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 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 it 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 with and without CBD infused pads, 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"); however, the Company has just recently begun extracting cannabinol ("CBN") and cannabigerol ("CBG") for wholesale to third-parties looking to incorporate such compounds into their products through its wholly owned subsidiaries, Botanical Biotech, LLC (incorporated March 10, 2021) and TN Botanicals LLC and CO Botanicals LLC (both incorporated in August 2021). The three subsidiaries have also begun synthesizing Delta-8 and Delta-10 from hemp. Delta-8 can produce similar, though less potent, effects as delta-9 (commonly referred to as THC); however, the legality of hemp derived delta-8 is in a gray area. The Company's other subsidiaries did not have operations during the six months ended June 30, 2022.

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, moisturizers, isolate, gel caps, spa products, and concentrates and lifestyle products. Can B? develops its own line of proprietary products as well seeks synergistic value through acquisitions in the hemp industry. Can B? aims to be the premier provider of the highest quality hemp derived products on the market through sourcing the best raw material and offering a variety of products we believe will improve people's lives in a variety of areas.

The consolidated financial statements include the accounts of CANB and its operational wholly owned subsidiaries.





Results of Operations


Three months ended June 30, 2022 compared to three months ended June 30, 2021.

Revenues increased $869,236 from $401,766 in 2021 to $1,271,002 in 2022. The increase is due to the wind down of restrictions related to the Covid-19 Pandemic surrounding elective surgeries, enabling an increase in the usage of the Company's Duramed product lines and ultrasound device associated with patient recovery. Additionally, due to asset acquisitions in 2021, the Company's Music City Botanical and Botanical Biotech brands related to an increase of sales compared to 2021 of approximately $746,000.

Cost of product sales increased $772,205 from $258,612 in 2021 to $1,030,817 in 2022 due to the increase in sales caused by increase in operations and 2021 acquisitions.

Operating expenses decreased $930,204 from $2,728,998 in 2021 to $1,798,794 in 2022 as a direct result of 2021 professional fees incurred and attributable to the Company's asset acquisitions and Regulation A offering in the six months ending June 30, 2021.

Net loss decreased 1,094,103 from $2,739,989 in 2021 to $1,645,886 in 2022. The decrease was due to the $930,204 decrease in total operating expenses coupled by the $97,031 increase in gross profit.

Six months ended June 30, 2022 compared to six months ended June 30, 2021.

Revenues increased 1,619,861 from $605,796 in 2021 to $3,131,322 in 2022. The increase is due to the wind down of restrictions related to the Covid-19 Pandemic surrounding elective surgeries, enabling an increase in the usage of the Company's Duramed product lines and ultrasound device associated with patient recovery. Additionally, due to asset acquisitions in 2021, the Company's Music City Botanical and Botanical Biotech brands related to an increase of sales compared to 2021 of $1,310,996.

Cost of product sales increased $1,885,740 from $335,407 in 2021 to $2,221,147 in 2022 due to the increase in sales caused by increase in operations and 2021 acquisitions.

Operating expenses increased $909,114 from $4,751,667 in 2021 to $5,660,791 in 2022 due to accounting, legal, and other professional fees related to the Company's registration statement S-1 filing efforts during the first quarter of 2022.

Net loss increased 210,912 from $4,919,871 in 2021 to $5,130,783 in 2022. The increase was due to continued efforts and fees related to the Company's registration statement S-1 filings during the first quarter of 2022.





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Liquidity and Capital Resources

At June 30, 2022, the Company had cash and cash equivalents of $124,058 and negative working capital of $2,205,873. Cash and cash equivalents decreased $324,943 from $449,001 at December 31, 2021 to $124,058 at June 30, 2022. For the six months ended June 30, 2022, $2,031,872 was provided by financing activities, $2,356,815 was used in operating activities, and $0 was used in investing activities.

The Company currently has no agreements, arrangements or understandings with any person to obtain funds through bank loans, lines of credit or any other sources.

We have no off-balance sheet arrangements.





Trend Information


The novel coronavirus disease of 2019 ("COVID-19") outbreak has affected the Company's operations as set forth above. The full impact of the COVID-19 outbreak continues to evolve. As such, it is uncertain as to the full magnitude that the pandemic will have on our financial condition, liquidity, and future results of operations. Management is actively monitoring the impact of the global situation on our financial condition, liquidity, operations, suppliers, industry, and workforce. Given the daily evolution of the COVID-19 outbreak and the global responses to curb its spread, we are not able to estimate the effects of the COVID-19 outbreak on our results of operations, financial condition, or liquidity for the foreseeable future. Presently, our Duramed operations are at 80% of pre-COVID operational level. Our expectation that as business open, and in particular medical offices, that our recovery will progress in sync with the speed of the business openings and expect to be back to pre-COVID operational level by end of the 2nd quarter 2022. Sales of CBD and related products continue to moderately recover and we expect to be back at pre-COVID levels by the end of the 3rd quarter 2022.

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