According to a SEC publication, Network Marketing Company Max International is looking for investors. The company sales are down for years. Max International owns several product patents.
“The company believes its portfolio of patented technologies and its market position as a recognized front-runner in glutathione research, development and distribution has enabled it to offer effective and cost-efficient glutathione boosting supplements.”
The company’s nutraceutical products focus on supporting naturally occurring cellular function and communications, which are the primary indicators of overall health and vitality. Max International’s product line is sold and distributed through: (i) direct-to-consumer (“DTC”) via e-commerce; (ii) healthcare professionals; (iii) affiliate sales (influencers); (iv) retail sales; and (v) Sales Associates.”
- Year 2021 Revenue $37 Million
- Year 2022 Revenue $25 Million
- Year 2023 Revenue est. $15 Million
The company generated revenues of $8.8 million for the six months ended June 30, 2023 (“Interim 2023”), a decrease of 37.7% compared to $14.1 million in revenues for the six months ended June 30, 2022 (“Interim 2022”).
The significant decrease in revenues during Interim 2023 is largely the result of lower product sales compared to the prior period principally driven by the company’s continued focus on minimum profitability targets in each of its international markets and the repositioning of key human and financial resources to its launching of its direct-to-consumer business in the United States.
A further summery of the offering:
Risks Related to our company and our Business
“We may not be able to continue to operate the business if we are not successful in securing additional fundraising in a short timeframe and, as a result, we may not be able to continue as a going concern. We are dependent on additional fundraising in order to sustain our ongoing operations.”
As of June 30, 2023 and December 31, 2022, the company had cash on hand of approximately $1.26 million and $1.25 million, respectively. As a seasoned company with longstanding operations, the company does generate revenue, however, the company has projected operating losses and negative cash flows for the next several months.
As a result of our recurring losses from operations, negative cash flows from operating activities and the need to raise additional capital, our independent auditor has expressed doubt about the company’s ability to continue as a going concern in its report on our audited financial statements for the years ended December 31, 2022 and December 31, 2021.
Our financial statements have been prepared in accordance with accounting principles generally accepted in the United States, which contemplate that we will continue to operate as a going concern. Our financial statements do not contain any adjustments that might result if we are unable to continue as a going concern.
The company’s inability to continue as a going concern, or the risk that it might not be able to, could cause its creditors to take adverse action against the company, lead to defaults under the company’s agreements with creditors, or cause creditors to cease providing access to credit. There can be no assurance that the company will be successful in raising funds in this Offering, or acquiring additional funding at levels sufficient to fund its future operations beyond the current cash on hand.
If the company is unable to raise additional capital contemplated by this Offering or from some other source in sufficient amounts or on terms acceptable to it, the company may have to significantly reduce its operations, including closing its operations in several countries and limit its focus to a few primary distribution channels and markets in developed countries, scale back or discontinue the studies of one or more of its products, seek alternative financing arrangements, declare bankruptcy or terminate its operations entirely.
We founded the company on September 25, 2006 as Max International, LLC, (the “Predecessor”), a Utah limited liability company. In February 2007, we commenced operations in the glutathione nutraceutical market. The primary products that Max International sells are nutritional and weight loss supplements. Max International also sells a line of beauty products which the company expects will be discontinued by the end of 2023.
The company’s business is subject to a number of risks and uncertainties, including those highlighted in the section titled “Risk Factors” immediately following this summary. These risks include, but are not limited to, the following:
- We may not be able to continue to operate the business if we are not successful in securing additional fundraising in a short timeframe and, as a result, we may not be able to continue as a going concern.
- We have a history of operating losses and can provide no assurance that we will achieve profitability.
- Our operating results may fluctuate significantly in the future, which makes our future operating results difficult to predict and could cause our operating results to fall below expectations or any guidance we may provide.
- An economic downturn, economic uncertainty or inflation may adversely affect customer discretionary spending and demand for our products and services.
- The success of our products is linked to the size and growth rate of the dietary supplement market and an adverse change in the size or growth rate of that market could have a material adverse effect on us.
- Our future success largely depends on sales of our Cellgevity® product.
- The future growth and profitability of our business will depend in large part upon the effectiveness and efficiency of our marketing efforts and our ability to select effective markets and media in which to market and advertise
- We depend on key personnel, the loss of any of which could negatively affect our business
- Unfavorable publicity or consumer perception of our products and any similar products distributed by other companies could have a material adverse effect on our business.
- We utilize ingredients and components for our products from foreign suppliers and may be negatively affected by the risks associated with international trade and importation issues.
- We rely on single or a limited number of third-party suppliers for the raw materials required to produce our products.
- Our patents and other intellectual property may be subject to challenge on validity grounds, and any future patent applications we file may be rejected.
- Changes in government regulation or in practices relating to the pharmaceutical, dietary supplement, food and cosmetic industry could decrease the need for the services we provide.
- Kevin McFarlane will continue to beneficially own a significant percentage of the voting power of our common stock and will be able to exert significant control over matters subject to shareholder approval.
The full offering can be found here: www.sec.gov
Get more information, facts and figures about Max International, click here for the Max International overview.