Fresh Vine Wine(US:VINE)2025-05-20 21:11Financial Performance - For the three months ended March 31, 2025, net revenue was $60,214, a decrease of 42.4% compared to $104,568 in the same period of 2024[180]. - Net revenue for Q1 2025 was approximately $60 million, a decrease of 42% from approximately $105 million in Q1 2024[204]. - Net loss for the quarter was $2,089,208, compared to a net loss of $1,212,315 in the same quarter of 2024, reflecting a 72.2% increase in losses year-over-year[180]. - The net loss for Q1 2025 was approximately $2.1 million, or $(0.13) per share, compared to a net loss of $1.2 million, or $(0.08) per share, in Q1 2024[209]. - Cash used in operating activities increased to approximately ($1.36 million) in Q1 2025 from ($333,000) in Q1 2024, primarily due to acquisition-related activities[210]. - As of March 31, 2025, the company had an accumulated deficit of approximately $31.3 million and total stockholders' equity of approximately $74.9 million[214]. - Current assets amounted to approximately $1.7 million, while current liabilities were approximately $24.8 million, resulting in a working capital deficit of approximately $23.1 million[215]. Gross Profit and Expenses - Gross loss for the quarter was $2,576, significantly improved from a gross loss of $111,248 in the prior year[180]. - Cost of revenue for Q1 2025 was approximately $63 million, down from $216 million in Q1 2024, resulting in a gross loss of approximately $3,000 compared to a gross loss of $111 million in Q1 2024[205]. - Selling, general, and administrative (SG&A) expenses increased to approximately $1.9 million in Q1 2025 from $1.1 million in Q1 2024, primarily due to higher operating costs related to the acquisition[207]. Business Strategy and Operations - The company completed the acquisition of Amaze Software, Inc. on March 7, 2025, marking a strategic pivot towards a platform-based digital commerce business[170]. - The company operates on an asset-light model, reducing risks associated with inventory and enhancing flexibility in product sourcing[174]. - The company anticipates net revenue to peak during the October to December quarter due to increased consumer demand during the holiday season[192]. - The company plans to expand its distribution by onboarding new suppliers in over 100 countries to lower shipping costs and improve delivery times[191]. - The company aims to leverage its control over consumer data to enhance marketing strategies and deepen brand loyalty[186]. - Management expects Q2 2025 results to provide a more comprehensive view of the combined business following the acquisition of Amaze Software, Inc.[216]. Cash Flow and Financing - Cash provided by financing activities was approximately $2 million in Q1 2025, significantly higher than $105,000 in Q1 2024, attributed to proceeds from a note payable and Series C Stock issuance[212]. - The company projects that existing cash balances will be sufficient to fund current operations into 2026, but may require additional financing to sustain operations[218]. Revenue Channels - The Direct-to-Consumer (DTC) channel accounted for 65.3% of total revenue, down from 72.8% in the previous year, while the Wholesale channel contributed 4.7%[195]. - The E-commerce segment reported a net revenue percentage of (15.8)%, indicating a shift in revenue dynamics post-acquisition[195].