Wed, Aug 14, 7:49 PM (153 days ago)
Starco Brands, Inc. reported a net loss of $11.56 million for Q2 2024, a significant increase from $6.02 million in Q2 2023, primarily due to higher operational costs and a fair value share adjustment loss related to its Soylent acquisition. Revenue for Q2 2024 was $15.57 million, down 11% from $17.51 million in the prior year, attributed mainly to decreased sales from the Whipshots brand. Operating expenses surged to $16.77 million, reflecting increased compensation and marketing costs following recent acquisitions. The company's accumulated deficit reached approximately $80 million, raising concerns about its ability to meet obligations in the upcoming year. Cash flow from operations was positive at $124,729, contrasting with a net cash outflow from investing activities of $82,049. The firm has secured financing through a revolving loan facility, but total liabilities remain high at $56.84 million. Management plans to enhance revenue while controlling expenses, seeking alternative financing to support operations and address liquidity concerns. The company is classified as a smaller reporting entity, facing notable risks amid ongoing market uncertainties.