Fresh Vine Wine(VINE) - 2025 Q2 - Quarterly Report

Financial Performance - For the quarter ended June 30, 2025, Gross Merchandise Value (GMV) facilitated through the platform was $3,774,478[197]. - Revenues for the three months ended June 30, 2025, were $869,884, compared to $70,484 for the same period in 2024, representing a significant increase[200]. - Gross income for the quarter ended June 30, 2025, was $787,512, compared to a loss of $(43,676) in the same quarter of 2024[200]. - The net loss for the quarter ended June 30, 2025, was $(5,048,167), compared to a net loss of $(879,569) for the same period in 2024[200]. - Total net revenue for the three months ended June 30, 2025 was approximately $870,000, up 1134% from approximately $70,000 in the same period of 2024, primarily due to the acquisition of Amaze[223]. - Gross profit for the three months ended June 30, 2025 was approximately $788,000, compared to a gross loss of approximately $44,000 for the same period in 2024, reflecting improved margins from the Amaze platform[224]. - Total net revenue for the six months ended June 30, 2025 was approximately $930,000, up 431% from approximately $175,000 in the same period of 2024, again attributed to the acquisition of Amaze[229]. - Gross profit for the six months ended June 30, 2025 was approximately $785,000, compared to a gross loss of approximately $155,000 for the same period in 2024, indicating a significant improvement in margin[231]. - The net loss for the six months ended June 30, 2025 was approximately $7.1 million, or $(6.17) per share, compared to a net loss of $2.1 million, or $(3.09) per share, in the same period of 2024[234]. Expenses - Selling, general and administrative (SG&A) expenses increased to approximately $4.9 million in the three months ended June 30, 2025, compared to $834,000 in the same period of 2024, driven by higher operating costs related to the acquisition[225]. - SG&A expenses for the six months ended June 30, 2025 increased to approximately $6.8 million, compared to approximately $1.9 million in the same period of 2024, reflecting the costs associated with the acquisition[232]. Cash Flow and Capital - Cash used in operating activities was approximately $3.9 million for the six months ended June 30, 2025, compared to $946,000 for the same period in 2024, primarily due to acquisition-related activities[235]. - As of June 30, 2025, the company had a working capital deficit of approximately $27 million, with current assets of approximately $1.3 million and current liabilities of approximately $28.3 million[240]. - The company's future viability depends on its ability to generate sufficient cash flow or raise additional capital through debt or equity financing[245]. - The company has funded its operations through debt and equity financing as detailed in its Annual Report for the year ended December 31, 2024[246]. Strategic Initiatives - The company completed the acquisition of Amaze Software, Inc. on March 7, 2025, marking a strategic pivot towards a platform-based digital commerce business[187]. - The company operates on an asset-light model, reducing reliance on any single vendor and enhancing product availability[191]. - The company anticipates net revenue to peak during the quarter from October to December due to increased consumer demand around major holidays[212]. - The company plans to expand distribution by onboarding new suppliers to lower shipping costs and address local market needs[211]. Compliance and Reporting - The company has not engaged in any off-balance sheet activities as defined in Regulation S-K[248]. - The company is classified as an emerging growth company and is utilizing an extended transition period for compliance with new accounting standards[250].