Year ended December 31, 2018 compared to year ended December 31, 2017
revenues decreased approximately $3,251,000 or 2.0% to $162,445,000
Direct selling segment revenues decreased by approximately $3,595,000 or 2.5%
This decrease was primarily attributed to a decrease of approximately $11,002,000 in revenues from existing business, offset by revenues from new acquisitions of approximately $7,457,000.
We attribute the decrease from existing business primarily to a general decline in net sales in North America in the direct selling business as well as a decline in new distributors.
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For the year ended December 31, 2018, commercial coffee segment revenues increased by approximately $344,000 or 1.5% to $23,590,000 as compared to $23,246,000 for the year ended December 31, 2017. This increase was primarily attributed to an increase of approximately $1,048,000 in revenues from our roasted coffee business, offset by a decrease of approximately $704,000 in green coffee business.
For the year ended December 31, 2018, the direct selling segment had an operating income of $1,733,000 and the commercial coffee segment had an operating loss of $4,370,000.
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Going Concern Uncertainty
The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1 to the financial statements, the Company has recurring losses and is dependent on additional financing to fund operations. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. Management’s plans in regard to these matters are also described in Note 1 to the financial statements. The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the outcome of this uncertainty.