Fresh Vine Wine, Inc. reported significant financial challenges in its quarterly filing for the period ending September 30, 2024. The company experienced a substantial decline in total current assets, which fell to $481.8 thousand from $889.3 thousand at the end of 2023. Total assets also decreased to $981.8 thousand, down from $1.4 million. Current liabilities surged to $3.4 million, compared to $2.2 million previously, resulting in a worsening stockholders’ deficit of $(2.4 million) from $(829.5 thousand).

Revenue figures reflected a dramatic downturn, with total net revenue for Q3 2024 at $63.2 thousand, a stark decrease of 93% from $848.0 thousand in Q3 2023. For the nine months ended September 30, 2024, net revenue was $238.3 thousand, down 85% from $1.6 million in the same period last year. The decline was attributed to a significant drop in both wholesale and direct-to-consumer sales, with wholesale revenue plummeting to $7.8 thousand from $744.5 thousand year-over-year.

Despite the revenue drop, the company reported a gross profit of $152.6 thousand for Q3 2024, a notable improvement from a loss of $(41.9 thousand) in Q3 2023. However, the overall operating loss for the quarter was $(309.0 thousand), a reduction from $(2.1 million) in the prior year. The net loss for Q3 2024 was $(315.3 thousand), compared to $(2.1 million) in Q3 2023, indicating a significant reduction in losses.

Fresh Vine Wine's cash flow situation showed some improvement, with net cash used in operating activities decreasing to $(1.3 million) for the nine months ended September 30, 2024, from $(4.6 million) in the same period of 2023. The company raised $1.1 million through financing activities during the nine months, down from $3.4 million in the previous year.

Strategically, Fresh Vine Wine is pursuing a Business Combination Agreement with Amaze Holdings Inc., which could potentially enhance its financial position. The agreement, entered on November 3, 2024, aims to raise up to $10 million for transaction expenses and working capital. However, the company faces substantial doubt regarding its ability to continue as a going concern, contingent on securing additional financing.

The company has also been addressing internal control weaknesses, with plans to improve financial reporting processes and potentially increase staffing in accounting and finance. As of September 30, 2024, Fresh Vine Wine's accumulated deficit stood at approximately $29.0 million, reflecting ongoing financial struggles.