Neutra (NTRR) May Have Filed the Worst Earnings Report…Ever

Neutra Corp. (NTRR) is a healthy lifestyle company, specializes in the development and marketing of natural wellness solutions, including cannabis-related products. Today, the company filed its annual earnings report for its fiscal year that ended on January 31, 2016.

The report was awful to say the least…Here are the highlights, actually the lowlights.

Business Overview

• NTRR continues to rely on advances to fund operating shortfalls and management does not foresee a change in this situation in the immediate future. NTRR will not have the necessary capital to fully develop or execute until it is able to secure additional financing.
• If the company is not able to raise capital or if those funds, NTRR may cease operations.

Financial

• The company has not generated any revenues to date and activities have been limited to developing its business plan and research and development of products.
• NTRR incurred a net loss of $1,442,640 during the year.
• Net cash used by operating activities was $491,718.
• The company does not expect to have positive net income in the immediate future.
• Incurred $1,036,032 in general and administrative expenses ($480,770 of it was the value of the Series E Preferred stock issued)
• Interest expenses were $401,608 and included the amortization of the discount on convertible notes payable in the amount of $374,644. The remaining is related to interest expenses on convertible promissory notes.
• NTRR recognized a $5,000 loss on its acquisition of Diamond Anvil Designs.

Liquidity

• As of January 31, 2016, the company had $284 in cash on hand (adequate to fund operations for less than one month) and a working capital deficit of $397,223
• NTRR needs capital to fund operations and execute its business plan over the next eighteen months. NTRR believes that it will be able to issue notes payable or debt instruments in order to start executing.
• Current cash on hand is insufficient to commercialize products or fully develop its business strategy.

Outlook

• This might be the worst earnings report we have read during 2016. There is no analysis needed on this stock. NTRR should plummet off of this report and we plan to remove NTRR from our coverage. Please stay away from this company 

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Michael Berger is Managing Partner of StoneBridge Partners, LLC and Founder of Technical420.com. Prior to entering the cannabis industry, Michael was an Equity Research Analyst at Raymond James Financial covering the Energy Sector. Michael has been featured in publications such as The Street, Bloomberg, US Money News, and hosts various cannabis events across North America.

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