10-Q - Vintage Wine Estates, Inc. (0001834045) (Filer)

Wed, May 15, 8:26 PM (309 days ago)

Vintage Wine Estates, Inc. (VWE) faced significant financial challenges for the quarter ending March 31, 2024. The company reported a substantial net loss attributable to common stockholders of $26.2 million, compared to a $13.5 million loss in the same period last year. Total net revenue decreased by $19.0 million to $45.7 million, driven by declines across all segments. Gross profit fell by $2.8 million due to lower sales and higher cost of revenue. Operating expenses included a $5.2 million loss on asset sales and a $1.3 million restructuring expense. Interest expense increased by $1.8 million due to higher rates and outstanding balances. The company did not meet certain financial covenants, resulting in a forbearance agreement with lenders, extending the period to cure defaults until June 4, 2024. Management expressed substantial doubt about VWE's ability to continue as a going concern, citing the potential need for bankruptcy protection if additional capital is not secured or if debt obligations are accelerated.