CFN Enterprises Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>CFN Enterprises Inc. has filed its 2023 10-K report detailing financial performance and corporate history.</b>

AI Summary

CFN Enterprises Inc. (CNFN) filed a Annual Report (10-K) with the SEC on April 11, 2024. CFN Enterprises Inc. filed its annual report on Form 10-K for the fiscal year ending December 31, 2023. The company was formerly known as Accelerize Inc. and Accelerize New Media Inc. The filing covers the period from January 1, 2023, to December 31, 2023. Key financial statement items such as Series A and Series B Preferred Stock, Common Stock, Additional Paid-In Capital, Retained Earnings, and Noncontrolling Interest are detailed for fiscal years 2021, 2022, and 2023. The report includes information on Accounts Receivable, Sales Revenue Net, Service revenue, Product revenue, and Shipping and Handling expenses for the fiscal year 2023.

Why It Matters

For investors and stakeholders tracking CFN Enterprises Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of CFN Enterprises Inc.'s financial health and operational activities for the fiscal year 2023, which is crucial for investors to assess the company's performance and future prospects. The inclusion of historical financial data and former company names offers context for understanding the company's evolution and financial trajectory over the past few years.

Risk Assessment

Risk Level: low — CFN Enterprises Inc. shows low risk based on this filing. The filing is a standard 10-K annual report, which typically contains routine financial and operational disclosures without immediate, significant market-moving information.

Analyst Insight

Investors should review the detailed financial statements and risk factors within the 10-K to understand CFN Enterprises Inc.'s financial position and strategic direction.

Key Numbers

• 2023-12-31 — Fiscal Year End (The end date of the reporting period for the 10-K.)
• 2024-04-11 — Filing Date (The date the 10-K was filed with the SEC.)
• 7389 — SIC Code (Standard Industrial Classification code for the company.)
• 000-52635 — SEC File Number (The SEC file number associated with the company.)
• 2014-10-14 — Name Change Date (Date of name change from Accelerize Inc.)
• 2006-02-10 — Name Change Date (Date of name change from ACCELERIZE NEW MEDIA INC)
• 2019-05-15 — Asset Purchased Agreement Date (Date of the Asset Purchased Agreement with Emerging Growth LLC.)

Key Players & Entities

• CFN Enterprises Inc. (company) — Filer name and subject of the 10-K filing.
• Accelerize Inc. (company) — Former name of CFN Enterprises Inc.
• Accelerize New Media Inc (company) — Another former name of CFN Enterprises Inc.
• Emerging Growth LLC (company) — Mentioned in relation to an Asset Purchased Agreement.
• 2023-12-31 (date) — Fiscal year end date for the 10-K report.
• 2024-04-11 (date) — Filing date of the 10-K report.
• DE (jurisdiction) — State of incorporation for CFN Enterprises Inc.
• MT (jurisdiction) — State for the business and mailing address.

FAQ

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 2023 10-K.
• 2024-04-11: 10-K Filing Date — The date CFN Enterprises Inc. submitted its annual report.

Key Financial Figures

• $0.001 — (g) of the Act: Common Stock, par value $0.001 Indicate by check mark if the registr
• $134.4 billion — bis industry alone is expected to reach $134.4 billion by 2030, driven by the legalization of
• $14,376,718 — December 31, 2023 and 2022 amounted to $14,376,718 and $8,802,958, respectively. As we imp
• $8,802,958 — 23 and 2022 amounted to $14,376,718 and $8,802,958, respectively. As we implement our grow
• $15.4 million — continuing operations of approximately $15.4 million in 2023 and a net loss of approximately
• $10.1 million — in 2023 and a net loss of approximately $10.1 million in 2022. Our operations have been finan
• $7,400,800 — , 2023 we had total debt outstanding of $7,400,800, of which $7,272,357 was short term. As
• $7,272,357 — ebt outstanding of $7,400,800, of which $7,272,357 was short term. As of December 31, 2023
• $1,000 — red, Stock, each with a stated value of $1,000 per share which bears interest at 12% p

Filing Documents

• cnfn-20231231.htm (10-K) — 1005KB
• cfn_ex10z23.htm (EX-10.23) — 8KB
• cfn_ex23z1.htm (EX-23.1) — 3KB
• cfn_ex31z1.htm (EX-31.1) — 7KB
• cfn_ex32z1.htm (EX-32.1) — 4KB
• cfnex10z23_1.jpg (GRAPHIC) — 198KB
• cfnex10z23_2.jpg (GRAPHIC) — 164KB
• cfnex10z23_3.jpg (GRAPHIC) — 170KB
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• cfnex10z23_7.jpg (GRAPHIC) — 151KB
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• cfnex10z23_9.jpg (GRAPHIC) — 157KB
• cfnex10z23_10.jpg (GRAPHIC) — 156KB
• cfnex10z23_11.jpg (GRAPHIC) — 143KB
• cfnex10z23_12.jpg (GRAPHIC) — 107KB
• cfnex10z23_13.jpg (GRAPHIC) — 22KB
• cfnex10z23_14.jpg (GRAPHIC) — 129KB
• cfnex10z23_15.jpg (GRAPHIC) — 147KB
• cfnex10z23_16.jpg (GRAPHIC) — 44KB
• cfnex10z23_17.jpg (GRAPHIC) — 119KB
• cfnex10z23_18.jpg (GRAPHIC) — 96KB
• cfnex10z23_19.jpg (GRAPHIC) — 21KB
• cfnex10z23_20.jpg (GRAPHIC) — 100KB
• cfnex10z23_21.jpg (GRAPHIC) — 34KB
• cfnex10z23_22.jpg (GRAPHIC) — 114KB
• cfnex10z23_23.jpg (GRAPHIC) — 112KB
• cfnex10z23_24.jpg (GRAPHIC) — 62KB
• cfnex10z23_25.jpg (GRAPHIC) — 189KB
• cfnex10z23_26.jpg (GRAPHIC) — 151KB
• cfnex10z23_27.jpg (GRAPHIC) — 41KB
• cfnex10z23_28.jpg (GRAPHIC) — 196KB
• cfnex10z23_29.jpg (GRAPHIC) — 117KB
• cfnex10z23_30.jpg (GRAPHIC) — 44KB
• 0001096906-24-000789.txt (&nbsp;) — 10318KB
• cnfn-20231231_cal.xml (EX-101.CAL) — 37KB
• cnfn-20231231_def.xml (EX-101.DEF) — 181KB
• cnfn-20231231_lab.xml (EX-101.LAB) — 304KB
• cnfn-20231231_pre.xml (EX-101.PRE) — 298KB
• cnfn-20231231.xsd (EX-101.SCH) — 69KB
• cnfn-20231231_htm.xml (XML) — 615KB

BUSINESS

BUSINESS 3 ITEM 1A.

RISK FACTORS

RISK FACTORS 5 ITEM 1B. UNRESOLVED STAFF COMMENTS 14 ITEM 1C. CYBERSECURITY 14 ITEM 2.

PROPERTIES

PROPERTIES 14 ITEM 3.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 15 ITEM 4. MINE SAFETY DISCLOSURES 16 PART II ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 17 ITEM 6. [RESERVED] 18 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 18 ITEM 7A.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 26 ITEM 8.

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 26 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURES 26 ITEM 9A.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 26 ITEM 9B. OTHER INFORMATION 27 ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 27 PART III ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 27 ITEM 11.

EXECUTIVE COMPENSATION

EXECUTIVE COMPENSATION 28 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 30 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE 31 ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES 31 PART IV ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES 32 ITEM 16. FORM 10-K SUMMARY 33

SIGNATURES

SIGNATURES 35 PART I

Business

Item 1. Business Overview We own and operate CFN Media, a digital marketing agency specializing in compliant, turnkey ad campaigns for the global cannabis, hemp and wellness industries, or the CFN Business, and a white label manufacturing and co-packing business for the global cannabis, hemp and wellness industries, or the Ranco Business. Our ongoing operations currently consist primarily of the CFN Business and the Ranco Business and we will continue to pursue strategic transactions and opportunities. We are currently in the process of launching an e-commerce network focused on the sale of general wellness CBD products. We also own CNP Operating which is a cannabidiol manufacturer. In the fourth quarter of 2022 and the first quarter of 2023, the Company took steps to wind down the operations of CNP Operating and focus on the CFN and Ranco Businesses (beginning in July 2023). On July 1, 2023, the Company, through its wholly owned subsidiary, RANCO, LLC, a Delaware limited liability company, or Ranco, acquired assets from RAN CoPacking Solutions LLC, a California limited liability company, or the Acquisition, which consists of assets for co-packing and white label manufacturing services, including comprehensive solutions for third party logistics (3PL) related areas such as storage, order fulfillment, solutions for custom packaging and hardware needs for many different industries, and media and design services, along with strategic marketing support, to help clients establish and enhance their brand presence in the market. Also on July 1, 2023, Ranco entered into the Packwoods Private Label Services and Intellectual Property Licensing Agreement, or the Licensing Agreement, with PW Industries LLC, a Wyoming limited liability company, or PW, RS Distributions LLC, a Delaware limited liability company, or RS, and Packaging Innovations LLC, a Wyoming limited liability company, or PI, and together with PW and RS, the Licensors, for the exclusive manufacturing, packagi

Risk Factors

Item 1A. Risk Factors Our business faces risks. If any of the events or circumstances described in the following risks actually occur, our business, financial condition or results of operations could suffer, and the trading price of our common stock could decline. Our investors and prospective investors should consider the following risks and the information contained under the heading "Cautionary Statement Concerning Forward Looking Statements" before deciding to invest in our common stock. Our resources are limited and it may impact how we implement our growth strategy which may impact our operations. Our resources are limited. Our working capital deficit at December 31, 2023 and 2022 amounted to $14,376,718 and $8,802,958, respectively. As we implement our growth strategy, poor strategic design or execution could impact negatively our operations and our cash flows. We expect that our expenses will continue to increase as we continue to develop and implement our products and services. Our capital requirements may vary materially from those currently planned if, for example, we incur unforeseen capital expenditures, incur unforeseen operating expenses, or make investments to maintain our competitive position. If this is the case, we may have to delay or abandon some or all of our development plans or otherwise forego market opportunities. We will need to generate significant revenues to be profitable in the future, and we may not generate sufficient revenues to be profitable on either a quarterly or annual basis in the future. We have a history of losses. We have a history of losses and negative cash flows from operations. We had a net loss from continuing operations of approximately $15.4 million in 2023 and a net loss of approximately $10.1 million in 2022. Our operations have been financed primarily through proceeds from the issuance of equity, borrowing money through the issuance of promissory notes and use of a credit facility. We may continue to incur

View Full Filing

View this 10-K filing on SEC EDGAR