Wed, May 15, 8:34 PM (253 days ago)
LQR House Inc. has reported a significant increase in total revenues for Q1 2024, amounting to $481,094, a 220% rise compared to Q1 2023. This growth was primarily driven by product revenues of $437,303, following the acquisition of the CWS Platform in November 2023. However, the cost of revenue surged to $560,591, resulting in a gross loss of $79,497. Operating expenses skyrocketed to $2,392,876, a 547% increase, due to higher general and administrative costs and sales and marketing expenses. Consequently, the net loss expanded to $2,427,392 from $322,074 in Q1 2023. Cash and cash equivalents decreased to $1,781,907 from $7,064,348 at the end of 2023, mainly due to investments in mutual funds and share repurchases. The company faces substantial doubt about its ability to continue as a going concern and plans to raise additional capital through debt and equity financings. The company's focus remains on expanding its e-commerce platform and marketing services, despite the ongoing challenges.