25,000 share purchase on Ihub streamer. 25,000 shares at .0045 is only $112.50 or am I missing something?
Great info! Thanks for that. Really shows the uptrend.
Holy cow man 8 minutes? Yeah that's not hard to miss!
I'm ready for the ride up!
Yep you did good cjake. Like you said, most of us didn't know it was happening until after it happened. It was very quick! I hate it dropped back most of its gain but maybe tomorrow it will regain that. GLTUA
You should've set it for $28.
I sure am ready for people to take aern serious and get it up to .02-.05 where it should be! Look at grpr. Aern is way ahead of it productionwise but it's sitting at .025!
You as well.
Well there's $1,500 shot. Chalked up to a lesson learned the hard way! Take care everyone.
Good morning AERNers! I think you are right Pepe. That's good advice. Buy now all you can because one morning you may oversleep and this sleeping giant is going to rocket into space and you may be buying in at .03 or higher then! GLTA
Thanks for that info jimsZ. Interesting things going on here indeed.
Looking good people! I'm going to sell some of my slower stocks Monday and put more into pulse because it's going to be a great year for PLSB!
http://biz.yahoo.com/e/120316/plsb.ob10-k.html
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION OR RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
The discussion that follows is derived from our audited balance sheets as of December 31, 2011 and 2010 and the audited statements of operations and cash flows for the years ended December 31, 2011 ('2011") and 2010 ("2010").
Revenues, net
Prior to September 23, 2011 we were a development stage company as we had no operating revenues. Production and sales of our Cabana? 100% Natural Lemonades started on September 23, 2011 and since, as principal business activities have begun and we are generating significant revenues, we are no longer a development stage company. We had no revenues or operations in 2010 other than being a public shell company.
Our revenues for 2011 were $110,000 (2010 - $nil) from 9,670 cases of Cabana 100% Natural Lemonade sold through 14 DSD distributors. We expect a significant increase in sales in 2012 through a combination of additional DSD distributors, DTR distributors, re-orders and product awareness and product available to consumers through a full warm season. We also plan to recognize revenues from our Pulse? NutriPurpose? beverages during quarter two of 2012.
We recognize revenue when delivery has occurred, the sales price is fixed and collectability is reasonably assured. Ownership and title of our products pass to customers upon delivery of the products to customers. We record revenues, net of sales discounts.
Cost of Sales
Our cost of sales for 2011 was $88,000 (2010 - $nil). Cost of sales includes raw materials, co-packing services, lab testing and cost to deliver our product. We expect all cost variables to decrease as we source raw materials at a lower cost because of volume discounts; ship our product within a 500 mile radius of our co-packers and due to lower cost glass from a mid-west supplier. We had enough raw materials on hand as of December 31, 2011 to produce 20,000 cases.
Gross Profit
During 2011 our gross profit was $22,000 (20%). Cost of our initial production runs was high due to: production techniques and variables we were testing and improving; higher than normal freight costs; higher raw material costs due to low volume purchasing; high cost of glass. The freight costs were higher because we were shipping product all over America from one production facility. These costs will decrease as we produce from strategically located co-packing facilities and deliver product within a 500 mile radius. We expect gross profits to normalize at 30% in the near-term and 35% in the long-term. Gross profit, as a percentage of sales, will also increase as we have a higher weighting of sales through DSD, lower our raw material cost through higher volume purchasing, bring on additional co-packers at less cost in Pittsburgh, effective March 28, 2012, and Missouri and source glass from a Midwest supplier.
Expenses
During 2011 we incurred $899,000 of operating expenses, $80,000 in a capital asset write-down offset by $42,000 of other income, made up of forgiveness of debt of $36,000 and net interest income of $6,000. This increase in operating expenses for 2011 is primarily due to our acquisition of the Pulse assets, the development of Cabana? 100% Natural Lemonade and the accompanying change in the operations of our business.
Our highest operating expense is salaries, commissions and benefits which totaled $281,000 in 2011 (2010 - $nil). We expect to more than double this cost during 2012 as we hire regional and district managers and additional staff for the launch of Pulse? NutriPurpose?. Commissions are expected to part of regional and district managers' salaries. We also plan to pay commissions to part-time and full-time brokers. During 2011 we mainly relied on our senior management and brokers to develop our distribution system and sell product into it.
During 2011 we incurred $87,000 (2010 - $nil) of advisory and director fees. Our independent director was paid $17,000 and our Advisory Board members were paid $70,000 in 2011 (2010 - $nil). This expense is expected to increase as we appoint additional independent board members.
During 2011 we incurred $196,000 (2010 - $21,000) of professional fees including $111,000 of legal fees, $33,000 of audit and review fees, $10,000 of finance fees, $35,000 of professional business consulting fees, $7,000 of legal fees associated with distribution agreements. We expect professional fees for 2012 to be similar to 2011.
During 2011 we incurred $117,000 of investor relations expenses (2010 - $nil). This cost includes: $57,000 paid to NBT Communications pursuant to a Professional Services Agreement, $50,000 paid to our investor and shareholder liaison, $4,000 for issuing news releases, $5,000 to develop investor materials and $1,000 for a microcap conference.
During 2011 we incurred $76,000 (2010- $1,000) of office, rent and telephone expenses. This cost includes $37,000 of rent expense for our head office in Westminster, Colorado and satellite office in Burnaby, BC, Canada as well as storage costs. We expect office, rent and telephone to increase modestly in 2011 due to higher telephone costs associated with the hiring of regional and district managers.
During 2011 we incurred $99,000 (2010 - $nil) in travel, advertising, promotion and trade shows. This cost includes: $2,000 for magazine advertising, $39,000 in travel, $21,000 in trade show costs and $37,000 in building prototypes, samples shipped to distributors, sell sheets, shelf strips, door decals and costs associated with our product being placed on shelves. We expect this expense to increase in proportion to increase in sales as we increase our budget in all areas of travel, advertising, promotion and trade shows due to our launch of our flagship beverage product Pulse? NutriPurpose? and an overall increase in personnel and increases in distribution reach both in America and internationally.
During 2011 we incurred regulatory fees of $32,000 (2010 - $5,000). These costs are associated with our initial and ongoing regulatory fees associated with being a public company. We expect these costs to increase once we complete our goal of a senior stock exchange listing.
During 2011 we recorded $11,000 in amortization and depreciation (2010 - nil). We expect an increase in 2012 due to a full year of depreciation and assets being put into use.
Net Loss
During 2011 we incurred a net loss of $915,000 (2010 - $27,000). This increase in net loss for 2011 is due to our acquisition of the Pulse assets, the development of Cabana? 100% Natural Lemonade and the accompanying change in the operations of our business. We expect net earnings for 2012 due to increased sales for both of our products, decreased cost of sales and increased gross profit while keeping costs at a modest level.
LIQUIDITY AND CAPITAL RESOURCES
Overview
During 2011 we increased our cash position from $0 in 2010 to $88,000 as of December 31, 2011. We received $1,025,000 and issued, on February 28, 2011, 1,025,000 common shares pursuant to a non-brokered private placement of shares at $1.00 per share. We also received $500,000 (including a $100,000 commitment to issue units assumed in the Pulse asset acquisition) pursuant to a $0.50 per unit non-brokered private placement; these units were issued on September 15, 2011. We also received $120,000 in subscription proceeds pursuant to a $0.30 per unit non-brokered private placement; these units were issued January 25, 2012.
As at December 31, 2011, we had working capital of $322,000 which included cash of $88,000, accounts receivable of $21,000, inventories of $371,000 (including finished product of $108,000, glass bottles of $210,000 and other raw materials of $53,000) and prepaid expenses of $47,000. We have no debt other than accounts payable of $189,000 and accrued liabilities of $20,000. We have no long-term debt.
Subsequently, to the date of this Report, we have received $515,000 from foreign accredited investors and officers/directors pursuant to a $0.30 per unit non-brokered private placement which has increased our working capital surplus.
The following table sets forth the major sources and uses of cash for our last two years ended December 31, 2011 and 2010:
2011 2010
$ $
Net cash used in operating activities (999,000 ) (21,000 )
Net cash used in investing activities (392,000 ) -
Net cash provided by financing activities 1,480,000 19,000
Net increase (decrease) in cash 89,000 (2,000 )
While we have raised the capital necessary to meet our working capital and financing needs in the past, additional financing of $3,000,000 is required in order to meet our current and projected cash flow deficits from operations and development. If we are not successful in generating sufficient liquidity from operations or in raising sufficient capital resources on terms acceptable to us, this could have a material adverse effect on our business, results of operations, liquidity and financial condition. Our independent registered certified public accountants have stated in their report included herein that we have incurred operating losses since our inception, and that we are dependent upon management's ability to develop profitable operations and secure financing. These factors among others may raise substantial doubt about our ability to continue as a going concern.
Cash Used in Operating Activities
During 2011 we used $999,000 (2010 - $21,000) in operating activities. This was made up of our net loss of $915,000 offset by an increase in accounts payable and accrued liabilities of $290,000; and increases in accounts receivable of $21,000, prepaid expenses of $36,000 and inventories of $371,000. Our net loss of $915,000 includes certain non-cash items such as the write-down of a capital asset of $80,000 and amortization and depreciation of $11,000, forgiveness of debt of $36,000 and shares issued for services of $86,434. During 2010 we used $21,000 in operating activities which was made up of our net loss of $27,000 offset by an increase in accounts payable of $6,000.
Cash Used in Investing Activities
During 2011 we used $392,000 (2010 - $nil) in investing activities. This was made up of a $200,000 loan to Catalyst Development (a related party) pursuant to a Letter Agreement of which $3,000 has been repaid to date; paying the balance of the purchase price of the Asset Purchase Agreement of $100,000 which was allocated to property and equipment; $26,000 spent on office and computer equipment and $69,000 spent on the development of our website, labels and trade-marking. During 2010 we had no investing activities. This increase in use of cash operating activities during 2011 is due to our acquisition of the Pulse assets, the development of Cabana? 100% Natural Lemonade and the change in our business.
Cash Provided by Financing Activities
During 2011, we received $1,480,000 (2010 - $19,000) provided by financing activities. We received $1,025,000 and issued, on February 28, 2011, 1,025,000 common shares pursuant to a non-brokered private placement of shares at $1.00 per share. We also received $500,000 (including a $100,000 commitment to issue units assumed in the Pulse asset acquisition) pursuant to a $0.50 per unit non-brokered private placement; these units were issued on September 15, 2011. In December 2011, we received $120,000 in subscription proceeds pursuant to a $0.30 per unit non-brokered private placement; these units were issued January 25, 2012. We also received $20,000 from a short-term loan and repaid $85,000 of short-term loans. During 2010 we received $19,000 from a related party loan.
Additional Capital
We have not generated significant revenues and have incurred start-up losses to date. We cannot guarantee we will be successful in our business operations. Our business is subject to risks inherent in the establishment of a new business in the beverage industry, including limited capital resources. Our continuation as a going concern is dependent upon our ability to obtain necessary equity financing to fund our growth strategy, and attain profitability. We will require a cash injection of an additional $3,000,000 over the next twelve months to launch our products, including a full marketing and branding campaign, and to build our inventory and support our receivables. Management believes this additional capital, the management team and the expanded awareness of the Pulse? brand will provide us the opportunity to be operationally cash flow positive and profitable over the next twelve months.
We have no assurance that future financing will be available to us, or if available, on terms acceptable to us. If financing is not available on satisfactory terms, we may be unable to continue, develop or expand our operations. Additional equity financing could result in additional dilution to our existing shareholders.
OFF BALANCE-SHEET ARRANGEMENTS
We have not had, and at December 31, 2011, do not have, any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.
CRITICAL ACCOUNTING POLICIES AND ESTIMATES
Our discussion and analysis of our financial condition and results of operations are based upon our financial statements that have been prepared in accordance with generally accepted accounting principles in the United States of America ("US GAAP"). This preparation requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities. US GAAP provides the framework from which to make these estimates, assumption and disclosures. We choose accounting policies within US GAAP that management believes are appropriate to accurately and fairly report our operating results and financial position in a consistent manner. Management regularly assesses these policies in light of current and forecasted economic conditions. While there are a number of significant accounting policies affecting our financial statements, we believe the following critical accounting policies involve the most complex, difficult and subjective estimates and judgments:
? Revenue Recognition;
? Stock Based Compensation; and
? Use of Estimates.
Revenue Recognition
We recognize revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable and collectability is reasonably assured. Ownership and title of our products pass to customers upon delivery of the products to customers. Certain of our distributors may also perform a separate function as a co-packer on our behalf. In such cases, ownership of and title to our products that are co-packed on our behalf by those co-packers who are also distributors, passes to such distributors when we are notified by them that they have taken transfer or possession of the relevant portion of our finished goods. Net sales have been determined after deduction of discounts and other allowances in accordance with ASC 605-50.
Stock Based Compensation
We account for stock-based compensation in accordance with the provisions of SFAS No. 123(R), "Share Based Payments". We measure the cost of employee services in exchange for an award of equity instruments based on the grant-date fair value. Pursuant to a Special Meeting of Shareholders of the Company, held on July 29, 2011, the following Shareholders approved our 2011 Equity Incentive Plan ("The 2011 Plan"). A total of 4,500,000 common shares are reserved under The 2011 Plan. The 2011 Plan authorizes our Board of Directors to grant options, restricted stock awards, performance stock awards and stock appreciation rights. There are no stock options issued pursuant to The 2011 Plan.
Use of Estimates
The preparation of financial statements in accordance with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses in the reporting period. We regularly evaluate estimates and assumptions related to the useful life and recoverability of long-lived assets, stock-based compensation, and deferred income tax asset valuation allowances. We base our estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by us may differ materially and adversely from our estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
There have been no recently issued Accounting Pronouncements that impact us.
They had a Sell Order Imbalance just before closing which I had to look up to see what the heck that even was. Sure doesn't sound like a positive thing to me. Anyone have any info on it?
A disproportion of aggregate sell orders. A sell order imbalance usually occurs approximately one hour before the market closes when there is late-breaking news that prompts investors to sell in large numbers. When this happens, information on the imbalance is distributed by exchanges and the media in order to try minimize the disparity. In extreme situations however, trading is halted on the specific security in question.
Read more: http://www.investorwords.com/7706/sell_order_imbalance.html#ixzz1pJmDyCc5
Oh Surf you always do this to me! I have to quit reading right before going to bed because I always read something that gets me excited and I can't sleep! haha STAN IS THE MAN!
Another green day. Slowly making our way to that huge news that's going to send us all soaring. ;)
Yes, please enlighten us to your proof to back up such a comment. Oh wait, you have no proof. You are only trying to make the stock drop so you can buy cheap. It's not going to work. THQI is going to reach $1 again and hopefully higher. Show us proof of your comment or move on.
EXACTLY! I can't imagine anyone selling their shares now. They are going to be sorry in a couple of weeks when EU approves them and the FDA rethinks their decision. $6-$8 coming soon! JMHO
Good morning AERNers! There is no doubt in my mind AERN will be at .02-03 by this summer. IMO I have been watching another stock with the same interests as AERN and they went up from .01 to .03 and right now today they are holding at .022. AERN is in a MUCH BETTER position then this other company so there is no reason it shouldn't be as high or higher then it. More money and more wells actually PUMPING OIL NOW. Only makes cents. :) JMHO
More great news!! This stock is flying under the radars right now but when they announce their earning report and show us the revenues coming in from all of the distribution deals across the country including BUDWEISER then hold on to your seats because PLSB is going to skyrocket to $2-$3 at least!
Pulse Enters Nine Counties in Key Southern California Markets
The Pulse Bev Corp (OTCBB:PLSB)
Intraday Stock Chart
Today : Thursday 15 March 2012
The Pulse Beverage Corporation (OTCBB: PLSB) ("Pulse"), makers of Cabana™ 100% Natural Lemonade and Pulse® NutriPurpose™ brand beverages, today announced that it has secured distribution, through two major emerging brand distributors in nine counties in Southern California: Fresno, Kern, Tulare, Kings, Los Angeles, Orange, Santa Barbara, San Bernardino and Riverside.
Avanzar Sales and Distribution is a wholesale distributor/manager of emerging beverage brands in the greater Los Angeles market. Its management team has worked with several major beverage brands over the past 20 years in their retail marketing and distribution efforts. These brands include Pepsi, Red Bull, Nestlé, Fuze, Vitamin Water, Voss Water and Calypso Lemonade. Bill Juarez, President of Avanzar, said, "We are extremely excited to be partnered with Pulse and its Cabana™ 100% Natural Lemonade product for the greater Los Angeles market. We believe strongly in the brand proposition that Cabana™ provides to the consumer. We are also looking forward to introducing the innovative Pulse® NutriPurpose™ brand beverage in the near future. We believe that our customers will welcome the Pulse beverage brands as a good addition to their existing product lines."
Paddy Sheya, National Sales Manager of Pulse, stated, "We are very focused on the development of the West Coast and with the addition of these two distributors we will be building one of the largest markets in the West as well as one of the largest population bases in the country. This is very exciting to enter California with partners such as Avanzar and Energized who have veteran management and sales teams."
Bob Yates, CEO of Pulse, said, "Partnering with Avanzar and Energized gives us access to almost 6% of America's population, particularly in California, where it is recognized that the largest number of natural food and beverage consumers in North America reside. It is extremely exciting for us to have the opportunity to influence this many people in the Southern California marketplace."
I just called Martin E. Janis & Company, Inc. and spoke to a very nice lady who informed me that they do not publish their next earnings date so Bloomberg's date isn't correct but they have until March 31st to publish their earnings. She also was very helpful in letting me know the plans of the company and their intent to start distributing the Pulse Beverage drinks this summer after they get their Cabana Lemonades going which is already going great. Good news. Maybe I'll have a birthday gift on the 29th with a great report. ;)
Y'all need to stop posting this exciting news so late in the night! I'll never fall asleep now because all I can think about is tomorrow's opening bell and the color GREEN!!! Go aern!
Great to see ya back buddy! And glad to hear you had a restful R&R this weekend and even better to hear some positive news coming hopefully!
Sorry about that Joe. I was on my phone when I posted that and it won't let you edit it except from a computer. I noticed the typo when I posted it. ;)
Why does everyone cry SCAM when they buy a stock and it drops?? I almost bought the most highly recommended stock GMCR (Green Mountain Coffee) a few weeks ago after Vectorvest and other analyst said it was a very strong buy but I didn't and that was when it was $66 a share. Last week it plummeted to $52 and sits around that number today. Is it a scam?? NO! It's a stock that has ups and downs and when it drops like that it creates a great buying op. Same as AERN. I'm thrilled it dropped like it has because I bought up another 400,000 shares and got my average down and now I'm simply watching and waiting for the oil to start making us all money soon. GLTA
Hindsights 20/20 huh? Gltua I'm waiting on that email joel.
Do you have any information that would give you reason to believe this? I hope you're right.
I agree hyrpowr. I'm kinda tired of hearing the few whiners on here crying every day AERN doesn't go up. I have 10 stocks and only 3 are up today. Know what you do on days like today?? You go fishing! Because more news is coming and I'd love for the whiners to be out on the sidelines watching AERN when it does rocket again. hahaha! GLTA!
You have a very smart plan IMO. Good morning to all of us AERNers.
I have done my own DD hence my comment... 'I've done the research and I believe in AERN'. Trust me, I was worried long ago about ever getting even in this company and when it rallied to .0130 I sold and then it dropped back down I jumped back in because I know AERN has potential. PRs are coming about oil pumping and I'm in it for the ride. GLTA
I'll never lose faith in AERN as long as Surf is with us. I've done the research and I believe in AERN and I believe in Surf. They won't steer us wrong. It may drop more before the takeoff but I will take off. Just relax until that day comes. ;)
Guess there were no trades today. ...
Should be a great day today! With earnings better than expected and talking to the FDA again and Europe already approving them. GREEN BABY GREEN!
YES INDEED! We will see GREEN today!
Energy Playing a Vital Role in the Economy
Note to Editors: The Following News Coverage Is Issued by Century Market
Research.
NEW YORK, NY, Mar 08, 2012 (MARKETWIRE via COMTEX) -- In a report by the World
Economic Forum released yesterday highlighting the crucial part the oil and gas
sector plays in the economy, it reports the US oil and gas industry created
37,000 direct jobs and 111,000 indirect jobs in 2011, generating 9% of all new US
jobs last year. The report also noted that US oil and gas extraction industries
grew at a 4.5% rate in 2011, compared with a 1.7% total GDP growth rate.
The sector's highly skilled workforce is also well-paid compared to other
sectors, according to the report. Compensation per worker in energy-related
industries is about twice the average in Germany, Norway, the UK, and the US, and
four times the average in Mexico and South Korea, it said. As a result of higher
wages, energy industry employees contribute more absolute spending per capita to
the economy than the average worker and contribute a larger share of GDP per
worker than those in most other businesses.
In an Oil and Gas Journal article, it is stated, "Strong oil prices and
improvements in technology will result in an increase in efficiency again in
2012." Large oil and gas outfits like Exxon (XOM), Chesapeake Energy (CHK), and
smaller up starts like AER Energy (pinksheets:AERN) and Royale Energy, Inc.
(ROYL) could all benefit from this trend by focusing technology improvements.
Information, opinions and analysis contained herein are based on sources believed
to be reliable, but no representation, expressed or implied, is made as to its
accuracy, completeness or correctness. The opinions contained herein reflect our
current judgment and are subject to change without notice. We accept no liability
for any losses arising from an investor's reliance on or use of this report. This
report is for information purposes only, and is neither a solicitation to buy nor
an offer to sell securities. A third party has hired and paid Century Market
Research twelve hundred and ninety five dollars for the publication and
circulation of this news release. Certain information included herein is
forward-looking within the meaning of the Private Securities Litigation Reform
Act of 1995, including, but not limited to, statements concerning manufacturing,
marketing, growth, and expansion. Such forward-looking information involves
important risks and uncertainties that could affect actual results and cause them
to differ materially from expectations expressed herein. We have no ownership of
equity, no representation; do no trading of any kind and send no faxes or emails.
Century Market Research
Email Contact
SOURCE: Century Market Research
http://www2.marketwire.com/mw/emailprcntct?id=5863CD94B0A3A20D
Copyright 2012 Marketwire, Inc., All rights reserved.
Great earning report! Tomorrow we fly!
What is going on with this today???? UP DOWN UP DOWN UP DOWN 40 48 40 48 40 48
I know! Someone call Social Services! haha Actually it's bouncing like a basketball headed for the game winning 3 point shot coming soon!
I got my average down today from .0069 to .0058 so I feel a little better. We are going to be sitting pretty very soon I believe. Right Surf?
I sure am ready! This company has proven it's a profit making oil pumping company so it's time for it to get out of this bottom and head up to the .05 and beyond.
Bounce baby bounce!