Bespoke Extracts Reports Slight Revenue Increase and Reduced Net Loss in Q1 2025

Bespoke Extracts, Inc. reported its financial results for the first quarter of 2025, revealing a slight increase in sales and a reduction in net loss compared to the same period in 2024. The company generated revenues of $263,159, up from $260,428 in the prior year, primarily driven by increased direct sales of branded pre-rolled joints and joint production services to licensed dispensaries in Colorado. The cost of goods sold decreased to $152,380 from $157,847, reflecting improved production efficiencies despite rising packaging and testing costs associated with new product launches. Gross profit for the quarter was $110,779, compared to $102,581 in the same quarter last year.

Operating expenses for the first quarter of 2025 totaled $356,117, down from $405,384 in the previous year. This decline was attributed to reduced stock-based compensation and lower professional fees, which fell to $42,964 from $57,525. The company reported a net loss of $260,521, or $0.02 per share, an improvement from the net loss of $314,118, or $0.03 per share, recorded in the first quarter of 2024. The reduction in losses indicates a positive trend in managing operational costs and improving sales performance.

Bespoke Extracts continues to face challenges, as evidenced by its current liabilities of $1,241,535 as of March 31, 2025, which include significant accounts payable and accrued liabilities. The company had cash reserves of $30,365, down from $60,305 at the end of 2024. The filing indicates that the company had negative cash flows from operations of $72,940 for the quarter, raising concerns about its ability to sustain operations without additional financing. The company has acknowledged the need for further capital to support its business plans and has been reliant on equity and convertible debt securities for funding.

In terms of strategic developments, Bespoke Extracts has been focusing on expanding its product offerings and enhancing operational efficiencies. The company rebranded its product line in Colorado as "The Joint Company" starting January 1, 2025, as part of its strategy to capture a larger market share in the regulated cannabis sector. The company operates solely in North America, specifically in Colorado, and has not reported any significant geographic expansion. As of March 31, 2025, the company had 11,153,220 shares of common stock outstanding, reflecting a slight increase in shares compared to the previous year.

Looking ahead, Bespoke Extracts has expressed uncertainty regarding its ability to continue as a going concern, citing the need to generate profitable operations and secure necessary financing. The company is aware of the risks associated with its current financial position and the potential impact of market conditions on its operations. Management has indicated that it will continue to seek opportunities for growth while addressing its financial challenges, although there is no assurance that it will be able to achieve these objectives.