Green Endeavors Inc (OTCMKTS:GRNE) shares were up 56.25% on Monday and flat in after-hours trading. Share prices have been trading in a 52-week range of $0.02 to $1.40. The company has 4.73 million shares outstanding.
In its earnings report, Green Endeavors Inc reported revenues for the three and nine months ended September 30, 2016 at $832,507 and $2,488,762 respectively, compared to $733,642 and $2,193,790 for the same periods in 2015. This represents a 13.5% and 13.4% rise.
Net losses for the three and nine months ended September 30, 2016 were $151,268 and $274,085 respectively, compared to $161,494 and $794,018 for the same periods in 2015. This translates to a 6.3% and 65.5% improvement.
Apart from that, Green Endeavors Inc also eliminated $2,190,896 of convertible debt, improving stockholders’ deficit by $2,029,455. Last month, the company settled $2,190,895 in debt owed to its parent Sack Lunch Productions Inc. pursuant to a debenture issued. A total of 3,843,686 shares of Common Stock and 230,621 shares of Series B Preferred shares were issued to settle the obligations at 5% discount to the market.
“The elimination of the $2.19M in debt has not only transformed the balance sheet but will decrease interest expense in the future by nearly $180,000 annually. This improves profitability in the final quarter of 2016 and well into the future. We also expect continued operational improvements moving forward and believe we are positioned to execute on our plans to expand through the acquisition of other high end multi-location salons,” noted green endeavors inc ceo richard suber.
Suber added that the transaction will have no significant effect on the balance sheet or income statement of Sack Lunch Productions other than to increase the minority interest calculation as a result of Sack Lunch’s increase in equity ownership.
In early October, Green Endeavors Inc announced that it has retained salon industry expert Tom Kuhn as an advisor to further advance its strategy to acquire and roll up high-end salons. This will involve a feasibility project in which Kuhn will identify possible acquisition targets, lend research and data specific to the multi-location salon market, recommend structures and models, and address the viability of each opportunity given the realities of the salon industry.
“It’s about time. What Green Endeavors is offering is sorely needed. Even top salons lack an exit strategy. One reason, simply put, is the lack of buyers. Or the only potential buyers are family members or key employees that lack the financial resources to provide cash to the seller,” remarked kuhn.
Green Endeavors Inc is a company that operates two hair care salons that feature Aveda products for retail sale. Landis Salons, Inc. operates its business within an approximately 4,000 square foot space located in the Liberty Heights District of Salt Lake City, Utah as an Aveda Lifestyle Salon. Landis Salons II, Inc. operates within an over 3,024 square foot space located in the Marmalade District of Salt Lake City, Utah under the Landis Lifestyle Salon brand as an Aveda Lifestyle Salon.
In addition, the company operates an Aveda Experience Center in City Creek Center, a shopping mall located in the central business district of Salt lake City, Utah. These function as retail outlets of Aveda branded products, including the full lines of hair care products, makeup and skin care. The salons offer hair care and other salon services, such as makeup, skin care and nail care.