Financial Performance - For the three months ended September 30, 2023, the company reported a net loss of approximately $2.3 million, compared to a net loss of $4.7 million for the same period in 2022, reflecting an improvement of 51%[167]. - For the nine months ended September 30, 2023, the company reported a net loss of approximately $10.0 million, an improvement from a net loss of $12.3 million for the same period in 2022[179]. - The company incurred net losses of approximately $10.0 million for the nine months ended September 30, 2023, compared to $12.3 million in 2022[199]. Revenue and Profitability - Revenues from operations increased to approximately $464,000 for the three months ended September 30, 2023, up 5% from $441,000 in the same period of 2022, driven by increases in hotel, restaurant, and wine revenues[168]. - Revenues for the nine months ended September 30, 2023, were approximately $1,623,000, reflecting a 28% increase from $1,272,000 in 2022, driven by hotel, restaurant, and wine revenues[180]. - Gross profit for the three months ended September 30, 2023, was approximately $143,000, a significant increase from $7,000 in the same period of 2022, representing a growth of approximately 1943%[169]. - Gross profit for the nine months ended September 30, 2023, was approximately $340,000, a 415% increase from $66,000 in the same period of 2022[181]. Expenses - Selling and marketing expenses rose to approximately $205,000 for the three months ended September 30, 2023, an increase of 88% compared to $109,000 in 2022[170]. - General and administrative expenses decreased by approximately 27% to $1,267,000 for the three months ended September 30, 2023, down from $1,729,000 in 2022[171]. - General and administrative expenses for the nine months ended September 30, 2023, were approximately $4,735,000, a decrease of 12% from $5,403,000 in 2022[184]. - Interest expense surged to approximately $1,157,000 for the three months ended September 30, 2023, representing a 577% increase from $171,000 in the same period of 2022, primarily due to convertible debt issued[174]. - Interest expense increased by approximately $1,201,000 or 74% to $2,824,000 for the nine months ended September 30, 2023, compared to $1,624,000 in 2022, primarily due to a rise in interest and debt discount related to convertible debt issued in February 2023[188]. - Depreciation and amortization expense increased by approximately $149,000 or 83% to $328,000 for the nine months ended September 30, 2023, compared to $179,000 in 2022, due to new asset purchases[185]. Cash Flow and Liquidity - Net cash used in operating activities was approximately $4,984,000 for the nine months ended September 30, 2023, compared to $4,484,000 in 2022, attributed to a net loss of approximately $9,976,000 adjusted for non-cash expenses[195]. - Net cash provided by financing activities increased to approximately $5,529,000 for the nine months ended September 30, 2023, compared to $2,150,000 in 2022, resulting from net proceeds from debt issuance and common stock[198]. - Cash used in investing activities decreased to approximately $630,000 for the nine months ended September 30, 2023, from $1,959,000 in 2022, primarily due to reduced purchases of property and equipment[196]. - As of September 30, 2023, the company had cash of approximately $201,108 and a working capital deficit of approximately $1,128,750[193]. - The company has approximately $1.9 million in convertible debt obligations maturing on February 21, 2024, which raises concerns about future liquidity[199]. - The company plans to raise additional capital to meet future liquidity needs for operating expenses and capital expenditures, including GGI inventory production and e-commerce platform development[201].
Gaucho (VINO) - 2023 Q3 - Quarterly Report