LQR House Inc., a Nevada-based company focused on the wine and spirits e-commerce sector, reported a total revenue of $2.5 million for the fiscal year ending December 31, 2024, marking a 123% increase from $1.1 million in 2023. This growth was primarily driven by a significant rise in product sales, which surged by 269% to $2.4 million, attributed to the acquisition of the CWS Platform in November 2023. However, service revenues fell by 75% to $118,000, reflecting a strategic shift towards product sales. The company recorded a net loss of $22.8 million, a 44% increase from the previous year's loss of $15.7 million, largely due to rising operational costs and an impairment charge of $4.5 million related to its investment in DRNK Beverage Corp.
In terms of operational developments, LQR House has made significant strides in expanding its market presence. The company acquired minority stakes in Cannon Estate Winery and DRNK Beverage Corp., diversifying its portfolio into both alcoholic and non-alcoholic beverage markets. The CWS Platform, which LQR House fully controls, has a customer base exceeding 125,000, and the company is actively enhancing its online marketing strategies to drive sales. Additionally, LQR House is in the process of launching an exclusive wine club, further broadening its service offerings.
The company has also seen changes in its organizational structure, with the appointment of new directors following the resignation of several board members. Notably, David Lazar, who participated in a significant stock purchase agreement, was appointed as President and a Director. The company has also engaged in a share buyback program, repurchasing over 1 million shares since its inception in September 2023, which may impact stock liquidity and price volatility.
Despite these developments, LQR House faces challenges, including substantial losses and a reliance on external funding to sustain operations. The company reported cash and cash equivalents of $5.4 million as of December 31, 2024, down from $7.1 million the previous year. Management has expressed concerns regarding its ability to continue as a going concern, emphasizing the need for additional capital to support ongoing operations and potential growth initiatives. The outlook remains cautious, with management exploring various strategies to enhance revenue and profitability while navigating the complexities of the alcohol e-commerce market.
About LQR House Inc.
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