LQR House Inc. reported a significant decline in financial performance for the third quarter and the first nine months of 2025, as detailed in its latest 10-Q filing. For the three months ended September 30, 2025, the company generated total revenues of $337,288, a decrease of 46% from $624,464 in the same period of 2024. The nine-month revenue figures also reflected a 24% decline, totaling $1,265,156 compared to $1,663,475 in the prior year. The company experienced a net loss of $16,828,913 for the third quarter, a 400% increase from the loss of $3,363,380 reported in the same quarter of 2024. For the nine months, the net loss reached $21,420,945, up from $8,000,066 in the previous year.
The decline in revenue was attributed to reduced sales volume through the CWS Platform, which the company operates as an online retailer for alcoholic beverages. The decrease in customer traffic and order activity was linked to less promotional activity compared to the prior year. Additionally, LQR House reported a significant legal settlement expense of $13 million, which contributed to the increased net loss. Operating expenses rose to $3,828,744 for the third quarter, primarily due to higher general and administrative costs, particularly legal fees.
In terms of operational developments, LQR House has made strategic moves to enhance its market position. The company completed the acquisition of the CWS Platform, which includes the domain name www.cwspirits.com, for $10,000. This acquisition is expected to bolster its e-commerce capabilities. Furthermore, LQR House has expanded its product offerings, including the exclusive SWOL Tequila brand, and is in discussions to finalize joint venture agreements aimed at enhancing its operational footprint.
The company reported a cash position of $10,039,230 as of September 30, 2025, an increase from $5,386,789 at the end of 2024. This improvement was largely due to net proceeds of $47,252,830 raised through the issuance of common stock, including $43,201,415 from an at-the-market offering that expired in September 2025. Despite the current cash reserves, LQR House acknowledges the need for additional capital to sustain operations and support future growth initiatives, as it has not yet achieved profitability since its inception.
Looking ahead, LQR House remains focused on expanding its market presence and enhancing its product offerings. The company plans to pursue additional capital through public or private equity offerings and is optimistic about alleviating concerns regarding its ability to continue as a going concern. Management believes that the existing cash on hand, along with potential new financing opportunities, will be sufficient to meet its operational needs for at least the next 12 months. However, the company cautions that the ability to secure future funding remains uncertain and may impact its business plans.
About LQR House Inc.
LQR House Inc. is a Nevada-based company specializing in online alcohol retail, marketing, and brand development. Its core activities include operating the CWSpirits.com marketplace, marketing proprietary brands like SWOL Tequila, and providing digital marketing services for alcohol brands. The company leverages influencer networks, e-commerce expertise, and strategic acquisitions to grow its presence in the U.S. and Canadian markets, focusing on premium, innovative beverage products.
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