Financial Performance - For the three months ended March 31, 2023, the company reported a net loss of approximately $2.7 million, compared to a net loss of $2.3 million for the same period in 2022 [142]. - Revenues from operations increased by approximately $22,000 or 5%, totaling approximately $448,000 for Q1 2023, driven by increases in hotel, restaurant, and wine revenues [143]. - Gross profit decreased by approximately $33,000 or 18%, amounting to approximately $154,000 for Q1 2023 [144]. - Cost of sales increased by approximately $55,000 or 23%, reaching approximately $293,000 for Q1 2023, primarily due to higher hotel, restaurant, and wine costs [145]. - Selling and marketing expenses rose by approximately $63,000 or 37%, totaling approximately $235,000 for Q1 2023, mainly due to advertising and marketing for new retail space [146]. - General and administrative expenses increased by approximately $12,000 or 1%, amounting to approximately $1,757,000 for Q1 2023 [147]. Cash Flow and Liquidity - Cash as of March 31, 2023, was approximately $2.39 million, a significant increase from $300,185 as of December 31, 2022 [156]. - Net cash used in operating activities for Q1 2023 was approximately $2.94 million, compared to $2.10 million for Q1 2022 [158]. - As of March 31, 2023, the Company had cash of approximately $2,390,000 and working capital of $361,000 [162]. - The Company used cash in operating activities of approximately $2,939,000 during the three months ended March 31, 2023, compared to $2,099,000 in the prior year [162]. - The Company funded its operations with $5,000,000 from convertible debt financing, approximately $441,000 from equity line of credit draws, and $591,000 from common stock sales during the three months ended March 31, 2023 [162]. - 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 [163]. - Additional capital will be needed to meet future liquidity needs for operating expenses and capital expenditures, including GGI inventory production and e-commerce platform development [164]. Accounting Policies and Derivatives - The Company has no off-balance sheet arrangements [165]. - There are no material changes in critical accounting policies from the previous annual report [167]. - The Company has adopted a sequencing policy for the reclassification of contracts from equity to assets or liabilities under ASC 815 [169]. - Derivative instruments are evaluated at the end of each reporting period, with changes in fair value reported in the consolidated statements of operations [170].
Gaucho (VINO) - 2023 Q1 - Quarterly Report