Splash Beverage Group Inc (SBEV) Quarterly 10-Q Report

The report was filed on November 15, 2024

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Splash Beverage Group, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.

The filing includes financial statements for the quarter, showing a decrease in revenues to $981,858 from $5,144,069 in the same quarter the previous year. The decrease is attributed to a reduction in inventory affecting sales.

Cost of goods sold for the quarter was $690,839, representing 70% of sales, compared to 75% in the same quarter of the previous year. This decrease in cost ratio is due to reduced sales volume.

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The company reported a gross profit of $291,019 for the quarter, compared to $1,296,867 in the previous year, with the decline attributed to decreased sales.

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Operating expenses for the quarter decreased to $2,960,612 from $5,620,398, primarily due to reductions in marketing expenses and non-cash expenses.

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Net loss for the quarter was $4,719,563, down from $5,670,081 in the previous year. The decrease in net loss is due to lower debt discount expense.

Cash used in operating activities was $6,383,464, while cash provided by financing activities was $6,385,791.

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Splash had a working capital deficit as of September 30, 2024. The company acknowledges its dependence on additional funding to meet future obligations.

The filing also details various financial agreements, including several convertible note agreements and revenue purchase agreements.

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Splash does not anticipate cash dividend payments to common stockholders in the near future.

The company identified a material weakness in its internal controls over financial reporting due to a lack of segregation of duties and sufficient accounting personnel.

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Splash continues to focus on expanding its distribution system and addressing liquidity challenges to improve its financial position.

This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Splash Beverage Group Inc. (NV) quarterly 10-Q report dated November 15, 2024. To report an error, please email earnings@qz.com.