Splash(US:SBEV)2022-08-15 21:34Financial Performance - For the three months ended June 30, 2022, net revenues increased to $4,498,940, a 37% increase from $3,287,760 in the same period of 2021[14] - Gross profit for the six months ended June 30, 2022, was $1,505,158, compared to $1,422,473 for the same period in 2021, reflecting a 5.8% increase[14] - The company reported a net loss of $5,758,857 for the three months ended June 30, 2022, compared to a net loss of $6,560,600 for the same period in 2021, indicating a 12.2% improvement[14] - Net loss for 2022 was $11,753,264, compared to a net loss of $10,760,538 in 2021, representing an increase in loss of approximately 9.2%[20] - Operating expenses for the six months ended June 30, 2022, totaled $13,018,259, compared to $12,279,421 for the same period in 2021, an increase of 6.0%[14] Assets and Liabilities - Total current assets rose to $9,469,991 as of June 30, 2022, up from $8,341,892 at the end of 2021, marking a 13.5% increase[11] - Total liabilities decreased to $5,412,054 as of June 30, 2022, down from $7,512,143 at the end of 2021, a reduction of 28.1%[11] - The company’s accumulated deficit increased to $102,393,821 as of June 30, 2022, from $90,640,557 at the end of 2021, reflecting a 12.9% increase[11] - Cash and cash equivalents increased slightly to $4,206,208 as of June 30, 2022, compared to $4,181,383 at the end of 2021[11] Cash Flow - Cash used in operating activities for continuing operations was $7,107,851 in 2022, a decrease of 7.4% from $7,673,122 in 2021[20] - Net cash used for operating activities during the six months ended June 30, 2022, was $7,107,851, a decrease from $7,673,122 in the same period of 2021[1] - Net cash provided by financing activities during the six months ended June 30, 2022, was $7,132,676, down from $19,477,363 in the prior year[1] Stock and Financing - The company issued 2,300,000 shares of common stock for cash, raising $8,067,400 during the reporting period[18] - The weighted average number of common shares outstanding for the three months ended June 30, 2022, was 36,675,323, compared to 27,356,918 for the same period in 2021, a 34.1% increase[14] - The company raised $8,075,074 from the issuance of common stock in 2022, compared to $19,630,565 in 2021, indicating a decrease of approximately 58.8%[20] Operational Highlights - The company is expanding its distribution system to select international markets, enhancing its growth potential[22] - The company aims to identify and build early-stage beverage brands with strong growth potential within its distribution system[22] - The company signed an agreement to acquire 80% of Pulpoloco Sangria, enhancing control over manufacturing and distribution in the US and expanding into international markets[2] Expenses - Advertising expenses for Q2 2022 were $131,327, a decrease of 12.8% compared to $150,753 in Q2 2021[54] - Non-cash share-based compensation increased to $5,070,833 in 2022 from $3,941,904 in 2021, reflecting a rise of approximately 28.7%[20] - The company recognized share-based compensation and warrant expense of $4,122,702 for the six months ended June 30, 2022[1] Legal and Compliance - The company is actively discussing a resolution regarding a lawsuit filed by Copa Di Vino Corporation, which claims that 380,959 shares are owed[2] Miscellaneous - No relevant financial performance or user data was provided in the documents[129] - No future outlook or performance guidance was mentioned in the documents[129] - No information on new products or technology development was included in the documents[129] - No details regarding market expansion or acquisitions were found in the documents[129] - No new strategies were outlined in the documents[129]