Mon, Jun 30, 8:52 PM (14 days ago)
**Summary of Stemtech Corporation (STEK) 10-K Annual Report for the Fiscal Year Ended December 31, 2024** **Financial Performance:** - **Revenue:** $5,053,690 (2024) vs. $4,921,531 (2023), showing a slight increase. - **Net Income:** Net loss of $3,772,701 (2024) vs. $5,431,979 (2023), indicating an improvement. - **Operating Expenses:** $6,113,773 (2024) vs. $8,144,439 (2023), reflecting a significant decrease. - **Earnings per Share:** Basic and diluted loss per share of $0.03 (2024) vs. $0.07 (2023). **Strategic Overview:** - Stemtech is a global network marketing company specializing in stem cell nutrition products. - The company markets products under brands like RCM System, stemrelease3™, StemFlo®, MigraStem®, OraStem®, and Cellect One®. - Strategic initiatives include expanding the Independent Business Partner (IBP) network and introducing new products like StemPets™. **Future Outlook:** - Plans to add 30,000 new IBPs over the next 12-24 months. - Focus on reinvigorating sales to align with historical revenue levels. - Expansion into the global pet industry with StemPets™. **Risk Factors:** - Dependence on the performance of IBPs and the direct-to-consumer (DTC) network. - Regulatory risks associated with the nutraceutical industry. - Financial risks due to high operating expenses and net losses. **Financial Condition:** - **Current Assets:** $921,746 (2024) vs. $400,710 (2023). - **Current Liabilities:** $9,009,049 (2024) vs. $6,462,036 (2023). - **Stockholders' Deficit:** $5,226,804 (2024) vs. $2,778,765 (2023). **Market Position Changes:** - Stemtech's common shares are quoted on the NASD OTC Bulletin Board under the symbol "STEK." - The company is classified as an emerging growth company and a smaller reporting company. **Other Notable Information:** - Legal proceedings involving a former CEO's lawsuit for unpaid salary and vacation pay. - Cybersecurity measures in place to protect data and prevent breaches. - No material weaknesses in internal control over financial reporting identified. **Conclusion:** Stemtech Corporation continues to face financial challenges but shows signs of improvement in operating expenses and net loss. The company's strategic focus on expanding its IBP network and introducing new products aims to drive future growth and profitability. However, risks related to regulatory compliance, financial stability, and market competition remain significant.