BRGO Stock – What Investors Should Know About Bergio International Inc.
BRGO Stock: Annual Reports – Financials – SEC Filings
Bergio International, Inc. (BRGO Stock Ticker) is primarily in the business of jewelry, silverware & plated ware. For financial reporting, their fiscal year ends on December 31st. This page includes all SEC registration details as well as a list of all documents (S-1, Prospectus, Current Reports, 8-K, 10K, Annual Reports) filed by Bergio International, Inc.
Bergio International Inc is primarily involved in the design, manufacturing, and distribution of fine jewelry in the United States. Its product line is divided into the following categories: Whimsical, Fine, Couture, Fashion Jewelry, Handbags, and Bridal. The fashion lines of the company include an 18k gold line, a bridal line, couture, and one-of-a-kind pieces. The company is involved in the establishment of retail stores all over the world.
BRGO Stock – Risk Factors
- Declining earnings and revenue – Earnings have declined by 41.1% per year over the past 5 years. The company has less than 1 year of cash runway
- Volatile share price – Highly volatile share price over the past 3 months
- Share Dilution – Shareholders have been substantially diluted in the past year
Competition and Market Conditions
The jewelry design and manufacturing industry is highly competitive and has low entry barriers. Bergio competes with other upscale jewelry designers and manufacturers, as well as retail jewelry stores and eCommerce stores. There are over 1,500 jewelry design and manufacturing companies in the world. Many have more experience, brand recognition, and greater financial resources than Bergio. The jewelry industry competes in a global marketplace. Therefore, Bergio must be adaptable in order to remain competitive. Consumer spending on discretionary goods such as jewelry is sensitive to changes in consumer confidence. This is ultimately influenced by general business considerations in the United States economy.
Consumer discretionary spending generally falls when consumer confidence falls. Current economic conditions may affect retail sales of the company’s products. Consumer confidence in the United States has reflected these slowing conditions over the last few years. Luxury items, such as fine jewelry, are considered discretionary purchases by consumers. Moreover, any decrease in consumer discretionary spending or disposable income may have a greater impact on the jewelry industry than on other industries. Economic factors beyond Bergio’s control could have an impact on consumer discretionary spending. For instance, financial markets, consumer credit availability, current interest rates, energy costs, employment levels, salary levels, and tax rates. Any decrease in discretionary consumer spending could have a significant negative impact on our business and financial condition.
Profitability and Cash-flow
Bergio International has limited operations, recurring losses, and limited cash available to sustain operations. The company has been losing money on a regular basis. Bergio reported a net loss of $3,562,185. Also, a cash burn of $2,179,237 for the fiscal year ended December 31, 2021. These factors call into question the Company’s ability to continue as a going concern. The recoverability of a significant portion of the recorded asset amounts is contingent on the Company’s continued operations. In turn, this is contingent on the Company’s ability to raise capital and/or generate positive cash flows from operations.
Management intends to achieve profitability by expanding its business. This will be attempted through the opening of additional retail stores and the expansion of its online presence. However, there is no guarantee that the Company will be able to raise the necessary capital to support operations. Nor is it assured that management can increase sales to achieve profitable operations. The consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded assets. Nor, do they address the amounts of liabilities required if the Company is unable to continue in business. (Source: Bergio Financials, Form 10-k)
Price Fluctuations for Precious Metals, Precious Stones, and Semi-precious Stones
Cartels, political instability in exporting countries, and inflation may all have an impact on the availability of raw materials. These same factors affect the prices of gold, diamonds, other precious metals, and precious and semi-precious stones. Shortages of these materials or significant price changes could have a material negative impact on Bergio’s operating results or financial condition. A significant change in the prices of key commodities, including gold, could have an adverse effect on the business. In turn, it could reduce operating margins and impact consumer demand. Even though the company has historically incorporated any increases in the purchase of raw materials into retail prices. Furthermore, a significant disruption in the supply of gold or other commodities could reduce product production and shipping levels. In turn, this could materially increase operating costs and, ultimately, affect profit margins.
The company will likely require additional financing. There is no assurance they will be able to obtain financing on acceptable terms. Moreover, if Bergio is unable to raise additional capital, its very existence could be in jeopardy. At the very least, limited capitalization is a constraint on growth. And, it may impact the company’s ability to execute its business plan. If it raises additional capital through the issuance of debt, interest expense will likely rise. If it raises additional funds by issuing equity or convertible debt securities, existing shareholders’ percentage ownership of the Company will be reduced. In other words, existing shareholders may experience significant dilution.
Furthermore, new securities may include rights, preferences, or privileges that are senior to existing Common Stock. Also, by raising additional funds through the issuance of debt or other equity instruments, the company may be subject to certain operational constraints. For instance, negative operating covenants. There can be no assurance that the necessary financing to further implement its business plan will be obtained on acceptable terms, if at all. If unable to raise the additional funds on acceptable terms, its ability to develop the business, fund expansion, develop or enhance products, or respond to competitive pressures may suffer. Thereby, limiting its ability to increase revenues or possibly achieve profitable operations in the future.
BRGO Stock in the News
Bergio International, Inc. (BRGO Stock) signed a binding letter of intent to acquire 51% assets of GearBubble for $3.2 million. (May 2022)
Bergio International, Inc. (BRGO Stock) signed a binding letter of intent to acquire 51% assets of GearBubble for $3.2 million on May 6, 2021. As of July 1, 2021, Bergio International, Inc. entered into an agreement to acquire 51% assets of GearBubble. As part of the consideration, Bergio will pay $2 million in cash. Also, an additional $1.162 million in 15 subsequent monthly cash payments.
The Merger Agreement provides the Gear Bubble Shareholders with the opportunity to earn shares of BRGO common stock. The provision requires that certain revenue and net income benchmarks are met in the three years following the Closing of the Acquisition Agreement. Don Wilson, Gear Bubble’s majority shareholder, will receive 49,000 shares as part of the transaction. The Acquisition Agreement is expected to be fully executed following a full financial audit of Gear Bubble’s assets. However, the transaction is subject to regulatory approval, third-party approval, and a company audit.