0001477932-26-000787
SEC filingSpirits Time International, Inc. (SRSG) reported no revenue for the fiscal year ended December 31, 2024, maintaining the same level as the prior year's zero revenue. The company incurred a net loss of $451K, an improvement driven primarily by a $290K cancellation of accrued interest expense, which offset the operating loss of $619K. Operating expenses consisted entirely of professional fees ($608K) and selling, general, and administrative costs ($11K). The balance sheet reflects a precarious financial position with total assets of only $2K in cash against total liabilities of $1.4M, resulting in a stockholders' deficit of $1.4M. Cash flow from operations used $66K, while financing activities provided $68K through related-party loans. The company remains a development-stage entity with significant liquidity constraints and reliance on related-party financing to sustain operations.
For the fiscal year ended December 31, 2024, Spirits Time International, Inc. reported zero net revenues, consistent with its status as a development-stage company. The company generated a net loss of $451K, derived from an operating loss of $619K partially mitigated by $168K in total other income. This other income was primarily driven by a $290K cancellation of accrued interest expense, which offset $122K in interest expense. Operating expenses were dominated by professional fees of $608K, with minimal selling, general, and administrative expenses of $11K. No income tax provision was recorded.
The company did not generate any revenue during the fiscal year 2024. As a development-stage entity, Spirits Time International has not yet commercialized its products or services. Consequently, there are no segment breakdowns, geographic mixes, or growth drivers to report regarding sales activities for this period. The financial results reflect a company solely focused on administrative and developmental overhead.
With zero revenue, gross margin and operating margin metrics are not applicable. The cost structure is heavily weighted toward professional fees, which constitute approximately 98% of operating expenses. The net loss margin is effectively infinite relative to revenue, though the absolute net loss of $451K represents the capital required to maintain corporate status and legal compliance. The positive impact of debt cancellation on the bottom line highlights the company's reliance on debt restructuring activities.
The balance sheet reveals significant financial distress. Total assets are merely $2K in cash. Total current liabilities amount to $1.4M, creating a working capital deficit. Key liabilities include $314K in loans payable to related parties, $290K in convertible notes payable, and substantial accrued interest. Cash flow from operations used $66K, offset by $68K provided by financing activities, specifically proceeds from related-party loans. The company has a stockholders' deficit of $1.4M, with an accumulated deficit of $2.9M.
The filing does not provide specific forward-looking guidance or strategic priorities from management. However, the financial data indicates the company faces substantial going concern risks due to minimal liquidity and a heavy reliance on related-party financing. Future operations will likely depend on the company's ability to raise additional capital or convert existing debt into equity to fund its development activities.