Tue, May 20, 9:13 PM (23 days ago)
**Amaze Holdings, Inc. (AMZE) Q1 2025 Financial Summary** **Company Overview:** Amaze Holdings, Inc. (AMZE) operates as a software company, focusing on e-commerce, social commerce, and integrated commerce selling experiences. The company completed the acquisition of Amaze Software, Inc. on March 7, 2025, marking a strategic pivot towards a platform-based digital commerce business. **Financial Performance (Q1 2025 vs. Q1 2024):** - **Revenue:** Q1 2025 revenue was $60,214, down 42% from $104,568 in Q1 2024. The decrease is attributed to reduced sales and marketing spending as the company planned for the acquisition. - **Gross Loss:** Q1 2025 gross loss was $2,576, an improvement from a gross loss of $111,248 in Q1 2024. - **Operating Loss:** Q1 2025 operating loss was $1,889,877, compared to $1,212,354 in Q1 2024. - **Net Loss:** Q1 2025 net loss was $2,089,208, or $(0.13) per share, compared to a net loss of $1,212,315, or $(0.08) per share, in Q1 2024. - **Cash Flow:** Net cash used in operating activities was $1,362,954 in Q1 2025, compared to $332,814 in Q1 2024. Net cash provided by financing activities was $1,999,935 in Q1 2025, compared to $105,325 in Q1 2024. **Key Financial Metrics:** - **Liquidity:** As of March 31, 2025, Amaze had $484,314 in cash and restricted cash, $7,000 in accounts receivable, $199,000 in inventory, and $505,000 in prepaid expenses. - **Working Capital:** Current assets were approximately $1.7 million, and current liabilities were approximately $24.8 million, resulting in a working capital deficit of approximately $23.1 million. - **Stockholders' Equity:** Total stockholders' equity was approximately $74.9 million as of March 31, 2025. **Operational Highlights:** - **Acquisition:** The acquisition of Amaze Software, Inc. was completed on March 7, 2025, with the merger consideration including 750,000 shares of Series D Convertible Preferred Stock and warrants to purchase 8,750,000 shares of common stock. - **Segment Performance:** The company operates in two segments: E-commerce/Subscriptions and Wine Products. The E-commerce segment focuses on creator-driven commerce, while the Wine Products segment includes the sale of "Fresh Vine" wines. **Future Outlook:** - **Liquidity and Financing:** The company expects to incur losses in future periods and may require additional debt or equity financing to sustain operations. The existing cash balance is projected to fund current operations into 2026, after which additional financing may be needed. - **Legal Proceedings:** The company is involved in several legal proceedings, including a lawsuit with Timothy Michaels, which has resulted in a judgment against the company. Continued litigation may impact the company's ability to focus on business matters. **Risks and Uncertainties:** - **Financial Stability:** The company's ability to continue as a going concern is dependent on its ability to meet liquidity needs through a combination of cash and cash equivalents, working capital, and strategic capital raises. - **Market and Operational Risks:** The company faces risks related to market competition, technological advancements, supplier and customer concentrations, and legal proceedings. **Conclusion:** Amaze Holdings, Inc. is navigating a strategic transition following the acquisition of Amaze Software, Inc. While the company has improved its gross margin profile, it continues to face significant financial challenges and uncertainties. The ability to secure additional financing and manage operational risks will be critical to the company's future success.