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LQR House Inc. (YHC+0.99%) has submitted its Form 10-K filing for the fiscal year ended December 31, 2024.
The filing includes financial statements for the year, showing total revenue of $2,501,660, an increase from $1,120,622 in the previous year. The increase is primarily due to product sales via the CWS Platform, which was acquired in November 2023.
Cost of revenue for the year was $2,814,835, compared to $915,598 in the previous year. This increase is attributed to higher product and shipping costs associated with the CWS Platform.
The company reported a gross loss of $313,175 for the year, compared to a gross profit of $205,024 in the previous year, due to increased operating expenses and cost of revenue.
Operating expenses increased to $18,174,144 from $15,781,748, driven by higher general and administrative expenses and sales and marketing costs.
LQR House recorded an impairment expense of $4,500,000 related to its investment in DRNK Beverage Corp., reflecting challenges in the marketplace and reduced prospects for recovery.
Net loss for the year was $22,754,178, compared to $15,747,724 in the previous year. The increase in net loss is attributed to higher operating expenses and impairment charges.
Cash used in operating activities was $6,618,417, while cash provided by investing activities was $675,674. Cash provided by financing activities was $4,265,184.
As of December 31, 2024, LQR House had cash and cash equivalents of $5,386,789. The company acknowledges the need for additional capital to operate and expects losses to continue for the foreseeable future.
LQR House's ability to continue as a going concern is dependent upon generating sufficient cash flows from operations or obtaining additional capital financing.
The filing also details various strategic initiatives, including the acquisition of a minority stake in Cannon Estate Winery Ltd. and DRNK Beverage Corp., and the acquisition of the CWS Platform.
LQR House continues to focus on expanding its brand presence and marketing services, while exploring potential acquisition opportunities to enhance its business model.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the LQR House Inc. annual 10-K report dated March 31, 2025. To report an error, please email earnings@qz.com.