Business Context and Reporting Period
Company: Pure Snax International, Inc. (formerly B-Maven, Inc.)
Filing Type: Form 10-K (Annual Report)
Period Ended: June 30, 2015
Business Overview: The Company is a wellness brand focused on manufacturing, distributing, and marketing healthy snacks and foods, including sugar-free, peanut-free, and Kosher products. The Company operates with no full-time employees and outsources production. It recently entered into a Trademark License Agreement to utilize the "Pure Snax" brand.
Key Financial Metrics
| Metric | Year Ended June 30, 2015 | Year Ended June 30, 2014 |
|---|---|---|
| Revenue | $0 | $7,707 |
| Net Loss | $(32,871) | $(25,158) |
| Cash and Cash Equivalents | $0 | $0 |
| Working Capital Deficit | $(9,943) | $(44,360) |
| Total Liabilities | $9,943 | $44,453 |
| Accumulated Deficit | $(64,630) | $(31,759) |
| Shares Outstanding | 400,000,000 | 400,000,000 |
Note: The filing text does not provide specific data for gross margins or operating cash flow beyond the net cash used/provided figures.
Material Changes vs. Prior Period
- Revenue Cessation: Revenue dropped to $0 in 2015 compared to $7,707 in 2014. The Company has not earned revenue during the fiscal year ended June 30, 2015.
- Increased Net Loss: Net loss increased by approximately 31% to $(32,871) from $(25,158), driven primarily by higher consulting and other expenses ($36,077 vs. $29,948).
- Debt Relief: The Company recognized a one-time gain of $5,000 on the relief of debt due to a change in control and the sale of the founder's ownership interest.
- Liability Reduction: Total liabilities decreased significantly from $44,453 to $9,943, largely due to the forgiveness of related party loans.
- Stock Split: A 40-for-1 forward stock split was approved and effective June 1, 2015, increasing outstanding shares to 400,000,000.
Outlook, Risks, and Management Commentary
- Going Concern: The Company has incurred accumulated losses of $64,630 and has no cash. The auditors have raised substantial doubt about the Company's ability to continue as a going concern. Continuation is dependent on obtaining adequate financing and achieving profitable operations.
- Liquidity: The Company has $0 cash and relies on financing activities (loans from related parties) to fund operations. Management plans to raise additional working capital through stock issuance or loans.
- Strategic Focus: Management intends to focus on marketing and promotions to gain adoption in schools and vending machines where healthy guidelines are strict. The Company plans to expand its team to five direct employees over the next five years.
- Risks: Key risks include the lack of revenue, dependence on related party financing, the early stage of the business, and the inability to compete with major snack food manufacturers without significant capital.
- Unusual Items: The $5,000 gain on debt relief is considered a one-time event and is not expected to recur.
Investor Verification Checklist
- Cash Position: Verify the current cash balance, as the filing reports $0 as of June 30, 2015.
- Financing Status: Confirm if the Company has secured the additional equity or debt financing required to sustain operations beyond the current period.
- Revenue Generation: Assess whether the Company has generated any revenue since the filing date to validate the business plan.
- Related Party Transactions: Review the terms of the Trademark License Agreement with Pure Snax Company, Inc., noting the 10% royalty on net sales and the related party nature of the agreement.
- Stock Liquidity: Verify the trading status of the common stock (symbol PSNX on OTC Bulletin Board) and the aggregate market value, which was reported as $0.