Fresh Vine Wine(US:VINE)2025-11-14 21:41Financial Performance - For the quarter ended September 30, 2025, the Gross Merchandise Value (GMV) was $1,946,771[213]. - Revenues for the three months ended September 30, 2025, were $1,254,241, a significant increase from $63,209 in the same period of 2024[216]. - Gross income for the three months ended September 30, 2025, was $1,172,890, compared to $152,646 in the prior year[216]. - The net loss for the three months ended September 30, 2025, was $5,146,858, compared to a net loss of $315,290 in the same period of 2024[216]. - Total net revenue for the three months ended September 30, 2025 was approximately $1,254,000, up 1884% from approximately $63,000 in the same period of 2024, primarily due to the acquisition of Amaze[240][246]. - Cost of revenue for the three months ended September 30, 2025 was approximately $81,000, compared to $65,000 for the same period in 2024, representing a 25% increase[241][239]. - Gross income for the three months ended September 30, 2025 was approximately $1,173,000, compared to a gross profit of $153,000 for the same period in 2024, reflecting a 668% increase[241][239]. - Total net revenue for the nine months ended September 30, 2025 was approximately $2,184,000, up 817% from approximately $238,000 in the same period of 2024[247]. - SG&A expenses for the nine months ended September 30, 2025 totaled approximately $11.5 million, compared to approximately $2.4 million in the same period of 2024, reflecting a 382% increase[249]. Operational Strategy - The company operates on an asset-light model, reducing reliance on any single vendor and enhancing product availability[207]. - The acquisition of Amaze Software, Inc. was completed on March 7, 2025, marking a strategic pivot towards a platform-based digital commerce business[203]. - The company anticipates net revenue to peak during the quarter from October to December due to increased consumer demand around major holidays[228]. - The company aims to expand its distribution by bringing on "in-country supply" from hundreds of new suppliers to lower shipping costs and delivery times[227]. - The company retains control of consumer data, allowing for data-driven marketing strategies and personalized campaigns to enhance brand loyalty[221]. Financial Position and Cash Flow - Selling, general and administrative (SG&A) expenses increased to approximately $4.8 million in the three months ended September 30, 2025, compared to $460,000 in the same period of 2024, a 936% increase[242]. - Net loss for the three months ended September 30, 2025 was approximately $5.1 million, or $(0.85) per share, compared to a net loss of $0.3 million, or $(0.53) per share, in the same period of 2024[245]. - Net cash used in operating activities was approximately $9.8 million for the nine months ended September 30, 2025, compared to $1.3 million for the same period in 2024, a 626% increase[254]. - As of September 30, 2025, the company had an accumulated deficit of approximately $41.6 million and total stockholders' equity of approximately $71.2 million[258]. - Current assets amounted to approximately $1.3 million and current liabilities were approximately $27.3 million, resulting in a working capital deficit of approximately $26.0 million[259]. - The company projects that its existing cash balance will be sufficient to fund current operations into 2026, contingent on reduced expenses and additional financing[261]. - There is substantial doubt about the company's ability to continue as a going concern, which may necessitate adjustments to asset and liability classifications[262]. - The company's future viability depends on generating sufficient cash flow or raising additional capital through debt or equity financing[263]. - The company has funded its operations through debt and equity financing, as detailed in its Annual Report for the year ended December 31, 2024[264]. - The company has not engaged in any off-balance sheet activities as defined in Regulation S-K[266]. - The company qualifies as an emerging growth company and has elected to use an extended transition period for complying with new accounting standards[268].