Bergio International reported that its first-quarter revenue rose 22 percent year on year to $329,947, while cost of sales rose 25 percent to $135,600. The company was able to improve its gross profit 117 percent to $194,284. Nonetheless, Bergio's net loss rose 25 percent to $221,669.
Gross profit improved primarily due to selling old inventory at a higher margin based upon the increased price of metals and diamonds, according to the company's statement. The net loss rose primarily due to an increase in amortization of debt discount from March 31, 2011 to March 31, 2012 of approximately $114,000 and an increase in the amortization of deferred financing cost of approximately $21,000.
Bergio had cash of $18,252 on March 31, down from a cash balance of $128,238 on December 31. The company stated that during the next 12 months the existing capital combined with available borrowing lines of credit and anticipated cash flow from operations will be sufficient to sustain operations.
''Additionally, our major stockholder has agreed to continue, at time-to-time as needed, to advance funds under similar terms as his current advances. It is anticipated that we will need to sell additional equity and/or debt securities in the event we locate potential mergers and/or acquisitions,'' according to the company's 10-Q.
Bergio International sells jewelry to approximately 50 independent jewelry retailers across the U.S. The company has approximately 75 product styles in inventory, with prices ranging from $400 to $200,000.