Hempacco Co., Inc.

CIK:0001892480|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	12 Months Ended
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Revenues:
Product sales	$ 4,045,637	$ 3,861,205
Product sales - related parties and subsidiaries	0	60,626
Manufacturing service	0	43,409
Consulting services, related parties	0	2,100
Total revenues	4,045,637	3,967,340
Cost of sales	5,050,570	3,724,498
Cost of sales, related parties	210,900	3,796
Total cost of sales	5,261,470	3,728,294
Gross profit from operations	(1,215,833)	239,046
Operating expenses:
General and administrative	5,636,166	2,639,285
General and administrative, related parties	541,886	606,842
Sales and marketing	1,301,995	858,295
Sales and marketing, related parties	116,402	26,660
Expensing (recovery) of related party debt	(444,962)	1,470,522
Impairment loss on long-lived assets	4,874,917	1,721,663
Total operating expenses	12,026,404	7,323,268
Operating loss	(13,242,237)	(7,084,222)
Other income (expense):
Interest expense, net	(269,963)	(47,265)
Other expense, net	69,979	(3,470)
Income before income taxes	(13,442,221)	(7,134,957)
Provision for income taxes	0	0
Net loss	(13,442,221)	(7,134,957)
Net loss attributable to non-controlling interests	(316,140)	(131,123)
Net loss attributable to Hempacco Co., Inc.	$ (13,126,081)	$ (7,003,834)
Basic and dilutive earnings per share:	$ (4.70)	$ (3.27)
Shares used in calculation of earnings per share:	2,795,716	2,139,386

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Cash flows from operating activities:
Net loss	$ (13,442,221)	$ (7,134,957)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization	398,989	96,922
Amortization of warrant asset	165,026	0
Write down of fixed assets to net realizable value	4,874,917	1,721,663
Loss from equity method investment	28,619	437,375
Expensing (recovery) of related party debt	(444,962)	1,470,522
Stock based compensation and shares issued with debt issuances	448,956	248,103
Gain on conversion of notes payable	0	30,654
Gain on disposal of assets	0	10,690
Changes in operating assets and liabilities, net of acquisitions:
Trade receivables, net	263,910	(87,023)
Trade receivables, related parties	5,100	132,197
Prepaid expenses	516,654	225,715
Prepaid expenses, related parties	35,609	0
Inventories	(1,193,534)	(446,196)
Accounts payable	1,831,839	315,149
Accounts payable - related parties	(7,910)	(119,574)
Accrued liabilities	798,224	17,485
ROU assets and liabilities	(57,706)	0
ROU assets and liabilities: related party	(17,182)	1,028
Deferred revenues	(49,135)	(1,290,229)
Net cash used in operating activities	(5,844,807)	(4,370,476)
Cash flows from investing activities:
Purchases of property, plant and equipment	(179,390)	(103,868)
Loans to related parties	(2,912,034)	0
Purchase of intangibles	(230,911)
Cash paid for acquisition of Green Star Labs	(289,730)	0
Proceeds from disposal of equipment	0	40,000
Net cash used in investing activities	(3,612,065)	(63,868)
Cash flows from financing activities:
Equipment loan proceeds / (repayments)	0	(300,900)
Payment on short term loans	(6,597)
Proceeds from convertible notes payable	2,031,582
Proceeds from short-term loans and lines of credit	100,000	0
Repayments to related parties	(150,000)	(1,480,122)
Proceeds from short-term promissory note, related parties	432,982	50,000
Investment in Joint Venture	0	50,000
Proceed from sale of common stock	7,244,999	6,416,000
Offering costs paid in connection with sale of common stock	(634,600)	(685,772)
Net cash provided by financing activities	9,018,366	4,049,206
Decrease in cash and cash equivalents	(438,506)	(385,138)
Cash and cash equivalents at beginning of period	548,331	933,469
Cash and cash equivalents at end of period	109,825	548,331
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash Paid for Interest	83,763	0
Cash Paid for Taxes	5,654	3,474
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Common stock issued in satisfaction of notes payable and accrued interest	146,940	56,592
Warrants issued with convertible notes	0	437,375
Marketing services and financing costs paid with shares or warrants	463,009	0
Accounts payable paid with shares	0	91,864
Purchase of equipment with short-term financing	137,640
Capital contribution by partner for equity in joint venture	0	50,000
Notes payable incurred in connection with acquisition of Green Star Labs	3,200,000	0
Increase in related party notes payable in connection with acquisition of Green Star Labs	687,647
Payment for equipment and intangible assets with shares	0	4,000,000
Net liabilities incurred in connection with Green Star Labs	838,093	0
Equipment loan repaid with shares	$ 0	$ 1,213,335

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 109,825	$ 548,331
Trade receivables, net of impairment allowance	226,128	231,269
Trade receivables, related parties	0	5,100
Inventories	2,542,628	645,132
Deposits and prepayments	400,715	442,366
Deposits and prepayments, related parties	0	35,609
Total current assets	3,279,296	1,907,807
Property and equipment
Leasehold Improvements	31,431	12,431
Furniture, Fixtures and Equipment	6,727,362	7,468,515
Accumulated Depreciation	(1,358,003)	(260,381)
Total property and equipment	5,400,790	7,220,565
Other Assets
ROU operating lease, net of accumulated amortization: third party	6,305,016	0
ROU operating lease, net of accumulated amortization: related party	241,594	351,146
Goodwill	2,585,473	0
Other intangible assets, net of amortization	230,911	2,661
Total other assets	9,362,994	353,807
Total assets	18,043,080	9,482,179
Current liabilities:
Accounts payable and accrued expenses	3,313,617	354,887
Accounts payable, related parties	34,921	42,831
Short term promissory notes and loans payable, related parties	1,767,845	50,000
Convertible promissory notes payable	5,231,582	125,000
Other short-term loans	236,173	0
Customer prepaid invoices and deposits: third party	1,749,362	838,164
Customer prepaid invoices and deposits: related party	0	0
ROU liability, current: third party	441,100	0
ROU liability, current: related party	116,804	109,552
Total current liabilities	12,891,404	1,520,434
Long term liabilities:
Long-term debt	0	142,770
ROU liability, related party	124,790	258,776
ROU liability, non-related party	5,806,211	0
Total long term liabilities	5,931,001	401,546
Total liabilities	18,822,405	1,921,980
Stockholders equity (deficit):
Preferred stock, $.001 par value; 5,000,000 shares authorized as of December 31, 2023 and 2022, respectively.	0	0
Common stock, $.001 par value; 20,000,000 shares authorized as of December 31, 2023, and 2022 respectively. 6,932,905 and 2,343,651 shares issued and 2,926,905 and 2,343,651 outstanding as of December 31, 2023, and 2022 respectively.	2,927	2,344
Additional paid in capital	23,217,927	18,116,276
Accumulated deficit	(23,588,666)	(10,463,048)
Total stockholders equity (deficit)	(367,812)	7,655,572
Non-controlling interests	(411,513)	(95,373)
Total equity attributable to Hempacco Co., Inc.	(779,325)	7,560,199
Total liabilities and stockholders equity (deficit)	$ 18,043,080	$ 9,482,179