Yuengling's Ice Cream Corporation Reports Revenue Growth, Net Loss in Latest Quarter

Yuengling’s Ice Cream Corporation, formerly known as Aureus, Inc., reported significant financial developments in its latest 10-Q filing for the three months ended March 31, 2024. The company generated revenue of $2.1 million, a substantial increase from $827,290 in the same period of 2023. This growth is attributed to the recent acquisition of ReachOut Technology Corp., a managed service provider specializing in cybersecurity and IT services for small to medium-sized businesses, completed in November 2023.

Despite the revenue increase, the company reported a net loss of $9.0 million for the quarter, compared to a loss of $176,815 in the prior year. The loss was primarily driven by an impairment charge of $2.1 million related to goodwill from the acquisition of RedGear, LLC, as well as increased operational costs, including compensation expenses that rose to $900,474 from $253,656 year-over-year. General and administrative expenses also saw a significant increase, totaling $308,612, up from $142,029 in the previous year.

Total assets decreased to $2.9 million as of March 31, 2024, down from $5.2 million at the end of 2023, while total liabilities increased to $34.0 million from $27.5 million. The stockholders’ deficit widened to $31.4 million, reflecting the ongoing financial challenges faced by the company, which has not generated profits since its inception.

In terms of cash flow, the company used $163,231 in operating activities during the quarter, compared to $72,258 in the same period last year. However, net cash from financing activities was positive at $254,635, bolstered by $287,705 from a loan and $490,000 from convertible notes issuance.

Strategically, the company has shifted its focus towards establishing a nationwide brand in cybersecurity and IT services, following the acquisition of ReachOut Technology. This acquisition involved the issuance of 8,750,000 Series C Preferred Shares, convertible into 87.5% of the outstanding common stock, and the company has also authorized Series D Preferred Shares.

The company’s management structure has changed, with Richard Jordan appointed as the new CEO and Chairman of the Board, following the resignations of previous executives. The company continues to face challenges, including a working capital deficit of $29.9 million and an accumulated deficit of $33.9 million as of March 31, 2024.