Summary by Futu AI
LQR House Inc. reported Q3 2024 financial results with total revenue increasing 266% year-over-year to $624,464, driven by a 759% jump in product revenue to $593,546 following the CWS Platform acquisition. However, the company recorded a gross loss of $62,051 compared to a gross profit of $7,619 in Q3 2023, as cost of revenue grew 321% to $686,515.Operating expenses decreased 36% to $3.44 million, with general and administrative costs falling 68% to $1.52 million due to lower stock-based compensation. Sales and marketing expenses rose 234% to $1.92 million from increased advertising campaigns. The company's net loss narrowed to $3.36 million from $5.54 million in Q3 2023.Cash and cash equivalents stood at $247,913 as of September 30, 2024, down from $7.06 million at year-end 2023. Management is exploring strategies to improve gross margins through increased customer acquisition and new partnerships, while seeking additional capital through debt and equity financing to fund operations. The company's ability to continue as a going concern remains dependent on generating cash from operations and raising capital.
