Stemtech Corp. Files Q1 2024 10-Q

TL;DR

Stemtech Q1 2024 10-Q filed. Financials and ops update.

AI Summary

Stemtech Corp. filed its 10-Q for the period ending March 31, 2024. The filing details financial performance and operational updates for the first quarter of 2024. Key financial figures and disclosures relevant to investors are presented within this report.

Why It Matters

This 10-Q filing provides investors with a crucial update on Stemtech Corp.'s financial health and operational status for the first quarter of 2024, enabling informed investment decisions.

Risk Assessment

Risk Level: medium — As a 10-Q filing, it contains detailed financial information that requires careful analysis to assess the company's current standing and future prospects.

Key Numbers

• 2024-03-31 — Reporting Period End Date (Indicates the end of the financial quarter being reported.)
• 2024-01-01 — Reporting Period Start Date (Indicates the beginning of the financial quarter being reported.)
• 2023-12-31 — Previous Year End Date (Provides a comparison point to the prior fiscal year-end.)

Key Players & Entities

• Stemtech Corp. (company) — Filer of the 10-Q
• 20240331 (date) — End of reporting period
• 20240716 (date) — Filing date
• Globe Net Wireless Corp. (company) — Former company name

FAQ

Key Financial Figures

• $0.001 — ate 116,769,707 shares of common stock, $0.001 par value, issued and outstanding as of
• $1,011,451 — warrants and their cumulative value of $1,011,451 was reclassified into additional paid i

Filing Documents

• stemtech_i10q-033124.htm (10-Q) — 646KB
• stemtech_ex3101.htm (EX-31.1) — 11KB
• stemtech_ex3102.htm (EX-31.2) — 11KB
• stemtech_ex3201.htm (EX-32.1) — 4KB
• stemtech_ex3202.htm (EX-32.2) — 4KB
• 0001683168-24-004900.txt ( ) — 4560KB
• gntw-20240331.xsd (EX-101.SCH) — 39KB
• gntw-20240331_cal.xml (EX-101.CAL) — 51KB
• gntw-20240331_def.xml (EX-101.DEF) — 141KB
• gntw-20240331_lab.xml (EX-101.LAB) — 335KB
• gntw-20240331_pre.xml (EX-101.PRE) — 274KB
• stemtech_i10q-033124_htm.xml (XML) — 518KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION 4 Item 1. Consolidated Financial Statements 4 Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023 (unaudited) 4 Consolidated Statements of Operations and Comprehensive Loss for the three months ended March 31, 2024 and 2023 (unaudited) 5 Consolidated Statements of Stockholders' Equity (Deficit) for the three months ended March 31, 2024 and 2023 (unaudited) 6 Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023 (unaudited) 7

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) 8 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 23 Item 3

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 26 Item 4.

Controls and Procedures

Controls and Procedures 27

— OTHER INFORMATION

PART II — OTHER INFORMATION 28 Item 1 Legal Proceeding 28 Item 1A

Risk Factors

Risk Factors 28 Item 2. Recent Sale of Unregistered Securities 28 Item 3. Defaults Upon Senior Securities 28 Item 5. Other Information 28 Item 6. Exhibits 29

SIGNATURES

SIGNATURES 30 2 CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS Certain information set forth in this Quarterly Report on Form 10-Q, including in Item 2, "Management's Discussion and Analysis of Financial Condition and Results of Operations" and elsewhere herein may address or relate to future events and expectations and as such constitutes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements which are not historical reflect our current expectations and projections about our future results, performance, liquidity, financial condition, prospects and opportunities and are based upon information currently available to us and our management and their interpretation of what is believed to be significant factors affecting our business, including many assumptions regarding future events. Such forward-looking the size and growth of the potential markets for our products and the ability to serve those markets; our expectations regarding our expenses and revenue, the sufficiency of our cash resources and needs for additional financing; the rate and degree of market acceptance of any of our products; our expectations regarding competition; our anticipated growth strategies; our ability to attract or retain key personnel; our ability to establish and maintain development partnerships; regulatory developments in the U.S. and foreign countries, especially those related to change in, and enforcement of, cannabis laws; our ability to obtain and maintain intellectual property protection for our products; and the anticipated trends and challenges in our business and the market in which we operate.

Forward-looking statements,

Forward-looking statements, which involve assumptions and describe our future plans, strategies, and expectations, are generally identifiable by use of the words "may," "should," "would," "could," "scheduled," "expect," "anticipate," "estimate," "believe," "intend," "seek," or "project" or the negative of these words or other variations on these words or comparable terminology. Actual results, performance, liquidity, financial condition and results of operations, prospects and opportunities could differ materially and perhaps substantially from those expressed in, or implied by, these forward-looking statements as a result of various risks, uncertainties and other factors. These statements may be found under the section of our Annual Report on Form 10-K for the year ended December 31, 2023 (filed on July 10 th , 2024) entitled "Risk Factors" as well as in our other public filings. In light of these risks and uncertainties, and especially given the start-up nature of our business, there can be no assurance that the forward-looking statements contained herein will in fact occur. Readers should not place undue reliance on any forward-looking statements. Except as expressly required by the federal securities laws, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason. 3

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements STEMTECH CORPORATION Consolidated Balance Sheets (Unaudited) March 31, 2024 December 31, 2023 ASSETS CURRENT ASSETS: Cash $ 273,999 $ 114,166 Accounts receivable, net 116,704 61,494 Inventory, net 57,508 48,325 Prepaid expenses and other current assets 62,907 176,725 TOTAL CURRENT ASSETS 511,118 400,710 Property and equipment, net 6,536 10,056 Intangible assets, net 2,559,951 2,710,568 Long term deposits 23,404 23,708 Operating lease right-of-use assets - net 43,635 70,820 Goodwill 467,409 467,409 TOTAL ASSETS $ 3,612,053 $ 3,683,271 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable and accrued expenses $ 3,817,036 $ 2,708,906 Notes payable 1,791,089 1,889,321 Convertible debentures, net of discount 1,939,548 1,596,960 Operating lease liabilities - current 41,174 66,866 Deferred revenues 82,392 56,039 Factoring liability 386,703 143,944 TOTAL CURRENT LIABILITIES 8,057,942 6,462,036 TOTAL LIABILITIES 8,057,942 6,462,036 COMMITMENTS AND CONTINGENCIES (Note 11) – – STOCKHOLDERS' EQUITY Common stock - $ 0.001 par value; 200,000,000 shares authorized; 116,057,207 and 104,988,853 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively 116,057 104,989 Additional paid in capital 25,378,534 24,726,722 Accumulated other comprehensive loss ( 718,872 ) 190,503 Accumulated deficit ( 28,479,836 ) ( 27,061,486 ) Stemtech Corporation shareholders' deficit ( 3,704,117 ) ( 2,039,272 ) Non-controlling interest in subsidiaries ( 741,772 ) ( 739,493 ) TOTAL STOCKHOLDERS' EQUITY ( 4,445,889 ) ( 2,778,765 ) TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 3,612,053 $ 3,683,271 The accompanying notes are an integral part of these consolidated financial statements. 4 STEMTECH CORPORATION Consolidated Statements of Operations and Comprehensive Loss (Unaudited) For The Thr

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) Note 1 – Organization and Basis of Presentation Stemtech Corporation and its Subsidiaries (collectively, the " Company ") was incorporated in the State of Nevada, USA on September 4, 2009 under the previous name Globe Net Wireless Corp. On November 19, 2021, the Company adopted an Amendment to its Articles changing the name of the Corporation to Stemtech Corporation in the state of Nevada, and on April 14, 2022, FINRA gave final approval for said name change, as evidenced by the 8-K filed that date. Stemtech is a global network marketing company that develops science-based products that it believes supports wellness by helping the body maintain healthy stem cell physiology, also known as stem cell enhancers. Known as the Stem Cell Nutrition Company, the Company is a pioneer in stem cell science, and believes it can demonstrate that adult stem cells function as the natural renewal system of the body. The Company believes its products enhance and support the work of the body's stem cells by releasing more stem cells, helping to circulate them in the blood and migrate them into tissues, where they can perform their daily function of renewal for optimal health. Our mission is to enhance wellness and prosperity around the world. These products are marketed internationally by the Company's subsidiaries and through independent distributors. The Company markets its products under the following brands: RCM System, stemrelease3, Stemflo MigraStem and OraStem (Oral Health Care), and Cellect One Rapid Renew Stem Cell Peptide Night Cream. On August 19, 2021, Stemtech Corporation (" Stemtech "), a Delaware corporation, entered into a Merger Agreement (the " Merger Agreement ") with Globe Net Wireless Corp. (" Globe Net " or " GNTW "). The merger was accounted for as a reverse acquisition and recapitalization in accordance with the Financial Accounting Standards Board (" FASB ") Accounting Standards Codification (" ASC

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