Splash Beverage Group Reports 2023 First Quarter Financial Results
June 06 2023 - 9:16AM
via NewMediaWire – Splash Beverage Group, Inc. (NYSE American:
SBEV) ("Splash" or the "Company"), a portfolio company of leading
beverage brands, today reported financial results for the first
quarter period ended March 31, 2023. Investors are encouraged to
read the Company’s quarterly report on Form 10-Q which was filed
with the Securities and Exchange Commissions (the “SEC”), contains
additional information, and is posted at
https://splashbeveragegroup.com/.
First Quarter
Financial Performance
- Net revenue for the first quarter was
$5.8 million compared to $3.9 million in the prior year period, an
increase of 48%. The increase in revenues was primarily due to
increases in all beverage brands which increased 28.5% as well as
sales from the Company’s ecommerce division distribution platform,
Qplash which increased 60.3% over the prior year period.
- Gross profit for the first quarter was
$1.8 million compared to $1.3 million in the prior year
period.
- First quarter net loss narrowed to
$3.73 million compared to $5.99 million in the prior year period.
The decrease in net loss was due to higher sales offsetting a lower
gross margin and higher operating expenses.
- As of March 31, 2023, the company had
total cash and cash equivalents of $2.1 million, compared to $4.4
million at December 31, 2022.
Robert Nistico, CEO of Splash Beverage Group said, “Our 2023
first quarter results are consistent with the preliminary results
of $5.8 million in NET revenue ($6.1M gross), which is not only
another record quarter for sales, but solid improvement in many of
the key data points we outline in our April announcement, brands
authorized in national and regional chains, selling universe as
measured by more than 24,000 store doors. We continue to expand our
footprint of distribution relationships such that we are now
available throughout the US.
“As we noted previously, one or more of our brands have been
authorized in more than a dozen national and retail chains in the
last six months. As I mentioned in the April update it takes time
to activate all our new store door universe, but we have made good
progress through the end of Q1 and have placed one or more of our
brands on 3,120 new shelves.
“We expect TapouT Energy Drink to add to this effort this
quarter. Earlier we estimated that launch would begin in May but
unfortunately, we had a can production delay, but we do expect to
launch later this month.
“Regarding the late filing of our Q, as mentioned in the 8k
filed with the SEC and in our press release, this was a function of
our audit firm merging with a much larger firm and adding
additional several layers of review,” Nistico added. “We were
unaware of the extra procedures and the additional time required as
a result. Now that we know, this should not happen
again.”
About Splash Beverage Group,
Inc.Splash Beverage Group, an innovator in the beverage
industry, owns a growing portfolio of alcoholic and non-alcoholic
beverage brands including Copa di Vino wine by the glass, SALT
flavored tequilas, Pulpoloco sangria, and TapouT performance
hydration and recovery drink. Splash’s strategy is to rapidly
develop early-stage brands already in its portfolio as well as
acquire and then accelerate brands that have high visibility or are
innovators in their categories. Led by a management team that has
built and managed some of the top brands in the beverage industry
and led sales from product launch into the billions, Splash is
rapidly expanding its brand portfolio and global
distribution.
For more information visit:
www.SplashBeverageGroup.com www.copadivino.com
www.drinksalttequila.com www.pulpo-loco.com
www.tapoutdrinks.com
Forward-Looking StatementThis
press release includes “forward-looking statements” within the
meaning of U.S. federal securities laws. Words such as “expect,”
“estimate,” “project,” “budget,” “forecast,” “anticipate,”
“intend,” “plan,” “may,” “will,” “could,” “should,” “believes,”
“predicts,” “potential,” “continue” and similar expressions are
intended to identify such forward-looking statements. These
forward-looking statements involve significant risks and
uncertainties that could cause the actual results to differ
materially from the expected results and, consequently, you should
not rely on these forward-looking statements as predictions of
future events. These forward-looking statements and factors that
may cause such differences include, without limitation, the risks
disclosed in the Company’s Annual Report on Form 10-K filed with
the SEC on March 31, 2022, and in the Company’s other filings with
the SEC. Readers are cautioned not to place undue reliance upon any
forward-looking statements, which speak only as of the date made.
Except as required by law, the Company disclaims any obligation to
update or publicly announce any revisions to any of the
forward-looking statements contained in this press release.
Contact Information:Splash
Beverage GroupInfo@SplashBeverageGroup.com954-745-5815
Consolidated Balance Sheets
|
|
March 31,2023 |
|
December 31, 2022 |
Assets |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
2,145,797 |
|
|
$ |
4,431,745 |
|
Accounts Receivable, net |
|
|
2,190,681 |
|
|
|
1,812,110 |
|
Prepaid Expenses |
|
|
926,273 |
|
|
|
348,036 |
|
Inventory |
|
|
3,144,793 |
|
|
|
3,721,307 |
|
Other receivables |
|
|
490,126 |
|
|
|
344,376 |
|
Total current assets |
|
|
8,897,670 |
|
|
|
10,657,574 |
|
|
|
|
|
|
|
|
|
|
Non-current assets: |
|
|
|
|
|
|
|
|
Deposit |
|
$ |
49,368 |
|
|
$ |
49,290 |
|
Goodwill |
|
|
154,573 |
|
|
|
256,823 |
|
Intangible assets, net |
|
|
4,759,711 |
|
|
|
4,851,377 |
|
Investment in Salt Tequila USA, LLC |
|
|
250,000 |
|
|
|
250,000 |
|
Right of use asset |
|
|
674,106 |
|
|
|
750.042 |
|
Property and equipment, net |
|
|
461,217 |
|
|
|
489.597 |
|
Total non-current assets |
|
|
6,348,975 |
|
|
|
6,647,129 |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
15,246,645 |
|
|
$ |
17,304,703 |
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses |
|
$ |
2,918,991 |
|
|
$ |
3,383,187 |
|
Liability to issue shares |
|
|
2,131,800 |
|
|
|
91,800 |
|
Right of use liability - current |
|
|
250,734 |
|
|
|
268,749 |
|
Notes payable, current portion |
|
|
2,913,136 |
|
|
|
1,080,257 |
|
Shareholder advances |
|
|
200,000 |
|
|
|
— |
|
Accrued interest payable |
|
|
162,915 |
|
|
|
141,591 |
|
Total current liabilities |
|
|
8,577,576 |
|
|
|
4,965,584 |
|
|
|
|
|
|
|
|
|
|
Long-term Liabilities: |
|
|
|
|
|
|
|
|
Notes payable |
|
|
2,432,288 |
|
|
|
2,536,319 |
|
Right of use liability - noncurrent |
|
|
423,173 |
|
|
|
480,666 |
|
Total long-term liabilities |
|
|
2,855,461 |
|
|
|
3,016,985 |
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
11,433,037 |
|
|
|
7,982,569 |
|
|
|
|
|
|
|
|
|
|
Deficiency in stockholders’ equity (deficit): |
|
|
|
|
|
|
|
|
Preferred stock, $0.001 par value, 5,000,000 shares authorized, no
shares issued |
|
|
— |
|
|
|
— |
|
Common Stock, $0.001 par, 300,000,000 shares authorized, 41,085,520
and 41,085,520 shares issued, 41,085,520 and 41,085,520 shares
outstanding, at March 31, 2023 and December 31, 2022,
respectively |
|
|
41,086 |
|
|
|
41,086 |
|
Additional paid in capital |
|
|
121,749,517 |
|
|
|
121,632,547 |
|
Accumulated Other Comprehensive Income |
|
|
(47,098 |
) |
|
|
(20,472 |
) |
Accumulated deficit |
|
|
(117,929,897 |
) |
|
|
(112,331,027 |
) |
Total stockholders’ equity |
|
|
3,813,608 |
|
|
|
9,322,134 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders’ equity |
|
$ |
15,246,645 |
|
|
$ |
17,304,703 |
|
Splash Beverage
GroupConsolidated Statements of
Operations
|
|
Three months ended March 31, |
|
|
2023 |
|
2022 |
|
|
|
|
|
Gross sales |
|
$ |
6,134,398 |
|
|
$ |
4,071,356 |
|
Customer discounts |
|
|
(311,671 |
) |
|
|
(144,783 |
) |
|
|
|
|
|
|
|
|
|
Net revenues |
|
|
5,822,727 |
|
|
|
3,926,573 |
|
Cost of goods sold |
|
|
(4,061,228 |
) |
|
|
(2,635,310 |
) |
Gross profit |
|
|
1,761,499 |
|
|
|
1,291,263 |
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
Contracted services |
|
|
381,006 |
|
|
|
431,545 |
|
Salary and wages |
|
|
1,234,127 |
|
|
|
785,651 |
|
Non-cash share-based compensation |
|
|
2,255,759 |
|
|
|
2,355,542 |
|
Other general and administrative |
|
|
2,623,684 |
|
|
|
2,681,498 |
|
Sales and marketing |
|
|
736,827 |
|
|
|
720,979 |
|
Total operating expenses |
|
|
7,231,403 |
|
|
|
6,975,215 |
|
|
|
|
|
|
|
|
|
|
Loss from continuing operations |
|
|
(5,469,904 |
) |
|
|
(5,683,953 |
) |
|
|
|
|
|
|
|
|
|
Other income/(expense): |
|
|
|
|
|
|
|
|
Other Income |
|
|
38,154 |
|
|
|
— |
|
Interest expense |
|
|
(167,121 |
) |
|
|
(85,879 |
) |
Total other (expense) |
|
|
(128,967 |
) |
|
|
(85,879 |
) |
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
Net loss from continuing operations, net of tax |
|
|
(5,598,871 |
) |
|
|
(5,769,832 |
) |
|
|
|
|
|
|
|
|
|
Net loss /income from discontinued operations, net of tax |
|
|
— |
|
|
|
(224,576 |
) |
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(5,598,871 |
) |
|
$ |
(5,994,408 |
) |
|
|
|
|
|
|
|
|
|
Other comprehensive loss foreign currency translation loss |
|
|
(26,625 |
) |
|
|
--- |
|
|
|
|
|
|
|
|
|
|
Total Comprehensive income |
|
|
(5,625,497 |
) |
|
|
(5,994,408 |
) |
|
|
|
|
|
|
|
|
|
Loss per share - continuing operations |
|
|
|
|
|
|
|
|
Basic and dilutive |
|
$ |
(0.15 |
) |
|
$ |
(0.16 |
) |
|
|
|
|
|
|
|
|
|
Weighted average number of common shares outstanding - continuing
operations |
|
|
|
|
|
|
|
|
Basic and dilutive |
|
|
37,389,990 |
|
|
|
35,188,404 |
|
|
|
|
|
|
|
|
|
|
Income/(loss) per share - discontinued operations |
|
|
|
|
|
|
|
|
Basic and dilutive |
|
$ |
(0.00 |
) |
|
$ |
(0.00 |
) |
|
|
|
|
|
|
|
|
|
Weighted average number of common shares outstanding - discontinued
operations |
|
|
|
|
|
|
|
|
Basic and dilutive |
|
|
37,389,990 |
|
|
|
35,188,404 |
|
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