Iconic Brands, Inc.

CIK:0001350073|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
REVENUE
Sales	$ 2,014,919	$ 4,046,797
Cost of goods sold	1,124,123	2,205,039
Gross Profit	890,796	1,841,758
OPERATING EXPENSES
General and administrative expenses	3,174,814	4,458,387
Selling and marketing	110,762	351,977
Total operating expenses	3,285,576	4,810,364
Loss from operations	(2,394,780)	(2,968,606)
Other income (expense):
Interest expense	(171,040)	(183,134)
Other income, net	32,540	0
Total other expense	(138,500)	(183,134)
Net loss	(2,533,280)	(3,151,740)
Net income (loss) attributable to noncontrolling interests in subsidiaries	149,379	(93,819)
Net loss attributable to Iconic Brands, Inc.	$ (2,682,659)	$ (3,057,921)
Basic and diluted loss per common share	$ (0.03)	$ (0.03)
Weighted average number of shares outstanding, basic and diluted	107,301,027	94,923,294

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (2,533,280)	$ (3,151,740)
Adjustment to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	240,366	78,348
Amortization of operating lease right-of-use assets	165,294	201,253
Amortization of debt discounts	45,312	0
Change in allowance for doubtful accounts	679,141	47,000
Provision for excess and obsolete inventory	40,000	0
Amortization of intangibles	75,712	796,600
Equity-based compensation	204,379	280,798
Change in operating assets and liabilities:
Accounts receivable	(435,303)	(3,224,755)
Inventory	79,636	(1,953,368)
Operating lease liabilities	(154,571)	(45,904)
Accounts payable and accrued expenses	757,696	1,769,095
Prepaid expense and other current assets	4,910	(453,554)
Other assets	2,380	(81,417)
Deferred revenue	146,907	10,660
Net cash used in operating activities	(681,421)	(5,726,984)
CASH FLOWS USED IN INVESTING ACTIVITIES:
Fixed assets and leasehold improvements	(399,612)	(1,833,396)
CASH FLOWS FROM FINANCING ACTIVITIES:
Common Stock and Series A-2 Preferred Stock issued for Cash, net of fees	0	10,998,076
Net proceeds from factoring arrangement	0	1,960,604
Proceeds from note payable	500,000	0
Repayment of factoring arrangement	(93,249)	0
Repayment of note payable	(29,622)	0
Net cash provided by financing activities	377,129	12,958,680
Net decrease in cash	(703,904)	5,398,300
Cash and cash at beginning of year	916,526	2,190,814
Cash and cash at end of year	212,622	7,589,114
SUPPLEMENTAL DISCLOSURE OF CASH AND NON-CASH TRANSACTIONS:
Cash paid for interest	2,273	0
Recognition of right of use asset - operating lease	0	2,617,474
Conversion of Series A-2 Preferred Stock for Common Stock	$ 320	$ 2,242

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Current assets:
Cash	$ 212,622	$ 916,526
Accounts receivable	1,058,337	1,302,175
Inventory	1,435,057	1,554,693
Prepaid expense and other current assets	545,572	550,482
Total current assets	3,251,588	4,323,876
Right-of-use assets, net	4,921,695	5,086,989
Leasehold improvements, furniture, and equipment, net	7,621,465	7,462,219
Intangible assets	1,009,488	1,085,200
Other assets	398,084	400,464
Total assets	17,202,320	18,358,748
Current liabilities:
Accounts payable and accrued expenses	7,670,136	6,912,440
Notes payable	5,617,701	5,068,915
Factoring liability	0	93,249
Deferred revenue	336,102	189,195
Other current liabilities	45,000	45,000
Current portion of operating lease liability	680,454	670,288
Total current liabilities	14,349,393	12,979,087
Operating lease liability, long term	4,591,923	4,756,660
Notes payable, long term	229,663	262,759
Total liabilities	19,170,979	17,998,506
Stockholders' (deficit) equity:
Preferred stock, $0.001 par value; authorized 100,000,000 shares: Series A-2 Preferred Stock, 37,653 shares issued and outstanding at March 31, 2023; 37,753 shares issued and outstanding at December 31, 2022	38	38
Common Stock, $0.001 par value; authorized 500,000,000 shares, 107,596,138 shares issued and outstanding at March 31, 2023 and 107,276,138 shares issued and outstanding at December 31, 2022	107,597	107,277
Additional paid-in capital	72,250,010	72,045,951
Accumulated deficit	(73,675,071)	(70,992,412)
Noncontrolling interests	(651,233)	(800,612)
Total stockholders' (deficit) equity	(1,968,659)	360,242
Total liabilities and stockholders' (deficit) equity	$ 17,202,320	$ 18,358,748