Youngevity International, Inc. Provides Update on Financial Reporting and Files Form 10-K for the Year Ended December 31, 2019

SAN DIEGO, June 25, 2021 /PRNewswire/ -- Youngevity International, Inc. (OTCMKTS: YGYI), a multi-channel lifestyle company operating in three distinct business segments, including a commercial coffee enterprise, a direct marketing enterprise, and a commercial hemp enterprise, today reported financial results for the full year ended December 31, 2019.

Steve Wallach, Chairman and CEO of Youngevity International stated, "We are pleased to finally have the filing of our 2019 financial results behind us. As advised in communications to shareholders, becoming current on our filings is a top priority. The 2019 audit, due to revenue recognition issues within our coffee segment, has been a difficult challenge for our business. We are pleased that our current auditors, MaloneBailey, were able to complete the audit of our 2019 financial statements included in our 2019 Form 10-K. We believe that the filing of our 2019 results will provide an easier path for our auditors and our accountants toward the completion of our 2020 Form 10-K and getting in cadence with our financial reporting."

Bill Thompson, CFO of Youngevity International stated, "I am pleased that bringing a new audit firm up to pace and completing the Form 10-K for 2019 is now behind us. In a filing such as this, it is a requirement to review all subsequent events up to the date filed. This review of subsequent events should help us quicken the timeline for the 2020 Form 10-K filing. We anticipate becoming current with our financial reporting during the fourth quarter of this year."

On October 16, 2020 the Company filed a notice of non-reliance on previously issued financial statements with the Securities and Exchange Commission ("SEC"), reporting the Company's Audit Committee determined that the unaudited condensed consolidated financial statements included in the Forms 10-Q previously filed with the SEC on May 20, 2019, August 14, 2019 and November 18, 2019 should no longer be relied upon. The 2019 Form 10-K now filed represents the audited full year results for 2019.  Because the Q1, Q2, and Q3 Forms 10-Q should not be relied upon, the Company intends to file restated Forms 10-Q related to these periods as soon as practicable. The restated amounts are related to the Company's commercial coffee segment and the commercial hemp segment. Further details are summarized in the Company's 2019 Form 10-K which can be found on financial reporting sites, the SEC web site and here https://ygyi.com/investors/sec-filings/.

Non-GAAP Financial Measure – Adjusted EBITDA

This news release includes information on Adjusted EBITDA, which is a non-GAAP financial measure as defined by SEC Regulation G.

Management believes that Adjusted EBITDA, when viewed with our results under GAAP and the accompanying reconciliations, provides useful information about our period-over-period growth. Adjusted EBITDA is presented because management believes it provides additional information with respect to the performance of our fundamental business activities and is also frequently used by securities analysts, investors and other interested parties in the evaluation of comparable companies. We also rely on Adjusted EBITDA as a primary measure to review and assess the operating performance of our company and our management team.

Adjusted EBITDA is a non-GAAP financial measure. We calculate adjusted EBITDA by taking net income (loss), and adding back the expenses related to interest, income taxes, depreciation, amortization, of stock-based compensation expense, equity-based compensation expense, amortization of debt discount and issuance costs, the change in the fair value of the derivatives, the loss on the modification of warrants, the loss on impairment of goodwill, the loss on impairment of intangible assets, the loss on induced debt conversion, the loss on induced debt conversion, and the loss on extinguishment of debt and the loss on induced debt conversion, as each of those elements are calculated in accordance with GAAP. Adjusted EBITDA should not be construed as a substitute for net income (loss) (as determined in accordance with GAAP) for the purpose of analyzing our operating performance or financial position, as Adjusted EBITDA is not defined by GAAP. A reconciliation of Adjusted EBITDA to Net Loss is presented in the table at the end of this press release.

About Youngevity International, Inc.

Youngevity International, Inc. (OTCMKTS: YGYI), is an multi-channel lifestyle company operating in 3 distinct business segments including a commercial coffee enterprise, a commercial hemp enterprise, and a multi-vertical omni direct selling enterprise. The Company features a multi country selling network and has assembled a virtual Main Street of products and services under one corporate entity, YGYI offers products from the six top selling retail categories: health/nutrition, home/family, food/beverage (including coffee), spa/beauty, apparel/jewelry, as well as innovative services. For investor information, please visit YGYI.com. Be sure to like us on Facebook and follow us on Twitter.

Safe Harbor Statement

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, forward-looking statements can be identified by terminology such as "may," "should," "potential," "continue," "expects," "anticipates," "intends," "plans," "believes," "estimates," and similar expressions. These forward-looking statements are based on management's expectations and assumptions as of the date of this press release and are subject to a number of risks and uncertainties, many of which are difficult to predict that could cause actual results to differ materially from current expectations and assumptions from those set forth or implied by any forward-looking statements, and include statements regarding the filing of our 2019 results providing an easier path for our auditors and accountants toward the completion of our 2020 Form 10-K and getting in cadence with our financial reporting, quickening the timeline for our 2020 10-K filing, becoming current with our financial reporting during the fourth quarter of this year and filing restated Forms 10-Q related to 2019 Q1, Q2, and Q3 periods as soon as practicable. Important factors that could cause actual results to differ materially from current expectations include, among others, our ability to complete our 2020 Form 10-K and become current in our financial reporting as planned, our ability to improve our profitability, expand our liquidity, and strengthen our balance sheet, the acceptance of the omni-direct approach by our customers, our ability to expand our distribution, our ability to continue our financial performance and the other factors discussed in our Annual Report on Form 10-K for the year ended December 31, 2019 and our other filings with the SEC. The information in this release is provided only as of the date of this release, and we undertake no obligation to update any forward-looking statements contained in this release on account of new information, future events, or otherwise, except as required by law.

[Please see the Notes to the consolidated financial statements and complete financial statements at https://ygyi.com/investors/sec-filings/

Contacts:

Youngevity International, Inc.
Dave Briskie
President and Chief Investment Officer
1 800 982 3189

Investor Relations
YGYI Investor Relations
[email protected]

SOURCE Youngevity International, Inc.