2024 Q2 Form 10-K Financial Statement

#000121390024028934 Filed on April 01, 2024

View on sec.gov

Income Statement

Concept 2024 Q2 2023 Q4 2023
Revenue $557.9K $608.5K $1.121M
YoY Change 192.07% 1.42% 86.77%
Cost Of Revenue $710.1K $513.8K $915.6K
YoY Change 422.29% -35.78% 14.45%
Gross Profit -$152.2K $94.78K $205.0K
YoY Change -376.4% -147.39% -202.51%
Gross Profit Margin -27.28% 15.58% 18.3%
Selling, General & Admin $2.122M $4.548M $13.91M
YoY Change -41.24% 177.3% 747.97%
% of Gross Profit 4798.17% 6783.12%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $20.83K $208.3K
YoY Change -91.67% -16.67%
% of Gross Profit 21.98% 101.61%
Operating Expenses $2.122M $4.548M $13.91M
YoY Change -41.24% 177.3% 747.97%
Operating Profit -$2.274M -$4.453M -$13.70M
YoY Change -36.05% 142.01% 644.66%
Interest Expense $65.10K $0.00 -$171.0K
YoY Change
% of Operating Profit
Other Income/Expense, Net $65.10K -$171.0K
YoY Change
Pretax Income -$2.209M -$6.328M -$15.75M
YoY Change -37.88% 243.91% 755.85%
Income Tax
% Of Pretax Income
Net Earnings -$2.209M -$6.328M -$15.75M
YoY Change -37.88% 243.91% 755.85%
Net Earnings / Revenue -395.99% -1039.87% -1405.27%
Basic Earnings Per Share -$0.44 -$17.01
Diluted Earnings Per Share -$0.44 -$1.52 -$3.26
COMMON SHARES
Basic Shares Outstanding 4.829M shares 201.8M shares 925.6K shares
Diluted Shares Outstanding 4.991M shares 925.6K shares

Balance Sheet

Concept 2024 Q2 2023 Q4 2023
SHORT-TERM ASSETS
Cash & Short-Term Investments $4.639M $7.064M $7.064M
YoY Change 4535.79% 70543.5% 70543.5%
Cash & Equivalents $622.8K $7.064M $7.064M
Short-Term Investments $4.016M
Other Short-Term Assets $1.745M $2.367M $2.367M
YoY Change 1270.69% 663.65% 663.65%
Inventory
Prepaid Expenses $1.568M $2.190M
Receivables $166.8K $172.5K $172.5K
Other Receivables $0.00 $5.470M $5.470M
Total Short-Term Assets $6.551M $15.07M $15.07M
YoY Change 1570.71% 2640.75% 2640.75%
LONG-TERM ASSETS
Property, Plant & Equipment $2.840K $8.400K $8.400K
YoY Change -79.41%
Goodwill
YoY Change
Intangibles $10.00K $10.00K
YoY Change -99.49% -99.52%
Long-Term Investments $5.618M
YoY Change
Other Assets
YoY Change
Total Long-Term Assets $5.630M $18.40K $18.40K
YoY Change 126.21% -99.12% -99.12%
TOTAL ASSETS
Total Short-Term Assets $6.551M $15.07M $15.07M
Total Long-Term Assets $5.630M $18.40K $18.40K
Total Assets $12.18M $15.09M $15.09M
YoY Change 322.8% 473.86% 473.86%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $149.4K $323.8K $323.8K
YoY Change -72.48% -16.97% -16.97%
Accrued Expenses $331.3K $145.9K $145.9K
YoY Change 182.33% -27.05% -27.05%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $485.7K $469.7K $469.7K
YoY Change -37.56% -20.38% -20.38%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities $2.530K $2.530K
YoY Change
Total Long-Term Liabilities $0.00 $2.530K $2.530K
YoY Change -100.0%
TOTAL LIABILITIES
Total Short-Term Liabilities $485.7K $469.7K $469.7K
Total Long-Term Liabilities $0.00 $2.530K $2.530K
Total Liabilities $485.7K $472.3K $472.3K
YoY Change -37.96% -19.96% -19.96%
SHAREHOLDERS EQUITY
Retained Earnings -$24.19M -$19.55M
YoY Change 214.09% 413.88%
Common Stock $36.43M $482.00
YoY Change 3585735.24% -47.61%
Preferred Stock
YoY Change
Treasury Stock (at cost) $1.441M
YoY Change
Treasury Stock Shares
Shareholders Equity $11.70M $14.62M $14.62M
YoY Change
Total Liabilities & Shareholders Equity $12.18M $15.09M $15.09M
YoY Change 322.8% 473.86% 473.86%

Cashflow Statement

Concept 2024 Q2 2023 Q4 2023
OPERATING ACTIVITIES
Net Income -$2.209M -$6.328M -$15.75M
YoY Change -37.88% 243.91% 755.85%
Depreciation, Depletion And Amortization $20.83K $208.3K
YoY Change -91.67% -16.67%
Cash From Operating Activities -$1.174M -$4.545M -$9.114M
YoY Change 78.2% 394.02% 890.64%
INVESTING ACTIVITIES
Capital Expenditures $10.00K $10.00K
YoY Change
Acquisitions
YoY Change
Other Investing Activities $15.26K -$5.470M -$5.333M
YoY Change -112.58% 2778.95% 2706.62%
Cash From Investing Activities $15.26K -$5.480M -$5.343M
YoY Change -112.58% 2784.21% 2711.88%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $20.56M
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -20.00 15.23M 21.51M
YoY Change -100.0%
NET CHANGE
Cash From Operating Activities -1.174M -4.545M -9.114M
Cash From Investing Activities 15.26K -5.480M -5.343M
Cash From Financing Activities -20.00 15.23M 21.51M
Net Change In Cash -1.159M 5.201M 7.057M
YoY Change -1615.6% -568.51% -735.75%
FREE CASH FLOW
Cash From Operating Activities -$1.174M -$4.545M -$9.114M
Capital Expenditures $10.00K $10.00K
Free Cash Flow -$4.555M -$9.124M
YoY Change 891.72%

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif"><b>1. NATURE OF OPERATIONS</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif">LQR House Inc. (“LQR” or the “Company”) was incorporated on January 11, 2021, in the state of Delaware. The Company operates primarily in the beverage alcohol industry owning specialty brands, providing marketing and distribution services.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif"><i>Reorganization and Reverse Stock Split</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif"><i> </i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif">On February 3, 2023, the Company changed its state of incorporation to the State of Nevada by merging into LQR House Inc., a Nevada corporation. On February 3, in accordance with our reincorporation to Nevada, the Company’s authorized capital stock changed from 100,000,000 shares of common stock, $0.001 par value, to 350,000,000 shares, consisting of 300,000,000 shares of common stock, par value $0.0001 per share, and 50,000,000 shares of preferred stock, par value $0.0001 per share. At the same time, the Company also completed a 1-for-6 reverse stock split of its outstanding common stock through the merger by issuing one share of common stock for every six previously outstanding shares of common stock of the predecessor Delaware company. The accompanying financial statements and related disclosures have been presented to retroactively reflect the Reorganization.<i> </i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"><span style="font-family: Times New Roman, Times, Serif"><i>Reverse Stock Split</i> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"><span style="font-family: Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif">On November 30, 2023, the Company effected a 1-for-60 reverse stock split of its outstanding common stock. Accordingly, all share and per share amounts for all periods presented in the accompanying financial statements and notes thereto have been adjusted retroactively, where applicable, to reflect the reverse stock split. There was no effect on the number of shares of common stock or preferred stock authorized for issuance under the Company’s certificate of incorporation or the par value of such securities.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif"><i> </i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif"><i>Initial Public Offering</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif"><i> </i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">On August 9, 2023, the Company entered into an underwriting agreement (the “Underwriting Agreement”) with EF Hutton, division of Benchmark Investments, LLC (“EF Hutton”), relating to the Company’s initial public offering (the “Offering” or “IPO”) of 28,750 shares (the “Shares”) of the Company’s common stock which included the exercise by the underwriters in full of the over-allotment option to purchase an additional 2,500 shares of the Company’s common stock, at an offering price of $300 per share. The closing of the IPO took place on August 11, 2023. Total gross proceeds, including the exercise of the over-allotment option, was $5.75 million. The aggregate net proceeds to the Company from the IPO were approximately $4.5 million after deducting underwriting discounts and commissions and total offering expenses.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif"><i>Country Wine &amp; Spirits (“CWS”) Platform</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif"><i> </i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">On November 1, 2023, LQR House Acquisition Corp. (the “Buyer”), a subsidiary of the Company, and SSquared Spirits LLC (the “Seller”) entered into a Domain Name Transfer Agreement (“Agreement”). Pursuant to the Agreement, the Seller irrevocably sold, assigned, transferred, and conveyed to the Buyer (a) all right, title, and interest in and to the domain name www.cwspirits.com (the “Domain Name”, “CWS Platform”), including its current registration and (b) any other rights (including, but not limited to, trademark rights associated with the Domain Name in any jurisdiction, all Internet traffic through the Domain Name and all Website Content (as defined in the Agreement) the Seller may have in the Domain Name, together with any goodwill associated therewith in exchange for the payment by the Buyer of the purchase price of $10,000. See Note 4.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif">The Company’s Chief Executive Officer, Sean Dollinger, owns 50% of the equity of the Seller, and the other 50% is owned by a minority shareholder of the Company. A Special Committee of the Company’s Board of Directors consisting of all independent directors approved the terms of the Agreement on November 1, 2023. See Note 8.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><i>Stock Dividend in the Form of Stock Split</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><i> </i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">In February 2024, the Board of Directors declared a 50% stock dividend for distribution to all of the Company’s shareholders of record at the close of business on February 12, 2024. On March 1, 2024, 1,609,817 shares were issued per the dividend (see Note 11). As a result of the stock dividend, a 3:2 stock split was effected. Accordingly, all share and per share amounts for all periods presented in the accompanying financial statements and notes thereto have been adjusted retroactively, where applicable, to reflect the stock split.</p>
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R5.htm Edgar Link pending
R6.htm Edgar Link pending
R7.htm Edgar Link pending
R8.htm Edgar Link pending
R9.htm Edgar Link pending
report.css Edgar Link pending
Show.js Edgar Link pending
FilingSummary.xml Edgar Link unprocessable