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Fresh Vine Wine, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing indicates a decrease in net revenue to $63,209 for the three months ended September 30, 2024, from $847,959 in the same period the previous year. This decline is attributed to a slowdown in business operations as the company prepares for a potential merger.
Cost of revenues for the quarter was $65,046, compared to $889,844 in the same quarter of the previous year. The decrease in cost is linked to lower inventory write-downs.
Fresh Vine Wine reported a gross profit of $152,646 for the quarter, compared to a gross loss of $41,885 in the previous year, due to the reversal of a previously booked inventory reserve.
Selling, general, and administrative expenses decreased to $459,988 from $1,141,390, reflecting reduced marketing and operational costs.
Net loss for the quarter was $315,290, compared to a net loss of $2,129,660 in the previous year. After preferred dividends, the net loss attributable to common stockholders was $365,290.
Cash used in operating activities was $1,346,789 for the nine months ended September 30, 2024, down from $4,585,403 in the previous year. Cash provided by financing activities was $1,132,517, compared to $3,365,014 in the previous year.
Fresh Vine Wine had a working capital deficit of $2,901,579 as of September 30, 2024. The company emphasizes its need for additional financing to continue operations and meet future obligations.
The filing details a Business Combination Agreement with Adifex Holdings LLC, which involves a merger and requires the company to raise up to $10,000,000 through equity or debt securities.
Fresh Vine Wine does not anticipate cash dividend payments to common stockholders in the near future.
The company identified material weaknesses in its internal controls over financial reporting, citing a lack of segregation of duties and inadequately designed controls.
Fresh Vine Wine continues to focus on expanding its distribution network and marketing its wine products, while addressing financial and operational challenges.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Fresh Vine Wine Inc. quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.