SPLASH BEVERAGE GROUP, INC. (SBEV)·Q1 2022 Earnings Summary

Executive Summary

• Q1 2022 delivered strong top-line growth and sequential momentum: net revenues were $3,926,573 (+83.6% YoY) with gross profit of $832,002; management cited 12 new/expanded distribution agreements and e-commerce strength as key contributors .
• Losses widened due to non-cash items and higher marketing: net loss from continuing operations was $(5,769,831) and total net loss was $(5,994,408); drivers included warrant expense, share-based compensation, and increased marketing and shipping costs .
• Liquidity improved: cash and equivalents rose to $8,495,672 following an ~$8.0 million equity raise under the shelf registration, with long-term liabilities < $1 million at quarter-end .
• Strategic distribution build-out remains the core catalyst: AB ONE footprint expansion and retail authorizations (e.g., Walmart in SoCal) should begin to impact results in Q2 per management .

What Went Well and What Went Wrong

• What Went Well

  • Distribution momentum: 12 new/expanded agreements signed in Q1; since Nov-2021, 15 new agreements, positioning brands for broader activation .
  • Revenue growth and sequential improvement: management highlighted “record $4.1 million in [gross] sales” and “strong sequential growth from the fourth quarter of 2021,” with net revenues at $3.93 million .
  • Balance sheet strengthened: ~$8.0 million equity raise; cash rose to $8.5 million; long-term liabilities remained under $1 million .

• What Went Wrong

  • Profitability pressured by non-cash and marketing costs: net loss from continuing operations widened to $(5.77) million; drivers included non-cash warrant/share-based comp and higher marketing/shipping .
  • Operating expenses elevated: total OpEx reached $6,515,955 vs. $5,066,349 YoY, with notable marketing and shipping increases .
  • TapouT benefit deferred: management noted new AB ONE-driven TapouT placements would impact Q2 (set-up/ship timing), leaving limited Q1 contribution .

Financial Results

Note: For Q1 2022, the press release referenced “gross sales” of $4.1M while the 10-Q reports net revenues of $3,926,573; figures below use net revenues for consistency across periods .

Segment revenue (continuing operations)

Selected KPIs

Guidance Changes

Management did not provide formal quantitative guidance in the Q1 press release or 10-Q; commentary emphasized distribution activation with TapouT impact beginning in Q2 and balance sheet/liquidity positioning .

Earnings Call Themes & Trends

Note: We were unable to locate a Q1 2022 earnings call transcript; table below reflects themes from Q3’21 and Q4’21 press releases versus Q1’22 filings/press release . We searched extensively; third-party sites list later calls but not Q1’22 .

Management Commentary

• “Our 2022 first quarter results demonstrate how we are effectively executing our business strategy... we have added 15 new distribution agreements, with 12 agreements in the first quarter alone... helped drive gross sales growth to a record $4.1 million... as well as strong sequential growth from the fourth quarter of 2021.” – Robert Nistico, CEO .
• “These agreements include TapouT Performance Drink where we will see the impact in Q2 as it takes time to set up and physically ship to new distributors.” – Robert Nistico, CEO .
• “During the first quarter we also significantly strengthened our balance sheet with an $8 million capital raise... At the end of the quarter, we still had more than $8 million in cash and less than $1 million in long term liabilities.” – Robert Nistico, CEO .

Q&A Highlights

We did not find a Q1 2022 earnings call transcript in SEC filings or our document set; third-party transcript aggregators list later calls (2023–2024) but not Q1’22, so no Q&A could be reviewed .

Estimates Context

• We attempted to retrieve S&P Global consensus for Q1 2022 (EPS and Revenue), but the data was unavailable at the time of request (service limit reached). As a result, we cannot provide a vs-consensus comparison for Q1 2022. If you’d like, we can refresh and append an estimates table once access is restored [GetEstimates attempt; values unavailable].

Key Takeaways for Investors

• Distribution-led growth is materializing: 12 new/expanded deals and AB ONE expansion underpin the sequential step-up; TapouT contribution should begin in Q2 as physical shipments ramp .
• E-commerce remains a key growth engine, contributing $2.45M of Q1 revenue; continued focus here could sustain momentum even as retail activation scales .
• Liquidity has improved and supports inventory/activation needs (cash $8.50M; long-term liabilities $0.67M), though operating cash burn remains significant and warrants monitoring .
• Near-term P&L will be sensitive to marketing and shipping costs; management points to non-cash items as loss drivers, but cash OpEx and freight remain watch items amid scale-up .
• Sequential revenue trajectory is positive (Q3’21→Q4’21→Q1’22), and the narrative should shift from distribution wins to sell-through execution over the next quarter(s) .
• Absence of formal guidance increases execution risk sensitivity; progress updates on TapouT retail velocity and additional authorizations will be stock catalysts .

Supporting Documents and Additional Press Releases (Q1 2022 window)

• Q1 2022 8-K 2.02 and press release (record quarter; 12 distribution agreements; cash/raise) .
• Q1 2022 10-Q (financial statements, segment detail, liquidity, OpEx drivers) .
• Q4 2021 and FY 2021 press release (sequential context; AB ONE; Walmart) .
• Q3 2021 press release (prior trend; revenue; distribution progress) .
• Relevant Q1 2022 distribution PRs: AB ONE SoCal/Walmart expansion (Mar 14, 2022) and Heimark Distributing for TapouT in SoCal (Feb 8, 2022) .