10-Q

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(MARK ONE)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarter ended September 30, 2024

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 001-38785

STRYVE FOODS, INC.

(Exact Name of Registrant as Specified in Its Charter)

    Delaware

    87-1760117

    (State or other jurisdiction of
incorporation or organization)

    (I.R.S. Employer
Identification No.)

Post Office Box 864

Frisco, TX 75034

(Address of principal executive offices)

(972) 987-5130

(Issuer’s telephone number)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A common stock	SNAX	The NASDAQ Stock Market LLC
Warrants, each exercisable for 1/15th of one share of Class A common stock at an exercise price of $172.50 per whole share	SNAXW	The NASDAQ Stock Market LLC

Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of November 13, 2024, 3,736,952 shares of the registrant’s Class A common stock, $0.0001 par value, and 309,850 shares of the registrant’s Class V common stock, $0.0001 par value, were issued and outstanding.

STRYVE FOODS, INC.

FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 2024

TABLE OF CONTENTS


	Page
Part I. Financial Information	1
Item 1. Unaudited Condensed Consolidated Financial Statements	1
Condensed Consolidated Balance Sheets	1
Condensed Consolidated Statements of Operations	2
Condensed Consolidated Statements of Changes in Stockholders’ (Deficit) Equity	3
Condensed Consolidated Statements of Cash Flows	5
Notes to Condensed Consolidated Financial Statements	6
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	21
Item 3. Quantitative and Qualitative Disclosures About Market Risk	32
Item 4. Controls and Procedures	34
Part II. Other Information	35
Item 1. Legal Proceedings	35
Item 1A. Risk Factors	35
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	35
Item 3. Defaults Upon Senior Securities	35
Item 4. Mine Safety Disclosures	36
Item 5. Other Information	36
Item 6. Exhibits	37
Part III. Signatures	38

PART I - FINANCIAL INFORMATION

Item 1. Condensed Consolidated Financial Statements

STRYVE FOODS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS


	September 30,			December 31,
	2024			2023
	(Unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	183,362		$	369,114
Accounts receivable, net		2,855,650			2,091,926
Inventory		4,880,331			5,199,979
Prepaid expenses and other current assets		782,975			720,682
Total current assets		8,702,318			8,381,701

Property and equipment, net		6,179,453			7,150,775
Right of use assets, net		4,187,412			4,609,666
Goodwill		8,450,000			8,450,000
Intangible assets, net		3,937,939			4,119,690
TOTAL ASSETS	$	31,457,122		$	32,711,832

LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY
CURRENT LIABILITIES
Accounts payable	$	6,577,044		$	4,459,787
Accrued expenses		3,144,033			2,687,508
Current portion of lease liability		243,451			362,165
Line of credit, net of debt issuance costs		4,008,018			3,568,295
Promissory notes payable, net of debt discount and debt issuance costs		4,598,011			2,914,000
Promissory notes payable due to related parties, net of debt discount and debt issuance costs		3,621,193			1,175,000
Current portion of long-term debt and other short-term borrowings		795,091			605,530
Total current liabilities		22,986,841			15,772,285

Long-term debt, net of current portion, net of debt issuance costs		3,236,119			3,476,089
Lease liability, net of current portion		4,111,841			4,371,963
Financing obligation - related party operating lease		7,500,000			7,500,000
Deferred tax liability, net		35			35
TOTAL LIABILITIES		37,834,836			31,120,372

COMMITMENTS AND CONTINGENCIES (Note 11)
STOCKHOLDERS' (DEFICIT) EQUITY
Preferred stock - $0.0001 par value, 10,000,000 shares authorized, 0 shares issued and outstanding as of September 30, 2024 and December 31, 2023		—			—
Class A common stock - $0.0001 par value, 400,000,000 shares authorized, 3,365,871 and 2,249,189 shares issued and outstanding (net of 53,333 and 53,333 treasury shares) as of September 30, 2024 and December 31, 2023, respectively		335			224
Class V common stock - $0.0001 par value, 15,000,000 shares authorized, 309,850 and 382,892 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively		31			38
Additional paid-in-capital		139,914,858			137,883,798
Accumulated deficit		(146,292,938	)		(136,292,600	)
TOTAL STOCKHOLDERS' (DEFICIT) EQUITY		(6,377,714	)		1,591,460

TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY	$	31,457,122		$	32,711,832

The accompanying notes are an integral part of these condensed consolidated financial statements.

STRYVE FOODS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)



	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
SALES, net	$	5,701,422		$	4,180,193		$	16,477,482		$	14,822,987

COST OF GOODS SOLD (exclusive of depreciation shown separately below)		4,466,064			3,624,236			12,532,149			12,253,094

GROSS PROFIT		1,235,358			555,957			3,945,333			2,569,893

OPERATING EXPENSES
Selling expenses		1,244,488			1,771,042			4,418,173			5,518,325
Operations expense		451,086			325,829			1,215,495			1,464,708
Salaries and wages		1,456,915			1,572,177			4,593,879			5,204,637
Depreciation and amortization expense		388,504			552,169			1,258,821			1,656,049
Gain on disposal of fixed assets		—			(11,000	)		—			(9,705	)
Total operating expenses		3,540,993			4,210,217			11,486,368			13,834,013

OPERATING LOSS		(2,305,635	)		(3,654,260	)		(7,541,035	)		(11,264,120	)

OTHER (EXPENSE) INCOME
Interest expense		(804,942	)		(1,121,274	)		(2,115,402	)		(2,484,004	)
Loss on extinguishment of debt		—			—			(334,511	)		—
Change in fair value of Private Warrants		—			1,185			—			19,835
Other income (expense)		500			2,423			507			(4,533	)
Total other (expense) income		(804,442	)		(1,117,666	)		(2,449,406	)		(2,468,702	)

NET LOSS BEFORE INCOME TAXES		(3,110,077	)		(4,771,926	)		(9,990,441	)		(13,732,822	)
Income tax expense (benefit)		—			7,281			9,898			(2,242	)

NET LOSS	$	(3,110,077	)	$	(4,779,207	)	$	(10,000,339	)	$	(13,730,580	)
Loss per common share:
Basic and diluted	$	(0.95	)	$	(2.14	)	$	(3.22	)	$	(6.41	)

Weighted average shares outstanding:
Basic and diluted		3,279,054			2,237,211			3,103,442			2,143,336

The accompanying notes are an integral part of these condensed consolidated financial statements.

STRYVE FOODS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' (DEFICIT) EQUITY

NINE MONTHS ENDED SEPTEMBER 30, 2024

(Unaudited)


	Class A Common Stock					Class V Common Stock						Additional			Accumulated
	Shares			Amount		Shares			Amount			Paid-in-Capital			Deficit			Total
BALANCE, JANUARY 1, 2024		2,249,189		$	224		382,892		$	38		$	137,883,798		$	(136,292,600	)	$	1,591,460
Cancellation of Restricted Stock Awards		(350	)		—		—			—			—			—			—
Issuance of Restricted Stock Units		691			—		—			—			—			—			—
Stock-based compensation expense		—			—		—			—			270,376			—			270,376
Issuance of Class A Shares in connection with At-The-Market Offerings, net		558,873			56		—			—			710,975			—			711,031
Change in Fair Value of Warrants on Extinguishment of Debt		—			—		—			—			334,511			—			334,511
Common Stock Issued for Accrued Expenses		53,559			5		—			—			147,282			—			147,287
Common Stock Issued for Accrued Expenses - Related Party		36,232			4		—			—			99,996			—			100,000
Net loss		—			—		—			—			—			(3,928,514	)		(3,928,514	)
BALANCE, MARCH 31, 2024		2,898,194			289		382,892			38			139,446,938			(140,221,114	)		(773,849	)
Exchanged BV for Class A shares		2,632			—		(2,632	)		—			—			—			—
Issuance of Restricted Stock Awards		50,832			5		—			—			(5	)		—			—
Issuance of Restricted Stock Units		12,995			1		—			—			(1	)		—			—
Stock-based compensation expense		—			—		—			—			276,425			—			276,425
Net loss		—			—		—			—			—			(2,961,747	)		(2,961,747	)
BALANCE, JUNE 30, 2024		2,964,653			295		380,260			38			139,723,357			(143,182,861	)		(3,459,171	)
Exchanged BV for Class A shares		70,410			7		(70,410	)		(7	)		—			—			—
Issuance of Restricted Stock Awards		326,079			33		—			—			(33	)		—			—
Issuance of Restricted Stock Units		4,729			—		—			—			—			—			—
Stock-based compensation expense		—			—		—			—			191,534			—			191,534
Net loss		—			—		—			—			—			(3,110,077	)		(3,110,077	)
BALANCE, SEPTEMBER 30, 2024		3,365,871		$	335		309,850		$	31		$	139,914,858		$	(146,292,938	)	$	(6,377,714	)

The accompanying notes are an integral part of these condensed consolidated financial statements.

STRYVE FOODS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' (DEFICIT) EQUITY

NINE MONTHS ENDED SEPTEMBER 30, 2023

(Unaudited)


	Class A Common Stock				Class V Common Stock						Additional			Accumulated
	Shares		Amount		Shares			Amount			Paid-in-Capital			Deficit			Total
BALANCE, JANUARY 1, 2023		1,714,973	$	172		419,941		$	42		$	133,687,587		$	(117,251,616	)	$	16,436,185
Exchanged BV for Class A shares		10,241		1		(10,241	)		(1	)		—			—			—
Net loss		—		—		—			—			—			(4,642,556	)		(4,642,556	)
BALANCE, MARCH 31, 2023		1,725,214		173		409,700			41			133,687,587			(121,894,172	)		11,793,629
Exchanged BV for Class A shares		4,387		—		(4,387	)		—			—			—			—
Issuance of Restricted Stock Awards		26,814		3		—			—			477,155			—			477,158
Issuance of Restricted Stock Units		1,173		—		—			—			62,752			—			62,752
Issuance of Warrants in connection with debt Instrument		—		—		—			—			1,335,997						1,335,997
Net loss		—		—		—			—			—			(4,308,817	)		(4,308,817	)
BALANCE, JUNE 30, 2023		1,757,588	$	176		405,313		$	41		$	135,563,491		$	(126,202,989	)	$	9,360,719
Issuance of Restricted Stock Awards		14,329		1		—			—			117,797			—			117,798
Issuance of Restricted Stock Units		1,616		—		—			—			21,500			—			21,500
Payments in Lieu of Fractional Shares in connection with the Reverse Stock Split		—		—		—			—			(2,318	)		—			(2,318	)
Issuance of Class A Shares in connection with At-The-Market Offerings, net		194,949		19		—			—			1,016,069			—			1,016,088
Net loss		—		—		—			—			—			(4,779,207	)		(4,779,207	)
BALANCE, SEPTEMBER 30, 2023		1,968,482	$	196		405,313		$	41		$	136,716,539		$	(130,982,196	)	$	5,734,580

The accompanying notes are an integral part of these condensed consolidated financial statements.

STRYVE FOODS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)



	Nine Months Ended September 30,
	2024			2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(10,000,339	)	$	(13,730,580	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation expense		1,077,070			1,474,298
Amortization of intangible assets		181,751			181,751
Amortization of debt issuance costs		164,103			222,666
Amortization of debt discount		—			880,623
Amortization of debt premium		20,834			—
Amortization of right-of-use asset		422,254			297,129
Loss on extinguishment of debt		334,511			—
Gain on disposal of fixed assets		—			(9,705	)
Reserve for credit losses		179,071			199,145
Stock based compensation expense		738,336			947,757
Change in fair value of Private Warrants		—			(19,835	)
Changes in operating assets and liabilities:
Accounts receivable		(942,795	)		(756,175	)
Inventory		319,648			1,985,275
Prepaid expenses and other current assets		6,873			533,386
Accounts payable		2,038,755			961,482
Accrued liabilities		703,813			679,693
Operating lease obligations		(378,836	)		(244,302	)
Net cash used in operating activities		(5,134,951	)		(6,397,391	)

CASH FLOWS FROM INVESTING ACTIVITIES
Cash paid for purchase of equipment		(27,246	)		(150,297	)
Cash received for sale of equipment		—			11,000
Net cash used in investing activities		(27,246	)		(139,297	)

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of common stock, net		711,031			1,016,088
Repayments on long-term debt		(116,084	)		(120,643	)
Borrowings on related party debt		2,435,000			1,175,000
Borrowings on short-term debt		16,257,558			16,555,768
Repayments on short-term debt		(14,186,264	)		(12,268,986	)
Debt issuance costs		(55,630	)		(176,287	)
Deferred offering costs		(69,166	)		(38,622	)
Payments in lieu of fractional shares in connection with the reverse stock split		—			(2,318	)
Net cash provided by financing activities		4,976,445			6,140,000

Net change in cash and cash equivalents		(185,752	)		(396,688	)
Cash and cash equivalents at beginning of period		369,114			623,163
Cash and cash equivalents at end of period	$	183,362		$	226,475

SUPPLEMENTAL INFORMATION:
Cash paid for interest	$	1,363,648		$	1,160,466
NON-CASH INVESTING AND FINANCING ACTIVITY:
Non-cash commercial premium finance borrowing	$	394,145		$	843,127
Issuance of warrants in connection with debt instrument	$	—		$	1,374,631
Common stock issued for accrued expenses	$	147,287		$	—
Common stock issued for accrued expenses - related party	$	100,000		$	—
Accrued fixed assets	$	78,501		$	—

The accompanying notes are an integral part of these condensed consolidated financial statements.

STRYVE FOODS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2024

(Unaudited)

Note 1 - Organization and Description of Business

Stryve Foods, Inc. (“Stryve” or the “Company”) is an emerging healthy snacking company which manufactures, markets and sells highly differentiated healthy snacking products. The Company offers convenient snacks that are lower in sugar and carbohydrates and higher in protein than other snacks. The Company is headquartered in Plano, TX. The Company has manufacturing operations in Madill, Oklahoma and fulfillment operations in Frisco, Texas.

Note 2 - Liquidity and Going Concern

The accompanying condensed consolidated financial statements are prepared in accordance with generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. In accordance with ASU No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going concern (Subtopic 205-40), the Company has evaluated whether there are conditions and events, considered in the aggregate, that raise substantial doubt about its ability to continue as a going concern within one year after the date that the condensed consolidated financial statements are issued.

The Company has historically funded its operations with cash flow from operations, equity capital raises, and note payable agreements from shareholders and private investors, in addition to institutional loans. The Company's principal uses of cash have been debt service, capital expenditures, working capital, and funding operations. The Company incurred net losses of approximately $10.0 million during the nine months ended September 30, 2024. Cash used in operating activities was approximately $5.1 million for the nine months ended September 30, 2024. As of September 30, 2024, the Company has a working capital deficit of $14.3 million which compares to $7.4 million as of December 31, 2023.

Late in the third quarter of 2022, the Company secured a term loan in the amount of $4.0 million. Additionally, the Company secured an asset based line of credit with a $8.0 million credit limit subject to accounts receivable and inventory balances. The term loan and asset based line of credit were secured in order to augment the Company's liquidity, as needed, through the execution of management's transformation plan. The Company's initial draw on the term loan was $4.0 million taken in 2022 and as of September 30, 2024, $4.0 million (net of repayments) has been drawn on the asset based line of credit. The unused committed capacity under the asset based line of credit is approximately $4.0 million as of September 30, 2024, however, actual borrowing availability at any time is subject to advance rates on accounts receivable and inventory balances. No amount remained available to draw under the term loan as of September 30, 2024. See Note 5 for a description of the asset based line of credit and Note 6 for a description of the term loan.

During the nine months ended September 30, 2024, the Company issued an aggregate of $3.4 million in principal amount of unsecured convertible promissory notes (the “Convertible Notes”) to select accredited investors to fund operations. The aggregate principal amount of the Convertible Notes is inclusive of $1.7 million from related parties. During the third quarter of 2024, the Company issued $0.8 million in principal amount of an unsecured promissory note (the “Nonconvertible Note”) to a related party to fund operations. See Note 6 for further discussion.

The Company is currently evaluating several different strategies to enhance our liquidity position. These strategies may include, but are not limited to, pursuing additional actions under our business transformation plan, seeking additional financing from both the public and private markets through the issuance of equity securities and seeking to extend the term of outstanding debt. The outcome of these matters cannot be predicted with any certainty at this time. There can be no assurance that the Company will be able to raise the capital it needs to continue its operations on satisfactory terms or at all. In November 2024, the Company closed on a public offering receiving gross proceeds of approximately $2.9 million before deducting estimated offering expenses; however, the Company needs additional funding to execute its business plan and continue operations. If capital is not available to the Company when, and in the amounts needed, the Company could be required to liquidate our inventory and assets, cease or curtail operations, which could materially harm its business, financial condition and results of operations, or seek protection under applicable bankruptcy laws or similar state proceedings.

The Company has prepared cash flow forecasts which indicate that based on its expected operating losses and cash consumption in order to fund working capital growth, the Company believes that absent an infusion of sufficient capital there is substantial doubt about its ability to continue as a going concern for twelve months after the date the condensed consolidated financial statements for the quarter ended September 30, 2024 are issued. The Company's plan includes the items noted above as well as securing external financing which may include raising debt or equity capital. These plans are not entirely within the Company's control including our ability to raise sufficient capital on favorable terms, if at all.

Note 3 - Significant Accounting Policies

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") for interim financial information and in accordance with the rules and regulations of the Securities and Exchange Commission ("SEC"). Accordingly, these interim financial statements do not include all information and footnotes required under GAAP for complete financial statements. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of results of operations, balance sheet, cash flows, and shareholders' equity for the periods presented. The unaudited condensed consolidated results of operations for the interim periods presented are not necessarily indicative of results for the full year. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report filed on Form 10-K for the year ended December 31, 2023. The Company’s condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Certain information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with GAAP have been condensed or omitted.

Use of Estimates

The preparation of the condensed consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and the accompanying notes. Accounting estimates and assumptions discussed herein are those that management considers to be the most critical to an understanding of the condensed consolidated financial statements because they inherently involve significant judgments and uncertainties. Estimates are used for, but not limited to revenue recognition, allowance for credit losses and customer allowances, inventory valuation, impairments of goodwill and long-lived assets, incremental borrowing rate for leases, and valuation allowances for deferred tax assets. All of these estimates reflect management’s judgment about current economic and market conditions and their effects based on information available as of the date of these consolidated financial statements. If such conditions persist longer or deteriorate further than expected, it is reasonably possible that the judgments and estimates could change, which may result in future impairments of assets among other effects.

Going Concern

In accordance with ASU No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (Subtopic 205-40), the Company has evaluated whether there are conditions and events, considered in the aggregate, that raise substantial doubt about its ability to continue as a going concern within one year after the date that the condensed consolidated financial statements are issued.

Determining the extent to which conditions or events raise substantial doubt about the Company's ability to continue as a going concern and the extent to which mitigating plans sufficiently alleviate any such substantial doubt requires significant judgment and estimation by us. The Company's significant estimates related to this analysis may include identifying business factors such as size, growth and profitability used in the forecasted financial results and liquidity. Further, the Company makes assumptions about the probability that management's plans will be effectively implemented and alleviate substantial doubt and its ability to continue as a going concern. The Company believes that the estimated values used in its going concern analysis are based on reasonable assumptions. However, such assumptions are inherently uncertain and actual results could differ materially from those estimates. See Note 2, Liquidity and Going Concern, for more information about the Company's going concern assessment.

Accounts Receivable and Allowance for Credit Losses, Returns, and Deductions

Accounts receivable are customer obligations due under normal trade terms. Accounts receivables, less credit losses, reflects the net realizable value of receivables and approximates fair value. The Company accounts for accounts receivable, less credit losses, under ASU 2016-13, Financial Instruments – Credit Losses. The Company evaluated our accounts receivable and establish an allowance for credit loss based on a combination of factors. When aware that a specific customer has been impacted by circumstances such as bankruptcy filings or deterioration in the customer’s operating results or financial position, potentially making it unable to meet its financial obligations, the Company records a specific allowance for credit losses to reduce the related receivable to the amount the Company reasonably believes is collectible. The Company also records allowances for credit loss for all other customers based on a variety of factors, including the length of time the receivables are past due, historical collection experience, and an evaluation of current and projected economic conditions at the balance sheet date. Accounts receivables are charged off against the allowance for credit losses after we determine that the potential for recovery is remote. As of September 30, 2024, and December 31, 2023, the allowance for credit losses, returns and deductions totaled $1,416,898 and $1,638,039, respectively.

For the three months ended September 30, 2024, the allowance for credit losses, returns, and deductions consisted of the following:



	2024						2023
	Credit Losses Allowance		Returns & Deductions Allowance		Total		Credit Losses Allowance		Returns & Deductions Allowance		Total
Beginning balance, July 1	$	705,311	$	653,562	$	1,358,873	$	197,566	$	833,270	$