10-Q 1 form10-q.htm
false --12-31 Q1 0001622244 0001622244 2024-01-01 2024-03-31 0001622244 2024-06-10 0001622244 2024-03-31 0001622244 2023-12-31 0001622244 us-gaap:RelatedPartyMember 2024-03-31 0001622244 us-gaap:RelatedPartyMember 2023-12-31 0001622244 us-gaap:NonrelatedPartyMember 2024-03-31 0001622244 us-gaap:NonrelatedPartyMember 2023-12-31 0001622244 OWPC:SeriesAConvertiblePreferredStockMember 2024-03-31 0001622244 OWPC:SeriesAConvertiblePreferredStockMember 2023-12-31 0001622244 OWPC:SeriesBConvertiblePreferredStockMember 2024-03-31 0001622244 OWPC:SeriesBConvertiblePreferredStockMember 2023-12-31 0001622244 2023-01-01 2023-03-31 0001622244 us-gaap:PreferredStockMember OWPC:SeriesAConvertiblePreferredStockMember 2023-12-31 0001622244 us-gaap:PreferredStockMember OWPC:SeriesBConvertiblePreferredStockMember 2023-12-31 0001622244 us-gaap:CommonStockMember 2023-12-31 0001622244 us-gaap:AdditionalPaidInCapitalMember 2023-12-31 0001622244 OWPC:SubscriptionsPayableMember 2023-12-31 0001622244 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2023-12-31 0001622244 us-gaap:RetainedEarningsMember 2023-12-31 0001622244 us-gaap:PreferredStockMember OWPC:SeriesAConvertiblePreferredStockMember 2022-12-31 0001622244 us-gaap:PreferredStockMember OWPC:SeriesBConvertiblePreferredStockMember 2022-12-31 0001622244 us-gaap:CommonStockMember 2022-12-31 0001622244 us-gaap:AdditionalPaidInCapitalMember 2022-12-31 0001622244 OWPC:SubscriptionsPayableMember 2022-12-31 0001622244 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-12-31 0001622244 us-gaap:RetainedEarningsMember 2022-12-31 0001622244 2022-12-31 0001622244 us-gaap:PreferredStockMember OWPC:SeriesAConvertiblePreferredStockMember 2024-01-01 2024-03-31 0001622244 us-gaap:PreferredStockMember OWPC:SeriesBConvertiblePreferredStockMember 2024-01-01 2024-03-31 0001622244 us-gaap:CommonStockMember 2024-01-01 2024-03-31 0001622244 us-gaap:AdditionalPaidInCapitalMember 2024-01-01 2024-03-31 0001622244 OWPC:SubscriptionsPayableMember 2024-01-01 2024-03-31 0001622244 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2024-01-01 2024-03-31 0001622244 us-gaap:RetainedEarningsMember 2024-01-01 2024-03-31 0001622244 us-gaap:PreferredStockMember OWPC:SeriesAConvertiblePreferredStockMember 2023-01-01 2023-03-31 0001622244 us-gaap:PreferredStockMember OWPC:SeriesBConvertiblePreferredStockMember 2023-01-01 2023-03-31 0001622244 us-gaap:CommonStockMember 2023-01-01 2023-03-31 0001622244 us-gaap:AdditionalPaidInCapitalMember 2023-01-01 2023-03-31 0001622244 OWPC:SubscriptionsPayableMember 2023-01-01 2023-03-31 0001622244 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2023-01-01 2023-03-31 0001622244 us-gaap:RetainedEarningsMember 2023-01-01 2023-03-31 0001622244 us-gaap:PreferredStockMember OWPC:SeriesAConvertiblePreferredStockMember 2024-03-31 0001622244 us-gaap:PreferredStockMember OWPC:SeriesBConvertiblePreferredStockMember 2024-03-31 0001622244 us-gaap:CommonStockMember 2024-03-31 0001622244 us-gaap:AdditionalPaidInCapitalMember 2024-03-31 0001622244 OWPC:SubscriptionsPayableMember 2024-03-31 0001622244 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2024-03-31 0001622244 us-gaap:RetainedEarningsMember 2024-03-31 0001622244 us-gaap:PreferredStockMember OWPC:SeriesAConvertiblePreferredStockMember 2023-03-31 0001622244 us-gaap:PreferredStockMember OWPC:SeriesBConvertiblePreferredStockMember 2023-03-31 0001622244 us-gaap:CommonStockMember 2023-03-31 0001622244 us-gaap:AdditionalPaidInCapitalMember 2023-03-31 0001622244 OWPC:SubscriptionsPayableMember 2023-03-31 0001622244 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2023-03-31 0001622244 us-gaap:RetainedEarningsMember 2023-03-31 0001622244 2023-03-31 0001622244 OWPC:MergerAgreementMember OWPC:OWPVenturesIncMember 2019-02-20 2019-02-21 0001622244 OWPC:MergerAgreementMember OWPC:OWPVenturesIncMember 2019-02-21 0001622244 OWPC:MergerAgreementMember 2019-02-20 2019-02-21 0001622244 OWPC:MergerAgreementMember 2019-02-21 0001622244 OWPC:MergerAgreementMember OWPC:OWPVenturesIncMember 2022-01-01 2022-03-31 0001622244 2023-01-01 2023-12-31 0001622244 OWPC:OneWorldProductsIncMember 2024-01-01 2024-03-31 0001622244 OWPC:OWPVenturesIncMember 2024-01-01 2024-03-31 0001622244 2023-12-22 2023-12-22 0001622244 srt:SubsidiariesMember 2024-03-31 0001622244 srt:SubsidiariesMember 2023-12-31 0001622244 srt:SubsidiariesMember 2024-01-01 2024-03-31 0001622244 2024-03-15 0001622244 2023-06-15 2023-06-15 0001622244 OWPC:OfficersAndDirectorsMember us-gaap:CommonStockMember 2024-05-15 2024-05-15 0001622244 OWPC:IsiahThomasIIIMember us-gaap:CommonStockMember 2024-03-15 2024-03-15 0001622244 OWPC:IsiahThomasIIIMember us-gaap:CommonStockMember 2024-03-15 0001622244 OWPC:DrKennethPeregoIIMember us-gaap:CommonStockMember 2024-03-15 2024-03-15 0001622244 OWPC:DrKennethPeregoIIMember us-gaap:CommonStockMember 2024-03-15 0001622244 OWPC:TerryBuffaloIMember us-gaap:CommonStockMember 2024-03-15 2024-03-15 0001622244 OWPC:TerryBuffaloIMember us-gaap:CommonStockMember 2024-03-15 0001622244 OWPC:MrJoergSommerMember us-gaap:CommonStockMember 2024-03-15 2024-03-15 0001622244 OWPC:MrJoergSommerMember us-gaap:CommonStockMember 2024-03-15 0001622244 us-gaap:CommonStockMember 2024-03-15 2024-03-15 0001622244 us-gaap:CommonStockMember 2024-03-15 0001622244 OWPC:IsiahThomasIIIMember 2024-03-15 2024-03-15 0001622244 OWPC:IsiahThomasIIIMember 2024-03-15 0001622244 OWPC:DrKennethPeregoIIMember 2024-03-15 2024-03-15 0001622244 OWPC:DrKennethPeregoIIMember 2024-03-15 0001622244 OWPC:MrJoergSommerMember 2024-03-15 2024-03-15 0001622244 OWPC:MrJoergSommerMember 2024-03-15 0001622244 OWPC:DrJohnMcCabeMember 2024-03-15 2024-03-15 0001622244 OWPC:DrJohnMcCabeMember 2024-03-15 0001622244 2024-03-15 2024-03-15 0001622244 us-gaap:FairValueInputsLevel1Member 2024-03-31 0001622244 us-gaap:FairValueInputsLevel2Member 2024-03-31 0001622244 us-gaap:FairValueInputsLevel3Member 2024-03-31 0001622244 us-gaap:FairValueInputsLevel1Member 2023-12-31 0001622244 us-gaap:FairValueInputsLevel2Member 2023-12-31 0001622244 us-gaap:FairValueInputsLevel3Member 2023-12-31 0001622244 us-gaap:ConvertibleDebtMember OWPC:PromissoryNoteMember us-gaap:RelatedPartyMember 2024-03-31 0001622244 us-gaap:ConvertibleDebtMember OWPC:PromissoryNoteMember us-gaap:RelatedPartyMember 2023-12-31 0001622244 us-gaap:ConvertibleDebtMember us-gaap:RelatedPartyMember 2024-03-31 0001622244 us-gaap:ConvertibleDebtMember us-gaap:RelatedPartyMember 2023-12-31 0001622244 OWPC:PromissoryNoteMember OWPC:JohnMcCabeInvestmentsLLCMember 2022-09-27 0001622244 OWPC:PromissoryNoteMember OWPC:JohnMcCabeInvestmentsLLCMember 2022-09-27 2022-09-27 0001622244 OWPC:PromissoryNoteMember OWPC:JohnMcCabeInvestmentsLLCMember OWPC:SeriesBCommonStockMember 2022-09-27 0001622244 OWPC:PromissoryNoteMember OWPC:JohnMcCabeInvestmentsLLCMember 2024-03-15 0001622244 OWPC:PromissoryNoteMember OWPC:JohnMcCabeInvestmentsLLCMember 2024-03-15 2024-03-15 0001622244 us-gaap:ConvertibleDebtMember us-gaap:RelatedPartyMember 2024-01-01 2024-03-31 0001622244 us-gaap:ConvertibleDebtMember us-gaap:RelatedPartyMember 2023-01-01 2023-03-31 0001622244 OWPC:UnsecuredPromissoryNoteOneMember us-gaap:RelatedPartyMember 2024-03-31 0001622244 OWPC:UnsecuredPromissoryNoteOneMember us-gaap:RelatedPartyMember 2023-12-31 0001622244 OWPC:UnsecuredPromissoryNoteTwoMember us-gaap:RelatedPartyMember 2024-03-31 0001622244 OWPC:UnsecuredPromissoryNoteTwoMember us-gaap:RelatedPartyMember 2023-12-31 0001622244 OWPC:UnsecuredPromissoryNoteThreeMember us-gaap:RelatedPartyMember 2024-03-31 0001622244 OWPC:UnsecuredPromissoryNoteThreeMember us-gaap:RelatedPartyMember 2023-12-31 0001622244 OWPC:UnsecuredPromissoryNoteFourMember us-gaap:RelatedPartyMember 2024-03-31 0001622244 OWPC:UnsecuredPromissoryNoteFourMember us-gaap:RelatedPartyMember 2023-12-31 0001622244 OWPC:UnsecuredPromissoryNoteFiveMember us-gaap:RelatedPartyMember 2024-03-31 0001622244 OWPC:UnsecuredPromissoryNoteFiveMember us-gaap:RelatedPartyMember 2023-12-31 0001622244 OWPC:UnsecuredPromissoryNoteSixMember us-gaap:RelatedPartyMember 2024-03-31 0001622244 OWPC:UnsecuredPromissoryNoteSixMember us-gaap:RelatedPartyMember 2023-12-31 0001622244 OWPC:UnsecuredPromissoryNoteSevenMember us-gaap:RelatedPartyMember 2024-03-31 0001622244 OWPC:UnsecuredPromissoryNoteSevenMember us-gaap:RelatedPartyMember 2023-12-31 0001622244 OWPC:UnsecuredPromissoryNoteEightMember us-gaap:RelatedPartyMember 2024-03-31 0001622244 OWPC:UnsecuredPromissoryNoteEightMember us-gaap:RelatedPartyMember 2023-12-31 0001622244 OWPC:UnsecuredPromissoryNoteNineMember us-gaap:RelatedPartyMember 2024-03-31 0001622244 OWPC:UnsecuredPromissoryNoteNineMember us-gaap:RelatedPartyMember 2023-12-31 0001622244 OWPC:UnsecuredPromissoryNoteTenMember us-gaap:RelatedPartyMember 2024-03-31 0001622244 OWPC:UnsecuredPromissoryNoteTenMember us-gaap:RelatedPartyMember 2023-12-31 0001622244 OWPC:UnsecuredPromissoryNoteElevenMember us-gaap:RelatedPartyMember 2024-03-31 0001622244 OWPC:UnsecuredPromissoryNoteElevenMember us-gaap:RelatedPartyMember 2023-12-31 0001622244 OWPC:UnsecuredPromissoryNoteTwelveMember us-gaap:RelatedPartyMember 2024-03-31 0001622244 OWPC:UnsecuredPromissoryNoteTwelveMember us-gaap:RelatedPartyMember 2023-12-31 0001622244 OWPC:UnsecuredPromissoryNoteThirteenMember us-gaap:RelatedPartyMember 2024-03-31 0001622244 OWPC:UnsecuredPromissoryNoteThirteenMember us-gaap:RelatedPartyMember 2023-12-31 0001622244 OWPC:UnsecuredPromissoryNoteFourteenMember us-gaap:RelatedPartyMember 2024-03-31 0001622244 OWPC:UnsecuredPromissoryNoteFourteenMember us-gaap:RelatedPartyMember 2023-12-31 0001622244 OWPC:UnsecuredPromissoryNoteFifteenMember us-gaap:RelatedPartyMember 2024-03-31 0001622244 OWPC:UnsecuredPromissoryNoteFifteenMember us-gaap:RelatedPartyMember 2023-12-31 0001622244 OWPC:UnsecuredPromissoryNoteSixteenMember us-gaap:RelatedPartyMember 2024-03-31 0001622244 OWPC:UnsecuredPromissoryNoteSixteenMember us-gaap:RelatedPartyMember 2023-12-31 0001622244 OWPC:UnsecuredPromissoryNoteSeventeenMember us-gaap:RelatedPartyMember 2024-03-31 0001622244 OWPC:UnsecuredPromissoryNoteSeventeenMember us-gaap:RelatedPartyMember 2023-12-31 0001622244 OWPC:UnsecuredPromissoryNoteEighteenMember us-gaap:RelatedPartyMember 2024-03-31 0001622244 OWPC:UnsecuredPromissoryNoteEighteenMember us-gaap:RelatedPartyMember 2023-12-31 0001622244 OWPC:UnsecuredPromissoryNoteNineteenMember us-gaap:RelatedPartyMember 2024-03-31 0001622244 OWPC:UnsecuredPromissoryNoteNineteenMember us-gaap:RelatedPartyMember 2023-12-31 0001622244 OWPC:UnsecuredPromissoryNoteTwentyMember us-gaap:RelatedPartyMember 2024-03-31 0001622244 OWPC:UnsecuredPromissoryNoteTwentyMember us-gaap:RelatedPartyMember 2023-12-31 0001622244 OWPC:UnsecuredPromissoryNoteTwentyOneMember us-gaap:RelatedPartyMember 2024-03-31 0001622244 OWPC:UnsecuredPromissoryNoteTwentyOneMember us-gaap:RelatedPartyMember 2023-12-31 0001622244 OWPC:UnsecuredPromissoryNoteTwentyTwoMember us-gaap:RelatedPartyMember 2024-03-31 0001622244 OWPC:UnsecuredPromissoryNoteTwentyTwoMember us-gaap:RelatedPartyMember 2023-12-31 0001622244 OWPC:UnsecuredPromissoryNoteTwentyThreeMember us-gaap:RelatedPartyMember 2024-03-31 0001622244 OWPC:UnsecuredPromissoryNoteTwentyThreeMember us-gaap:RelatedPartyMember 2023-12-31 0001622244 OWPC:UnsecuredPromissoryNoteTwentyFourMember us-gaap:RelatedPartyMember 2024-03-31 0001622244 OWPC:UnsecuredPromissoryNoteTwentyFourMember us-gaap:RelatedPartyMember 2023-12-31 0001622244 OWPC:UnsecuredPromissoryNoteTwentyFiveMember us-gaap:RelatedPartyMember 2024-03-31 0001622244 OWPC:UnsecuredPromissoryNoteTwentyFiveMember us-gaap:RelatedPartyMember 2023-12-31 0001622244 OWPC:UnsecuredPromissoryNoteTwentySixMember us-gaap:RelatedPartyMember 2024-03-31 0001622244 OWPC:UnsecuredPromissoryNoteTwentySixMember us-gaap:RelatedPartyMember 2023-12-31 0001622244 OWPC:UnsecuredPromissoryNotesMember us-gaap:RelatedPartyMember 2024-03-31 0001622244 OWPC:UnsecuredPromissoryNotesMember us-gaap:RelatedPartyMember 2023-12-31 0001622244 OWPC:UnsecuredPromissoryNoteMember OWPC:JoergSommerMember 2024-03-19 0001622244 OWPC:UnsecuredPromissoryNoteMember OWPC:JoergSommerMember 2024-03-19 2024-03-19 0001622244 OWPC:UnsecuredPromissoryNoteMember OWPC:JoergSommerMember 2024-03-15 0001622244 OWPC:UnsecuredPromissoryNoteMember OWPC:JoergSommerMember 2024-03-15 2024-03-15 0001622244 OWPC:UnsecuredPromissoryNoteMember OWPC:JoergSommerMember 2024-03-15 0001622244 OWPC:UnsecuredPromissoryNoteMember OWPC:JoergSommerMember 2024-03-15 2024-03-15 0001622244 OWPC:UnsecuredPromissoryNoteMember OWPC:JohnMcCabeInvestmentsLLCMember 2024-03-15 0001622244 OWPC:UnsecuredPromissoryNoteMember OWPC:JohnMcCabeInvestmentsLLCMember 2024-03-15 2024-03-15 0001622244 OWPC:UnsecuredPromissoryNoteOneMember OWPC:JohnMcCabeInvestmentsLLCMember 2024-03-15 0001622244 OWPC:UnsecuredPromissoryNoteOneMember OWPC:JohnMcCabeInvestmentsLLCMember 2024-03-15 0001622244 OWPC:UnsecuredPromissoryNoteOneMember OWPC:JohnMcCabeInvestmentsLLCMember 2024-03-15 2024-03-15 0001622244 OWPC:UnsecuredPromissoryNoteTwoMember OWPC:JohnMcCabeInvestmentsLLCMember 2024-03-15 0001622244 OWPC:UnsecuredPromissoryNoteTwoMember OWPC:JohnMcCabeInvestmentsLLCMember 2024-03-15 0001622244 OWPC:UnsecuredPromissoryNoteTwoMember OWPC:JohnMcCabeInvestmentsLLCMember 2024-03-15 2024-03-15 0001622244 OWPC:UnsecuredPromissoryNoteMember OWPC:DrKennethPeregoIIMember 2024-03-15 0001622244 OWPC:UnsecuredPromissoryNoteMember OWPC:DrKennethPeregoIIMember 2024-03-15 2024-03-15 0001622244 OWPC:UnsecuredPromissoryNoteMember OWPC:DrKennethPeregoIIMember 2024-03-15 0001622244 OWPC:UnsecuredPromissoryNoteMember OWPC:IsiahThomasIIIMember 2024-03-15 0001622244 OWPC:UnsecuredPromissoryNoteMember OWPC:IsiahThomasIIIMember 2024-03-15 2024-03-15 0001622244 OWPC:UnsecuredPromissoryNoteMember OWPC:IsiahThomasIIIMember 2024-03-15 0001622244 OWPC:UnsecuredPromissoryNoteMember OWPC:IsiahThomasIIIMember 2024-03-15 2024-03-15 0001622244 OWPC:UnsecuredPromissoryNoteMember OWPC:DrKennethPeregoIIMember 2024-03-12 0001622244 OWPC:UnsecuredPromissoryNoteMember OWPC:JohnMcCabeInvestmentsLLCMember 2024-03-01 0001622244 OWPC:UnsecuredPromissoryNoteMember OWPC:JohnMcCabeInvestmentsLLCMember 2024-03-01 2024-03-01 0001622244 OWPC:UnsecuredPromissoryNoteTwoMember OWPC:JohnMcCabeInvestmentsLLCMember 2024-03-15 2024-03-15 0001622244 OWPC:UnsecuredPromissoryNoteMember OWPC:DrKennethPeregoIIMember 2024-02-26 0001622244 OWPC:UnsecuredPromissoryNoteMember OWPC:JohnMcCabeInvestmentsLLCMember 2024-01-29 0001622244 OWPC:UnsecuredPromissoryNoteMember OWPC:JohnMcCabeInvestmentsLLCMember 2024-01-29 2024-01-29 0001622244 OWPC:UnsecuredPromissoryNoteMember OWPC:DrKennethPeregoIIMember 2024-01-11 0001622244 OWPC:UnsecuredPromissoryNoteMember OWPC:DrKennethPeregoIIMember 2024-01-08 0001622244 OWPC:UnsecuredPromissoryNoteMember OWPC:DrKennethPeregoIIMember 2023-11-28 0001622244 OWPC:UnsecuredPromissoryNoteMember OWPC:JoergSommerMember 2023-10-11 0001622244 OWPC:UnsecuredPromissoryNoteMember OWPC:JoergSommerMember 2023-10-11 2023-10-11 0001622244 OWPC:UnsecuredPromissoryNoteMember OWPC:DrKennethPeregoIIMember 2023-09-11 0001622244 OWPC:UnsecuredPromissoryNoteMember OWPC:DrKennethPeregoIIMember 2023-09-11 2023-09-11 0001622244 OWPC:UnsecuredPromissoryNoteMember OWPC:DrKennethPeregoIIMember 2023-08-31 0001622244 OWPC:UnsecuredPromissoryNoteMember OWPC:DrKennethPeregoIIMember 2023-08-31 2023-08-31 0001622244 OWPC:UnsecuredPromissoryNoteMember OWPC:DrKennethPeregoIIMember 2023-08-14 0001622244 OWPC:UnsecuredPromissoryNoteMember OWPC:DrKennethPeregoIIMember 2023-08-14 2023-08-14 0001622244 OWPC:UnsecuredPromissoryNoteMember OWPC:DrKennethPeregoIIMember 2022-08-05 0001622244 OWPC:UnsecuredPromissoryNoteMember OWPC:DrKennethPeregoIIMember 2022-08-05 2022-08-05 0001622244 OWPC:UnsecuredPromissoryNoteMember OWPC:IsiahThomasIIIMember 2022-08-02 0001622244 OWPC:UnsecuredPromissoryNoteMember OWPC:IsiahThomasIIIMember 2022-08-02 2022-08-02 0001622244 OWPC:UnsecuredPromissoryNoteMember OWPC:JohnMcCabeInvestmentsLLCMember 2022-06-13 0001622244 OWPC:UnsecuredPromissoryNoteMember OWPC:JohnMcCabeInvestmentsLLCMember 2022-06-13 2022-06-13 0001622244 OWPC:UnsecuredPromissoryNoteMember OWPC:DrKennethPeregoIIMember 2022-07-07 0001622244 OWPC:UnsecuredPromissoryNoteMember OWPC:DrKennethPeregoIIMember 2022-07-07 2022-07-07 0001622244 OWPC:UnsecuredPromissoryNoteMember OWPC:IsiahThomasIIIMember 2022-06-03 0001622244 OWPC:UnsecuredPromissoryNoteMember OWPC:IsiahThomasIIIMember 2022-06-03 2022-06-03 0001622244 OWPC:UnsecuredPromissoryNoteMember OWPC:IsiahThomasIIIMember 2022-05-05 0001622244 OWPC:UnsecuredPromissoryNoteMember OWPC:IsiahThomasIIIMember 2022-05-05 2022-05-05 0001622244 OWPC:UnsecuredPromissoryNoteMember OWPC:DrKennethPeregoIIMember 2022-05-05 0001622244 OWPC:UnsecuredPromissoryNoteMember OWPC:DrKennethPeregoIIMember 2022-05-05 2022-05-05 0001622244 OWPC:UnsecuredPromissoryNoteMember OWPC:JohnMcCabeInvestmentsLLCMember 2022-03-01 0001622244 OWPC:UnsecuredPromissoryNoteMember OWPC:JohnMcCabeInvestmentsLLCMember 2022-03-01 2022-03-01 0001622244 OWPC:UnsecuredPromissoryNoteMember OWPC:JohnMcCabeInvestmentsLLCMember 2022-02-15 0001622244 OWPC:UnsecuredPromissoryNoteMember OWPC:JohnMcCabeInvestmentsLLCMember 2022-02-15 2022-02-15 0001622244 OWPC:UnsecuredPromissoryNoteMember OWPC:DrKennethPeregoIIMember 2021-12-29 0001622244 OWPC:UnsecuredPromissoryNoteMember OWPC:DrKennethPeregoIIMember 2021-12-29 2021-12-29 0001622244 us-gaap:RelatedPartyMember 2024-01-01 2024-03-31 0001622244 us-gaap:RelatedPartyMember 2023-01-01 2023-03-31 0001622244 OWPC:UnsecuredPromissoryNoteOneMember 2024-03-31 0001622244 OWPC:UnsecuredPromissoryNoteOneMember 2023-12-31 0001622244 OWPC:UnsecuredPromissoryNoteTwoMember 2024-03-31 0001622244 OWPC:UnsecuredPromissoryNoteTwoMember 2023-12-31 0001622244 OWPC:UnsecuredPromissoryNoteThreeMember 2024-03-31 0001622244 OWPC:UnsecuredPromissoryNoteThreeMember 2023-12-31 0001622244 OWPC:UnsecuredPromissoryNoteOneMember OWPC:SangnineGroupLlcMember OWPC:PurchaseAgreementMember 2024-03-04 0001622244 OWPC:UnsecuredPromissoryNoteOneMember OWPC:SangnineGroupLlcMember OWPC:PurchaseAgreementMember 2024-03-04 2024-03-04 0001622244 OWPC:UnsecuredPromissoryNoteOneMember OWPC:AJBCapitalInvestmentsLLCMember OWPC:PurchaseAgreementMember 2024-03-04 0001622244 OWPC:UnsecuredPromissoryNoteTwoMember OWPC:LDL8ConsultingLLCMember 2023-08-18 0001622244 OWPC:UnsecuredPromissoryNoteThreeMember OWPC:AJBCapitalInvestmentsLLCMember OWPC:PurchaseAgreementMember 2023-06-23 0001622244 OWPC:UnsecuredPromissoryNoteThreeMember OWPC:AJBCapitalInvestmentsLLCMember OWPC:PurchaseAgreementMember 2023-06-23 2023-06-23 0001622244 OWPC:UnsecuredPromissoryNoteThreeMember OWPC:AJBCapitalInvestmentsLLCMember 2023-06-23 2023-06-23 0001622244 OWPC:UnsecuredPromissoryNoteThreeMember OWPC:AJBCapitalInvestmentsLLCMember 2023-06-23 0001622244 OWPC:NotespayableMember 2024-01-01 2024-03-31 0001622244 OWPC:NotespayableMember 2023-01-01 2023-03-31 0001622244 OWPC:SeriesAConvertiblePreferredStockMember 2024-01-01 2024-03-31 0001622244 us-gaap:SeriesAPreferredStockMember 2024-03-31 0001622244 us-gaap:SeriesBPreferredStockMember 2024-03-31 0001622244 us-gaap:SeriesAPreferredStockMember 2024-01-01 2024-03-31 0001622244 OWPC:TysadcoPartnersLLCMember OWPC:ELOCPurchaseAgreementMember 2022-09-01 2022-09-01 0001622244 OWPC:TysadcoPartnersLLCMember OWPC:ELOCPurchaseAgreementMember us-gaap:CommonStockMember 2022-09-01 2022-09-01 0001622244 OWPC:AdvisorAgreementMember 2023-08-22 2023-08-22 0001622244 srt:PresidentMember 2023-05-22 2023-05-22 0001622244 srt:PresidentMember 2023-05-23 2023-05-23 0001622244 OWPC:ScenarioOneMember 2023-05-23 2023-05-23 0001622244 OWPC:ScenarioTwoMember 2023-05-23 2023-05-23 0001622244 OWPC:ScenarioThreeMember 2023-05-23 2023-05-23 0001622244 OWPC:ScenarioFourMember 2023-05-23 2023-05-23 0001622244 us-gaap:CommonStockMember 2024-03-04 2024-03-04 0001622244 OWPC:PromissoryNoteMember OWPC:MrJoergSommerMember 2024-03-19 2024-03-19 0001622244 OWPC:PromissoryNoteMember OWPC:SanguineGroupLlcMember 2024-03-19 2024-03-19 0001622244 OWPC:MrJoergSommerMember us-gaap:CommonStockMember 2023-06-15 2023-06-15 0001622244 us-gaap:CommonStockMember OWPC:OfficersAndDirectorsMember 2024-03-15 2024-03-15 0001622244 OWPC:TwoConsultantsMember us-gaap:CommonStockMember 2024-03-15 2024-03-15 0001622244 OWPC:ClearThinkCapitalPartnersLLCMember us-gaap:CommonStockMember 2024-02-09 2024-02-09 0001622244 OWPC:ClearThinkCapitalPartnersLLCMember us-gaap:CommonStockMember 2024-03-31 2024-03-31 0001622244 OWPC:BoardOfDirectorsMember OWPC:TwoThousandNineteenStockIncentivePlanMember 2020-02-11 2020-02-12 0001622244 OWPC:TwoThousandNineteenStockIncentivePlanMember 2024-01-01 2024-03-31 0001622244 OWPC:OfficersDirectorsAndEmployeesMember 2024-03-31 0001622244 us-gaap:SubsequentEventMember OWPC:SDTEquitiesLLCMember 2024-04-19 2024-04-19 0001622244 us-gaap:SubsequentEventMember OWPC:SDTEquitiesLLCMember 2024-04-19 0001622244 us-gaap:SubsequentEventMember OWPC:AJBCapitalInvestmentsLLCMember 2024-04-19 0001622244 us-gaap:SubsequentEventMember OWPC:AJBCapitalInvestmentsLLCMember 2024-04-19 2024-04-19 0001622244 us-gaap:SubsequentEventMember 2024-04-19 2024-04-19 0001622244 us-gaap:SubsequentEventMember 2024-04-19 0001622244 us-gaap:SubsequentEventMember OWPC:PreFundedWarrantMember 2024-04-19 0001622244 us-gaap:SubsequentEventMember OWPC:PreFundedWarrantMember 2024-04-19 2024-04-19 0001622244 us-gaap:SubsequentEventMember OWPC:AJBCapitalInvestmentsLLCMember OWPC:DrKennethPeregoIIMember 2024-04-19 0001622244 us-gaap:SubsequentEventMember OWPC:AJBCapitalInvestmentsLLCMember OWPC:DrKennethPeregoIIMember 2024-04-19 2024-04-19 0001622244 OWPC:PromissoryNoteMember OWPC:AJBCapitalInvestmentsLLCMember us-gaap:SubsequentEventMember 2024-04-19 2024-04-19 0001622244 us-gaap:SubsequentEventMember 2024-05-10 2024-05-10 0001622244 OWPC:ClearThinkCapitalPartnersLLCMember us-gaap:CommonStockMember us-gaap:SubsequentEventMember 2024-05-10 2024-05-10 iso4217:USD xbrli:shares iso4217:USD xbrli:shares utr:sqft OWPC:Integer iso4217:COP xbrli:pure

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

 

  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended March 31, 2024

 

OR

 

  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from ____________ to ____________

 

Commission file number: 000-56151

 

 

ONE WORLD PRODUCTS, INC.

(Exact name of registrant as specified in its charter)

 

Nevada   61-1744826

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

     

6605 Grand Montecito Pkwy, Suite 100,

Las Vegas, Nevada 89149

  89149
(Address of principal executive offices)   (zip code)

 

(800) 605-3210

(Registrant’s telephone number, including area code)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class   Trading Symbol(s)   Name of each exchange on which registered
N/A   N/A   N/A

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

 

Yes ☒ No ☐

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

 

Yes ☒ No ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer Accelerated filer
Non-accelerated filer Smaller reporting company
    Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

 

Yes ☐ No

 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock as of the latest practicable date.

 

The number of shares of registrant’s common stock outstanding as of June 10, 2024 was 104,329,919.

 

 

 

 

 

 

TABLE OF CONTENTS

 

    Page
PART I - FINANCIAL INFORMATION   1
ITEM 1. FINANCIAL STATEMENTS (Unaudited)   1
  Condensed Consolidated Balance Sheets as of March 31, 2024 (Unaudited) and December 31, 2023   1
  Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three Months Ended March 31, 2024 and 2023 (Unaudited)   2
  Consolidated Statements of Changes in Stockholders’ Equity (Deficit) for the Three Months Ended March 31, 2024 and 2023 (Unaudited)   3
  Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2024 and 2023 (Unaudited)   5
  Notes to the Condensed Consolidated Financial Statements (Unaudited)   6
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS   21
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK   24
ITEM 4. CONTROLS AND PROCEDURES   25
PART II - OTHER INFORMATION   26
ITEM 1. Legal Proceedings   26
ITEM 1A. RISK FACTORS   26
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS   26
ITEM 3. DEFAULTS UPON SENIOR SECURITIES   27
ITEM 4. MINE SAFETY DISCLOSURES   27
ITEM 5. OTHER INFORMATION   27
ITEM 6. EXHIBITS   28
  SIGNATURES   29

 

 

 

 

PART I – FINANCIAL INFORMATION

 

ITEM 1. FINANCIAL STATEMENTS

 

ONE WORLD PRODUCTS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

 

   March 31,   December 31, 
   2024   2023 
   (Unaudited)      
           
Assets          
Current assets:          
Cash  $40,648   $726 
Accounts receivable   282    - 
Inventory   26,257    - 
Prepaid expenses   31,654    13,156 
Total current assets   98,841    13,882 
           
Security deposits   85,000    85,000 
           
Total Assets  $183,841   $98,882 
           
Liabilities and Stockholders’ Equity (Deficit)          
           
Current liabilities:          
Accounts payable  $618,956   $528,645 
Accrued expenses   871,836    939,368 
Dividends payable   211,650    196,734 
Convertible note payable, related party, current maturities   -    750,000 
Notes payable, related parties, current maturities   -    1,146,500 
Notes payable, net of $126,670 and $24,136 of debt discounts at March 31, 2024 and December 31, 2023, respectively   268,330    310,864 
Total current liabilities   1,970,772    3,872,111 
           
Notes payable, related parties, long-term portion, net of $9,729 of debt discounts at March 31, 2024   2,441,252    - 
           
Total Liabilities   4,412,024    3,872,111 
          
Series A convertible preferred stock, $0.001 par value, 500,000 shares authorized; 99,733 and 70,233 shares issued and outstanding at December 31, 2023 and 2022, respectively   997,330    997,330 
Series B convertible preferred stock, $0.001 par value, 600,000 shares authorized; 238,501 and 272,168 shares issued and outstanding at December 31, 2023 and 2022, respectively   3,577,515    3,577,515 
           
Stockholders’ Equity (Deficit):          
Preferred stock, $0.001 par value, 9,200,000 shares authorized; no shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively   -    - 
Common stock, $0.001 par value, 300,000,000 shares authorized; 111,092,849 and 79,827,618 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively   111,093    79,828 
Additional paid-in capital   19,646,892    18,414,456 
Subscriptions payable   69,695    45,000 
Accumulated other comprehensive income   -    42,328 
Accumulated (deficit)   (28,630,708)   (26,929,686)
Total Stockholders’ Equity (Deficit)   (8,803,028)   (8,348,074)
           
Total Liabilities and Stockholders’ Equity (Deficit)  $183,841   $98,882 

 

See accompanying notes to condensed consolidated financial statements.

 

1

 

 

ONE WORLD PRODUCTS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(Unaudited)

 

   2024   2023 
   For the Three Months Ended 
   March 31, 
   2024   2023 
         
Revenues  $282   $2,101 
Cost of goods sold   49    967 
Gross loss   233    1,134 
           
Operating expenses:          
General and administrative   198,847    347,297 
Professional fees   578,671    103,848 
Depreciation expense   -    7,857 
Total operating expenses   777,518    459,002 
           
Operating loss   (777,285)   (457,868)
           
Other income (expense):          
Loss on early extinguishment of debt   (724,086)   - 
Loss on deconsolidation of foreign subsidiaries   (97,672)   - 
Interest expense   (101,979)   (58,070)
Total other expense   (923,737)   (58,070)
           
Net loss  $(1,701,022)  $(515,938)
           
Other comprehensive loss:          
Gain (loss) on foreign currency translation  $(42,328)  $184,969 
           
Net other comprehensive loss  $(1,743,350)  $(330,969)
Series A convertible preferred stock declared ($0.60 per share)   (14,916)   (12,773)
Net loss attributable to common shareholders  $(1,758,266)  $(343,742)
          
Weighted average number of common shares outstanding - basic and diluted   86,930,048    68,702,907 
           
Net loss per share - basic and diluted  $(0.02)  $(0.01)
           
Dividends declared per share of common stock  $0.00   $0.00 

 

See accompanying notes to condensed consolidated financial statements.

 

2

 

 

ONE WORLD PRODUCTS, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT)

(Unaudited)

 

   Shares   Amount   Shares   Amount   Shares   Amount   Capital   Payable   (Loss)   Deficit   (Deficit) 
   For the Three Months Ended March 31, 2024 
   Series A Convertible   Series B Convertible          Additional       Accumulated
Other
Comprehensive
      

Total

Stockholders’

 
   Preferred Stock  Preferred Stock   Common Stock   Paid-In   Subscriptions   Income   Accumulated   Equity 
   Shares   Amount   Shares   Amount   Shares   Amount   Capital   Payable   (Loss)   Deficit   (Deficit) 
                                             
Balance, December 31, 2023   99,733   $997,330    238,501   $3,577,515    79,827,618   $79,828   $18,414,456   $45,000   $42,328   $(26,929,686)  $      (8,348,074)
                                                        
Common Stock issued for services   -    -    -    -    7,149,621    7,150    460,236    24,695    -    -    492,081 
                                                        
Common Stock issued for debt commitment fees   -    -    -    -    2,750,000    2,750    80,543    -    -    -    83,293 
                                                        
Common stock issued to debt holder in escrow, to be cancelled   -    -    -    -    10,394,610    10,394    (10,394)   -    -    -    - 
                                                        
Common stock issued pursuant to debt modifications   -    -    -    -    10,971,000    10,971    713,115    -    -    -    724,086 
                                                        
Amortization of common stock options issued for services   -    -    -    -    -    -    3,852    -    -    -    3,852 
                                                        
Series A convertible preferred stock dividend declared ($0.60 per share)   -    -    -    -    -    -    (14,916)   -    -    -    (14,916)
                                                        
Loss on foreign currency translation   -    -    -    -    -    -    -    -    (42,328)   -    (42,328)
                                                        
Net loss   -    -    -    -    -    -    -    -    -    (1,701,022)   (1,701,022)
                                                        
Balance, March 31, 2024   99,733   $997,330    238,501   $3,577,515    111,092,849   $111,093   $19,646,892   $69,695   $-   $(28,630,708)  $(8,803,028)

 

3

 

 

   For the Three Months Ended March 31, 2023 
   Series A Convertible   Series B Convertible           Additional       Accumulated
Other
       Total
Stockholders’
 
   Preferred Stock   Preferred Stock   Common Stock   Paid-In   Subscriptions   Comprehensive   Accumulated   Equity 
   Shares   Amount   Shares   Amount   Shares   Amount   Capital   Payable   Income (Loss)   Deficit   (Deficit) 
                                             
Balance, December 31, 2022   70,233   $702,330    272,168   $4,082,520    67,202,907   $67,203   $17,123,603   $               -   $(50,699)  $(22,976,365)  $      (5,836,258)
                                                        
Series A Convertible Preferred Stock sold for cash   15,000    150,000    -    -    -    -    -    -    -    -    - 
                                                        
Series A Convertible Preferred Stock issued for services   4,500    45,000    -    -    -    -    -    -    -    -    - 
                                                        
Common stock sold for cash   -    -    -    -    3,000,000    3,000    297,000    -    -    -    300,000 
                                                        
Amortization of common stock options issued for services   -    -    -    -    -    -    38,130    -    -    -    38,130 
                                                        
Series A convertible preferred stock dividend declared ($0.60 per share)   -    -    -    -    -    -    (12,773)   -    -    -    (12,773)
                                                        
Gain on foreign currency translation   -    -    -    -    -    -    -    -    184,969    -    184,969 
                                                        
Net loss   -    -    -    -    -    -    -    -    -    (515,938)   (515,938)
                                                        
Balance, March 31, 2023   89,733   $897,330    272,168   $4,082,520    70,202,907   $70,203   $17,445,960   $-   $134,270   $(23,492,303)  $(5,841,870)

 

See accompanying notes to condensed consolidated financial statements.

 

4

 

 

ONE WORLD PRODUCTS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

   2024   2023 
   For the Three Months Ended 
   March 31, 
   2024   2023 
Cash flows from operating activities          
Net loss  $(1,701,022)  $(515,938)
Adjustments to reconcile net loss to net cash used in operating activities:          
Depreciation and amortization expense   -    7,857 
Loss on early extinguishment of debt   724,086    - 
Amortization of debt discounts   46,030    - 
Series A preferred stock issued for services   -    45,000 
Common stock issued for services   492,081    - 
Stock options issued for services   3,852    38,130 
Decrease (increase) in assets:          
Accounts receivable   (282)   1,673 
Inventory   (26,257)   (225,037)
Other current assets   (18,498)   (27,353)
Other assets   -    (7,023)
Right-of-use assets   -    22,242 
Security deposits   -    (16)
Increase (decrease) in liabilities:          
Accounts payable   90,311    (50,344)
Accrued expenses   139,949    171,267 
Deferred revenues   -    (1,694)
Lease liability   -    (20,747)
Net cash used in operating activities   (249,750)   (561,983)
           
Cash flows from investing activities          
Purchase of fixed assets   -    (5,046)
Net cash used in investing activities   -    (5,046)
           
Cash flows from financing activities          
Proceeds from notes payable, related parties   347,000    - 
Proceeds from notes payable   285,000    - 
Repayments of notes payable   (300,000)   - 
Proceeds from sale of preferred and common stock   -    450,000 
Net cash provided by financing activities   332,000    450,000 
           
Effect of exchange rate changes on cash   (42,328)   190,722 
           
Net increase (decrease) in cash   39,922    73,693 
Cash - beginning   726    11,016 
Cash - ending  $40,648   $84,709 
           
Supplemental disclosures:          
Interest paid  $10,500   $22,192 
Income taxes paid  $-   $- 
           
Non-cash investing and financing transactions:          
Dividends payable  $14,916   $12,773 
Value of debt discounts attributable to commitment shares to related parties  $9,839   $- 
Value of debt discounts attributable to commitment shares  $73,454   $- 

 

See accompanying notes to condensed consolidated financial statements.

 

5

 

 

ONE WORLD PRODUCTS, INC.

Notes to Condensed Consolidated Financial Statements

(Unaudited)

 

Note 1 – Nature of Business and Significant Accounting Policies

 

Nature of Business

 

One World Products, Inc. (the “Company,” “we,” “our” or “us”) was incorporated in Nevada on September 2, 2014. On February 21, 2019, the Company entered into an Agreement and Plan of Merger with OWP Merger Subsidiary, Inc., a wholly-owned subsidiary, and OWP Ventures, Inc. (“OWP Ventures”), which is the parent company of One World Pharma SAS, a Colombian Simplified Shares Company (“OWP SAS”). Pursuant to the Merger Agreement, we acquired OWP Ventures (and indirectly, OWP SAS) by the merger of OWP Merger Subsidiary with and into OWP Ventures, with OWP Ventures being the surviving entity as our wholly-owned subsidiary (the “Merger”). As a result of the Merger (a) holders of the outstanding capital stock of OWP Ventures received an aggregate of 39,475,398 shares of our common stock; (b) options to purchase 825,000 shares of common stock of OWP Ventures at an exercise price of $0.50 automatically converted into options to purchase 825,000 shares of our common stock at an exercise price of $0.50; (c) the outstanding principal and interest under a $300,000 convertible note issued by OWP Ventures became convertible, at the option of the holder, into shares of the Company’s common stock at a conversion price equal to the lesser of $0.424 per share or 80% of the price the Company sold its common stock in a future “Qualified Offering”; (d) 875,000 shares of our common stock owned by OWP Ventures prior to the Merger were cancelled; and (e) OWP Ventures’ chief operating officer became our chief operating officer and two of OWP Ventures’ directors became members of our board of directors. The Company’s headquarters are located in Las Vegas, Nevada, and its customers will predominantly be located outside of the United States. On January 10, 2019, the Company changed its name from Punto Group, Corp. to One World Pharma, Inc., and on November 23, 2021, the Company changed its name to One World Products, Inc. through the merger of One World Products, Inc., a recently formed Nevada corporation wholly-owned by the Company, with and into the Company (the “Name Change Merger”) pursuant to the applicable provisions of the Nevada Revised Statutes (“NRS”). As permitted by the NRS, the articles of merger filed with the Secretary of State of the state of Nevada to effect the Name Change Merger amended Article I of the Company’s Articles of Incorporation to change the Company’s name to “One World Products, Inc.” The Name Change Merger was effected solely to effect the change of the Company’s name, and had no effect on the Company’s officers, directors, operations, assets or liabilities.

 

OWP Ventures is a holding company formed in Delaware on March 27, 2018 to enter and support the cannabis industry, and on May 30, 2018, it acquired OWP SAS. OWP SAS is a licensed cannabis cultivation, production and distribution (export) company located in Popayán, Colombia (nearest major city is Cali). The Company plans to be a producer of and/or source raw and processed cannabis and hemp plant ingredients for both medical and industrial uses across the globe. The Company has received licenses to cultivate, produce and distribute the raw ingredients of the cannabis and hemp plant for medicinal, scientific and industrial purposes. Specifically, the Company is one of the few companies in Colombia to receive all four licenses, including seed use, cultivation of non-psychoactive cannabis, cultivation of psychoactive cannabis, and manufacturing allowing for extraction and export. Currently, we own approximately 30 acres and have a covered greenhouse built specifically to cultivate high-grade cannabis and hemp. In addition, the Company has entered into agreements with local farming cooperatives that include small farmers and indigenous tribe members, under which they will cultivate cannabis on up to approximately 140 acres of land using our seeds and propagation techniques, and sell their harvested products to us on an exclusive basis. The Company began harvesting cannabis in the first quarter of 2019 for the purpose of further research and development activities, quality control testing and extraction. OWP SAS has generated revenue since the second quarter of 2020. During the first quarter of 2022, the Company made payments of approximately $1,400,000 for a state-of-the-art distillation machine that cleared customs and is currently located in a warehouse near Bogotá.

 

On December 22, 2023, OWP SAS, filed for protection under Colombian Law 1116 of 2006, which is the primary legislation governing business insolvency proceedings (restructuring and liquidation) (“Reorganization Proceedings”) in Colombia. The Reorganization Proceeds are similar to Chapter 11 of the United States Bankruptcy Code (the “Bankruptcy Code”) in the United States, whereby the Company intends to restructure its debts and continue to operate.

 

In connection with the Reorganization Proceedings, we paused production and sales of our cannabis operations in Colombia until the court overseeing the Reorganization Proceedings (the “Court”) provides the Company with a plan of reorganization, at which time the Company intends to resume operations and satisfy its obligations in Colombia in accordance with the Court’s plan. Furthermore, we continued our aggressive cost-cutting actions that included significant personnel reductions. As a result of these actions, OWP SAS has no revenue-producing operations. The Company’s primary operations during the fourth quarter of 2023, and to date in 2024, have consisted of activities associated with completing the Reorganization Proceedings, resolving substantial litigation, claims reconciliation, and preparing for emergence from Reorganization Proceedings as contemplated in the yet to be determined, Proposed Plan.

 

Upon the date that the Proposed Plan, which is yet to be determined and remains subject to Court approval, becomes effective (the “Effective Date”), and subject to the effectiveness of the Proposed Plan, it is contemplated that the near term operations of the Company (also referred to as the “Post-Effective Date Debtors”) will consist of (a) claims administration under the Proposed Plan, (b) addressing the litigation, (c) prosecuting, pursuing, compromising, settling, or otherwise disposing of other retained causes of action, (d) defending the Company against any counterclaims, (e) attempting to realize value, if any, from our assets and (f) satisfying other regulatory requirements.

 

6

 

 

ONE WORLD PRODUCTS, INC.

Notes to Condensed Consolidated Financial Statements

(Unaudited)

 

In the future, the Post-Effective Date Debtors expect to explore potential business opportunities, including strategic partnerships, including those designed to maximize the Debtor’s assets, including restoration of the Company’s cannabis operations. No assurance can be made that the Proposed Plan will become effective or that we will be successful in prosecuting any claim or cause of action or that any strategic alternative will be identified and/or would result in profitable operations.

 

In accordance with ASC 810-10-15, the Company has deconsolidated its foreign subsidiaries until it emerges from the Reorganization Proceedings to include the petitioning entity, OWP SAS, as well as the Company’s non-operating shell entities, Agrobase, S.A.S. and Hope Colombia, S.A.S., given the lack of independently identifiable operations. The deconsolidation resulted in a loss on deconsolidation of foreign subsidiaries in the amount of $97,672 and $1,564,823 for the three months ended March 31, 2024 and the year ended December 31, 2023, respectively.

 

During March of 2024, the Company, through OWP Ventures, began to sell a CBD-based therapeutic product in the United States in limited quantities.

 

Financial Reporting Under Reorganization

 

The Unaudited Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q have been prepared to reflect the application of Financial Accounting Standards Board, or “FASB” Accounting Standards Codification, or “ASC” 852, Reorganizations, which is a critical accounting policy. During the pendency of the bankruptcy protection under Colombian Law 1116 of 2006, the foreign subsidiaries have been deconsolidated, as disclosed in Note 3, below.

 

Effective as of the Petition Date, the Company ceased recognizing interest income on intercompany loans made to the foreign subsidiaries. Subsequent loans advanced to, or payments made on behalf of these foreign subsidiaries, have been recognized as a loss on deconsolidation of foreign subsidiaries.

 

In connection with the Company’s emergence from the bankruptcy protection under Colombian Law 1116 of 2006 on the Effective Date, the Company expects to adopt fresh-start accounting, which will result in the foreign subsidiaries becoming new entities for financial reporting purposes. Upon adoption of fresh-start accounting, the Company’s assets and liabilities will be recorded at their fair value as of the fresh-start reporting date or Effective Date. The fair values of the Company’s assets and liabilities as of that date may differ materially from the recorded values of its assets and liabilities as reflected in its historical consolidated financial statements. In addition, the Company’s adoption of fresh-start accounting may materially affect its results of operations following the fresh-start reporting dates, as the Company will have a new basis in its assets and liabilities. Consequently, the Company’s financial statements on or after the Effective Date will not be comparable with the financial statements prior to that date and the historical financial statements will not be reliable indicators of its financial condition and results of operations for any period after it adopts fresh-start accounting. The Company is in the process of evaluating the potential impact of the fresh-start accounting on its consolidated financial statements.

 

Basis of Presentation

 

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) and the rules of the Securities and Exchange Commission (SEC). Intercompany accounts and transactions have been eliminated.

 

The unaudited condensed consolidated financial statements of the Company and the accompanying notes included in this Quarterly Report on Form 10-Q are unaudited. In the opinion of management, all adjustments necessary for a fair presentation of the Condensed Consolidated Financial Statements have been included. Such adjustments are of a normal, recurring nature. The Condensed Consolidated Financial Statements, and the accompanying notes, are prepared in accordance with GAAP and do not contain certain information included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023. The interim Condensed Consolidated Financial Statements should be read in conjunction with that Annual Report on Form 10-K. Results for the interim periods presented are not necessarily indicative of the results that might be expected for the entire fiscal year.

 

Principles of Consolidation

 

The accompanying consolidated financial statements include the accounts of the following entities, all of which were under common control and ownership at March 31, 2024:

 

    State of    
Name of Entity   Incorporation   Relationship
One World Products, Inc.(1)   Nevada   Parent
OWP Ventures, Inc.(2)   Delaware   Subsidiary

 

(1) Holding company in the form of a corporation.
(2) Holding company in the form of a corporation and wholly-owned subsidiary of One World Products, Inc.

 

The consolidated financial statements herein contain the operations of the wholly-owned subsidiaries listed above. The Company’s headquarters are located in Las Vegas, Nevada.

 

Reclassifications

 

Certain reclassifications have been made to the prior years’ financial statements to conform to current year presentation. These reclassifications had no effect on previously reported results of operations or retained earnings.

 

Foreign Currency Translation

 

The functional currency of the Company is Colombian Peso (COP). The Company has maintained its financial statements using the functional currency, and translated those financial statements to the US Dollar (USD) throughout this report. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency at rates of exchange prevailing at the balance sheet dates. Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Exchange gains or losses arising from foreign currency transactions are included in the determination of net income (loss) for the respective periods.

 

7

 

 

ONE WORLD PRODUCTS, INC.

Notes to Condensed Consolidated Financial Statements

(Unaudited)

 

Comprehensive Income

 

The Company has adopted the Financial Accounting Standards Boards (“FASB”) Accounting Standards Codification (“ASC”) 220, Reporting Comprehensive Income, which establishes standards for reporting and displaying comprehensive income, its components, and accumulated balances in a full-set of general-purpose financial statements. Accumulated other comprehensive income represents the accumulated balance of foreign currency translation adjustments.

 

Use of Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that may affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.

 

Segment Reporting

 

ASC Topic 280, “Segment Reporting,” requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s management organizes segments within the company for making operating decisions and assessing performance. The Company operates as a single segment and will evaluate additional segment disclosure requirements as it expands its operations.

 

Fair Value of Financial Instruments

 

The Company discloses the fair value of certain assets and liabilities in accordance with ASC 820 – Fair Value Measurement and Disclosures (ASC 820). Under ASC 820-10-05, the FASB establishes a framework for measuring fair value in generally accepted accounting principles and expands disclosures about fair value measurements. This Statement reaffirms that fair value is the relevant measurement attribute. The adoption of this standard did not have a material effect on the Company’s financial statements as reflected herein. The carrying amounts of cash, accounts receivable, accounts payable and accrued expenses reported on the balance sheets are estimated by management to approximate fair value primarily due to the short-term nature of the instruments.

 

Cash in Excess of FDIC Insured Limits

 

The Company maintains its cash in bank deposit accounts which, at times, may exceed federally insured limits. Accounts are guaranteed by the Federal Deposit Insurance Corporation (FDIC) up to $250,000, under current regulations. The Company did not have any cash in excess of FDIC insured limits at March 31, 2024, and has not experienced any losses in such accounts.

 

Revenue Recognition

 

The Company recognizes revenue in accordance with ASC 606 — Revenue from Contracts with Customers. Under ASC 606, the Company recognizes revenue from the commercial sales of products, licensing agreements and contracts to perform pilot studies by applying the following steps: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to each performance obligation in the contract; and (5) recognize revenue when each performance obligation is satisfied. The Company’s revenues in the current period consisted of the sale of our CBD rub, and in the prior period revenues consisted entirely of the sale of seeds. The sale of seeds included multi-element arrangements whereby the Company collected 50% of the sale upon delivery of the sales, and the remaining 50% upon the completion of the harvest, whether the seeds result in a successful crop, or not. In addition, the Company had a right of first refusal to purchase products resulting from the harvest.

 

Inventory

 

Inventories are stated at the lower of cost or net realizable value. Cost is determined on a standard cost basis that approximates the first-in, first-out (FIFO) method. Appropriate consideration is given to obsolescence, excessive levels, deterioration, and other factors in evaluating net realizable value. Our cannabis products consist of cannabis flower grown in-house, along with produced extracts.

 

8

 

 

ONE WORLD PRODUCTS, INC.

Notes to Condensed Consolidated Financial Statements

(Unaudited)

 

Stock-Based Compensation

 

The Company accounts for equity instruments issued to employees and non-employees in accordance with the provisions of ASC 718 Stock Compensation (ASC 718). All transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable. The measurement date of the fair value of the equity instrument issued is the earlier of the date on which the counterparty’s performance is complete or the date at which a commitment for performance by the counterparty to earn the equity instruments is reached because of sufficiently large disincentives for nonperformance.

 

Basic and Diluted Loss Per Share

 

The basic net loss per common share is computed by dividing the net loss by the weighted average number of common shares outstanding. Diluted net loss per common share is computed by dividing the net loss adjusted on an “as if converted” basis, by the weighted average number of common shares outstanding plus potential dilutive securities. For the periods presented, potential dilutive securities had an anti-dilutive effect and were not included in the calculation of diluted net loss per common share.

 

Recent Accounting Pronouncements

 

From time to time, new accounting pronouncements are issued by the FASB that are adopted by the Company as of the specified effective date. If not discussed, management believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on the Company’s financial statements upon adoption.

 

In December 2023, the FASB issued Accounting Standards Update (“ASU”) 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. The guidance is effective for the Company’s fiscal years beginning after December 15, 2024, with early adoption permitted. The Company does not expect the adoption of this standard to have any material impact on its financial statements.

 

There are no other recently issued accounting pronouncements that the Company has yet to adopt that are expected to have a material effect on its financial position, results of operations, or cash flows.

 

Note 2 –Going Concern

 

As shown in the accompanying condensed consolidated financial statements as of March 31, 2024, our balance of cash on hand was $40,648, and we had negative working capital of $1,871,931 and an accumulated deficit of $28,630,708. We are too early in our development stage to project future revenue levels, and may not be able to generate sufficient funds to sustain our operations for the next twelve months. Accordingly, we may need to raise additional cash to fund our operations. These factors raise substantial doubt about the Company’s ability to continue as a going concern.

 

In the event sales do not materialize at the expected rates, management would seek additional financing and would attempt to conserve cash by further reducing expenses. There can be no assurance that we will be successful in achieving these objectives; therefore, without sufficient financing it would be unlikely for the Company to continue as a going concern.

 

The condensed consolidated financial statements do not include any adjustments that might result from the outcome of any uncertainty as to the Company’s ability to continue as a going concern. The condensed consolidated financial statements also do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern. Our ability to scale production and distribution capabilities and further increase the value of our brands, is largely dependent on our success in raising additional capital.

 

9

 

 

ONE WORLD PRODUCTS, INC.

Notes to Condensed Consolidated Financial Statements

(Unaudited)

 

Note 3 – Deconsolidation of Foreign Subsidiaries

 

On December 22, 2023, our wholly-owned subsidiary, One World Products, S.A.S., a Colombian Simplified Shares Company, filed for protection under Colombian Law 1116 of 2006, which is the primary legislation governing business insolvency proceedings (restructuring and liquidation) (“Reorganization Proceedings”) in Colombia. The Reorganization Proceeds are similar to Chapter 11 of the Bankruptcy Code in the United States, whereby the Company intends to restructure its debts and continue to operate. The plan of reorganization and assessment of valid claims has not yet been determined, or approved by the Court and creditors, as necessary. OWP SAS has currently identified approximately 23 creditors, consisting of approximately $1.2 million of financial obligations, collectively. In accordance with ASC 810-10-15, the Company has deconsolidated its foreign subsidiaries until it emerges from the Reorganization Proceedings to include the petitioning entity, OWP SAS. Given the lack of independently identifiable operations, the Company has also deconsolidated its non-operating shell entities, Agrobase, S.A.S. and Hope Colombia, S.A.S (collectively, the “Foreign Subsidiaries”). The deconsolidation resulted in a loss on deconsolidation of foreign subsidiaries in the amount of $97,672 and $1,564,823 for the three months ended March 31, 2024 and the year ended December 31, 2023, respectively. A summary of the deconsolidated condensed combined balance sheets and statement of operations and comprehensive loss of the Foreign Subsidiaries is as follows:

 

FOREIGN SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

 

   March 31,   December 31, 
   2024   2023 
         
Assets          
           
Current assets:          
Cash  $3,804   $1,660 
Inventory   45,616    45,791 
Other current assets   48,231    2,687 
Total current assets   97,651    50,138 
           
Other assets   225,348    226,542 
Fixed assets, net   2,333,021    2,346,281 
           
Total Assets  $2,656,020   $2,622,961 
           
Liabilities and Stockholders’ Equity (Deficit)          
           
Current liabilities:          
Accounts payable  $396,773   $392,403 
Accrued expenses   472,606    482,587 
Notes payable   182,183    183,148 
Intercompany liabilities owed to OWP Ventures, Inc.   7,528,031    7,348,034 
Total current liabilities   8,579,593    8,406,172 
           
Stockholders’ Equity (Deficit):          
Accumulated other comprehensive income   5,463    - 
Accumulated (deficit)   (5,929,036)   (5,783,211)
Total Stockholders’ Equity (Deficit)   (5,923,573)   (5,783,211)
           
Total Liabilities and Stockholders’ Equity (Deficit)  $2,656,020   $2,622,961 

 

10

 

 

ONE WORLD PRODUCTS, INC.

Notes to Condensed Consolidated Financial Statements

(Unaudited)

 

FOREIGN SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS

 

   For the Three 
   Months Ended 
   March 31, 
   2024 
     
Operating expenses:     
General and administrative  $77,866 
Professional fees   14,966 
Depreciation expense   13,260 
Total operating expenses   106,092 
      
Operating loss   (106,092)
      
Other income (expense):     
Interest expense   (39,733)
Total other expense   (39,733)
      
Net loss  $(145,825)
Other comprehensive loss:     
Gain on foreign currency translation  $5,463 
      
Net loss  $(140,362)

 

FOREIGN SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

 

   For the Three 
   Months Ended 
   March 31, 
   2024 
Cash flows from operating activities     
Net loss  $(145,825)
Adjustments to reconcile net loss to net cash used in operating activities:     
Depreciation and amortization expense   13,260 
Decrease (increase) in assets:     
Inventory   175 
Other current assets   (45,544)
Other assets   1,194 
Increase (decrease) in liabilities:     
Accounts payable   4,370 
Accrued expenses   (10,131)
Accrued interest on interCompany loans   39,997 
Net cash used in operating activities   (142,504)
      
Cash flows from financing activities     
Proceeds received from interCompany loan   140,000 
Net cash provided by financing activities   140,000 
      
Effect of exchange rate changes on cash   4,648 
      
Net increase (decrease) in cash   2,144 
Cash - beginning   1,660 
Cash - ending  $3,804 
      
Supplemental disclosures:     
Interest paid  $- 
Income taxes paid  $- 

 

Note 4 – Related Party Transactions

 

Common Stock Issued as Consideration for Related Party Debt Modifications

 

On March 15, 2024, the Company, through its wholly-owned subsidiary, OWP Ventures, Inc., agreed to issue shares of common stock to officers and directors in consideration for extending the maturity dates and terms of previously received debt financing, as listed below. The aggregate fair value of the common stock was $724,086, based on the closing price of the Company’s common stock on the date of grant, which was recognized as a loss on early extinguishment of debt. The previously issued promissory notes were cancelled in exchange for promissory notes with a maturity date of March 1, 2027, bearing interest at 10% per annum, with the exception of the promissory note issued to Dr. John McCabe, which carries an interest rate of 7% per annum.

 

      Aggregate         
Name  Position  Debts Extended   Shares   Fair Value 
Isiah L. Thomas, III  Chairman and CEO  $27,467    138,000   $9,108 
Dr. Kenneth Perego, II  Vice Chairman   337,000    1,685,000    111,210 
Joerg Sommer  President   26,116    131,000    8,646 
Dr. John McCabe  >5% Shareholder   1,803,398    9,017,000    595,122 
      $2,193,981    10,971,000   $724,086 

 

11
 

 

Common Stock Issued for Services, Related Parties

 

On June 15, 2023, the Company issued 1,500,000 shares of common stock to the Company’s President, Joerg Sommer, for services provided. The aggregate fair value of the common stock was $89,850, based on the closing price of the Company’s common stock on the date of grant. The shares were expensed upon issuance.

 

On March 15, 2024, the Company issued shares of common stock to officers and directors for services provided, as listed below. The aggregate fair value of the common stock was $429,000, based on the closing price of the Company’s common stock on the date of grant. The shares were expensed upon issuance.

 

Name  Position  Shares   Fair Value 
Isiah L. Thomas, III  Chairman and CEO   2,000,000   $132,000 
Dr. Kenneth Perego, II  Vice Chairman   2,000,000    132,000 
Terry Buffalo  Director   2,000,000    132,000 
Joerg Sommer  President   500,000    33,000 
       6,500,000   $429,000 

 

Note 5 – Fair Value of Financial Instruments

 

Under FASB ASC 820-10-5, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). The standard outlines a valuation framework and creates a fair value hierarchy in order to increase the consistency and comparability of fair value measurements and the related disclosures. Under GAAP, certain assets and liabilities must be measured at fair value, and FASB ASC 820-10-50 details the disclosures that are required for items measured at fair value.

 

The Company has certain financial instruments that must be measured under the new fair value standard. The Company’s financial assets and liabilities are measured using inputs from the three levels of the fair value hierarchy. The three levels are as follows:

 

Level 1 - Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.

 

Level 2 - Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs).

 

Level 3 - Unobservable inputs that reflect our assumptions about the assumptions that market participants would use in pricing the asset or liability.

 

The following schedule summarizes the valuation of financial instruments at fair value on a recurring basis in the balance sheet as of March 31, 2024 and December 31, 2023, respectively:

  

   Level 1   Level 2   Level 3 
   Fair Value Measurements at March 31, 2024 
   Level 1   Level 2   Level 3 
Assets            
Cash  $40,648   $-   $- 
Total assets   40,648    -    - 
Liabilities               
Notes payable, related parties, net of $9,729 of debt discounts   -    2,441,252    - 
Notes payable, net of $126,670 of debt discounts   -    268,330    - 
Total liabilities   -    (2,709,582)   - 
Fair Value, Net Asset (Liability)  $40,648   $(2,709,582)  $- 

 

   Level 1   Level 2   Level 3 
   Fair Value Measurements at December 31, 2023 
   Level 1   Level 2   Level 3 
Assets            
Cash  $726   $-   $- 
Total assets   726    -    - 
Liabilities               
                
Convertible notes payable, related party   -    750,000    - 
Notes payable, related parties   -    1,146,500    - 
Notes payable, net of $24,136 of debt discounts   -    310,864    - 
Total liabilities   -    (2,207,364)   - 
Fair Value, Net Asset (Liability)  $726   $(2,207,364)  $- 

 

12

 

 

ONE WORLD PRODUCTS, INC.

Notes to Condensed Consolidated Financial Statements

(Unaudited)

 

There were no transfers of financial assets or liabilities between Level 1, Level 2 and Level 3 inputs for the three months ended March 31, 2024 or the year ended December 31, 2023.

 

Note 6 – Inventory

 

Inventories are stated at the lower of cost or net realizable value. Cost is determined on a standard cost basis that approximates the first-in, first-out (FIFO) method. Appropriate consideration is given to obsolescence, excessive levels, deterioration, and other factors in evaluating net realizable value. Our CBD products consist entirely of finished goods. Inventory was $26,257 at March 31, 2024.

 

Note 7 – Security Deposits

 

Security deposits consisted of refundable deposits on equipment purchases in the amount of $85,000 as of March 31, 2024 and December 31, 2023.

 

Note 8 – Accrued Expenses

 

Accrued expenses consisted of the following at March 31, 2024 and December 31, 2023, respectively:

 

   March 31,   December 31, 
   2024   2023 
Accrued compensation  $759,917   $665,417 
Accrued interest   111,919    273,951 
Accrued expenses  $871,836   $939,368 

 

Note 9 – Convertible Note Payable, Related Party

 

Convertible note payable, related party consists of the following at March 31, 2024 and December 31, 2023, respectively:

 

    March 31,     December 31,  
    2024     2023  
On September 27, 2022                    -        750,000   
On September 27, 2022, the Company completed the sale of a Convertible Promissory Note in the principal amount of $750,000 (the “Convertible McCabe Note”) to Dr. John McCabe, an affiliate investor. The unsecured note matured on September 16, 2024 (the “Maturity Date”), carried interest at a rate of 8% per annum, and the principal and interest were convertible into shares of the Company’s convertible Series B common stock at a conversion price of $15 per share. On March 15, 2024, the Company, through its wholly-owned subsidiary, OWP Ventures, Inc., exchanged the $750,000 of principal, and $90,740 of accrued interest, along with other debts and interest, for a promissory note with a maturity date of March 1, 2027, bearing interest at 7% per annum. As consideration for condensing these loans and extending the maturity dates, the Company awarded Mr. McCabe 9,017,000 shares of common stock. The aggregate fair value of the common stock was $595,122, based on the closing price of the Company’s common stock on the date of grant.   $                -     $ 750,000  
                 
Total convertible note payable, related party     -       750,000  
Less: current maturities     -       -  
Convertible note payable, related party, long-term portion   $ -     $ 750,000  

 

The Company recorded interest expense pursuant to the stated interest rates on the convertible note, related party in the amount of $15,124 and $14,795 for the three months ended March 31, 2024 and 2023, respectively.

 

13

 

 

ONE WORLD PRODUCTS, INC.

Notes to Condensed Consolidated Financial Statements