Replies to post #4632 on Be Active Holdings, Inc. (fka JALA)

[rarefind]

jala, what do you think about the company fundamentally? Been going over the last quarterly report.Let me know what you think and i also found that toxic dilution part they had near the bottom of their report.
http://biz.yahoo.com/e/131114/jala10-q.html

RESULTS OF OPERATIONS

THREE MONTHS ENDED SEPTEMBER 30, 2013 COMPARED TO THE THREE MONTHS ENDED
SEPTEMBER 30, 2012

Sales
Gross Sales were $37,944 and $275,039 for the three months ended September 30, 2013 and 2012, respectively. The decrease in gross sales of $237,095, approximately 86%, was primarily due to the lack of capital necessary for marketing and production. In addition, the Company has been focusing on new labeling and packaging of its products.

Reconciling items that included sales discounts, returns and allowances, trade spending, and slotting fees totaled $3,126 and $41,064 for the three months ended September 30, 2013 and 2012, respectively. Net sales for the three months ended September 30, 2013 decreased $34,818 or 85% as compared to net sales for the three months ended September 30, 2012 of $233,975.

Cost of Goods Sold
Cost of goods sold for the three months ended September 30, 2013 decreased to $4,166 from $175,687 for the three months ended September 30, 2012, a decrease of $171,521 or 98%. The decrease is primarily attributable to the reduced sales and purchases related to the deficiency in working capital.

Gross Loss
Gross loss for the three months ended September 30, 2013 was $370,901, as compared to $170,953 for the three months ended September 30, 2012, an increase of $199,948 or 117%. The increase of gross loss was related to the decrease in sales and increase in general and administrative expenses and stock-based compensation.

(funny while they were bleeding money and sales they found a reason to get paid more and increase expenses)

Operating Expenses
Operating expenses, consisting of selling, general and administrative expenses, and depreciation and amortization expense, for the three months ended September 30, 2013 increased to $401,553 from $229,241 for the three months ended September 30, 2012, an increase of $172,312 or 75%. This increase is due primarily to increases in stock-based compensation of $132,961 and officers' payroll expense of $71,250, offset in part by decreases of $18,500 in rent and $21,552 in selling expenses.

Selling expenses consist primarily of advertising, promotion and marketing fees. Selling expenses for the three months ended September 30, 2013 decreased to $34,375 from $55,926 for the three months ended September 30, 2012, a decrease of $21,551 or 39%. The decrease is primarily due to the reductions in storage of $10,660 and freight and delivery of $25,200, offset in part by increases in advertising and marketing expense of $3,446, commission expense of $17,896 and meals and entertainment of approximately $2,600.

General and administrative expenses consist primarily of office, utilities, computer, internet, travel and insurance expenses. General and administrative expenses for the three months ended September 30, 2013 increased to $233,977 from $173,104 for the three months ended September30, 2012, an increase of $60,873 or 35%. The increase is primarily attributable to the increases in legal expenses and officer salaries, offset in part by a decrease in rent expense.

Other Expenses
Other expenses were $15 for the three months ended September 30, 2013, as compared to $4,642 for the three months ended September 30, 2012, a decrease of $4,657 as a result of decreased interest expense.

Net Loss
Net loss for the three months ended September 30, 2013 increased to $370,886 from $175,595 for three months ended September 30, 2012, an increase in loss of $195,291 or 111%. This increase is due primarily to the reduction in sales due to the deficiency of working capital.


(heres the good part discounted shares up to 90%. So the lender has a good reason to drive the stock price to new lows before each conversion )


Liquidity and Capital Resources
Total current assets at September 30, 2013 were $327,799, current liabilities were $645,101 and we had negative working capital of $317,302 Significant losses from operations have been incurred since inception and there is an accumulated deficit of $4,425,457 as of September 30, 2013. Continuation as a going concern is dependent upon attaining capital to achieve profitable operations while maintaining current fixed expense levels.

On October 25, 2013, the Company entered into a Term Sheet with a capital investor whereby the Company has the right to issue up to $5,000,000 of the Company's common stock to the investor over a term of three years in exchange for cash advances to the Company. Pursuant to the terms of the agreement, the Company may issue common stock valued at $250,000 for each advance using 90% of the market price of the average of the three lowest best closing prices of the stock during the fifteen consecutive weekday trading days immediately after the date on which the Company provides an advance notice, as defined. The advance is not to exceed more than 350% of the average daily trading volume for a previous 15 day period. The maximum advance amount may be increased upon consent of the Company and the investor. Upon execution of the Term Sheet on October 31, 2013, the Company has paid the investor $30,000 of the Company's restricted common stock (1,056,338 shares at $0.0284 per share), priced off of the closing bid price the day before the Term Sheet was signed.