The COVID-19 pandemic took a toll on many businesses, resulting in more than 200,000 extra business closures during the first year. At the same time, millions of other companies have had to change their business model and adapt to changing supply chain conditions that continue to this day. But now, some of these survivors are best-positioned for growth.
Authentic Holdings Inc. (OTC: AHRO) was gearing up to launch its “Old is Gold” Christmas Album and NFT combo set when an unexpected resurgence in COVID hit its manufacturing source in Shenzhen, China. As a result, the company was forced to warehouse the inventory at a loss and delay the launch until a “Christmas in July” event in 2023.
In this article, we’ll look at how the company cleaned up its balance sheet in preparation for a relaunch during the second half of this year – and why investors may want to take a closer look at the stock now, as it trades near record-lows with a mere $1.7 million market cap.
Starting from a Clean Slate
Authentic Holdings’ leadership began the year cleaning up its balance sheet. As of March 31, 2023, the company had $700,000 in total assets and $6.4 million in total liabilities, resulting in a $5.7 million shareholders’ deficit. Many of these liabilities were convertible notes issued to fund the “Old is Gold” Christmas inventory last year and support ongoing operations.
Earlier this month, the company reached an agreement to partially pay off and convert several of these notes into preferred stock. The management team hopes to have a balance sheet devoid of any convertible debt by the third quarter, while simultaneously converting about $2 million worth of loans made by management into preferred stock.
These efforts will provide investors with far greater visibility regarding dilution while creating as much as $4 million in shareholders’ equity by the end of the third quarter.
Potential Near-term Revenue
Authentic Holdings is also gearing up to generate near-term revenue while setting the stage for bigger plans in the music, sports, and entertainment industries.
The company is actively marketing 150,000 units of a “Christmas in July” album featuring holiday music from classic artists. With delivery dates in the first and second week of July, investors could see near-term revenue. Meanwhile, the company will take purchase orders for the 2023 Christmas album in August, hoping to sell upwards of 300,000 units.
In addition to near-term revenue, the company is moving forward with its Authentic Heroes brand after similar supply chain issues last year. The team solidified its third-party supply chain network and developed a new patent-pending method to produce merchandise before a tour starts instead of after it ends, creating more value for artists.
Finally, the company is also rebuilding a more fortified, secure, and user-friendly version of its NFT platform. The company plans to launch the changes by August, creating another catalyst for investors. And longer term, the company is working on a music-related project that could become an integral part of the business over time.
A Brighter Road Ahead
Authentic Holdings Inc. (OTC: AHRO) has made tremendous strides over the past few months after several setbacks last year. With near-term revenue potential and long-term irons on the fire, investors may want to take a closer look at the stock as it sits near all-time lows.
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Authentic Holdings Inc. is a client of CFN Enterprises Inc. Authentic Holdings Inc. agreed to pay CFN Enterprises Inc. $20,000 for an ongoing investor awareness campaign.
