LQR House Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company, classified as an emerging growth entity, experienced a substantial increase in revenue, with total revenues for the three months reaching $624,464, compared to $170,511 in the same period of 2023, marking a 266% increase. For the nine months ended September 30, 2024, revenues totaled $1,663,475, up from $512,096 in the prior year, reflecting a 225% increase. This growth was primarily driven by a notable rise in product revenues, which surged to $593,546 in Q3 2024 from $69,097 in Q3 2023, a 759% increase.

Despite the revenue growth, LQR House reported a net loss of $(3,363,380) for Q3 2024, an improvement from the $(5,541,228) loss in Q3 2023. For the nine-month period, the net loss was $(8,000,066), down from $(9,419,793) in the same period of 2023, indicating a 15% improvement. The company’s operating expenses also decreased, totaling $3,441,910 in Q3 2024 compared to $5,377,847 in Q3 2023, a reduction of 36%.

The company’s total assets decreased significantly from $15,092,538 as of December 31, 2023, to $9,813,497 as of September 30, 2024. Current assets also fell sharply from $15,074,136 to $4,183,463 during the same period. Total current liabilities increased from $469,727 to $705,980, while total stockholders’ equity decreased from $14,620,277 to $9,107,517.

Strategically, LQR House made several acquisitions, including the purchase of the domain name www.cwspirits.com for $10,000 in November 2023, and minority stakes in Cannon Estate Winery Ltd. and DRNK Beverage Corp. in May and June 2024, respectively. The company also declared a 50% stock dividend in February 2024, resulting in a 3:2 stock split.

Cash flow analysis revealed that the company used $(3,565,293) in operating activities for the nine months ended September 30, 2024, an improvement from $(4,568,848) in the same period of 2023. However, cash and cash equivalents dropped significantly from $7,064,348 at the beginning of the period to $247,913 by the end of September 2024.

LQR House continues to face challenges, including reliance on key vendor relationships and the need for additional capital to sustain operations, raising concerns about its ability to continue as a going concern. The company has not generated profits since its inception and is actively seeking to enhance its financial position through strategic initiatives and potential capital raises.