WakeUpNow reported a combined operational loss of $7.8 million over two years, with a $4.5 million net-loss for 2013 following a $3.3 million loss in 2012. The company's Annual Disclosure Statement, filed December 31, 2013, detailed these financial results.
The company introduced mandatory retail subscription quotas late in 2013. This move aimed to address an evident lack of retail focus among its affiliates, despite WakeUpNow offering third-party products and services for retail sale.
WakeUpNow's July 2013 Income Disclosure Statement showed 80% of the company's affiliates failed to earn a commission payout of $10 or more that month. A $10 payout represents the minimum commission for a single retail subscription, indicating most affiliates completed no retail sales.
The situation did not improve by year-end. The December 2013 statement revealed 82% of WakeUpNow's commission-qualified affiliates earned no commissions at all.
The statement also showed only one affiliate appeared in each of the top five affiliate membership categories. These five individuals collectively received $1.9 million in commissions. The company did not disclose how much of these payouts originated from actual retail activity.
Management acknowledged the company's financial condition "may cast doubt on its ability to continue as a going concern." Despite this, management expressed belief that its plan of operation, if successfully implemented, would "generate sufficient earnings to both restore a stable financial condition and provide adequate returns to its shareholders."
The stated plan focused on three primary objectives: further product development emphasizing the affiliate network, continued domestic growth of the distributor base, and expansion into international markets. This approach suggests a continued focus on recruitment and market reach.
Affiliate activity, as indicated by traffic estimates, increased throughout 2012 and 2013. These increases coincided with the company's growing financial losses. WakeUpNow's 2013 Disclosure Statement mentioned retail activity only once, within its Vision Statement.