Youngevity International, Inc. issued a follow-up to its shareholder letter sent on January 19, 2021. In this update, the company announced it is still working with its accounting team and independent auditors to become current with its financial reporting, SEC filing requirements and its goal to relist on the Nasdaq or similar securities exchange.
The company is working to complete its quarterly and year-end 2019 financial statements as well as quarterly financial statements for 2020, and attributes the delay to a revenue recognition issue related to its green coffee distribution business that is isolated to its Nicaraguan operations. The timeline for a completion date of this financial analysis will now be pushed by another 45 days, and is expected to be completed no later than May 1, 2021. In the meantime, the company’s common stock is expected to trade on the OTC Pink Market.
Estimates for top line revenue of the company’s direct selling segment are expected to total approximately $127 million for 2019 and $121 million for 2020, citing negative impacts by the pandemic-induced cancellations of traditional marketing initiatives like road shows and incentive trips, and supply chain constraints.
The Commercial Coffee Segment of the company experienced “a drag on its roasted business due to the impact of COVID-19” and the cruise industry, but expects this to bounce back as consumers begin cruising again. Revenues for this segment are expected to reach approximately $19.5 million for 2019 and $16.6 million for 2020. The company has also renewed its contract with Major League Baseball’s Miami Marlins for the 2021 season.
The Commercial Hemp Segment of the company has undergone a complete overhaul of its management team and the new sales funnel has already received purchase orders approaching $500,000 for the month of March.