Revenue Growth - For the three months ended June 30, 2023, total revenues were $191,022, a significant increase from $74,975 in the same period of 2022, representing a growth of 154%[100] - Service revenues for the three months ended June 30, 2023, were $143,235, up from $74,975 in 2022, reflecting an increase of $68,260 due to a growing marketing customer base[101] - Product revenues for the three months ended June 30, 2023, were $47,787, compared to $0 in the same period of 2022, attributed to a delivered SWOL batch[102] - For the six months ended June 30, 2023, total revenues were $341,585, compared to $103,225 in 2022, marking a growth of 231%[110] Financial Losses - The net loss for the three months ended June 30, 2023, was $3,556,491, compared to a net loss of $547,132 in 2022, indicating a worsening financial position[107] - The net loss for the six months ended June 30, 2023, was $3,878,565, compared to a net loss of $1,248,260 in 2022, reflecting increased operational challenges[117] Expenses and Cash Flow - General and administrative expenses for the three months ended June 30, 2023, were $3,559,688, a substantial increase from $248,052 in 2022, largely due to $3,000,000 in non-cash stock-based compensation[105] - Net cash used in operating activities for the six months ended June 30, 2023, was $892,463, a decrease from $1,015,807 in 2022, showing improved cash flow management[122] Liquidity and Funding - Cash and cash equivalents as of June 30, 2023, were $100,057, up from $7,565 as of December 31, 2022, indicating improved liquidity[118] - The company expects that its cash and cash equivalents, along with approximately $4.7 million from its IPO in August 2023, will be sufficient to fund operations for at least one year[120] - No significant cash requirements for capital expenditures or other cash needs under any contractual obligations during the six months ended June 30, 2023 and 2022[126] Accounting and Reporting - Financial statements prepared in accordance with GAAP, requiring estimates and assumptions that may differ from actual results[128] - Revenue recognized when performance obligations are satisfied, reflecting the consideration expected to be received[129] - Service revenue recognized over time as marketing services are provided, while product revenue recognized upon delivery to CWS[130] - Stock-based compensation measured based on fair value at grant date and recognized over the requisite service period[132] - Stock-based compensation expense classified in the statement of operations in line with payroll costs[133] - Company classified as a smaller reporting company and not required to provide certain market risk disclosures[134] Off-Balance Sheet Arrangements - No off-balance sheet arrangements that are likely to affect financial condition, revenues, or expenses[127]
LQR House (LQR) - 2023 Q2 - Quarterly Report