Financial Performance - Total revenues for the three months ended September 30, 2023, were $170,511, a 31.6% increase from $129,567 in the same period of 2022 [102]. - For the nine months ended September 30, 2023, total revenues were $512,096, a significant increase from $232,792 in the same period of 2022 [111]. - Service revenues for the nine months ended September 30, 2023, increased by $162,420 to $395,212, driven by growth in the marketing customer base [113]. - Net loss for Q3 2023 was $5,541,228, compared to a net loss of $451,224 in Q3 2022 [110]. Revenue Breakdown - Service revenues decreased by $28,153 to $101,414 in Q3 2023, attributed to the company's focus on the IPO in August 2023 [104]. - Product revenues for Q3 2023 were $69,097, compared to $0 in Q3 2022, due to the delivery of a SWOL tequila batch [105]. Cash Flow and Financing - Net cash used in operating activities for the nine months ended September 30, 2023, was $4,568,848, primarily due to a net loss of $9,419,793 [125]. - Net cash used in financing activities for the nine months ended September 30, 2023, was $6,287,692, with proceeds from private placement offering of $905,000, notes of $950,000, and net proceeds from the IPO of $4,494,156 [128]. - The company raised $4.5 million from the IPO and an additional $15.0 million from public offerings in October and November 2023 [123]. - As of September 30, 2023, cash and cash equivalents were $1,863,835, a significant increase from $7,565 at the end of 2022 [121]. Expenses - General and administrative expenses surged to $4,803,821 in Q3 2023, up from $351,738 in Q3 2022, largely due to non-cash stock-based compensation [107]. Cash Flow Comparison - Net cash used in operating activities for the nine months ended September 30, 2022, was $1,035,463, primarily due to a net loss of $1,699,484 [126]. - Net cash provided by investing activities for the nine months ended September 30, 2023, was $137,426, compared to a net cash used of $74,086 in 2022 [127]. Accounting Policies - Revenue is recognized when performance obligations are satisfied, reflecting the consideration expected to be received [132]. - Service revenue is recognized over time as marketing services are provided, while product revenue is recognized upon delivery to customers [133]. - Stock-based compensation is measured based on fair value at the grant date and recognized over the requisite service period [135]. - The company is classified as a smaller reporting company and is not required to provide certain market risk disclosures [137]. Other Financial Information - The company had no significant cash requirements for capital expenditures or other cash needs under any contractual obligations during the nine months ended September 30, 2023 [129]. - There are no off-balance sheet arrangements that are likely to affect the company's financial condition or results of operations [130].
LQR House (LQR) - 2023 Q3 - Quarterly Report