Splash Beverage Group, Inc. reported a significant decline in financial performance for the first quarter of 2026, with net revenues of $4,224, a stark decrease from $68,606 in the same period of 2025. The company attributed this drop primarily to a lack of operational capital, which has hindered its ability to generate sales. The cost of goods sold also decreased to $2,376 from $43,062 year-over-year, reflecting the reduced sales activity. The gross profit for the quarter was $1,848, compared to $25,544 in the prior year, leading to a net loss from continuing operations of $2,136,469, an improvement from a loss of $3,276,214 in the previous year.
In terms of operational changes, Splash Beverage is transitioning from its beverage business to focus on the wellness and cannabinoid markets. The company has entered into a non-binding letter of intent with Medterra CBD, LLC, a manufacturer of cannabinoid wellness products, to explore a potential merger. This strategic shift is aimed at addressing the company's ongoing financial challenges and is contingent upon raising approximately $10 million to complete the acquisition. The letter of intent is currently under review, and the company is actively pursuing alternative transactions in the wellness sector.
The company’s total assets decreased to $769,953 as of March 31, 2026, down from $965,694 at the end of 2025. Current liabilities increased to $16,972,378, compared to $16,260,128 at the end of the previous year, indicating ongoing liquidity challenges. The company reported cash and cash equivalents of $381,195, an increase from $281,435 at the end of 2025. However, the company’s working capital deficit remains a concern, as current liabilities exceed current assets.
Splash Beverage's employee headcount and customer engagement metrics were not detailed in the filing, but the company noted that it has been actively reducing operational expenses, which totaled $980,818 for the quarter, down from $1,683,847 in the prior year. This reduction was driven by decreased salaries, contracted services, and marketing expenses, reflecting the company's efforts to conserve cash amid its financial difficulties. The company also reported an increase in interest expenses, which rose to $889,455 from $637,345 year-over-year, primarily due to ongoing debt obligations.
Looking ahead, Splash Beverage faces significant challenges in maintaining its listing on the NYSE American due to its negative stockholders' equity, which was reported at $(15,300,828) as of December 31, 2025. The company must submit a compliance plan to the NYSE by May 29, 2026, to address this issue. Management believes that the proposed merger with Medterra could provide the necessary equity to regain compliance. However, the company acknowledges the uncertainty surrounding the completion of this transaction and the need for additional funding to support its operations and strategic initiatives.
About SPLASH BEVERAGE GROUP, INC.
Splash Beverage Group, Inc. manages multiple beverage brands across non-alcoholic and alcoholic segments, focusing on product innovation, strategic acquisitions, and distribution. It develops, markets, and distributes products like flavored tequila, single-serve wines, and sangria, leveraging a hybrid distribution model and e-commerce platform. The company emphasizes brand building, licensing, and partnerships to grow its presence in domestic and international markets.
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