Revenue Performance - For the three months ended September 30, 2025, total revenues decreased by 46% to $337,288 from $624,464 in the same period of 2024[130]. - Service revenues fell by approximately 35% to $19,960, primarily due to a lower volume of marketing services provided[132]. - Product revenues decreased by 47% to $317,328, attributed to reduced sales volume and lower customer traffic on the CWS Platform[133]. - Total revenues for the nine months ended September 30, 2025, were $1,265,156, down 24% from $1,663,475 in 2024, with product revenues decreasing by 26% to $1,152,521[142]. Profitability and Losses - Gross profit for the three months ended September 30, 2025, was $1,232, a significant improvement from a gross loss of $62,051 in 2024[131]. - The company reported a net loss of $16,828,913 for the three months ended September 30, 2025, compared to a net loss of $3,363,380 in the same period of 2024, representing a 400% increase in losses[131]. - Net loss for the nine months ended September 30, 2025, was $21,420,945, compared to a net loss of $8,000,066 in 2024, representing an increase in losses of 168%[152]. - Other income (expense) for the nine months ended September 30, 2025, reflected a net expense of approximately $12,989,795, compared to net other income of $250,661 in 2024, primarily due to a $13.0 million legal settlement expense[151]. - Gross profit for the nine months ended September 30, 2025, was $115,896, a significant improvement from a gross loss of $293,738 in 2024, reflecting a 139% increase[148]. Expenses - General and administrative expenses increased by 128% to $3,470,033, mainly due to higher legal fees incurred during the period[137]. - General and administrative expenses increased by 72% to $7,700,806 for the nine months ended September 30, 2025, compared to $4,486,641 in 2024, mainly due to higher legal costs[149]. - Sales and marketing expenses for the nine months ended September 30, 2025, were $846,240, a decrease of 76% compared to $3,470,348 in 2024, primarily due to the absence of website development costs and reduced advertising expenses[150]. Capital and Financing - The company issued 11,073,489 shares of common stock under an at-the-market offering agreement, generating net proceeds of $31,642,347[116]. - The company raised $47,252,830 in net proceeds through the issuance of common stock during the nine months ended September 30, 2025, compared to a net cash used in financing activities of $562,915 in 2024[154]. - Cash and cash equivalents as of September 30, 2025, were $10,039,230, an increase from $5,386,789 as of December 31, 2024[153]. - The company expects to continue incurring losses and requires additional capital to operate, indicating potential future equity offerings or debt financing[156]. Strategic Initiatives - The company plans to pursue opportunistic acquisitions to enhance its market position and expand its brand presence in the alcoholic beverage space[129]. - The company has established a wholly owned subsidiary, SWOL Holdings Inc., and formed another subsidiary, YHC Online Limited, in Hong Kong to support its growth strategy[115].
LQR House (LQR) - 2025 Q3 - Quarterly Report