Financial Performance - For the three months ended March 31, 2024, the company reported revenues of approximately $587,000, reflecting an increase of approximately $139,000 or 31% compared to $448,000 in the same period of 2023[145] - The gross profit for the three months ended March 31, 2024, was approximately $220,000, an increase of approximately $66,000 from $154,000 in the same period of 2023[146] - Selling and marketing expenses decreased by approximately $139,000 or 59%, totaling approximately $96,000 for the three months ended March 31, 2024, compared to $235,000 in 2023[147] - General and administrative expenses increased by approximately $508,000 or 29%, amounting to approximately $2,265,000 for the three months ended March 31, 2024, compared to $1,757,000 in 2023[148] - The company recorded a net loss of approximately $2.7 million for both the three months ended March 31, 2024, and 2023[144] Cash Flow and Liquidity - Cash on hand as of March 31, 2024, was approximately $255,000, down from $428,000 as of December 31, 2023[156] - The working capital deficiency increased to approximately $6,065,000 as of March 31, 2024, compared to $5,363,000 as of December 31, 2023[156] - Net cash used in operating activities for the three months ended March 31, 2024, was approximately $2,092,000, compared to $2,939,000 in the same period of 2023[158] - For the three months ended March 31, 2024, net cash provided by financing activities was approximately $2,000,000, a decrease from $5,119,000 in the same period of 2023[161] Debt and Financing - The company issued 305,491 shares of common stock at $6.00 per share, raising aggregate gross proceeds of $1,832,934 during the period from January 1, 2024, through April 11, 2024[135] - The company has received multiple Event of Default Redemption Notices demanding immediate payment of principal and interest totaling a minimum of $3,460,510 related to the 2023 Convertible Note[138] - The company issued promissory notes totaling $1,185,000 in May 2024, with $925,000 issued for cash and an interest rate of 8.5% per annum[163] - Approximately $3.4 million in convertible debt is past due and payable upon demand as of March 31, 2024[162] - The company has been primarily funded through equity and debt financings since inception[164] - The company continues to evaluate additional financing opportunities but there is no assurance of obtaining funds on commercially acceptable terms[164] Going Concern - The company believes it may not have sufficient funds to operate for the next twelve months, raising substantial doubt about its ability to continue as a going concern[164] - Additional capital is needed to meet future liquidity needs for operating expenses and capital expenditures, including GGI inventory production and e-commerce platform development[165] Off-Balance Sheet Arrangements - There are no off-balance sheet arrangements reported by the company[166]
Gaucho (VINO) - 2024 Q1 - Quarterly Report