SPLASH BEVERAGE GROUP INC
For the period ended Jun 30, 2024. Filed Aug 14, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 14, 2024
EDVA$0.19+12.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-15.
0001731122-24-000818
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-14.
0001731122-24-001253
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 43 previous paragraphs and 48 current paragraphs.
29 unchanged; 14 reworded; 4 added; 0 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 0 previous and 0 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (4)
Current report
Revenue for the six months ended June 30, 2024 was $2.6 million compared to revenues of $11 million for the six months ended June 30, 2023. The $8.4 million decrease in sales is driven by decreases in both the e-commerce and beverage businesses which decreased $7.6 million and $0.8 million respectively. Qplash’s decreased revenue due to low inventory.
Current report
Cost of goods sold for the six months ended June 30, 2024 was $2.2 million compared to cost of goods sold for the six months ended June 30, 2023 of $7.5 million. The $5.3 million decrease in cost of goods sold for the six-month period ended June 30, 2023 was driven by decreased sales in both the e-commerce and beverage business.
Current report
Operating expenses for the six months ended June 30, 2024 was $7.3 million compared to $11.2 million for the six months ended June 30, 2023 a decrease of $3.9 million. The decrease in operating expenses was primarily due to marketing expense, contracted services, freight cost and Amazon selling fees partially offset by increases for the non-cash expenses.
Current report
Interest expense for the three and six months ended June 30, 2024 was $0.6 million and $1.2 million respectively. For the three and six months ended June 30, 2023 the interest expenses was $0.2 million and $0.3 million respectively due to additional convertible notes issued in 2024.
Reworded paragraphs (14)
Previous wording
Results of Operations for the Three Months Ended March 31, 2024 compared to Three Months Ended March 31, 2023.
Current wording
Results of Operations for the Three Months and Six Months Ended June 30, 2024 compared to Three Months and Six Months Ended June 30, 2023.
Previous wording
Revenues for the three months ended March 31, 2024 were approximately $1.5 million compared to revenues of approximately $5.8 million for the three months ended March 31, 2023. The $4.3 million decrease in sales is due to a decrease in our beverage sales of $0.7 million. Our revenues from our vertically integrated B2B and B2C e-commerce distribution platform called Qplash decreased approximately $3.5 million or 91% due to low inventory. Total sales declined due to limited liquidity to procure inventory to drive third-party sales.
Current wording
Revenues for the three months ended June 30, 2024 were approximately $1.1 million compared to revenues of approximately $5.2 million for the three months ended June 30, 2023. Part of the $4.1 million decrease in sales is due to a decrease in our beverage sales of $0.1 million. Additionally, revenues from our vertically integrated B2B and B2C e-commerce distribution platform called Qplash decreased approximately $4.0 million or 97.5% due to low inventory. Total sales declined due to limited liquidity to procure inventory to drive third-party sales.
Previous wording
Cost of goods sold for the three months ended March 31, 2024 were $1.4 million compared to cost of goods sold for the three months ended March 31, 2023 of approximately $4.1 million. The $2.7 million decrease in cost of goods sold for the three-month period ended March 31, 2024 is primarily due to our decreased sales.
Current wording
Cost of goods sold for the three months ended June 30, 2024 was $0.8 million compared to cost of goods sold for the three months ended June 30, 2023 of $3.4 million. The $2.6 million decrease in cost of goods sold for the three-month period ended June 30, 2023 was driven by decreased sales.
Previous wording
Operating expenses for the three months ended March 31, 2024 were $3.4 million compared to $5.2 million for the three months ended March 31, 2022 a decrease of $1.8 million. The decrease in our operating expenses was primarily due to non-cash expenses partially offset by increases for the incorporation of new staff, benefit cost, freight cost and Amazon selling fees. The net loss for the three months ended March 31, 2024 was $5.1 million as compared to a net loss of approximately $3.7 million for the three months ended March 31, 2023. The increase in net loss is due to higher debt discount and interest expenses.
Current wording
The net loss for the three months ended June 30, 2024 was $5.3 million as compared to a net loss of approximately $5.6 million for the three months ended June 30, 2023. The decrease in net loss is due to lower debt discount expense. The net loss for the six months ended June 30, 2024 was $10 million as compared to a net loss of approximately $9.4 million for the six months ended June 30, 2023. The increase in net loss is due to higher debt discount and interest expenses.
Previous wording
Interest expenses for the three months ended March 31, 2024 was $0.5 million compared to $0.2 million for the three months ended March 31, 2023. The $0.3 million increase in interest expense is due to new loans with a principal of $6.3 million.
Current wording
Interest expenses for the three months ended June 30, 2024 was $0.6 million compared to $0.2 million for the three months ended June 30, 2023. The $0.4 million increase in interest expense is due to new loans with a principal of $3.2 million. Interest expenses for the six months ended June 30, 2024 was $1.2 million compared to $0.3 million for the three months ended June 30, 2023. The $0.9 million increase in interest expense is due to new loans with a principal of $4.7 million with higher interest rates.
Previous wording
Other income was $0 and $0.1 million for the three months ended March 31, 2024 and March 31, 2023 respectively. The income in 2023 was related to an insurance settlement.
Current wording
Other expenses were $0.0 and $0.1 million for the three months ended June 30, 2024 and June 30, 2023 respectively.. Other expenses were $0.2 and other income was $0.05 million for the six months ended June 30, 2024 and June 30, 2023 respectively. The income in 2023 was related to an insurance settlement.
Previous wording
Amortization of debt discount for the three months ended March 31, 2024 was approximately $0.9 million compared to $0.25 million for three months ended March 31, 2023.
Current wording
Amortization of debt discount for the three months ended June 30, 2024 was approximately $1.0 million compared to $1.1 million for three months ended June 30, 2023. Amortization of debt discount for the six months ended June 30, 2024 was approximately $1.9 million compared to $1.4 million for six months ended June 30, 2023.
Previous wording
As of March 31, 2024, the Company had total cash and cash equivalents of $14,757, as compared with $379,978 at December 31, 2023.
Current wording
As of June 30, 2024, the Company had total cash and cash equivalents of $8,298, as compared with $379,978 at December 31, 2023.
Previous wording
Net cash used for operating activities during the three months ended March 31, 2024 was $1.3 million as compared to the net cash used by operating activities for the three months ended March 31, 2023 of $4.0 million. The primary reasons for the change in net cash used are decreases in inventory, accrued expenses and accounts payable partially offset by increases in account receivables.
Current wording
Net cash used for operating activities during the six months ended June 30, 2024 was $3.8 million as compared to the net cash used by operating activities for the six months ended June 30, 2023 of $6.5 million. The primary reasons for the change in net cash used were reduced operating expenses, lower procurement of raw material and finished goods.
Previous wording
For the period ending March 31, 2024, there were no capital asset transactions. For the period March 31, 2023, the Company had leasehold improvements of $10,571 related to our Copa Di Vino production site.
Current wording
For the period ending June 30, 2024, $1,500 furniture was returned to vendor. For the period June 30, 2023, the Company had leasehold improvements of $12,613 related to our Copa Di Vino production site.
Previous wording
Net cash provided by financing activities during the three months ended March 31, 2024 was $2.0 million compared to $1.8 million provided from financing activities for the three months ended March 31, 2023. During the three months ended March 31, 2024, the Company received $1.5 million for convertible note, which was offset by repayments to debt holders of $0.51 million and $0.05 million to related party cash advance.
Current wording
Net cash provided by financing activities during the six months ended June 30, 2024 was $3.4 million compared to $3.0 million provided from financing activities for the six months ended June 30, 2023. During the six months ended June 30, 2024, the Company received $4.7 million for convertible note, which was offset by repayments to debt holders of $1.3 million and $0.03 million to related party cash advance.
Previous wording
The Company Board has approved raising up to $8.0 million to fund acquisitions, equipment purchases and working capital.
Current wording
The Company plans to raise up to $8.0 million to fund acquisitions, equipment purchases and working capital.
Previous wording
The Company have a licensing agreement with ABG TapouT, LLC (“TapouT”). Under the licensing agreement, the Company has minimum royalty payments to TapouT of $495,000 for the nine months remaining in 2024.
Current wording
The Company have a licensing agreement with ABG TapouT, LLC (“TapouT”). Under the licensing agreement, the Company has minimum royalty payments to TapouT of $330,000 for the six months remaining in 2024.
Previous wording
We measure certain financial assets and liabilities at fair value on a recurring basis. Fair value measurements involve significant judgment and estimation, particularly when observable inputs are limited or not available. Management utilizes valuation techniques such as discounted cash flow models, market comparables, and third-party appraisals to determine fair values.
Current wording
We measure certain financial assets and liabilities at fair value on a recurring basis. Fair value measurements involve significant judgment and estimation, particularly when observable inputs are limited or not available. Management utilizes valuation techniques such as discounted cash flow models, market comparable, and third-party appraisals to determine fair values.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Operating expenses for the three months ended June 30, 2024 was $3.9 million compared to $6.0 million for the three months ended June 30, 2023 a decrease of $2.1 million. The decrease in operating expenses was primarily due to a reduction in marketing expense, freight cost and Amazon selling fees partially offset by increases for the non-cash expenses.