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FORT LAUDERDALE, FL – 
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.
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Forward-Looking Statement
This 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 Group
954-745-5815
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 Group
Consolidated 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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