Yerbaé Brands Corp. Reports 51% Revenue Decline, Announces Acquisition by Safety Shot, Inc.

Yerbaé Brands Corp. reported a significant decline in financial performance for the fiscal year ending December 31, 2024, with revenues totaling $5.9 million, a decrease of 51% from $12.0 million in 2023. The company attributed this drop to a strategic shift in its customer portfolio, which involved discontinuing less profitable accounts and focusing on partnerships that enhance gross margins. Despite the revenue decline, the cost of sales also decreased by 52% to $2.9 million, reflecting the reduced sales volume. The net loss for the year was $10.6 million, compared to a loss of $20.8 million in the previous year, indicating a narrowing of losses.

Operationally, Yerbaé has made strides in expanding its distribution network, adding 14 new distributors in the third quarter of 2024. The company also enhanced its direct-to-consumer segment by introducing new variety packs and increasing brand visibility through digital marketing efforts. As of December 31, 2024, Yerbaé's total assets were reported at $1.9 million, down from $4.1 million in 2023, while total liabilities increased to $8.2 million from $5.4 million, resulting in a shareholders' deficiency of $6.3 million.

The company has faced challenges in maintaining liquidity, with a working capital deficit of $6.4 million as of December 31, 2024. Yerbaé's accumulated deficit reached $45.1 million, raising substantial doubt about its ability to continue as a going concern. Management indicated that additional financing would be necessary to meet operational obligations and support future growth initiatives. The company has primarily relied on private placements and debt financing to fund its operations.

In terms of strategic developments, Yerbaé announced on January 7, 2025, a definitive arrangement agreement with Safety Shot, Inc., under which Safety Shot will acquire all outstanding common shares of Yerbaé. This transaction is expected to close in the second quarter of 2025, subject to various approvals and customary closing conditions. The acquisition aims to combine Safety Shot's wellness solutions with Yerbaé's plant-based energy drinks, potentially enhancing market positioning and operational synergies.

Looking ahead, Yerbaé's management remains focused on improving operational efficiency and expanding its market presence. The company plans to continue optimizing its product offerings and distribution channels while navigating the competitive landscape of the energy drink market, which is projected to grow significantly in the coming years. However, the success of these initiatives will depend on the company's ability to secure necessary funding and adapt to changing consumer preferences.