Tue, May 20, 9:35 PM (34 days ago)
**Yerbaé Brands Corp. (YERBAE) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $1,213,883 (down 15% YoY from $1,434,971). - **Gross Profit:** $510,199 (down 37% YoY from $814,709). - **Net Loss:** $3,331,782 (up 19% YoY from $2,793,709). - **Cash Flow:** Net cash used in operating activities was $212,062, compared to $1,846,228 in Q1 2024. - **Cash Position:** $526,187 at the end of Q1 2025, up from $124,214 at the end of Q4 2024. - **Profit Margins:** Declining, with increased expenses outpacing revenue growth. - **Earnings Changes:** Basic and diluted loss per share remained at $0.05. **Key Metrics and Trends:** - **Revenue Decline:** Due to strategic shifts in customer portfolio and market conditions. - **Cost of Sales:** Increased by 13% YoY, driven by material and production costs. - **Expenses:** General and administrative expenses rose by 10% YoY, primarily due to share-based compensation and professional fees. - **Sales and Marketing:** Decreased by 53% YoY, reflecting a strategic evaluation of promotions and growth initiatives. - **Other Expenses:** Increased by 69% YoY, mainly due to accretion and interest expenses. **Uncertainties and Future Operations:** - **Going Concern:** Significant doubt about the ability to continue as a going concern due to recurring losses and limited cash balance. - **Financing Needs:** Requires additional funding to meet obligations and continue operations. - **Market Conditions:** Inflationary pressures and challenging market conditions for beverage companies. - **Strategic Initiatives:** Focus on improving gross margins, expanding distribution channels, and optimizing digital marketing. **Impact on Future Operations:** - **Liquidity:** Management plans to secure additional financing to support operational obligations. - **Strategic Shifts:** Continued focus on cost management, strategic partnerships, and digital marketing to drive future growth. - **Risk Factors:** Dependence on external financing, market conditions, and operational efficiencies. **Conclusion:** Yerbaé Brands Corp. faces significant financial challenges, including declining revenues, increasing expenses, and liquidity concerns. The company is actively seeking additional financing and implementing strategic initiatives to improve its financial position and operational efficiency. However, substantial doubt remains regarding its ability to continue as a going concern.