Wed, May 15, 9:21 PM (72 days ago)
For the quarter ended March 31, 2024, Splash Beverage Group, Inc. reported a significant decline in revenue, generating $1.5 million compared to $5.8 million in Q1 2023. This 74% decrease was primarily due to a 91% drop in e-commerce sales from its Qplash division, attributed to low inventory levels. Cost of goods sold also decreased to $1.4 million from $4.1 million, aligned with the revenue decline. Operating expenses fell to $3.4 million from $5.2 million, driven by reduced non-cash expenses despite increased staffing and freight costs. The net loss widened to $4.7 million from $3.7 million, influenced by higher interest and debt discount amortization expenses. The company faces liquidity challenges, with cash reserves dropping to $14,757 from $379,978 at year-end 2023. Management plans to raise additional funds to support operations and growth, but uncertainties about securing sufficient capital raise substantial doubt about the company's ability to continue as a going concern.