Splash Beverage Group Reports No Revenue and Increased Net Loss in Latest 10-Q Filing

Splash Beverage Group, Inc. reported significant financial challenges in its latest 10-Q filing for the quarter ending June 30, 2025. The company recorded no revenue for the three months ended June 30, 2025, a stark decline from approximately $1.1 million in the same period last year. For the six months ending June 30, 2025, revenue totaled $438,272, down from $2.6 million in the prior year. This decline is attributed to a shortage of operating capital, which hindered the company’s ability to maintain inventory and fulfill orders.

The company’s operating expenses also decreased, totaling $1.6 million for the three months ended June 30, 2025, compared to $3.9 million in the same period of 2024. This reduction was primarily due to lower non-cash expenses and decreased costs associated with salaries, marketing, and freight. Despite these reductions, Splash Beverage reported a net loss of $8.5 million for the quarter, compared to a loss of $5.3 million in the previous year. The increase in net loss was largely driven by a loss on extinguishment of debt, which amounted to $5.6 million.

In terms of strategic developments, Splash Beverage made notable acquisitions and financial maneuvers during the reporting period. In June 2025, the company acquired water rights in Costa Rica for $20 million, issuing 20,000 shares of Series C Preferred Stock as consideration. Additionally, the company converted approximately $12.7 million in outstanding convertible notes into 126,710 shares of Series B Preferred Stock, which is expected to reduce interest expenses and improve the balance sheet. The company also issued Series A-1 Preferred Stock in May 2025, raising approximately $650,000.

Operationally, the company faced challenges with its liquidity, reporting cash and cash equivalents of only $17,213 as of June 30, 2025, compared to $15,346 at the end of 2024. The company’s current liabilities exceeded its current assets, resulting in a working capital deficit. Management indicated that they plan to fund operations through debt and equity financing, but there is substantial doubt about the company’s ability to continue as a going concern without additional capital.

Looking ahead, Splash Beverage aims to resolve its operational constraints and resume normal business activities. The company is actively seeking additional funding to support its operations and implement its business plan. However, the management cautioned that there can be no assurance of success in raising the necessary capital or that any available financing will be on favorable terms. The company’s future capital needs will depend on various factors, including revenue growth and operating expenses.