Accredited Solutions, Inc.
Key statistics
from XBRL data in SEC filingsAI briefing
from the latest 10-K, 10-Q and 8-K eventsAccredited Solutions, Inc. is a small beverage company, now focused on its Diamond Creek high alkaline water brand after selling its Good Hemp assets and rescinding the Petro X Solutions acquisition.
What they do
The company sells Diamond Creek high alkaline water, a 9.5pH natural spring water available in gallon, liter, and half-liter bottles. Its earlier businesses included hemp-derived CBD beverages under the Good Hemp, CANNA HEMP, and CANNA brands, and a hemp joint venture called Olin Farms. The Good Hemp assets were sold in February 2023 to JanBella Group, and the Petro X Solutions merger was rescinded effective June 1, 2023, leaving Diamond Creek as the main operating business.
Revenue drivers
- Diamond Creek high alkaline water — Primary remaining revenue source after the Good Hemp asset sale and PXS rescission; sold as bottled spring water in gallon, liter, and half-liter sizes.
- Good Hemp CBD beverages (discontinued) — Hemp-derived CBD-infused consumer beverages under the Good Hemp brand; all Good Hemp-related assets were sold in February 2023 for forgiveness of $5,000 of indebtedness.
- Petro X Solutions (discontinued) — EnviroXstream plant-based cleaner/degreaser; acquisition was rescinded June 1, 2023, and PXS is treated as discontinued operations.
Recent performance
For the three months ended September 30, 2024, revenue was $241,136, compared to $164,515 for the same period in 2023. Cost of sales was $189,824, versus $121,616 a year earlier. For the nine months ended September 30, 2024, quarterly revenue was $109,373 in Q1 and $102,328 in Q2. Annual revenue rose from $483,036 in 2022 to $688,875 in 2023, while annual net income was a loss of $1.5 million in 2023.
Strategy
Since the June 1, 2023 rescission of the PXS acquisition, the company has re-focused its operating plans on expanding its Diamond Creek Water business. Management states that without additional capital, it is unlikely that such business will expand rapidly, if at all. Recent 8-K filings since the 2023 10-K show a series of material agreements, including a change in control and unregistered equity sale in August 2024. The company also intends to implement a cybersecurity risk management program before the end of 2024.
Risks
- Going concern and liquidity — As of September 30, 2024, the company had $12,106 of cash, total liabilities of $1.3 million, and shareholder equity of negative $1.1 million, and it needs additional capital to sustain operations.
- Dependence on Diamond Creek — After selling Good Hemp assets and rescinding PXS, the company's operating plan relies on expanding Diamond Creek Water, but management says expansion is unlikely without additional capital.
- Related-party asset sale — The Good Hemp-related assets were sold in February 2023 to JanBella Group, LLC, controlled by current controlling shareholder William Alessi, for forgiveness of only $5,000 of indebtedness.
- No formal cybersecurity program — The company has not yet implemented a formal cybersecurity risk management program and stated it intends to do so before the end of 2024.
Outlook
Management says the company has re-focused on expanding the Diamond Creek Water business, but also states that without additional capital, rapid expansion is unlikely. Recent 8-K filings indicate ongoing material agreements and a change in control, but the filings do not provide specific growth targets or financial projections. The company continues to qualify as an emerging growth company and a smaller reporting company, and it warns that forward-looking statements are subject to risks.