Spirits Time International, Inc. reported its financial results for the three and nine months ended September 30, 2024, revealing continued challenges in generating revenue and managing expenses. The company reported no revenue for both periods, maintaining a net loss of $52,906 for the three months and $704,115 for the nine months, compared to losses of $43,033 and $147,080, respectively, in the same periods of 2023.

Total operating expenses for the three months ended September 30, 2024, increased to $20,089 from $11,966 in 2023. For the nine-month period, operating expenses surged to $607,608 from $56,013 in the prior year. A significant contributor to this increase was professional fees, which rose sharply to $599,563 for the nine months ended September 30, 2024, compared to $47,501 in 2023. Interest expenses also saw an uptick, totaling $96,507 for the nine months in 2024, up from $91,067 in 2023.

As of September 30, 2024, the company had cash and cash equivalents of $524, a slight increase from $493 at the end of 2023. However, the company reported a negative working capital of $1,604,076, worsening from $1,434,561 at the end of the previous fiscal year. The net cash used in operating activities for the nine months was $(55,919), compared to $(37,680) in 2023, while financing activities provided $55,950, up from $37,350 in the prior year.

The company’s accumulated deficit reached $(3,132,983) as of September 30, 2024, reflecting ongoing operational losses since its inception. Spirits Time International has no employees and plans to retain personnel on an as-needed basis, contingent on securing adequate financing. The company is actively seeking capital from management and significant shareholders to address its financial needs.

Strategically, Spirits Time International continues to focus on its transition from oil and gas to the beverage industry, specifically tequila, with its primary product being Tequila Alebrijes. The company entered a merger agreement with BioSculpture Technology, Inc. in April 2023, aiming to acquire 100% ownership, subject to various conditions. Despite these efforts, the company has faced significant operational and financial hurdles, including defaults on multiple promissory notes and a lack of revenue generation.

The company’s internal controls over financial reporting were assessed as ineffective, attributed to insufficient resources and incomplete documentation. Management has acknowledged the need for improved controls to ensure compliance with SEC reporting requirements.