Tue, Jul 2, 10:01 AM (67 days ago)
Bespoke Extracts, Inc. reported a significant increase in sales for Q1 2024, reaching $260,428 compared to $89,016 in Q1 2023, primarily driven by increased direct sales of pre-rolled joints to licensed dispensaries in Colorado. Despite this growth, the company continues to operate at a loss, with a net loss of $314,118 for the quarter, an improvement from a net loss of $440,620 in the same period last year. The cost of goods sold rose to $157,847 from $78,667, reflecting higher sales volume. Operating expenses decreased slightly to $405,384 from $453,719, primarily due to reduced stock-based compensation. The company faces substantial doubt about its ability to continue as a going concern, given its negative cash flows and working capital deficit. Cash at the end of the period was $14,416, with current liabilities totaling $1,345,306. The company has been relying on related party loans and financing activities, including issuing $100,000 in senior secured notes. Future operations depend on generating profitable operations and securing additional financing.