Can B Corp Files Q1 2024 10-Q/A

TL;DR

Can B Corp dropped its Q1 2024 10-Q/A, check financials.

AI Summary

Can B Corp filed a 10-Q/A on July 17, 2024, for the period ending March 31, 2024. The filing includes financial data for the first quarter of 2024 and compares it to the same period in 2023. The company, formerly known as Canbiola, Inc., operates in the wholesale drug proprietaries and druggists' sundries sector.

Why It Matters

This filing provides updated financial information for Can B Corp, allowing investors to assess the company's performance and financial health for the first quarter of 2024.

Risk Assessment

Risk Level: low — This is a routine filing of quarterly financial information and does not appear to contain significant new risks or disclosures.

Key Numbers

• 20240331 — Reporting Period End (Financial data pertains to this date.)
• 20230331 — Prior Year Period End (For comparative financial analysis.)

Key Players & Entities

• Can B Corp (company) — Filer
• Canbiola, Inc. (company) — Former company name
• Wrapmail, Inc. (company) — Former company name
• 516-205-4751 (phone_number) — Business phone number
• 20240331 (date) — Reporting period end date
• 20240717 (date) — Filing date

FAQ

Filing Documents

• form10-qa.htm (10-Q/A) — 1079KB
• ex31-1.htm (EX-31.1) — 16KB
• ex31-2.htm (EX-31.2) — 16KB
• ex32-1.htm (EX-32.1) — 8KB
• ex32-2.htm (EX-32.2) — 9KB
• 0001493152-24-028053.txt ( ) — 4908KB
• canb-20240331.xsd (EX-101.SCH) — 35KB
• canb-20240331_cal.xml (EX-101.CAL) — 51KB
• canb-20240331_def.xml (EX-101.DEF) — 145KB
• canb-20240331_lab.xml (EX-101.LAB) — 301KB
• canb-20240331_pre.xml (EX-101.PRE) — 226KB
• form10-qa_htm.xml (XML) — 598KB

- FINANCIAL INFORMATION

PART I. - FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements Condensed Consolidated Balance Sheets (unaudited) – March 31, 2024 and December 31, 2023 3 Condensed Consolidated Statements of Operations (unaudited) – Three Months Ended March 31, 2024 and 2023 4 Condensed Consolidated Statement of Stockholders' Equity (Deficit) (unaudited) Three Months Ended March 31, 2024 and 2023 5 Condensed Consolidated Statements of Cash Flows (unaudited) – Three Months Ended March 31, 2024 and 2023 6 Condensed Notes to Unaudited Consolidated Financial Statements. 7 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations. 20 Item 3

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk. 21 Item 4

Controls and Procedures

Controls and Procedures. 2 1

- OTHER INFORMATION

PART II - OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 21 Item A.

Risk Factors

Risk Factors 22 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 22 Item 3. Defaults Upon Senior Securities 22 Item 4. Mine Safety Disclosures 22 Item 5. Other Information 23 Item 6. Exhibits 23 2 PART 1 – FINANCIAL INFORMATION Item 1. Financial Statements Can B Corp. and Subsidiaries Consolidated Balance Sheets (Unaudited) 2024 2023 March 31, December 31, 2024 2023 Assets Current assets: Cash and cash equivalents $ 26,582 $ 34,006 Accounts receivable, less allowance for doubtful accounts of $ 2,818,395 3,599,026 3,723,344 Inventory 593,375 1,619,542 Prepaid expenses and other current assets 10,137 4,137 Total current assets 4,229,120 5,381,029 Other assets: Deposits 235,418 235,418 Intangible assets, net - 95,144 Property and equipment, net 649,079 4,106,283 Right of use assets, net 192,087 295,151 Other noncurrent assets 16,555 13,139 Total other assets 1,093,139 4,745,135 Total assets $ 5,322,259 $ 10,126,164 Liabilities and Stockholders' Equity (Deficit) Current liabilities: Accounts payable $ 2,264,972 $ 1,997,643 Due to related party 366,243 357,243 Notes and loans payable, net 7,611,233 8,569,489 Warrant liabilities 1,766 1,766 Operating lease liability - current 150,679 254,391 Total current liabilities 10,394,893 11,180,532 Total liabilities $ 10,394,893 $ 11,180,532 Commitments and contingencies (Note 11) - - Stockholders' equity (deficit): Preferred stock, authorized 5,000,000 shares: Series A Preferred stock, no par value: 20 shares authorized, 5 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively 5,320,000 5,320,000 Series C Preferred stock, $ 0.001 par value: 2,000 shares authorized, 1,100 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively 2,900,039 2,900,039 Series D Preferred stock, $ 0.001 par value: 4,000 shares authorized,

notes to consolidated financial statements

notes to consolidated financial statements 3 Can B Corp. and Subsidiaries Condensed Consolidated 2024 2023 Three Months Ended March 31, 2024 2023 Revenues Product sales $ - $ 808,748 Service revenue 369,096 130,557 Total revenues 369,096 939,305 Cost of revenues 1,193,161 524,577 Gross profit ( 824,065 ) 414,728 Selling, general and administrative 1,688,058 1,849,630 Loss of sale of assets 3,142,769 - Total operating expenses 4,830,827 1,849,630 Loss from operations ( 5,654,892 ) ( 1,434,902 ) Other income (expense): Change in fair value of warrant liability - 79,418 Interest expense ( 506,182 ) ( 333,967 ) Other expense ( 95 ) ( 39,990 ) Other expense ( 506,277 ) ( 294,539 ) Loss before provision for income taxes ( 6,161,169 ) ( 1,729,441 ) Provision for (benefit from) income taxes - 9,596 Net loss $ ( 6,161,169 ) $ ( 1,739,038 ) Loss per share - basic and diluted $ ( 0.16 ) $ ( 0.36 ) Weighted average shares outstanding - basic and diluted 37,349,748 4,896,524 See

notes to consolidated financial statements

notes to consolidated financial statements 4 Can B Corp. and Subsidiaries Condensed Consolidated Statements of Stockholders' Equity (Deficit) (Unaudited) Three Months Ended March 31, 2024 and 2023 Shares Amount Shares Amount Shares Amount Shares Amount Issuable Shares Amount Capital Deficit Total Series A Series C Series D Common Treasury Additional Preferred Stock Preferred Stock Preferred Stock Common Stock Stock Stock Paid-in Accumulated Shares Amount Shares Amount Shares Amount Shares Amount Issuable Shares Amount Capital Deficit Total Three months ended March 31, 2023 Balance, January 1, 2023 5 $ 5,320,000 1,100 $ 2,900,039 4,000 $ 4 4,422,584 $ 79,614,986 $ 119,586 36,248 $ ( 572,678 ) $ 8,006,822 $ ( 92,690,834 ) $ 2,697,925 Issuance of common stock for services rendered - - - - - - 577,850 521,557 - - - - - 521,557 Warrants issued in connection with the issuance of convertible note - - - - - - - - - - - 937,787 - 937,787 Issuance of common stock in lieu of interest payments - - - - - - 360,000 36,005 - - - - - 36,005 Net loss - - - - - - - - - - - - ( 1,739,038 ) ( 1,739,038 ) Balance, March 31, 2023 5 $ 5,320,000 1,100 $ 2,900,039 4,000 $ 4 5,360,434 $ 80,172,548 $ 119,586 36,248 $ ( 572,678 ) $ 8,944,609 $ ( 94,429,872 ) $ 2,454,236 Three months ended March 31, 2024 Balance, January 1, 2024 5 $ 5,320,000 1,100 $ 2,900,039 4,000 $ 4 32,753,196 $ 83,263,105 $ 119,586 36,248 $ ( 572,678 ) $ 10,396,274 $ ( 102,480,698 ) $ ( 1,054,368 ) Balance, January 1, 2024 5 $ 5,320,000 1,100 $ 2,900,039 4,000 $ 4 32,753,196 $ 83,263,105 $ 119,586 36,248 $ ( 572,678 ) $ 10,396,274 $ ( 102,480,698 ) $ ( 1,054,368 ) Issuance of common stock in lieu of note repayments - - - - - - 11,866,995 964,764 - - - - - 964,764 Issuance of common stock in lieu of interest p

notes to consolidated financial statements

notes to consolidated financial statements 5 Can B Corp. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) 2024 2023 Three Months Ended March 31, 2024 2023 Operating activities: Net loss $ ( 6,161,169 ) $ ( 1,739,038 ) Adjustments to reconcile net loss to net cash used in operating activities: Stock-based compensation 1,163,636 - Depreciation 314,435 346,887 Amortization of intangible assets - 3,000 Amortization of original-issue-discounts 239,782 218,146 Impairment of intangible assets 91,728 - Loss on sale of property and equipment 3,142,769 - Bad debt expense - 86,365 Change in fair value of warrant liability - ( 79,418 ) Stock-based interest expense 14,503 36,005 Stock-based consulting expense - 521,557 Changes in operating assets and liabilities: Accounts receivable 124,318 ( 392,669 ) Inventory 1,026,167 ( 8,122 ) Prepaid expenses ( 6,000 ) ( 7,448 ) Operating lease right-of-use asset ( 648 ) 142 Accounts payable 267,329 108,316 Accrued expenses - 144 Net cash provided by (used in) operating activities 216,850 ( 906,133 ) Investing activities: Purchase of property and equipment - ( 15,000 ) Deposits paid - ( 70,000 ) Net cash used in investing activities - ( 85,000 ) Financing activities: Net proceeds received from notes and loans payable 100,000 1,730,000 Proceeds from sale of common stock - - Repayments of notes and loans payable ( 333,274 ) ( 507,813 ) Deferred financing costs - ( 143,000 ) Amounts received from/repaid to related parties, net 9,000 35,000 Net cash (used in) provided by financing activities ( 224,274 ) 1,114,187 (Decrease)/Increase in cash and cash equivalents ( 7,424 ) 123,054 Cash and cash equivalents, beginning of period 34,006 73,194 Cash and cash equivalents, end of period $ 26,582 $ 196,248 Supplemental Cash Flow Information: Income taxes paid $ - $ - Intere

notes to consolidated financial statements

notes to consolidated financial statements 6 Can B Corp. and Subsidiaries Condensed Notes to Unaudited Consolidated Financial Statements March 31, 2024 Note 1 – Organization and Description of Business Can B Corp. was originally incorporated as WrapMail, Inc. ("WRAP") in Florida on October 11, 2005. On May 15, 2017, WRAP changed its name to Canbiola, Inc. On January 16, 2020 Canbiola, Inc. changed its name to Can B Corp. (the "Company", "we", "us", "our", "CANB", "Can B" or "Registrant"). The Company acquired 100% of the membership interests in Pure Health Products, LLC, a New York limited liability company ("PHP" or "Pure Health Products") effective December 28, 2018. The Company runs its manufacturing operations through PHP and holds and sells several of its brands through PHP as well. The Company's durable equipment products, such as Sam units are marketed and sold through its wholly-owned subsidiaries, Duramed Inc. (incorporated on November 29, 2018) and Duramed MI LLC (fka DuramedNJ, LLC) (incorporated on May 29, 2019) (collectively, "Duramed"). Duramed began operating on or about February 1, 2019. Most of the Company's consumer products include hemp derived cannabidiol ("CBD") are available online. Additional hemp derived isolate is available for wholesale to third-parties looking to incorporate such compounds into their products through the Company's wholly owned subsidiary CO Botanicals LLC (incorporated in August 2021). In February of 2024, Can B Corp's 67% owned subsidiary, Nascent Pharma, LLC, acquired certain Patents using liquid formulations containing cannabinoids which are used in such products as vape cartridges, edibles, pills, gummies, tinctures, oils, concentrates and more. Today, the Company is in the business of promoting health and wellness through its development, manufacture and sale of products containing cannabinoids derived from hemp biomass and the licensing of durable medical devises. Can B's products include oils, creams

financial statements contained herein should be read in conjunction with the 2023 Form 10-K

financial statements contained herein should be read in conjunction with the 2023 Form 10-K. 7 Can B Corp. and Subsidiaries Condensed Notes to Unaudited Consolidated Financial Statements March 31, 2024 Principles of Consolidation The unaudited condensed consolidated financial statements contained herein include the accounts of Can B Corp. and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated. Use of Estimates The preparation of financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses in those financial statements. Certain significant accounting policies that contain subjective management estimates and assumptions include those related to revenue recognition, inventory, intangible assets and other long-lived assets, income taxes and deferred taxes. Descriptions of these policies are discussed in the Company's 2023 Form 10-K. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, and adjusts when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from those estimates and assumptions. Significant changes, if any, in those estimates resulting from continuing changes in the economic environment will be reflected in the consolidated financial Significant Accounting Policies The Company's significant accounting policies are described in "Note 3: Summary of Significant Accounting Policies" of our 2023 Form 10-K. 8 Can B Corp. and Subsidiaries Notes to Consolidated Financial Statements March 31, 20

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