As CEO of the Company, I want to publicly address the recent issues which delayed our annual "10K" and "10Q" filings with the SEC. These delays were due to several factors unrelated to any internal issues within Stemtech.
The first issue is a yet undisclosed Asset Acquisition we have executed which is poised to add significant shareholder value. However, as one of the standard conditions of any business agreement, it is conditioned upon the timely filings with the SEC, which of course has delayed this acquisition.
Due to issues beyond our control, our audit partners who have been with us since 2020 had to provide a new team without experience with our complex international direct sales business model. This required an egregious amount of time explaining and providing duplicative data for their accounting queries. This was in fact the longest audit I have personally experienced on any Board in 35 years and very costly. Despite being a $5 million revenue company, our international presence - with offices in Taiwan, Mexico, Ecuador, the United States, and Canada required significant internal resources including additional accountants and staff to keep up with the new auditing team's constant requests and queries. This is an obvious challenge for a company of our size, as we were compelled to deviate away from operating our actual business, to spending hundreds of hours authenticating the Auditor's many requests. This experience shook us fundamentally, and the Board has now undertaken plans to streamline our internal accounting process to ensure this cannot happen again.
Stemtech products have successfully generated approximately $600 million in revenue with less than a 2% return rate and no recalls. We frequently receive testimonials from users claiming positive health improvements from our products. Our primary product, the RCM combination (Release, Circulate, Migrate), is patented and promotes the release, circulation and migration, and differentiation of adult stem cells from bone marrow, aiding the body's natural rejuvenation process. This mission has been successfully upheld for nearly 20 years.
Stemtech's business model of selling through Independent Business Partners (IBPs) or customers, is growing as represented by the stem cell global industry, which is projected to grow to a $30 Billion dollar market by 2030 according the "Research and Marketing", an independent industry publication. As longevity and anti-aging global focus increases, Stemtech, as the Pioneer in stem cell nutrition, offers a business opportunity to help people improve their quality of life through increasing wealth as well as health.
Our biggest current challenge is managing inventory to meet the growing high demand for our products. We are actively working on solutions to improve our inventory levels. The global market seeks health solutions and anti-aging nutraceuticals, and Stemtech offers these in one company. Significant investment is being made worldwide in health and anti-aging solutions, and Stemtech stands as a key player in this field. Additionally, our company empowers thousands of individuals who not only use our products but also sell them, enabling them to run their own businesses and earn part-time or full-time income.
To our valued independent business partners, please know that we are working tirelessly to give you all the support you need to create an independent financial life and a healthy lifestyle. Your success is our success, and we are committed to providing you with the resources, training, and support to thrive with Stemtech. We strive to be a company you can trust and proudly support
To our shareholders, please be assured that the late filings were solely due to audit complexities of our international operations. Thank you for your confidence and understanding as we continue to build a profitable and successful company, providing "The Gold Standard in Stem Cell nutrition."
With respect and confidence,
Charles S. Arnold, Chief Executive Officer
ABOUT STEMTECH
Stemtech Corporation, a leading stemceutical™ company with a direct sales distribution model, was founded on April 18, 2018, after acquiring the operations from its predecessor Stemtech International, Inc., which was established in 2005. From 2010 through 2015, Stemtech International, Inc., was recognized four separate times on the Inc. 5000 Fastest-Growing Companies list. In 2018, Stemtech underwent an extensive executive reorganization, and continued operations under new leadership as Stemtech Corporation. In August 2021, Stemtech became a publicly traded company (STEK) and has expanded business opportunities for its Independent Business Partners (IBPs), who may earn incomes by sharing Stemtech products. Stemtech is well positioned as the pioneer in stem cell nutrition, oral and skin care products, to increase sales in the wellness industry.
FORWARD LOOKING STATEMENTS
This announcement contains forward-looking statements within the meaning of the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such statements include but are not limited to statements identified by words such as "believes," "expects," "anticipates," "estimates," "intends," "plans," "targets," "projects" and similar expressions. The statements in this release are based upon the current beliefs and expectations of our company's management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. Numerous factors could cause or contribute to such differences, including, but not limited to, results of clinical trials and/or other studies, the challenges inherent in new product development initiatives, the effect of any competitive products, our ability to license and protect our intellectual property, our ability to raise additional capital in the future that is necessary to maintain our business, changes in government policy and/or regulation, potential litigation by or against us, any governmental review of our products or practices, as well as other risks discussed from time to time in our filings with the Securities and Exchange Commission, including, without limitation, our latest 10-Q Report filed on July 16, 2024. We undertake no duty to update any forward-looking statement, or any information contained in this press release or in other public disclosures at any time. Finally, the investing public is reminded that the only announcements or information about Stemtech Corporation which are condoned by the Company must emanate from the Company itself and bear our name as its Source.
