Bespoke Extracts, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, showing notable changes in revenue and profitability compared to the previous fiscal period. The company generated sales of $277,471 for the three months ended September 30, 2024, an increase from $244,408 in the same period of 2023. For the nine months, sales rose to $816,062 from $521,671 year-over-year. Gross profit for the third quarter was $114,995, up from $98,408 in 2023, while gross profit for the nine months increased to $323,693 from $179,793.

Despite the revenue growth, the company continued to experience losses. The net loss for the third quarter of 2024 was $275,613, slightly improved from a loss of $301,529 in the same quarter of 2023. For the nine-month period, the net loss decreased to $850,626 from $1,213,756 in the prior year. The loss per share remained consistent at $(0.03) for the third quarter, while it improved to $(0.08) for the nine months ended September 30, 2024, compared to $(0.12) in 2023.

Bespoke Extracts reported total current assets of $124,050 as of September 30, 2024, up from $81,839 at the end of 2023. However, total current liabilities also increased significantly to $1,727,778 from $1,078,957, leading to a working capital deficit of $1,603,728. The total liabilities rose to $2,667,416 from $2,078,917, and the stockholders’ deficit expanded to $(2,329,401) from $(1,724,557).

The company completed the acquisition of WonderLeaf assets on January 3, 2023, for 222,223 shares of common stock valued at $50,000. This acquisition was part of its strategy to expand in the regulated cannabis market through its subsidiary, Bespoke Extracts Colorado, LLC.

Cash at the end of the reporting period was $21,445, a significant increase from $6,607 at the end of 2023. The company reported negative cash flows from operations of $153,662 for the nine months ended September 30, 2024, an improvement from $(395,430) in the same period of 2023. The company also raised $168,500 through financing activities during the nine months, down from $370,997 in the previous year.

Management has expressed substantial doubt about the company's ability to continue as a going concern due to ongoing negative cash flows and the working capital deficit. The company is addressing material weaknesses in its internal controls, including the need for better segregation of duties and improved documentation of accounting procedures.