Blue Line Protection Group, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Blue Line Protection Group, Inc. filed its 2023 10-K, detailing financial performance, assets, and customer concentration risks.</b>

AI Summary

Blue Line Protection Group, Inc. (BLPG) filed a Annual Report (10-K) with the SEC on April 1, 2024. Blue Line Protection Group, Inc. filed its 2023 Form 10-K on April 1, 2024, reporting on the fiscal year ending December 31, 2023. The company was formerly known as Engraving Masters, Inc., with name changes occurring in 2007. The filing details financial data for the fiscal years 2023, 2022, and 2021, including stock and retained earnings. Key assets mentioned include vehicles, automobiles, furniture, fixtures, and building improvements as of December 31, 2023. The report addresses customer concentration risk, noting reliance on one major customer for sales revenue and three customers for accounts receivable in 2023.

Why It Matters

For investors and stakeholders tracking Blue Line Protection Group, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Blue Line Protection Group's financial health and operational status for the fiscal year 2023, crucial for investors assessing the company's performance and future prospects. The disclosure of customer concentration risk highlights potential vulnerabilities in revenue streams, indicating a significant dependence on a small number of clients for sales and receivables.

Risk Assessment

Risk Level: medium — Blue Line Protection Group, Inc. shows moderate risk based on this filing. The company faces medium risk due to significant customer concentration, with one major customer accounting for sales revenue and three customers for accounts receivable in 2023, indicating potential revenue instability if these relationships change.

Analyst Insight

Investors should closely monitor the company's customer retention strategies and revenue diversification efforts following the disclosure of significant customer concentration risk.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-04-01 — Filing Date (Date of submission)
• 2023 — Fiscal Year (Primary reporting year)
• 2022 — Previous Fiscal Year (Comparative year)
• 2021 — Prior Fiscal Year (Comparative year)

Key Players & Entities

• Blue Line Protection Group, Inc. (company) — Filer name
• Engraving Masters, Inc. (company) — Former company name
• 2023-12-31 (date) — Fiscal year end
• 2024-04-01 (date) — Filing date
• NV (state) — State of incorporation
• CO (state) — Business address state

FAQ

Risk Factors

• Customer Concentration Risk [medium — financial]: The company's revenue and accounts receivable are concentrated among a small number of customers, posing a risk to financial stability if these relationships are disrupted.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-04-01: Filing Date — Date the 10-K was officially submitted to the SEC.

Key Financial Figures

• $0.001 — ction 12(g) of the Act: Common Stock, $0.001 par value (Title of class) Indicate
• $37 billion — industry, projected to reach as high as $37 billion in retail sales by 2024. Competition
• $11,487 — quires rental payments of approximately $11,487 per month which increases 2% annually.
• $6,380 — quires rental payments of approximately $6,380 per month which increases 4% annually.

Filing Documents

• form10-k.htm (10-K) — 1186KB
• ex19.htm (EX-19) — 142KB
• ex31.htm (EX-31) — 21KB
• ex32.htm (EX-32) — 6KB
• form10-k_001.jpg (GRAPHIC) — 7KB
• 0001493152-24-012110.txt (&nbsp;) — 5915KB
• blpg-20231231.xsd (EX-101.SCH) — 40KB
• blpg-20231231_cal.xml (EX-101.CAL) — 54KB
• blpg-20231231_def.xml (EX-101.DEF) — 184KB
• blpg-20231231_lab.xml (EX-101.LAB) — 396KB
• blpg-20231231_pre.xml (EX-101.PRE) — 318KB
• form10-k_htm.xml (XML) — 736KB

Business

Business 4 Item 1A.

Risk Factors

Risk Factors 8 Item 1B. Unresolved Staff Comments 8 Item 1C. Cybersecurity 8 Item 2.

Properties

Properties 8 Item 3.

Legal Proceedings

Legal Proceedings 8 Item 4 Mine Safety Disclosures 8 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 9 Item 6.

Selected Financial Data

Selected Financial Data 9 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 9 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 11 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 11 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 11 Item 9A

Controls and Procedures

Controls and Procedures 11 Item 9B. Other Information 13 PART III Item 10. Directors, Executive Officers and Corporate Governance 14 Item 11.

Executive Compensation

Executive Compensation 15 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 18 Item 13. Certain Relationships and Related Transactions, and Director Independence 18 Item 14 Principal Accounting Fees and Services 18 PART IV Item 15. Exhibits, Financial Statement Schedules 19 2 FORWARD LOOKING STATEMENTS This Annual Report contains forward-looking statements about our business, financial condition and prospects that reflect our management's assumptions and beliefs based on information currently available. We can give no assurance that the expectations indicated by such forward-looking expectations should materialize, our actual results may differ materially from those indicated by the forward-looking statements. The key factors that are not within our control and that may have a direct bearing on operating results include, but are not limited to, acceptance of our services, our ability to expand our customer base, managements' ability to raise capital in the future, the retention of key employees and changes in the regulation of our industry. There may be other risks and circumstances that management may be unable to predict. When used in this report, words such as, "believes," "expects," "intends," "plans," "anticipates," "estimates" and similar expressions are intended to identify and qualify forward-looking statements, although there may be certain forward-looking statements not accompanied by such expressions. 3 PART I ITEM 1. DESCRIPTION OF BUSINESS We were originally incorporated in Nevada on September 11, 2006, under the name The Engraving Masters, Inc. (the "Company"). On May 2, 2014, we changed our name to Blue Line Protection Group, Inc. On February 8, 2021, our directors approved a 100-for-1 reverse split of our common stock. The reverse stock split became effective i

Properties

Properties We lease our offices in Denver, Colorado pursuant to a lease which expires on October 26, 2026. We have the option to extend the term of the lease for two additional five-year periods. The lease requires rental payments of approximately $11,487 per month which increases 2% annually. We lease our offices in Phoenix, Arizona pursuant to a lease which expires on May 31, 2028. We have the option to extend the term of the lease for one additional five-year period. The lease requires rental payments of approximately $6,380 per month which increases 4% annually. ITEM 1A. RISK FACTORS Not applicable. ITEM 1B. UNRESOLVED STAFF COMMENTS None. ITEM 1C. CYBERSECURITY We have not adopted a Code of Business Conduct and Ethics that applies to our principal executive officer, principal financial officer, principal accounting officer, or persons performing similar functions since one person, Daniel Allen, serves in all the above capacities. Companies such as ours face a variety of risks, including financial reporting, legal, credit, liquidity, operational, health, safety and cybersecurity risks. The Board believes an effective risk management system will (1) identify the material risks that we face in a timely manner, (2) communicate necessary information with respect to material risks to senior executives and, as appropriate, to our directors (3) implement or oversee implementation of appropriate and responsive risk management and mitigation strategies consistent with our risk profile, and (4) integrate risk management into our decision-making. Our Board oversees risk management after receiving briefings from Integris IT and also based on its own analysis and conclusions regarding the adequacy of our risk management processes. The Board continuously evaluates and manages material risks including geopolitical and enterprise risks, financial risks, environmental risks, health and safety risks and cybersecurity risks. Integris IT informs our directors

Business

Item 1. Business. ITEM 3. LEGAL PROCEEDINGS None. ITEM 4. MINE SAFETY DISCLOSURES None. 8 PART II ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS AND MARKET INFORMATION FOR COMMON STOCK The high and low closing prices of our common stock for the periods indicated are set forth below. These closing prices do not reflect retail mark-up, markdown or commissions. Year ended December 31, 2023 High Low First Quarter $ 0.18 $ 0.15 Second Quarter $ 0.18 $ 0.11 Third Quarter $ 0.14 $ 0.05 Fourth Quarter $ 0.10 $ 0.05 Year ended December 31, 2022 High Low First Quarter $ 0.50 $ 0.31 Second Quarter $ 0.41 $ 0.12 Third Quarter $ 0.45 $ 0.17 Fourth Quarter $ 0.25 $ 0.15 As of April 1, 2024 we had 8,250,144 outstanding shares of common stock held by approximately 216 shareholders of record. Our transfer agent is Pacific Stock Transfer Company, 4045 South Spencer Street, Suite 403, Las Vegas, NV 89119, phone (702) 361-3033. ITEM 6. SELECTED FINANCIAL DATA Not applicable. ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION Certain

of this Annual Report on Form 10-K for additional factors relating to such statements

Item 1 of this Annual Report on Form 10-K for additional factors relating to such statements. You should read the following discussion and analysis of financial condition and results of operations in conjunction with the consolidated

financial statements and related notes appearing elsewhere in this Report

financial statements and related notes appearing elsewhere in this Report. Results of Operations Material changes in line items in our Statement of Operations for the year ended December 31, 2023 as compared to the same period last year, are discussed below: Increase (I) or Item Decrease (D) Reason Revenue (I) Increase in customers Gross Profit (I) Increase in revenue and decrease in expenses General and Administrative Expenses (D) Reduced budget for expenses Interest expense (D) Adjustment to how loan payments were applied Loss on derivate securities (D) Change in stock price 9 Capital Resources and Liquidity Our material sources and <uses> of cash during the years ended December 31, 2023 and 2022 were: 2023 2022 $ $ Cash provided by <used in> operations 745,546 369,471 Purchase of property, plant and equipment (117,216 ) (33,725 ) Loan payments (322,623 ) (717,850 ) Loan proceeds 98,637 - General See Notes 6 and 7 to the financial statements included as part of this report for information concerning our notes payable. Other than as disclosed above, we do not anticipate any material capital requirements for the twelve months ending March 31, 2025. Other than as disclosed elsewhere in this report, we do not know of any trends, demands, commitments, events or uncertainties that will result in, or that are reasonable likely to result in, our liquidity increasing or decreasing in any material way. Other than as disclosed in this Item 7, we do not know of any significant changes in our expected sources and uses of cash. We do not have any commitments or arrangements from any person to provide us with any equity capital. During the next

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