0001788230-26-000046
SEC filingRevenue grew 20.4% to $10.1M with gross profit surging 161.5% to $5.6M (54.9% margin), but operating and net losses widened dramatically to -$133.9M and -$137.7M due to non-cash charges including the Silverview loan settlement.
Revenue increased 20.4% to $10.1 million in FY 2025 from $8.4 million in FY 2024, demonstrating execution on core business strategies including efforts to increase wholesale volume through key national and regional accounts supported by direct-to-consumer brand building. This growth occurred even as the Company navigated a production transition from low-margin, high-volume output to higher-margin products, which created excess capacity and unabsorbed overhead in the current period.
Operating income deteriorated sharply to a -$133.9 million loss from -$14.9 million, a -797.8% change, primarily due to the settlement of the Silverview loan in August 2025. This non-cash event significantly impacted the period's results. Net income swung to a -$137.7 million loss from a $0.7 million profit, with diluted EPS falling to -$16.03 from -$1.97, underscoring the volatility introduced by such one-time items.
Looking forward, management expects gross profit and margins to improve in 2026 as third-party production takes hold, enabling focus on the highest-margin spirits brands. This restructuring enhances visibility into product economics and supports sustainable profitability by aligning production capacity with demand for premium offerings.