A small profit of $32,000 in Q2 while Q1 had a loss of $1,5 million.
WakeUpNow management stated:
Though the Company’s current financial condition may cast doubt on its ability to continue as a going concern, management believes that its plan of operation, if successfully implemented, will generate sufficient earnings to both restore a stable financial condition and provide adequate returns to its shareholders.
Management believes that its efforts to develop a robust product offering with a compelling value proposition will continue to attract distributors both in the United States and abroad.
As risk factors WakeUpNow mention:
State governments could attempt to tax our distributors as employees which would be devastating or fatal to our business.
For instance, a staff member from the Utah State Tax Commission, has threatened to attempt to classify our distributors as employees and classify us as an employer of our distributors on the theory that our distributors are eligible for bonuses based on exceeding certain sales revenue goals.
A substantial majority of our sales are via credit card and if we are unable to maintain relationships with credit card processors, acquiring banks and/or credit card issuers such as Visa, could cause a fatal impact on our business.
Wake Up Now, Inc. is a subscription based direct sales financial wellness company aimed at helping individuals save, manage, and earn money. Its product is composed of two primary elements: (1) a suite of personal financial tools designed to help individuals manage their finances, and (2) an extensive affiliate network through which members receive discounts on purchases.
Both the Company’s distributors and its affiliate network are predominantly based in the United States of America.