Over its history this alleged “good for you” products start up dud has never generated a return on invested capital meaningfully in excess of its cost of capital.
Rocky Mountain High Brands, Inc., an active Nevada corporation (Parent) has yet to reestablish their legacy drinks for consumers to purchase, Smarterita, LLC, an inactive Texas limited liability company (Subsidiary), Rocky Mountain High Clothing Company, Inc., an inactive Texas Corporation (Subsidiary), FitWhey Brands Inc. (“FitWhey”), an active Nevada corporation (Subsidiary), Eagle Spirit Land & Water Company (“Eagle Spirit”), an active Oklahoma corporation (Subsidiary)..”
“Note 7 - Acquisition of FitWhey:
Sales $89,018
Cost of Sales $129,171
Gross Loss ($40,453)
Operating Expense $1,158,299
Loss from operations ($1,198,452)
Other expenses $1,165,643
Loss B4 income tax prov ($2,364,095)”
The last subsidiary Eagle Spirit is also likely generating significant losses considering Central Market recently pulled their water products off retail shelves resulting in ESLWC likely having to retap the spring source while rebranding into “Spirit Water” which hasn’t seen the light of day for consumers to purchase yet.
As reported in their most recent 10-Q:
“Going concern: The Company has a shareholders’ deficit of $773,426 and an accumulated deficit of $36,281,611 as of March 31, 2019 and has generated operating losses since inception.”
“Prepaid officers’, directors’ compensation, prepaid production & other EXPENSES consists of $449,017 as of March 31, 2019.”
“Inventories:
If the Company identifies excess, obsolete or unsalable items, its inventories are written down to their realizable value in the period in which the impairment is first identified. Shipping and handling costs incurred for inventory purchases and product shipments are recorded in cost of sales in the Company’s statements of operations.”
“Sales by sales channel for the three months ending March 31, 2019: Online, distributor, retailer all total $76,429.”
“On April 22, 2019 the reverse split of the Company’s stock, at a ratio of one share for every 20 shares, was effective.”
“2. Purchase and Sale of the Securities . Subject to the terms and conditions of this Agreement,...
4.7 Use of Proceeds . The net proceeds of the sale of the Note hereunder shall be used by the Company for working capital and general corporate purposes. The Company agrees that it shall not use the funds from this Agreement, at any time, to lend money, give credit or make advances to any officers, directors, employees, subsidiaries and affiliates of the Company.”
IMO, all the above highlighted notes should give significant pause to any Shareholders/Investors debating interest where the final items re: purchase & sales of securities & use of proceeds seems as ongoing concerns.
