Splash(US:SBEV)2025-08-14 20:40Financial Performance - Net revenues for the three months ended June 30, 2025, were $1,046,782, a significant increase from $438,272 in the same period of 2024[17]. - Gross profit for the six months ended June 30, 2025, was $408,045, compared to a loss of $30,443 in the same period of 2024[17]. - The net loss for the three months ended June 30, 2025, was $8,493,081, compared to a net loss of $5,326,702 in the same period of 2024[17]. - The net loss for the six months ended June 30, 2025, was $8,493,081, compared to a net loss of $3,650,451 for the same period in 2024[21]. - The net loss for 2025 was $12,143,532, compared to a net loss of $9,997,599 in 2024, indicating an increase in losses of approximately 21.5% year-over-year[24]. - Revenue for the six months ended June 30, 2025 was $0.4 million, down from $2.6 million for the same period in 2024, reflecting a $2.2 million decrease driven by declines in both e-commerce and beverage businesses[138]. - The net loss for the three months ended June 30, 2025 was $8.5 million, compared to a net loss of approximately $5.3 million for the same period in 2024[143]. Assets and Liabilities - Total assets increased to $22,236,889 as of June 30, 2025, compared to $2,759,185 on December 31, 2024[13]. - Cash and cash equivalents increased to $17,213 as of June 30, 2025, from $15,346 on December 31, 2024[13]. - Accounts receivable decreased to $140,626 as of June 30, 2025, from $396,855 on December 31, 2024[13]. - Total current liabilities decreased to $13,446,244 as of June 30, 2025, from $19,369,242 on December 31, 2024[13]. - The accumulated deficit increased to $(167,992,381) as of June 30, 2025, from $(155,832,277) on December 31, 2024[13]. - As of June 30, 2025, the total notes payable amounted to $3,862,902, with a current portion of $3,592,462[83]. Operating Expenses - Total operating expenses for the three months ended June 30, 2025, were $1,632,590, down from $3,935,350 in the same period of 2024[17]. - Operating expenses for the three months ended June 30, 2025 were $1.7 million, a decrease of $2.2 million from $3.9 million in the same period in 2024, mainly due to reductions in non-cash expenses and other costs[141]. Stock and Equity - The company issued 1,000 shares of Preferred Stock A and 650 shares of Preferred Stock A-1 during the reporting period[21]. - The issuance of Preferred Stock C for the acquisition of water rights amounted to $20,000,000[21]. - The company issued approximately $1.1 million from debt and $0.7 million from the sale of preferred stocks for the six months ending June 30, 2025[71]. - The Company issued 5,500 shares valued at $35,000 in exchange for services during the six months ended June 30, 2025[92]. - The Company issued 650 shares of Series A-1 Preferred Stock for approximately $650,000 in May 2025, with investors receiving 162,500 1-year A Warrants and 162,500 5-year B Warrants[176]. Cash Flow - Net cash used in operating activities for 2025 was $(1,404,399), a significant improvement from $(3,738,061) in 2024, reflecting a reduction in cash outflow of about 62.4%[24]. - Net cash used for operating activities during the six months ended June 30, 2025 was $1.4 million, compared to $3.7 million for the same period in 2024[150]. Debt and Financing - Proceeds from the issuance of debt in 2025 amounted to $1,081,650, compared to $4,705,000 in 2024, showing a decrease of approximately 77%[24]. - The Company reported a default rate of 37.2% on its loans[81]. - The effective interest rate on related party notes payable was 20.63% for the six months ended June 30, 2025[87]. Compliance and Regulatory - The Company regained compliance with the NYSE American's continued listing standards as of July 28, 2025, after previously being notified of non-compliance[125]. - The Company’s publicly traded warrants were suspended and are set to be delisted due to low trading prices, with delisting expected to be effective on August 15, 2025[186]. - The Company has substantial doubt about its ability to continue as a going concern for one year from the date the financial statements are issued[149]. Strategic Initiatives - The company is expanding its distribution system to select international markets, enhancing its e-commerce access for both B2B and B2C customers[27]. - The company has plans for market expansion through new financing agreements and product development[81]. - The company is focusing on enhancing its product offerings and technology through ongoing research and development initiatives[81]. - The company aims to improve its financial stability and growth through strategic partnerships and acquisitions[81]. - The company is committed to maintaining a strong financial position while exploring new market opportunities[81].