Bergio International Announces Positive Third Quarter Results
Bergio International Announces Positive Third Quarter Results
Nov. 15, 2010 (Business Wire) -- Bergio International, Inc. (OTCBB:BRGO), Bergio International announced today that they are pleased with the positive third quarter results reported in the 10-Q Financial Statement, third quarter ending September 30, 2010.
The company reported a third quarter sales increase by 35% for total net sales of $343,514 and in the first nine months, sales increased by 26% from $708,959 to $892,509. Gross margins improved from 28% to 52% from the comparable period. The company contributes the positive news to our expansion of our customer base outside the United States and the successful results experienced through our Neiman Marcus line and the JCK Show in Las Vegas earlier in the year.
The 10-Q Financial Statement, ending September 30, 2010, indicates the company improved its current assets which increased by $428,927 and current liabilities decreased by $1,115,966 while working capital increased by $1,544,893 for the 9 month period. The company took a one time share-based expense charge for the second quarter of 2010 for $535,160 which was the result of the termination of our securities purchase agreement with Tangiers LLC. The company also took a one time-share based expense charge in the first quarter for $242,900 for a total combined share-based expense charge in the first two quarters of 2010 for $778,060.
Berge Abajian, CEO of Bergio International, Inc., said, "I am pleased with the positive growth and direction of the company. This was a direct contribution of all the measures that we took in the beginning of the year. I invite all of our shareholders to read our financial statements very closely, specifically the section titled, “Net Loss” found in the Management Discussion and Analysis which explains the turn-around of the company.”
About Bergio International, Inc.
Bergio International, Inc. is a leading jeweler creating one of the world's largest diversified jewelry designers and manufacturers through acquisitions and consolidation in the estimated $160 billion a year highly fragmented independently owned Jewelry industry. Bergio currently sells its jewelry to approximately 100 jewelry retailers across the United States. Bergio has manufacturing control over its line as a result of having a manufacturing facility in New Jersey as well as subcontracts with facilities in the United States and Italy.
Forward-Looking Statement:
The statements in the press release that relate to the Company's expectations with regard to the future impact on the Company's results from acquisitions or actions in development are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The statements in this document may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. When used in this press release, the words "anticipate," "believe," "estimate," "may," "intend," "expect" and similar expressions identify such forward-looking statements. Forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those contained in such statements. Such risks, uncertainties, and factors include, but are not limited to, future capital needs, changes, and delays in product development plans and schedules, or market acceptance.
BERGIO INTERNATIONAL, INC.
BALANCE SHEETS
September 30, December 31,
2010 2009
(Unaudited)
Assets:
Current Assets:
Accounts Receivable – Net $ 442,039 $ 341,695
Inventory 1,526,177 1,378,271
Prepaid Expenses and Other Current Assets 8,614 2,937
Other Receivable 175,000 --
Total Current Assets 2,151,830 1,722,903
Property and Equipment – Net 123,632 160,307
Other Assets:
Investment in Unconsolidated Affiliate 5,000 5,000
Total Other Assets 5,000 5,000
Total Assets $ 2,280,462 $ 1,888,210
BERGIO INTERNATIONAL, INC.
STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Ended Nine Months Ended
September 30, September 30,
2010 2009 2010 2009
Sales – Net $ 343,514 $ 254,652 $ 892,509 $ 708,959
Cost of Sales 226,031 150,231 428,244 511,925
Gross Profit 117,483 104,421 464,265 197,034
Selling Expenses 51,790 40,065 186,030 170,337
General and Administrative Expenses
Share-Based Compensation -- 5,000 -- 15,000
Share Based Services -- 2,000 242,900 46,000
Other 94,107 75,573 342,234 258,200
Total General and Administrative Expenses 94,107 82,573 585,134 319,200
Total Operating Expenses 145,897 122,638 771,164 489,537
Loss from Operations (28,414 ) (18,217 ) (306,899 ) (292,503 )
Other Income [Expense]
Interest Expense (17,929 ) (22,420 ) (49,007 ) (68,067 )
Gain on Sale of Subsidiary -- -- 225,000 --
Financing Costs – Shared Based -- -- (595,160 ) --
Amortization of Debt Discount (39,340 ) -- (85,184 ) --
Change in Fair Value of Derivative 39,125 -- 57,431 --
Loss on Disposal of Equipment -- -- (18,945 ) --
Other Income -- -- -- 1,158
Total Other Income [Expense] (18,144 ) (22,420 ) (465,865 ) (66,909 )
Net Loss $ (46,558 ) $ (40,637 ) $ (772,764 ) $ (359,412 )
Net Loss Per Common Share - Basic and Diluted $ -- $ -- $ (0.01 ) $ (0.01 )
Weighted Average Common Shares Outstanding – Basic and Diluted 120,607,405 31,022,100 95,222,556 30,962,075
BERGIO INTERNATIONAL, INC.
STATEMENTS OF CASH FLOWS (UNAUDITED)
Nine Months Ended
September 30,
2010 2009
Operating Activities
Net Loss $ (772,764 ) $ (359,412 )
Adjustments to Reconcile Net Loss to Net Cash Used
for Operating Activities:
Depreciation and Amortization 40,891 47,670
Share-Based Compensation -- 15,000
Share-Based Services 242,900 46,000
Share-Based Financing Costs 595,160 --
Allowance for Doubtful Accounts (6,000 ) 6,000
Amortization of Debt Discount 85,184 --
Change in Fair Value of Derivative (57,431 ) --
Gain on Sale of Subsidiary (225,000 ) --
Loss on Disposal of Equipment 18,945 --
Sales Returns and Allowances Reserve (34,808 ) (97,545 )
Changes in Assets and Liabilities
[Increase] Decrease in:
Accounts Receivable (94,344 ) 374,963
Inventory (169,406 ) (141,517 )
Prepaid Expenses (5,677 ) 32,385
Increase [Decrease] in:
Accounts Payable and Accrued Expenses (1,981 ) 22,379
Total Adjustments 388,433 305,335
Net Cash Used for Operating Activities (384,331 ) (54,077 )
Bergio International, Inc.
Investor Relations
John Cole, 973-771-3571
www.bergio.com
Source: Business Wire (November 15, 2010 - 6:30 AM EST)
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