On Tuesday, October 23rd, Sealand Natural Resources (SLNR) announced its results for its fiscal year first quarter. A summary of the performance below, as previously referenced in the 10-Q:
For the three months ended August 31, 2014 and 2013 we generated revenues of $125,203 and $42,067, respectively. Revenue increase was attributable to establishing new sales contracts with new vendors, both domestic and international, and repeat orders from existing customers.
Operating costs for the three months ended August 31, 2014 and 2013 were $1,014,594 and $236,454, respectively. These costs are connected to general and administrative expenses, which are comprised of wages and salaries, advertising, professional fees, and other related expenses. Expenses increased primarily due to: a) increased scale and scope of business operations; b) greater emphasis on marketing and advertising efforts; c) increased use of professional and related consulting services, and d) an allowance for bad debts.
Specifically, our legal and professional expenses, both cash and stock, for the three months ended August 31, 2014 were $376,561, as compared to $41,223 for the three months ended August 31, 2013. The reasons for the increase were: 1) increased compliance and regulatory expense of being a public company; and 2) increased distribution presence and the hiring of professionals in the beverage industry as well as other consultants.
In the current quarter, as in prior quarters, we used common stock as a method of payment for certain services as incentive to its key employees. We expect to continue these arrangements.
Our operating results have recognized losses in the amount of $1,069,137 and $247,692 for the three months ended August 31, 2014 and 2013, respectively. The increase in the losses was attributable to additional expenditures in salaries, greater emphasis on marketing/advertising and associated travel expenses, and growth of the operations through expansion of the production/distribution channels.
Liquidity & Capital Resources
As of August 31, 2014, our current assets were $834,128 and our total liabilities were $246,026. As of August 31, 2014, current assets were comprised of $439,388 in cash, $212,990 of receivables, $125,047 of inventory, and $56,703 in prepaids. As of August 31, 2014, total liabilities were comprised of $132,275 in accounts payable and accrued taxes, and $113,751 of notes payable.
As of August 31, 2014, our total assets were $1,069,436 comprised of current assets, furniture/equipment of $85,308, and $150,000 of deposits. Stockholders’ deficit decreased from $1,327,165 as of August 31, 2013 to $823,410 as of August 31, 2014.