Form 10-Q - Quarterly report [Sections 13 or 15(d)]

U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2024

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______ to _________

Commission File No. 001-40471

SPLASH BEVERAGE GROUP, INC.
(Exact name of registrant as specified in its charter)

Nevada		34-1720075
(State or other jurisdiction of incorporation or formation)		(I.R.S. employer identification number)

1314 E Las Olas Blvd. Suite 221

Fort Lauderdale, FL 33301

(Address of principal executive offices) (Zip code)

(954) 745-5815
(Registrant’s telephone number, including area code)

Not Applicable
(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, $0.001 value per share	SBEV	NYSE American LLC
Warrants to purchase common stock, $0.001 par value per share	SBEV-WT	NYSE American LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐		Accelerated filer ☐
Non-accelerated filer ☒		Smaller reporting company ☒ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

☐ Yes ☒ No

Check whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Exchange Act after the distribution of securities under a plan confirmed by a court. ☐ Yes ☐ No

As of May 15, 2024, there were 47,656,088 shares of Common Stock issued and outstanding.

SPLASH BEVERAGE GROUP, INC.

FORM 10-Q

March 31, 2023

TABLE OF CONTENTS

		Page
PART I: FINANCIAL INFORMATION
ITEM 1:	FINANCIAL STATEMENTS	1
	Condensed Consolidated Balance Sheets	2
	Condensed Consolidated Statements of Operations and Comprehensive Loss	3
	Condensed Consolidated Statement of Changes in Shareholders’ Equity	4
	Condensed Consolidated Statements of Cash Flows	5
	Notes to the Condensed Consolidated Financial Statements	6
ITEM 2:	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	19
ITEM 3:	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	21
ITEM 4:	CONTROLS AND PROCEDURES	21
PART II: OTHER INFORMATION
ITEM 1	LEGAL PROCEEDINGS	22
ITEM 1A:	RISK FACTORS	22
ITEM 2:	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	22
ITEM 3:	DEFAULTS UPON SENIOR SECURITIES	22
ITEM 4:	MINE SAFETY DISCLOSURES	22
ITEM 5:	OTHER INFORMATION	22
ITEM 6:	EXHIBITS	23
SIGNATURES		24

PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Splash Beverage Group, Inc.
Condensed Consolidated Financial Statements

March 31, 2024

Splash Beverage Group, Inc.

Condensed Consolidated Balance Sheets

March 31, 2024 and December 31, 2023


	March 31, 2024			December 31, 2023
Assets		(unaudited)
Current assets:
Cash and cash equivalents	$	14,757		$	379,978
Accounts receivable, net		755,899			890,631
Prepaid expenses		365,059			220,320
Inventory		1,471,712			2,252,469
Other receivables		229,015			233,850
Total current assets		2,836,442			3,977,248

Non-current assets:
Deposits	$	49,462		$	49,446
Goodwill		256,823			256,823
Intangible assets, net		4,361,292			4,459,309
Investment in Salt Tequila USA, LLC		250,000			250,000
Right of use assets		491,859			556,140
Property and equipment, net		312,589			349,802
Total non-current assets		5,722,025			5,921,520

Total assets	$	8,558,467		$	9,898,768

Liabilities and Stockholders’ Equity

Liabilities:
Current liabilities
Accounts payable and accrued expenses	$	4,945,173		$	4,444,286
Right of use liability, current portion		266,704			262,860
Related party notes payable		375,000			380,000
Notes payable, net of discounts		9,013,690			7,748,518
Shareholder advances		200,000			200,000
Accrued interest payable		2,222,398			1,714,646
Total current liabilities		17,022,965			14,750,310

Long-term liabilities:
Notes payable, net of discounts		810,166			457,656
Right of use liability – net of current portion		228,024			296,128
Total long-term liabilities		1,038,190			753,784

Total liabilities		18,061,155			15,504,094

Stockholders’ equity:
Preferred stock, $0.001 par value, 5,000,000 shares authorized, no shares issued		—			—
Common Stock, $0.001 par, 300,000,000 shares authorized, 46,382,099 shares issued, 44,330,099 shares outstanding at March 31, 2024 and December 31, 2023		46,382			41,330
Additional paid in capital		127,221,573			127,701,710
Accumulated other comprehensive loss		(24,020	)		(16,583	)
Accumulated deficit		(136,746,623	)		(133,334,783	)
Total stockholders’ equity		(9,502,688	)		(5,605,326	)

Total liabilities and stockholders’ equity	$	8,558,467		$	9,898,768

The accompanying notes are an integral part of these condensed consolidated financial statements.

Splash Beverage Group, Inc.

Condensed Consolidated Statements of Operations and Comprehensive Loss

For the Three Months Ended March 31, 2024 and 2023

(Unaudited)


	Three months ended March 31,
	2024			2023

Net revenues	$	1,540,680		$	5,822,727
Cost of goods sold		(1,377,065	)		(4,061,228	)
Gross profit		163,615			1,761,499

Operating expenses:
Contracted services		218,829			381,005
Salary and wages		1,234,926			1,234,127
Non-cash share-based compensation		556,672			215,760
Other general and administrative		1,201,031			2,648,701
Sales and marketing		202,454			736,827
Total operating expenses		3,413,912			5,216,420

Loss from continuing operations		(3,250,297	)		(3,454,921	)

Other income/(expense):
Other income		(1,495	)		140,404
Amortization of debt discount		(886,838	)		(247,661	)
Interest Income		332			—
Interest expense		(532,599	)		(167,121	)
Total other expense		(1,420,600	)		(274,378	)

Provision for income taxes		—			—

Net loss from continuing operations, net of tax		(4,670,897	)		(3,729,299	)

Net loss	$	(4,670,897	)	$	(3,729,299	)

Other comprehensive loss foreign currency translation loss, net of tax		(7,437	)		(1,609	)

Total comprehensive loss		(4,678,334	)		(3,730,908	)

Loss per share - continuing operations
Basic and dilutive	$	(0.10	)	$	(0.10	)

Weighted average number of common shares outstanding - continuing operations
Basic and dilutive		44,793,831			37,389,990

The accompanying notes are an integral part of these condensed consolidated financial statements.

Splash Beverage Group, Inc.

Condensed Consolidated Statement of Changes in Stockholders’ Equity

For the Three months ended March 31, 2024 and 2023

(Unaudited)


	Common Shares		Amount		Additional paid-in capital			Accumulated other comprehensive loss			Accumulated deficit			Total stockholders’ equity
Balances at December 31, 2022		41,085,520	$	41,086	$	121,632,546		$	(20,472	)	$	(112,331,026	)	$	9,322,134

Common stock issuable and beneficial conversion feature on convertible 12-month promissory note		—		—		1,786,468			—			—			1,786,468
Share based compensation		—		—		215,760			—			—			215,760
Accumulated Comprehensive loss – translation, net		—		—		—			(1,609	)		—			(1,609	)
Net loss		—		—		—			—			(3,729,299	)		(3,729,299	)

Balances at March 31, 2023		41,085,520	$	41,086	$	123,634,774		$	(22,081	)	$	(116,060,325	)	$	7,593,454

Balances at December 31, 2023		44,330,099	$	44,330	$	127,701,710		$	(16,583	)	$	(133,334,783	)	$	(5,605,326	)

Issuance of common stock for note extension		200,000		200		107,800			—			—			108,000
Share based compensation		—		—		271,672			—			—			271,672
Adoption of ASU 2020-06						(2,191,103	)					1,259,057			(932,046	)
Issuance of warrants on convertible instruments		—		—		768,346			—			—			768,346
Conversion of notes payable to common stock		1,552,000		1,552		386,448			—			—			388,000
Issuance of common stock for services		300,000		300		176,700			—			—			177,000
Accumulated Comprehensive loss – translation, net		—		—		—			(7,437	)		—			(7,437	)
Net loss		—		—		—			—			(4,670,897	)		(4,670,897	)
Balances at March 31, 2024		46,382,099	$	46,382	$	127,221,573		$	(24,020	)	$	(136,746,623	)	$	(9,502,688	)

The accompanying notes are an integral part of these condensed consolidated financial statements.

Splash Beverage Group, Inc.

Condensed Consolidated Statement of Cash Flows

For the Three Months Ended March 31, 2024 and 2023

(Unaudited)


	2024			2023
Net loss	$	(4,670,897	)	$	(3,729,299	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		135,231			130,618
Amortization of debt discount		886,838			247,661
ROU assets, net		21			427
Non-cash share-based compensation		556,672			215,760
Changes in working capital items:
Accounts receivable, net		134,732			(378,571	)
Inventory, net		780,757			576,514
Prepaid expenses and other current assets		(139,903	)		(723,988	)
Deposits		(15	)		(78	)
Accounts payable and accrued expenses		500,887			(464,195	)
Accrued interest payable		507,752			21,324
Net cash used in operating activities		(1,307,925	)		(4,103,827	)

Cash flows from investing activities:
Capital expenditures		—			(10,571	)
Net cash used in investing activities		—			(10,571	)

Cash flows from financing activities:
Cash advance (repayment) from related party		(5,000	)		—
Cash advance from shareholder		—			200,000
Proceeds from issuance of debt		1,465,500			2,000,000
Principal repayment of debt		(509,858	)		(369,941	)
Net cash provided by financing activities		950,142			1,830,059

Net cash effect of exchange rate changes on cash		(7,437	)		(1,609	)

Net change in cash and cash equivalents		(365,221	)		(2,285,948	)

Cash and cash equivalents, beginning of year		379,978			4,431,745

Cash and cash equivalents, end of period	$	14,757		$	2,145,797

Supplemental disclosure of cash flow information:
Cash paid for Interest	$	24,847		$	145,797

Supplemental disclosure of non-cash investing and financing activities
Notes payable and accrued interest converted to common stock (1,552,000 shares in 2024)		388,000			—

Non-cash debt discount in the form of issuance of shares and beneficial conversion feature in conjunction with convertible notes		661,677			1,786,468

The accompanying notes are an integral part of these condensed consolidated financial statements.

Splash Beverage Group, Inc.

Notes to the Condensed Consolidated Financial Statements

Note 1 – Business Organization and Nature of Operations

Splash Beverage Group, Inc. (the “Company”, “Splash”) seeks to identify, acquire, and build early stage or under-valued beverage brands that have strong growth potential within its distribution system. Splash’s distribution system is comprehensive in the US and is now expanding to select attractive international markets. Through its division Qplash, Splash’s distribution reach includes e-commerce access to both business-to-business (B2B) and business-to-consumer (B2C) customers. Qplash markets well known beverage brands to customers throughout the US that prefer delivery direct to their office, facilities, and or homes.

Note 2 – Summary of Significant Accounting Policies

Basis of Accounting

The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”), and the requirements of the U.S. Securities and Exchange Commission (the “SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP can be condensed or omitted. Accordingly, they do not include all of the information and footnotes normally included in financial statements prepared in conformity with U.S. GAAP. They should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s 2023 Annual Report on Form 10-K, filed with the SEC on March 31,2024 (the “Form 10-K”).

The accompanying condensed consolidated financial statements are unaudited and include all adjustments (consisting of normal recurring adjustments) that management considers necessary for a fair presentation of its condensed financial position and results of operations for the interim periods presented. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the entire year.

Basis of Presentation and Consolidation

These consolidated financial statements include the accounts of Splash and its wholly owned subsidiaries Splash Beverage Holdings LLC (“Holdings”), Splash International Holdings LLC (“International”), Splash Mex SA de CV (“Splash Mex”), and Copa di Vino Wine Group, Inc. (“Copa di Vino”). All intercompany balances have been eliminated in consolidation.

Our investment in Salt Tequila USA, LLC is accounted for at cost, as the company does not have the ability to exercise significant influence.

Our accounting and reporting policies confirm to accounting principles generally accepted in the United States of America (GAAP).

Use of Estimates

The preparation of consolidated financial statements in conformity with GAAP requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Cash Equivalents and Concentration of Cash Balance

The Company considers all highly liquid securities with an original maturity of three months or less to be cash equivalents. The Company had no cash equivalents at March 31, 2024 or December 31, 2023.

Our cash in bank deposit accounts, at times, may exceed federally insured limits of $250,000. At March 31, 2024 and December 31, 2023, the Company’s cash on deposit with financial institutions, at times, had not exceeded federally insured limits of $250,000.

Splash Beverage Group, Inc.

Notes to the Condensed Consolidated Financial Statements

Note 2 – Summary of Significant Accounting Policies, continued

Accounts Receivable and Allowance for Doubtful Accounts

Accounts receivable are carried at their estimated recoverable amounts and are periodically evaluated for collectability based on past credit history with clients and other factors. The Company establishes provisions for losses on accounts receivable on the basis of loss experience, known and inherent risk in the account balance, and current economic conditions. At March 31, 2024 and December 31, 2023, our accounts receivable amounts are reflected net of allowances of $208,186 and $183,089, respectively.

Inventory

Inventory is stated at the lower of cost or net realizable value, accounted for using the weighted average cost method. The inventory balances at March 31, 2024 and December 31, 2023 consisted of raw materials, work-in-process, and finished goods held for distribution. The cost elements of inventory consist of purchase of products, transportation, and warehousing. The Company establish provisions for excess or inventory near expiration are based on management’s estimates of forecast turnover of inventories on hand and under contract. A significant change in the timing or level of demand for certain products as compared to forecast amounts may result in recording additional provisions for excess or expired inventory in the future. Provisions for excess inventory are included in cost of goods sold and have historically been adequate to provide for losses on inventory. The Company manages inventory levels and purchase commitments in an effort to maximize utilization of inventory on hand and under commitments. The amount of our reserve was $253,128 and $290,524 at March 31, 2024 and December 31, 2023, respectively.

Property and Equipment

The Company records property and equipment at cost when purchased. Depreciation is recorded for property, equipment, and software using the straight-line method over the estimated economic useful lives of assets, which range from 3-39 years. Company management reviews the recoverability of all long-lived assets, including the related useful lives, whenever events or changes in circumstances indicate that the carrying amount of a long-lived asset might not be recoverable.

Depreciation expense totaled $37,214 and $46,701 for the three months ended March 31, 2024 and March 31, 2023, respectively. Property and equipment as of March 31, 2024 and December 31, 2023 consisted of the following:

Schedule of property and equipment
	2024			2023
Auto		45,420			45,420
Machinery & equipment		1,160,278			1,160,578
Buildings		233,323			233,323
Leasehold improvements		723,639			723,638
Computer Software		5,979			5,979
Office furniture & equipment		9,157			9,157
Total cost		2,178,095			2,178,095
Accumulated depreciation		(1,865,506	)		(1,828,293	)
Property, plant & equipment, net		312,589			349,802

Excise taxes

The Company pays alcohol excise taxes based on product sales to both the Oregon Liquor Control Commission and to the U.S. Department of the Treasury, Alcohol and Tobacco Tax and Trade Bureau (TTB). The company also pays taxes to the State of Florida – Division of Alcoholic Beverages and Tobacco. The Company is liable for the taxes upon the removal of product from the Company’s warehouse on a per gallon basis. The federal tax rate is affected by a small winery tax credit provision which decreases based upon the number of gallons of wine production in a year rather than the quantity sold.

Splash Beverage Group, Inc.

Notes to the Condensed Consolidated Financial Statements

Note 2 – Summary of Significant Accounting Policies, continued

Fair Value of Financial Instruments

Financial Accounting Standards (“FASB”) guidance specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect market assumptions. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The three levels of the fair value hierarchy are as follows:

	Level 1 -	Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 1 primarily consists of financial instruments whose value is based on quoted market prices such as exchange-traded instruments and listed equities.

	Level 2 -	Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly (e.g., quoted prices of similar assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities in markets that are not active).

	Level 3 -	Unobservable inputs for the asset or liability. Financial instruments are considered Level 3 when their fair values are determined using pricing models, discounted cash flows or similar techniques and at least one significant model assumption or input is unobservable.

The liabilities and indebtedness presented on the condensed consolidated financial statements approximate fair values at March 31, 2024 and December 31, 2023, consistent with recent negotiations of notes payable and due to the short duration of maturities and market rates of interest.

Embedded debt costs in convertible debt instruments

In August 2020, the FASB issued “ASU 2020-06, Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40)” (“ASU 2020-06”) which simplifies the accounting for convertible instruments. The guidance removes certain accounting models which separate the embedded conversion features from the host contract for convertible instruments. Either a modified retrospective method of transition or a fully retrospective method of transition was permissible for the adoption of this standard. Update No. 2020-06 is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption was permitted no earlier than the fiscal year beginning after December 15, 2020. The Company has adopted ASU 2020-06 effective January 1, 2024 and has removed the effects of any embedded conversion features from certain of our convertible instruments.

Revenue Recognition

The Company recognizes revenue under ASC 606, Revenue from Contracts with Customers (Topic 606). This guidance sets forth a five-step model which depicts the recognition of revenue in an amount that reflects what the Company expects to receive in exchange for the transfer of goods or services to customers.

The Company recognizes revenue when the Company’s performance obligations under the terms of a contract with the customer are satisfied. Product sales occur for the Splash Beverage and E-commerce businesses once control of the Company’s products are transferred upon delivery to the customer. Revenue is measured as the amount of consideration that the Company expects to receive in exchange for transferring goods, and revenue is presented net of provisions for customer returns and allowances. The amount of consideration the Company receives and revenue the Company recognizes varies with changes in customer incentives offered to the Company’s customers and their customers. Sales taxes and other similar taxes are excluded from revenue.

Splash Beverage Group, Inc.

Notes to the Condensed Consolidated Financial Statements

Note 2 – Summary of Significant Accounting Policies, continued

Distribution expenses to transport our products, and warehousing expense after manufacture are accounted for in Other General and Administrative cost.

Cost of Goods Sold

Cost of goods sold include the costs of products, packaging, transportation, warehousing, and costs associated with valuation allowances for expired, damaged or impaired inventory. The cost of transportation from production site to other 3^rd party warehouses or customer is included in Other General and Administrative cost.

Other General and Administrative Expenses

Other General and Administrative expenses includes Amazon selling fees, royalty cost for selling TapouT, cost associated with the outbound shipping and handling of finished goods, insurance cost, consulting cost, legal and audit fees, Investor Relations expenses, travel & entertainment expenses, occupancy cost and other cost.

Stock-Based Compensation

The Company accounts for stock-based compensation in accordance with ASC 718, ”Compensation - Stock Compensation”. Under the fair value recognition provisions, cost is measured at the grant date based on the fair value of the award and is recognized as expense ratably over the requisite service period, which is generally the award’s vesting period. The Company uses the Black-Scholes option pricing model to determine the fair value of stock-based awards.

We measure stock-based awards at the grant-date fair value for employees, directors and consultants and recognize compensation expense on a straight-line basis over the vesting period of the award. Determining the appropriate fair value of stock-based awards requires the input of subjective assumptions, including the fair value of our common stock, and for stock options and warrants, the expected life of the option and warrant, and expected stock price volatility and exercise price. We used the Black-Scholes option pricing model to value its stock-based awards. The assumptions used in calculating the fair value of stock-based awards represent management’s best estimates and involve inherent uncertainties and the application of management’s judgment. As a result, if factors change and management uses different assumptions, stock-based compensation expense could be materially different for future awards. The expected life of stock options/warrants were estimated using the “simplified method,” which calculates the expected term as the midpoint between the weighted average time to vesting and the contractual maturity, we have limited historical information to develop reasonable expectations about future exercise patterns. The simplified method is based on the average of the vesting tranches and the contractual life of each grant. For stock price volatility, we use comparable public companies as a basis for its expected volatility to calculate the fair value of award. The risk-free interest rate is based on U.S. Treasury notes with a term approximating the expected life of the award. The estimation of the number of awards that will ultimately vest requires judgment, and to the extent actual results or updated estimates differ from the Company’s current estimates, such amounts are recognized as an adjustment in the period in which estimates are revised.

Income Taxes

The Company uses the liability method of accounting for income taxes as set forth in ASC 740, ”Income Taxes”. Under the liability method, deferred taxes are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities using tax rates expected to be in effect during the years in which the basis differences reverse. The Company records a valuation allowance when it is more likely than not that the deferred tax assets will be realized.

Company management assesses its income tax positions and records tax benefits for all years subject to examination based upon its evaluation of the facts, circumstances and information available at the reporting date. In accordance with ASC 740-10, for those tax positions where there is a greater than 50% likelihood that a tax benefit will be sustained, our policy is to record the largest amount of tax benefit that is more likely than not to be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information.

Splash Beverage Group, Inc.

Notes to the Condensed Consolidated Financial Statements

Note 2 – Summary of Significant Accounting Policies, continued

For those income tax positions where there is less than 50% likelihood that a tax benefit will be sustained, no tax benefit will be recognized in the financial statements. Company management has determined that there are no material uncertain tax positions at March 31, 2024 and December 31, 2023.

Net income (loss) per share

The net income (loss) per share is computed by dividing the net income (loss) by the weighted average number of shares of common stock outstanding. Warrants, stock options, and common stock issuable upon the conversion of the Company’s convertible debt or preferred stock (if any), are not included in the computation if the effect would be anti-dilutive.

Weighted average number of shares outstanding excludes anti-dilutive common stock equivalents, including warrants to purchase shares of common stock and warrants granted by our Board that have not been exercised totaling 81,014,017.

Advertising

The Company conducts advertising for the promotion of its products. In accordance with ASC 720-35, advertising costs are charged to operations when incurred. The Company recorded advertising expense of $77,627 and $195,048 for the three months ended March 31, 2024 and 2023, respectively.

Goodwill and Intangibles Assets

Goodwill represents the excess of acquisition cost over the fair value of the net assets acquired and is not subject to amortization. The Company reviews goodwill annually in the fourth quarter for impairment or when circumstances indicate carrying value may exceed the fair value. This evaluation is performed at the reporting unit level. If a qualitative assessment indicates that it is more likely than not that the fair value is less than carrying value, a quantitative analysis is completed using either the income or market approach, or a combination of both. The income approach estimates fair value based on expected discounted future cash flows, while the market approach uses comparable public companies and transactions to develop metrics to be applied to historical and expected future operating results.

The gross amounts and accumulated amortization of the Company’s acquired identifiable intangible assets with finite useful lives, included in other intangible assets, net in the accompanying consolidated balance sheets, were as follows:


	March 31, 2024
	Gross Amount		Accumulated Amortization		Amortization Period
Finite:						(in years)
Brands	$	4,459,000	$	966,120		15
Customer Relationships		957,000		207,350		15
License		360,000		241,238		11
Total Intangible Assets	$	5,776,000	$	1,414,708

At the time of acquisition, the Company estimates the fair value of the acquired identifiable intangible assets based upon the facts and circumstances related to the particular intangible asset. Inherent in such estimates are judgments and estimates of future revenue, profitability, cash flows and appropriate discount rates for any present value calculations. The Company preliminarily estimates the value of the acquired identifiable intangible assets and then finalizes the estimated fair values during the purchase allocation period, which does not extend beyond 12 months from the date of acquisition. The Company’s amortization expense for acquired identifiable intangible assets with finite useful lives was $98,017 for the three months ended March 31, 2024 and 2023. Estimated amortization expense for acquired identifiable intangible assets for fiscal year 2024 and the succeeding years is as follows:

Splash Beverage Group, Inc.

Notes to the Condensed Consolidated Financial Statements

Note 2 – Summary of Significant Accounting Policies, continued


	Future Intangible Asset Amortization Expense
Fiscal Year:
2024 (9 months)	$	294,051
2025		392,068
2026		392,068
2027		392,068
2028		363,580
Thereafter		2,527,457
Total	$	4,361,292

Long-lived assets

The Company evaluates long-lived assets for impairment when events or changes in circumstances may indicate the carrying amount of the asset group, generally an individual warehouse, may not be fully recoverable. For asset groups held and used, including warehouses to be relocated, the carrying value of the asset group is considered recoverable when the estimated future undiscounted cash flows generated from the use and eventual disposition of the asset group exceed the respective carrying value. In the event that the carrying value is not considered recoverable, an impairment loss is recognized for the asset group to be held and used equal to the excess of the carrying value above the estimated fair value of the asset group. For asset groups classified as held-for-sale (disposal group), the carrying value is compared to the disposal group’s fair value less costs to sell. The Company estimates fair value by obtaining market appraisals from third party brokers or using other valuation techniques.

Foreign Currency Gains/Losses

Foreign Currency Gains/Losses — foreign subsidiaries’ functional currency is the local currency of operations and the net assets of foreign operations are translated into U.S. dollars using current exchange rates. Gains or losses from these translation adjustments are included in the condensed consolidated statement of operations and other comprehensive loss as foreign currency translation gains or losses. Translation gains and losses that arise from the translation of net assets from functional currency to the reporting currency, as well as exchange gains and losses on intercompany balances, are included in foreign currency translation in the condensed consolidated statement of operations and comprehensive loss. The Company incurred foreign currency translation net loss of $7,437 and $1,609 for the three months ending March 31, 2024 and 2023 respectively.

Liquidity, Capital Resources and Going Concern Considerations

The Company’s consolidated financial statements have been prepared on the basis of US GAAP for a going concern, on the premise that the Company is able to meet its obligations as they come due in the normal course of business. The Company historically has incurred significant losses and negative cash flows from operation since inception and had net-loss of approximately $4.7 million for three-month period ended March 31, 2024 and accumulated deficit of approximately $136.7 million 136,746,623 through March 31, 2024. During the three-month period ended March 31, 2024, the Company’s net cash used in operating activities totaled approximately $1.3 million. Additionally, the Company’s current liabilities exceed its current assets, and it has a working capital deficit.

During the year ended December 31, 2023, the Company sustained a net loss of approximately $21.0 million and used cash in operating activities of $10.2 million, which excludes non-cash charges and financing activities. To date the Company has generated cash flows from issuances of equity and indebtedness.

Splash Beverage Group, Inc.

Notes to the Condensed Consolidated Financial Statements

Note 2 – Summary of Significant Accounting Policies, continued

The Company received approximately $1.5 million from the issuance of debt for the three months ending March 31, 2024. This event served to mitigate the conditions that previously raised substantial doubt about the Company’s ability to continue as a going concern.

Management’s plans in regard to these matters include actions to sustain the Company’s operations, such as seeking additional funding to meet its obligations and implement its business plan. However, there is no assurance that the Company will be successful in implementing its plans or in raising additional funds. If the Company is unable to raise additional funding to meet its working capital needs in the future, it may be forced to delay, reduce, or cease its operations. These conditions raise substantial doubt about the Company’s ability to continue as a going concern.

The financial statements do not include any adjustments that might result from the outcome of this uncertainty. If the Company is unable to continue as a going concern, adjustments would be necessary to the carrying values of its assets and liabilities and the reported amounts of revenues and expenses could be materially affected.

Recent Accounting Pronouncements

Update No. 2020-06 is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption was permitted no earlier than the fiscal year beginning after December 15, 2020. The Company has adopted ASU 2020-06 effective January 1, 2024, the Company recorded approximately $2.2 million as a reduction to the additional paid in capital and added approximately $1.3 million to the opening retained earnings in accordance with the authoritative guidance under ASU 2020-06.

All other newly issued but not yet effective accounting pronouncements have been deemed to be not applicable or immaterial to the Company.

Splash Beverage Group, Inc.

Notes to the Condensed Consolidated Financial Statements

Note 3 – Notes Payable, Related Party Notes Payable, Convertible Bridge Loans Payable, Revenue Financing Arrangements and Bridge Loan Payable

Notes payable are generally nonrecourse and secured by all Company owned assets.


	Interest Rate			March 31, 2024			December 31, 2023
Notes Payable and Convertible Notes Payable

In December 2020, the Company entered into a 56- month loan with a company in the amount of $1,578,237. The loan requires payments of 3.75% through November 2022 and 4.00% through September 2025 of the previous month’s revenue. Note is due September 2025. Note is guaranteed by a related party see note 6.		17	%		294,779			371,693

In April 2021, the Company entered into a six-month loan with an individual in the amount of $84,000. The loan had an original maturity of October 2021 with principal and interest due at maturity. The loan was extended to October 31, 2024.		7	%		168,000			168,000

In May 2021, the Company entered into a six-month loan with an individual in the amount of $50,000. The loan had an original maturity of October 2021 with principal and interest due at maturity. The loan was extended to October 31, 2024.		7	%		60,000			60,000

In August 2022, the Company entered into a 56-months auto loan in the amount of $45,420.		2.35	%		30,635			32,996

In December 2022, the Company entered into various eighteen-month loans with individuals totaling in the amount of $4,000,000. The notes included 100% warrant coverage. The loans mature in June 2024 with principal and interest due at maturity with conversion price of $1.00 per share.		12	%		4,000,000			4,000,000

In February 2023, the Company entered into a twelve-month loan with an entity in the amount of $2,000,000. The convertible note included the issuance of 1,500,000 shares of common stock. The loan matures in February 2024 with conversion price of $0.85 per share and is non-interest bearing. The loan was extended to May, 2024.		—	%		1,381,656			1,769,656

In May 2023, the Company entered into various eighteen-month loans with individuals totaling in the amount of $800,000. The notes included 50% warrant coverage. The loans mature in November 2024 with principal and interest due at maturity with conversion price of $1.00 per share.		12	%		800,000			800,000

In June 2023, the Company entered into various eighteen-month loans with individuals totaling in the amount of $350,000. The notes included 50% warrant coverage. The loans mature in December 2024 with principal and interest due at maturity with conversion price of $1.00 per share.		12	%		350,000			350,000

In July 2023, the Company entered into a twelve-month loan with an individual in the amount of $750,000. The note included 50% warrant coverage. The loan matures in July 2024 with principal and interest due at maturity with conversion price of $1.00 per share.		12	%		750,000			750,000

In July 2023, the Company entered into a twelve-month loan with an individual in the amount of $100,000. The note included 50% warrant coverage. The loan matures in January 2025 with principal and interest due at maturity with conversion price of $1.00 per share.		12	%		100,000			100,000

In August 2023, the Company entered into a twelve-month loan with an individual in the amount of $300,000. The convertible note included the issuance of 150,000 shares of common stocks. The loan matures in August 2024 with principal and interest due at maturity with conversion price of $0.85 per share and is non-interest bearing.		—	%		300,000			300,000

In October 2023, the Company entered into a three-month loan with an individual in the amount of $500,000. The loan matures in January 2024 with principal and interest due at maturity. The loan was extended to June 2024.		10	%		500,000			500,000

In October 2023, the Company entered into a loan with an individual in the amount of $196,725 The loan matures in March 2024. Note is guaranteed by a related party.		—	%		—			91,785

In October 2023, the Company entered into a loan with an individual in the amount of $130,000. The loan requires payment of 17% of daily Shopify sales.		—	%		71,061			88,431

In October 2023, the Company entered into a eighteen-month loan with individuals totaling in the amount of $1,250,000. The note included 100% warrant coverage. The loan matures in April 2025 with principal and interest due at maturity with conversion price of $1.00 per share		12	%		1,250,000			1,250,000

In December 2023, we entered into a 2.5-month loan with an individual in the amount of $450,000. The loan had a maturity of March 2024 with principal and interest due at maturity. The loan was extended to June 2024.		10	%		450,000			450,000

In January 2024, we entered into a loan in the amount of $500,000. The loan had a maturity of March 2024 with principal and interest due at maturity. It was paid off with a new loan in April 2024		—	%		178,572			—

In January 2024, we entered into a 18-month loan with an individual in the amount of $250,000. The note included 100% warrant coverage. The loan had a maturity of July 2025 with principal and interest due at maturity with conversion price of $0.50 per share.		12	%		250,000			—

In February 2024, we entered into a 18-month loan with an individual in the amount of $150,000. The note included 100% warrant coverage. The loan had a maturity of August 2025 with principal and interest due at maturity with conversion price of $0.40 per share.		12	%		150,000			—

In February 2024, we entered into a 6-month loan with an individual in the amount of $315,000. The note included 60% warrant coverage. The loan had a maturity of August 2024 with principal and interest due at maturity with conversion price of $0.38 per share		12	%		315,000			—

In February 2024, the Company entered into a 18-month loan with an entity in the amount of $250,000. The note included 100% warrant coverage. The loan matures in August 2025 with principal and interest due at maturity with conversion price of $0.46 per share		12	%		250,000			—

		Total notes payable		$	11,649,703		$	11,082,561

		Less notes discount			(1,825,847	)		(2,876,387	)
		Less current portion			(9,013,690	)		(7,748,518	)

		Long-term notes payable		$	810,166		$	457,656

Splash Beverage Group, Inc.

Notes to the Condensed Consolidated Financial Statements

Note 3 – Notes Payable, Related Party Notes Payable, Convertible Bridge Loans Payable, Revenue Financing Arrangements and Bridge Loan Payable, continued

Interest expense on notes payable was $533,578 and $167,121 for the three months ended March 31, 2024 and 2023, respectively. Accrued interest was $501,752 for the three months ended March 31, 2024.

The Company recognized approximately $886,838 and approximately $247,661 of interest expense attributable to the amortization of the debt discount during the three months ended March 31, 2024 and 2023, respectively.

As of March 31, 2024, and December 31, 2023, the balance of the unamortized debt discount was $1,825,848 and $1,944,348 respectively. The Company adopted ASU 2020-06 on January 1, 2024, which resulted in the reversal of the original bifurcated derivative (BCF) amount to additional paid in capital for $2,191,103, reversal of the unamortized debt discount related to the bifurcated derivative (BCF) for $932,047 with the balance being recorded through retained earnings for $1,259,056.

Schedule of notes payable
	Interest Rate	March 31, 2024			March 31, 2023
Shareholder Notes Payable

In February 2023, we entered into a loan with an individual in the amount of $200,000. The annual interest rate is 12%	12%		200,000			200,000

	Less current portion		(200,000	)		(200,000	)

	Long-term notes payable	$	—		$	—

Interest expense on related party notes payable was $6,000 and $0 for the three months ended March 31, 2024 and 2023, respectively. The Company’s effective interest rate was 21.85% for the three months ended March 31, 2024.

As of March 31, 2024, the Company’s convertible note balances are convertible into 14,615,036 shares of common stock

Note 4 – Licensing Agreement and Royalty Payable

The Company has a licensing agreement with ABG TapouT, LLC (“TapouT”), providing the Company with licensing rights to the brand “TapouT” (i)energy drinks, (ii) energy bars, (iii) coconut water, (iv) electrolyte gum/chews, (v) energy shakes, (vi) powdered drink mix, (viii) water (including enhanced water), (vii) energy shots, (viii) teas, and (ix) sports drinks sold in the North America (including US Territories and Military Bases), United Kingdom, Brazil, South Africa, Australia, Scandinavia, Peru, Colombia, Chile and Guatemala. The Company is required to pay a 6% royalty on net sales, as defined, and are required to make minimum monthly payments of $55,000 in 2024 and 2023.

There were no unpaid royalties at March 31, 2024. The Company paid the guaranteed minimum royalty payments of $165,000 for the three months ended March 31, 2024 and 2023 respectively, which is included in general and administrative expenses in the condensed consolidated statement of operations and comprehensive loss.

In connection with the Copa di Vino APA, the Company acquired the license to certain patents from 1/4 Vin SARL (“1/4 Vin”) On February 16, 2018, Copa di Vino entered into three separate license agreements with 1/4 Vin. 1/4 Vin has the right to license certain patents and patent applications relating to inventions, systems, and methods used in the Company’s manufacturing process. In exchange for notes payable, 1/4 Vin granted the Company a nonexclusive, royalty-bearing, non-assignable, nontransferable, terminable license which would continue until the subject equipment is no longer in service or the patents expire. Amortization is approximately $31,000 annually until the license agreement is fully amortized in 2027. The asset is being amortized over a 10-year useful life.

Splash Beverage Group, Inc.

Notes to the Condensed Consolidated Financial Statements

Note 5– Stockholders’ Equity

Common Stock

In February 2023, the Board of Directors approved a private placement offering of 2,000,000 shares of the common stock of the Company, $0.001 value per share at a purchase price of $1.00 per share for aggregate gross proceeds of $2,000,000 (“SPA”). As part of the SPA, each purchaser received additional restricted shares equal to 750 units for every $1,000 purchased.

During the three-months ended March 31, 2024, we issued 300,000 shares in exchange for services, 200,000 shares for extension of note, 1,552,000 shares on conversion of convertible instruments, and 300,000 shares for service.

Stock Plan

2020 Plan

In July 2020, the Board adopted the 2020 Stock Incentive Plan (the “2020 Plan”), which provides for the grant of Options, Restricted Stock Awards, Stock Appreciation Rights, Performance Units and Performance Bonuses to consultants and eligible recipients. The total number of shares that may be issued under the 2020 plan was 2,313,133 at the time the 2020 plan was adopted as of March 31, 2024.

The 2020 Plan has an “evergreen” feature, which provides for the annual increase in the number of shares issuable under the plan by an amount equal to 5% of the number of issued and outstanding common shares at year end, unless otherwise adjusted by the board. At January 1, 2023 and 2024, the number of shares issuable under the 2020 plan increased by 2,054,276 and 2,984,276 shares, respectively.

In October 2023, the shareholders voted to increase the number of shares issuable under the Plan to 7.5%.

The following is a summary of the Company’s stock option activity:

Schedule of stock option activity
Options	March 31, 2024				March 31, 2023
	Number of Options		Weighted Average Exercise Price		Number of Options		Weighted Average Exercise Price

Balance - January 1*		4,259,008	$	1.13		1,151,000	$	2.56

Granted		630,000		0.59		65,000		1.08
Exercises		—		—		—		—
Cancelled		—		—		—		—

Balance – March 31,		4,889,008	$	1.06		1,216,000	$	2.48

Exercisable – March 31,		4,332,344	$	1.06		732,746	$	2.58

During the three-month period ended March 31, 2024 and March 31, 2023, the company granted 630,000 and 65,000 options to new employees under the 2020 plan.

The fair value of stock options granted in the period has been measured at $272,263 using the Black-Scholes option pricing model with the following assumptions: exercise price $0.59, expected life 10 years, expected volatility 82.28%, expected dividends 0%, risk free rate 4.0%.

Splash Beverage Group, Inc.

Notes to the Condensed Consolidated Financial Statements

Note 5 – Stockholders’ Equity, continued

Common Stock Issuable, Liability to Issue Stock and Shareholder Advances

Outstanding balance for shareholder advances on March 31, 2024 and 2023 was $200,000.

Note 6 – Related Parties

During the normal course of business, the Company incurred expenses related to services provided by the CEO or Company expenses paid by the CEO, resulting in related party payables. In conjunction with the acquisition of Copa di Vino, the Company also entered into a Revenue Loan and Security Agreement (the “Loan and Security Agreement”) by and among the Company, Robert Nistico, additional Guarantor and each of the subsidiary guarantors from time-to-time party thereto (each a “Guarantor”, and, collectively, the “Guarantors”), and Decathlon Alpha IV, L.P. (the “Lender”). The Note Payable with a balance of $294,779 at March 31, 2024 and $371,693 at March 31,2023.

There were related party advances from our chief executive officer in the amount of approximately $0.4 million outstanding as of March 31, 2024 and approximately $0.4 million as of December 31, 2023. A shareholder note payable outstanding in the amount of $200,000 as of March 31, 2024.

Note 7 – Investment in Salt Tequila USA, LLC

The Company has a marketing and distribution agreement with SALT Tequila USA, LLC (“SALT”) for the manufacturing of our Tequila product line in Mexico.

The Company has a 22.5% percentage ownership interest in SALT, this investment is carried at cost less impairment, the investment does not have a readily determinable fair value. The Company has the right to increase our ownership to 37.5%.

Note 8 –Leases

The Company has various operating lease agreements primarily related to real estate and office. The Company’s real estate leases represent a majority of the lease liability. Lease payments are mainly fixed. Any variable lease payments, including utilities, common area maintenance are expensed during the period incurred. Variable lease costs were immaterial for the quarter ended March 31, 2024 and 2023. A majority of the real estate leases include options to extend the lease. Management reviews all options to extend at the inception of the lease and account for these options when they are reasonably certain of being exercised.

Operating lease expense is recognized on a straight-line basis over the lease term and is included in operating expense on the Company’s condensed consolidated statement of operations and comprehensive loss. Operating lease cost was $97,953 and $93,328 during the period ended March 31, 2024 and 2023, respectively.

The following table sets for the maturities of our operating lease liabilities and reconciles the respective undiscounted payments to the operating lease liabilities in the consolidated balance sheet at December 31, 2022


Undiscounted Future Minimum Lease Payments	Operating Lease

2024 (Nine months remaining)		214,752
2025		287,193
2026		17,857
Total		519,802
Amount representing imputed interest		(20,074	)
Total operating lease liability		494,728
Current portion of operating lease liability		266,704
Operating lease liability, non-current	$	228,024

Splash Beverage Group, Inc.

Notes to the Condensed Consolidated Financial Statements

Note 8 –Leases, continued

The table below presents lease-related terms and discount rates at March 31, 2024:


Remaining term on leases	1 to 27 months
Incremental borrowing rate	5.0	%

Note 9 – Segment Reporting

The Company has two reportable operating segments: (1) the manufacture and distribution of non-alcoholic and alcoholic brand beverages, and (2) the e-commerce sale of beverages. These operating segments are managed separately and each segment’s major customers have different characteristics. Segment Reporting is evaluated by our Chief Executive Officer and Chief Financial Officer.

Note: The Copa di Vino business is included in our Splash Beverage Group segment.


Revenue, net	March 31, 2024		March 31, 2023
Splash Beverage Group		1,200,282		1,898,968
E-Commerce		340,398		3,923,759

Total revenues, net, continuing operations	$	1,540,680	$	5,822,727

Contribution after Marketing	March 31, 2024			March 31, 2023
Splash Beverage Group		(33,481	)		(286,930	)
E-Commerce		(5,358	)		1,311,602

Total contribution after marketing	$	(38,839	)	$	1,024,672

Contracted services		218,829			381,005
Salary and wages		1,234,926			1,234,127
Non-cash share-based compensation		556,672			215,760
Other general and administrative		1,201,031			2,648,701

Loss from continuing operations	$	(3,250,297	)	$	(3,454,921	)

Total assets	March 31, 2024		December 31, 2023
Splash Beverage Group		8,396,166		9,188,213
E-Commerce		162,301		710,555

Total assets	$	8,558,467	$	9,898,768

Splash Beverage Group, Inc.

Notes to the Condensed Consolidated Financial Statements

Note 10 – Commitment and Contingencies

The Company is a party to asserted claims and are subject to regulatory actions in the ordinary course of business. The results of such proceedings cannot be predicted with certainty, but the Company does not anticipate that the outcome, if any, arising out of any such matter will have a material adverse effect on its business, financial condition or results of operations.

Note 11 – Subsequent Events

In April 2024, one of the initial notes was paid off and extended to a higher amount of financing. This transaction involved the complete repayment of our original loan and the acquisition of a new loan to the amount of $815,000.

In May 2024, the Company received approximately $1.9 million from the issuance of senior secured convertible notes, a convertible promissory note and a merchant agreement. The senior convertible notes have an eighteen-month term, accrue interest at 12% and are convertible into shares of common stock of the Company at $0.85 per share and include 100% warrant coverage. The loan matures in November 2026 with principal and interest due at maturity with conversion price of $0.40 per share.

The Company granted 75,000 shares in April to one of the Board directors under the 2020 plan.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Cautionary Statement Regarding Forward-Looking Statements

The information in this discussion may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements involve risks and uncertainties, including statements regarding our capital needs, business strategy and expectations. Any statements that are not of historical fact may be deemed to be forward-looking statements. These forward-looking statements involve substantial risks and uncertainties. In some cases you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expect,” “plan,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” or “continue”, the negative of the terms or other comparable terminology. Actual events or results may differ materially from the anticipated results or other expectations expressed in the forward-looking statements. In evaluating these statements, you should consider various factors, including the risks included from time to time in other reports or registration statements filed with the United States Securities and Exchange Commission. These factors may cause our actual results to differ materially from any forward-looking statements. The Company disclaim any obligation to publicly update these statements or disclose any difference between actual results and those reflected in these statements.

Unless the context otherwise requires, references in this Form 10-Q to “we,” “us,” “our,” or the “Company” refer to Splash Beverage Group and its subsidiaries.

The following discussion and analysis should be read in conjunction with the Condensed Financial Statements (unaudited) and Notes to Condensed Financial Statements (unaudited) filed herewith.

Business Overview

Results of Operations for the Three Months Ended March 31, 2024 compared to Three Months Ended March 31, 2023.

Revenue

Revenues for the three months ended March 31, 2024 were approximately $1.5 million compared to revenues of approximately $5.8 million for the three months ended March 31, 2023. The $4.3 million decrease in sales is due to a decrease in our beverage sales of $0.7 million. Our revenues from our vertically integrated B2B and B2C e-commerce distribution platform called Qplash decreased approximately $3.5 million or 91% due to low inventory. Total sales declined due to limited liquidity to procure inventory to drive third-party sales.

Cost of Goods Sold

Cost of goods sold for the three months ended March 31, 2024 were $1.4 million compared to cost of goods sold for the three months ended March 31, 2023 of approximately $4.1 million. The $2.7 million decrease in cost of goods sold for the three-month period ended March 31, 2024 is primarily due to our decreased sales.

Operating Expenses

Operating expenses for the three months ended March 31, 2024 were $3.4 million compared to $5.2 million for the three months ended March 31, 2022 a decrease of $1.8 million. The decrease in our operating expenses was primarily due to non-cash expenses partially offset by increases for the incorporation of new staff, benefit cost, freight cost and Amazon selling fees. The net loss for the three months ended March 31, 2024 was $5.1 million as compared to a net loss of approximately $3.7 million for the three months ended March 31, 2023. The increase in net loss is due to higher debt discount and interest expenses.

Net Other Income and Expense

Interest expenses for the three months ended March 31, 2024 was $0.5 million compared to $0.2 million for the three months ended March 31, 2023. The $0.3 million increase in interest expense is due to new loans with a principal of $6.3 million.

Other income was $0 and $0.1 million for the three months ended March 31, 2024 and March 31, 2023 respectively. The income in 2023 was related to an insurance settlement.

Amortization of debt discount for the three months ended March 31, 2024 was approximately $0.9 million compared to $0.25 million for three months ended March 31, 2023.

LIQUIDITY, GOING CONCERN CONSIDERATIONS AND CAPITAL RESOURCES

Liquidity is the ability of a company to generate funds to support its current and future operations, satisfy its obligations, and otherwise operate on an ongoing basis. Significant factors in the management of liquidity are funds generated by operations, levels of accounts receivable and accounts payable and capital expenditures.

As of March 31, 2024, the Company had total cash and cash equivalents of $14,757, as compared with $379,978 at December 31, 2023.

Net cash used for operating activities during the three months ended March 31, 2024 was $1.3 million as compared to the net cash used by operating activities for the three months ended March 31, 2023 of $4.0 million. The primary reasons for the change in net cash used are decreases in inventory, accrued expenses and accounts payable partially offset by increases in account receivables.

For the period ending March 31, 2024, there were no capital asset transactions. For the period March 31, 2023, the Company had leasehold improvements of $10,571 related to our Copa Di Vino production site.

Net cash provided by financing activities during the three months ended March 31, 2024 was $2.0 million compared to $1.8 million provided from financing activities for the three months ended March 31, 2023. During the three months ended March 31, 2024, the Company received $1.5 million for convertible note, which was offset by repayments to debt holders of $0.51 million and $0.05 million to related party cash advance.

The Company Board has approved raising up to $8.0 million to fund acquisitions, equipment purchases and working capital.

In order to have sufficient cash to fund our operations, the Company will need to raise additional equity or debt capital. There can be no assurance that additional funds will be available when needed from any source or, if available, will be available on terms that are acceptable to us. The Company will be required to pursue sources of additional capital through various means, including debt or equity financings. Future financings through equity investments are likely to be dilutive to existing stockholders. Also, the terms of securities the Company may issue in future capital transactions may be more favorable for new investors. Newly issued securities may include preferences, superior voting rights, the issuance of warrants or other derivative securities, and the issuances of incentive awards under equity employee incentive plans, which may have additional dilutive effects. Further, the Company may incur substantial costs in pursuing future capital and/or financing, including investment banking fees, legal fees, accounting fees, printing and distribution expenses and other costs. The Company may also be required to recognize non-cash expenses in connection with certain securities the Company may issue, such as convertible notes and warrants, which will adversely impact our financial condition. Our ability to obtain needed financing may be impaired by such factors as the capital markets and our history of losses, which could impact the availability or cost of future financings. If the amount of capital the Company are able to raise from financing activities together with our revenues from operations, is not sufficient to satisfy our capital needs, even to the extent that the Company reduce our operations accordingly, the Company may be required to curtail or cease operations. As a result, there is uncertainty regarding the Company’s ability to maintain liquidity sufficient to operate its business effectively, which raises substantial doubt as to the Company’s ability to continue as a going concern for at least twelve months from the date of the consolidated financial statements being available to be issued.

CONTRACTUAL OBLIGATIONS

Minimum Royalty Payments:

The Company have a licensing agreement with ABG TapouT, LLC (“TapouT”). Under the licensing agreement, the Company has minimum royalty payments to TapouT of $495,000 for the nine months remaining in 2024.

Inventory Purchase Commitments:

None.

Off-Balance Sheet Arrangements

The Company do not have any off-balance sheet arrangements (as that term is defined in Item 303 of Regulation S-K) that are reasonably likely to have a current or future material effect on our financial condition, revenue or expenses, results of operations, liquidity, capital expenditures or capital resources.

Critical Accounting Estimates

The preparation of our consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses, as well as the disclosure of contingent assets and liabilities. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Actual results could differ from those estimates.

Revenue

The Company faces significant judgment in revenue recognition due to the complexities of the beverage industry’s competitive landscape and diverse distribution channels. Determining the timing of revenue recognition involves assessing factors such as control transfer, returns, allowances, trade promotions, and distributor sell-through data. Historical analysis, market trends assessment, and contractual term evaluations inform revenue recognition judgments. However, inherent uncertainties persist, underscoring the critical nature of revenue recognition as it significantly impacts financial statements and performance evaluation.

Allowance for Doubtful Accounts

The allowance for doubtful accounts is established based on historical experience, current economic conditions, and specific customer collection issues. Management evaluates the collectability of accounts receivable on an ongoing basis and adjusts the allowance as necessary. Changes in economic conditions or customer creditworthiness could result in adjustments to the allowance for doubtful accounts, impacting our reported financial results.

Inventory Valuation

We value inventory at the lower of cost or net realizable value. Estimating the net realizable value of inventory involves significant judgment, particularly when market conditions change rapidly or when excess or obsolete inventory exists. Management regularly assesses inventory quantities on hand, future demand forecasts, and market conditions to determine whether write-downs to inventory are necessary.

Fair Value Measurements

We measure certain financial assets and liabilities at fair value on a recurring basis. Fair value measurements involve significant judgment and estimation, particularly when observable inputs are limited or not available. Management utilizes valuation techniques such as discounted cash flow models, market comparables, and third-party appraisals to determine fair values.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not required for Smaller Reporting Companies.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of the principal executive and principal financial officers, evaluated the effectiveness of our disclosure controls and procedures, as defined in Rules 13a – 15(e) and 15d – 15(e) under the Securities Exchange Act of 1934, as amended, or Exchange Act, as of the end of the period covered by this Report. Our disclosure controls and procedures are designed to provide reasonable, not absolute, assurance that the objectives of our disclosure control system are met. Because of inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues, if any, within a company have been detected. Based on that evaluation, our Chief Executive Officer and our Chief Financial Officer concluded that, because of certain material weaknesses in our internal controls over financial reporting, our disclosure controls and procedures were not effective as of March 31, 2024. The material weaknesses relate to a lack of segregation of duties between accounting and other functions and the absence of sufficient depth of in-house accounting personnel with the ability to properly account for complex transactions.

The Company plans to implement additional internal controls or enhance existing internal controls to strengthen its control environment. Subsequent to the quarter ended March 31, 2024, the company is reviewing a plan to engage additional internal staff, external staff, or an advisory firm to provide support on technical issues related to U.S. GAAP as related to the maintenance of our accounting books and records and the preparation of our financial statements.

Changes in Internal Control Over Financial Reporting

Except with respect to the above, during the quarter ended March 31, 2024, there were no additional changes in our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II – OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

None.

ITEM 1A. RISK FACTORS

No new risk factors noted since our Annual Report on Form 10-K for the year ended December 31, 2023 was filed with the SEC.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The Company granted 75,000 shares in April to one of the Board directors under the 2020 plan

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

No disclosure required.

ITEM 5. OTHER INFORMATION

Rule 10b5-1 Trading Arrangement

During the three months ended March 31, 2024, no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.

ITEM 6. EXHIBITS

(a) Exhibits required by Item 601 of Regulation S-K.

Exhibits		Description
4.1		Form of Warrant (incorporated by reference herein to Exhibit 4.1 filed with Form 8-K filed with the SEC on May 7, 2024)
10.1		Form of the Purchase Agreement (incorporated by reference herein to Exhibit 10.1 filed with Form 8-K filed with the SEC on May 7, 2024)
10.2		Form of the Note (incorporated by reference herein to Exhibit 10.2 filed with Form 8-K filed with the SEC on May 7, 2024)
10.3		Form of the Registration Rights Agreement (incorporated by reference herein to Exhibit 10.3 filed with Form 8-K filed with the SEC on May 7, 2024)
31.1		Certification of CEO and Principal Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a)*
31.2		Certification of CFO and Principal Financial and Accounting Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a)*
32.1		Certification of CEO and Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 - Filed herewith electronically**
32.2		Certification of CFO and Principal Financial and Accounting Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 - Filed herewith electronically**
101		XBRL Exhibits

* Filed herewith

** Furnished herewith

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	SPLASH BEVERAE GROUP, INC.

Date: May 15, 2024	By:	/s/ Robert Nistico
		Robert Nistico, Chairman and CEO
		(Principal Executive Officer)

Date: May 15, 2024	By:	/s/ Julius Ivancsits
		Julius Ivancsits, CFO
		(Principal Accounting Officer and Principal Financial Officer)

Exhibit 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Robert Nistico, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Splash Beverage Group Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in the Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have:

(a) Designed such disclosure controls and procedures or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant is made known to us by others within the registrant, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 15, 2024

/s/ Robert Nistico
Robert Nistico
Chief Executive Officer
(Principal Executive Officer)

Exhibit 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Julius Ivancsits, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Splash Beverage Group Inc.;

3. Based on my knowledge, the financial statements, and other financial information included in this annual report, fairly present in all material respects the financial condition, results of operations and cash flows of the of the registrant as of, and for, the periods presented in this report;

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 15, 2024

/s/ Julius Ivancsits
Julius Ivancsits
Chief Financial Officer
(Principal Accounting Officer and Principal Financial Officer)

Exhibit 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Form 10-Q of Splash Beverage Group Inc., a company duly formed under the laws of Nevada (the “Company”), for the quarter ended March 31, 2024, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Robert Nistico, President (Chief Executive Officer) of the Company, hereby certifies, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to the best of his knowledge, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: May 15, 2024	/s/ Robert Nistico
	Robert Nistico, Chief Executive Officer (Principal Executive Officer)

This certification accompanies this Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

Exhibit 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Form 10-Q of Splash Beverage Group, Inc., a company duly formed under the laws of Nevada (the “Company”), for the quarter ended March 31, 2024, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Ronald Wall, Chief Financial Officer of the Company, hereby certifies, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to the best of her knowledge, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: May 15, 2024	/s/ Julius Ivancsits
	Julius Ivancsits Chief Financial Officer (Principal Accounting Officer and Principal Financial Officer)

Cover - shares	3 Months Ended
Cover - shares	Mar. 31, 2024	May 15, 2024
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2024
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2024
Current Fiscal Year End Date	--12-31
Entity File Number	001-40471
Entity Registrant Name	SPLASH BEVERAGE GROUP, INC.
Entity Central Index Key	0001553788
Entity Tax Identification Number	34-1720075
Entity Incorporation, State or Country Code	NV
Entity Address, Address Line One	1314 E Las Olas Blvd. Suite 221
Entity Address, City or Town	Fort Lauderdale
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	33301
City Area Code	954
Local Phone Number	745-5815
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		47,656,088
Common Stock, $0.001 value per share [Member]
Title of 12(b) Security	Common Stock, $0.001 value per share
Trading Symbol	SBEV
Security Exchange Name	NYSE
Warrants to purchase common stock, $0.001 par value per share [Member]
Title of 12(b) Security	Warrants to purchase common stock, $0.001 par value per share
Trading Symbol	SBEV-WT
Security Exchange Name	NYSE

Condensed Consolidated Balance Sheets - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 14,757	$ 379,978
Accounts receivable, net	755,899	890,631
Prepaid expenses	365,059	220,320
Inventory	1,471,712	2,252,469
Other receivables	229,015	233,850
Total current assets	2,836,442	3,977,248
Non-current assets:
Deposits	49,462	49,446
Goodwill	256,823	256,823
Intangible assets, net	4,361,292	4,459,309
Investment in Salt Tequila USA, LLC	250,000	250,000
Right of use assets	491,859	556,140
Property and equipment, net	312,589	349,802
Total non-current assets	5,722,025	5,921,520
Total assets	8,558,467	9,898,768
Current liabilities
Accounts payable and accrued expenses	4,945,173	4,444,286
Right of use liability, current portion	266,704	262,860
Related party notes payable	375,000	380,000
Notes payable, net of discounts	9,013,690	7,748,518
Shareholder advances	200,000	200,000
Accrued interest payable	2,222,398	1,714,646
Total current liabilities	17,022,965	14,750,310
Long-term liabilities:
Notes payable, net of discounts	810,166	457,656
Right of use liability – net of current portion	228,024	296,128
Total long-term liabilities	1,038,190	753,784
Total liabilities	18,061,155	15,504,094
Stockholders’ equity:
Preferred stock, $0.001 par value, 5,000,000 shares authorized, no shares issued	0	0
Common Stock, $0.001 par, 300,000,000 shares authorized, 46,382,099 shares issued, 44,330,099 shares outstanding at March 31, 2024 and December 31, 2023	46,382	41,330
Additional paid in capital	127,221,573	127,701,710
Accumulated other comprehensive loss	(24,020)	(16,583)
Accumulated deficit	(136,746,623)	(133,334,783)
Total stockholders’ equity	(9,502,688)	(5,605,326)
Total liabilities and stockholders’ equity	$ 8,558,467	$ 9,898,768

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	46,382,099	46,382,099
Common stock, shares outstanding	44,330,099	44,330,099

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Statement [Abstract]
Net revenues	$ 1,540,680	$ 5,822,727
Cost of goods sold	(1,377,065)	(4,061,228)
Gross profit	163,615	1,761,499
Operating expenses:
Contracted services	218,829	381,005
Salary and wages	1,234,926	1,234,127
Non-cash share-based compensation	556,672	215,760
Other general and administrative	1,201,031	2,648,701
Sales and marketing	202,454	736,827
Total operating expenses	3,413,912	5,216,420
Loss from continuing operations	(3,250,297)	(3,454,921)
Other income/(expense):
Other income	(1,495)	140,404
Amortization of debt discount	(886,838)	(247,661)
Interest Income	332	0
Interest expense	(532,599)	(167,121)
Total other expense	(1,420,600)	(274,378)
Provision for income taxes	0	0
Net loss from continuing operations, net of tax	(4,670,897)	(3,729,299)
Net loss	(4,670,897)	(3,729,299)
Other comprehensive loss foreign currency translation loss, net of tax	(7,437)	(1,609)
Total comprehensive loss	$ (4,678,334)	$ (3,730,908)
Loss per share - continuing operations
Loss per share - continuing operations, Basic	$ (0.10)	$ (0.10)
Loss per share - continuing operations, Diluted	$ (0.10)	$ (0.10)
Weighted average number of common shares outstanding - continuing operations
Weighted average number of common shares outstanding - continuing operations, Basic	44,793,831	37,389,990
Weighted average number of common shares outstanding - continuing operations, Diluted	44,793,831	37,389,990

Condensed Consolidated Statement of Changes in Stockholders' Equity (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	AOCI Attributable to Parent [Member]	Retained Earnings [Member]	Total
Beginning balance, value at Dec. 31, 2022	$ 41,086	$ 121,632,546	$ (20,472)	$ (112,331,026)	$ 9,322,134
Beginning balance, shares at Dec. 31, 2022	41,085,520
Common stock issuable and beneficial conversion feature on convertible 12-month promissory note		1,786,468			1,786,468
Share based compensation		215,760			215,760
Accumulated Comprehensive loss – translation, net			(1,609)		(1,609)
Net loss				(3,729,299)	(3,729,299)
Ending balance, value at Mar. 31, 2023	$ 41,086	123,634,774	(22,081)	(116,060,325)	7,593,454
Ending balance, shares at Mar. 31, 2023	41,085,520
Beginning balance, value at Dec. 31, 2023	$ 44,330	127,701,710	(16,583)	(133,334,783)	(5,605,326)
Beginning balance, shares at Dec. 31, 2023	44,330,099
Issuance of common stock for note extension	$ 200	107,800			108,000
Issuance of common stock for note extension, shares	200,000
Share based compensation		271,672			271,672
Adoption of ASU 2020-06		(2,191,103)		1,259,057	(932,046)
Issuance of warrants on convertible instruments		768,346			768,346
Conversion of notes payable to common stock	$ 1,552	386,448			388,000
Conversion of notes payable to common stock, shares	1,552,000
Issuance of common stock for services	$ 300	176,700			177,000
Issuance of common stock for services, shares	300,000
Accumulated Comprehensive loss – translation, net			(7,437)		(7,437)
Net loss				(4,670,897)	(4,670,897)
Ending balance, value at Mar. 31, 2024	$ 46,382	$ 127,221,573	$ (24,020)	$ (136,746,623)	$ (9,502,688)
Ending balance, shares at Mar. 31, 2024	46,382,099

Condensed Consolidated Statement of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Cash Flows [Abstract]
Net loss	$ (4,670,897)	$ (3,729,299)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	135,231	130,618
Amortization of debt discount	886,838	247,661
ROU assets, net	21	427
Non-cash share-based compensation	556,672	215,760
Changes in working capital items:
Accounts receivable, net	134,732	(378,571)
Inventory, net	780,757	576,514
Prepaid expenses and other current assets	(139,903)	(723,988)
Deposits	(15)	(78)
Accounts payable and accrued expenses	500,887	(464,195)
Accrued interest payable	507,752	21,324
Net cash used in operating activities	(1,307,925)	(4,103,827)
Cash flows from investing activities:
Capital expenditures	0	(10,571)
Net cash used in investing activities	0	(10,571)
Cash flows from financing activities:
Cash advance (repayment) from related party	(5,000)	0
Cash advance from shareholder	0	200,000
Proceeds from issuance of debt	1,465,500	2,000,000
Principal repayment of debt	(509,858)	(369,941)
Net cash provided by financing activities	950,142	1,830,059
Net cash effect of exchange rate changes on cash	(7,437)	(1,609)
Net change in cash and cash equivalents	(365,221)	(2,285,948)
Cash and cash equivalents, beginning of year	379,978	4,431,745
Cash and cash equivalents, end of period	14,757	2,145,797
Supplemental disclosure of cash flow information:
Cash paid for Interest	24,847	145,797
Supplemental disclosure of non-cash investing and financing activities
Notes payable and accrued interest converted to common stock (1,552,000 shares in 2024)	388,000	0
Non-cash debt discount in the form of issuance of shares and beneficial conversion feature in conjunction with convertible notes	$ 661,677	$ 1,786,468

Pay vs Performance Disclosure - USD ($)	3 Months Ended
Pay vs Performance Disclosure - USD ($)	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure [Table]
Net Income (Loss) Attributable to Parent	$ (4,670,897)	$ (3,729,299)

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Mar. 31, 2024
Insider Trading Arrangements [Line Items]
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Business Organization and Nature of Operations

3 Months Ended

Mar. 31, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Business Organization and Nature of Operations

Note 1 – Business Organization and Nature of Operations

Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2024

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Note 2 – Summary of Significant Accounting Policies

Basis of Accounting

Basis of Presentation and Consolidation

Our investment in Salt Tequila USA, LLC is accounted for at cost, as the company does not have the ability to exercise significant influence.

Our accounting and reporting policies confirm to accounting principles generally accepted in the United States of America (GAAP).

Use of Estimates

Cash Equivalents and Concentration of Cash Balance

Accounts Receivable and Allowance for Doubtful Accounts

Inventory

Property and Equipment

Schedule of property and equipment
	2024			2023
Auto		45,420			45,420
Machinery & equipment		1,160,278			1,160,578
Buildings		233,323			233,323
Leasehold improvements		723,639			723,638
Computer Software		5,979			5,979
Office furniture & equipment		9,157			9,157
Total cost		2,178,095			2,178,095
Accumulated depreciation		(1,865,506	)		(1,828,293	)
Property, plant & equipment, net		312,589			349,802

Excise taxes

Fair Value of Financial Instruments

	Level 1 -	Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 1 primarily consists of financial instruments whose value is based on quoted market prices such as exchange-traded instruments and listed equities.

	Level 2 -	Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly (e.g., quoted prices of similar assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities in markets that are not active).

	Level 3 -	Unobservable inputs for the asset or liability. Financial instruments are considered Level 3 when their fair values are determined using pricing models, discounted cash flows or similar techniques and at least one significant model assumption or input is unobservable.

Embedded debt costs in convertible debt instruments

Revenue Recognition

Distribution expenses to transport our products, and warehousing expense after manufacture are accounted for in Other General and Administrative cost.

Cost of Goods Sold

Other General and Administrative Expenses

Stock-Based Compensation

Income Taxes

Net income (loss) per share

Advertising

Goodwill and Intangibles Assets


	March 31, 2024
	Gross Amount		Accumulated Amortization		Amortization Period
Finite:						(in years)
Brands	$	4,459,000	$	966,120		15
Customer Relationships		957,000		207,350		15
License		360,000		241,238		11
Total Intangible Assets	$	5,776,000	$	1,414,708


	Future Intangible Asset Amortization Expense
Fiscal Year:
2024 (9 months)	$	294,051
2025		392,068
2026		392,068
2027		392,068
2028		363,580
Thereafter		2,527,457
Total	$	4,361,292

Long-lived assets

Foreign Currency Gains/Losses

Liquidity, Capital Resources and Going Concern Considerations

Recent Accounting Pronouncements

All other newly issued but not yet effective accounting pronouncements have been deemed to be not applicable or immaterial to the Company.

Notes Payable, Related Party Notes Payable, Convertible Bridge Loans Payable, Revenue Financing Arrangements and Bridge Loan Payable

3 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

Notes Payable, Related Party Notes Payable, Convertible Bridge Loans Payable, Revenue Financing Arrangements and Bridge Loan Payable

Note 3 – Notes Payable, Related Party Notes Payable, Convertible Bridge Loans Payable, Revenue Financing Arrangements and Bridge Loan Payable

Notes payable are generally nonrecourse and secured by all Company owned assets.


	Interest Rate			March 31, 2024			December 31, 2023
Notes Payable and Convertible Notes Payable

In December 2020, the Company entered into a 56- month loan with a company in the amount of $1,578,237. The loan requires payments of 3.75% through November 2022 and 4.00% through September 2025 of the previous month’s revenue. Note is due September 2025. Note is guaranteed by a related party see note 6.		17	%		294,779			371,693

In April 2021, the Company entered into a six-month loan with an individual in the amount of $84,000. The loan had an original maturity of October 2021 with principal and interest due at maturity. The loan was extended to October 31, 2024.		7	%		168,000			168,000

In May 2021, the Company entered into a six-month loan with an individual in the amount of $50,000. The loan had an original maturity of October 2021 with principal and interest due at maturity. The loan was extended to October 31, 2024.		7	%		60,000			60,000

In August 2022, the Company entered into a 56-months auto loan in the amount of $45,420.		2.35	%		30,635			32,996

In December 2022, the Company entered into various eighteen-month loans with individuals totaling in the amount of $4,000,000. The notes included 100% warrant coverage. The loans mature in June 2024 with principal and interest due at maturity with conversion price of $1.00 per share.		12	%		4,000,000			4,000,000

In February 2023, the Company entered into a twelve-month loan with an entity in the amount of $2,000,000. The convertible note included the issuance of 1,500,000 shares of common stock. The loan matures in February 2024 with conversion price of $0.85 per share and is non-interest bearing. The loan was extended to May, 2024.		—	%		1,381,656			1,769,656

In May 2023, the Company entered into various eighteen-month loans with individuals totaling in the amount of $800,000. The notes included 50% warrant coverage. The loans mature in November 2024 with principal and interest due at maturity with conversion price of $1.00 per share.		12	%		800,000			800,000

In June 2023, the Company entered into various eighteen-month loans with individuals totaling in the amount of $350,000. The notes included 50% warrant coverage. The loans mature in December 2024 with principal and interest due at maturity with conversion price of $1.00 per share.		12	%		350,000			350,000

In July 2023, the Company entered into a twelve-month loan with an individual in the amount of $750,000. The note included 50% warrant coverage. The loan matures in July 2024 with principal and interest due at maturity with conversion price of $1.00 per share.		12	%		750,000			750,000

In July 2023, the Company entered into a twelve-month loan with an individual in the amount of $100,000. The note included 50% warrant coverage. The loan matures in January 2025 with principal and interest due at maturity with conversion price of $1.00 per share.		12	%		100,000			100,000

In August 2023, the Company entered into a twelve-month loan with an individual in the amount of $300,000. The convertible note included the issuance of 150,000 shares of common stocks. The loan matures in August 2024 with principal and interest due at maturity with conversion price of $0.85 per share and is non-interest bearing.		—	%		300,000			300,000

In October 2023, the Company entered into a three-month loan with an individual in the amount of $500,000. The loan matures in January 2024 with principal and interest due at maturity. The loan was extended to June 2024.		10	%		500,000			500,000

In October 2023, the Company entered into a loan with an individual in the amount of $196,725 The loan matures in March 2024. Note is guaranteed by a related party.		—	%		—			91,785

In October 2023, the Company entered into a loan with an individual in the amount of $130,000. The loan requires payment of 17% of daily Shopify sales.		—	%		71,061			88,431

In October 2023, the Company entered into a eighteen-month loan with individuals totaling in the amount of $1,250,000. The note included 100% warrant coverage. The loan matures in April 2025 with principal and interest due at maturity with conversion price of $1.00 per share		12	%		1,250,000			1,250,000

In December 2023, we entered into a 2.5-month loan with an individual in the amount of $450,000. The loan had a maturity of March 2024 with principal and interest due at maturity. The loan was extended to June 2024.		10	%		450,000			450,000

In January 2024, we entered into a loan in the amount of $500,000. The loan had a maturity of March 2024 with principal and interest due at maturity. It was paid off with a new loan in April 2024		—	%		178,572			—

In January 2024, we entered into a 18-month loan with an individual in the amount of $250,000. The note included 100% warrant coverage. The loan had a maturity of July 2025 with principal and interest due at maturity with conversion price of $0.50 per share.		12	%		250,000			—

In February 2024, we entered into a 18-month loan with an individual in the amount of $150,000. The note included 100% warrant coverage. The loan had a maturity of August 2025 with principal and interest due at maturity with conversion price of $0.40 per share.		12	%		150,000			—

In February 2024, we entered into a 6-month loan with an individual in the amount of $315,000. The note included 60% warrant coverage. The loan had a maturity of August 2024 with principal and interest due at maturity with conversion price of $0.38 per share		12	%		315,000			—

In February 2024, the Company entered into a 18-month loan with an entity in the amount of $250,000. The note included 100% warrant coverage. The loan matures in August 2025 with principal and interest due at maturity with conversion price of $0.46 per share		12	%		250,000			—

		Total notes payable		$	11,649,703		$	11,082,561

		Less notes discount			(1,825,847	)		(2,876,387	)
		Less current portion			(9,013,690	)		(7,748,518	)

		Long-term notes payable		$	810,166		$	457,656

Interest expense on notes payable was $533,578 and $167,121 for the three months ended March 31, 2024 and 2023, respectively. Accrued interest was $501,752 for the three months ended March 31, 2024.

Schedule of notes payable
	Interest Rate	March 31, 2024			March 31, 2023
Shareholder Notes Payable

In February 2023, we entered into a loan with an individual in the amount of $200,000. The annual interest rate is 12%	12%		200,000			200,000

	Less current portion		(200,000	)		(200,000	)

	Long-term notes payable	$	—		$	—

As of March 31, 2024, the Company’s convertible note balances are convertible into 14,615,036 shares of common stock

Licensing Agreement and Royalty Payable

3 Months Ended

Mar. 31, 2024

Licensing Agreement And Royalty Payable

Licensing Agreement and Royalty Payable

Note 4 – Licensing Agreement and Royalty Payable

Stockholders’ Equity

3 Months Ended

Mar. 31, 2024

Equity [Abstract]

Stockholders’ Equity

Note 5– Stockholders’ Equity

Common Stock

Stock Plan

2020 Plan

In October 2023, the shareholders voted to increase the number of shares issuable under the Plan to 7.5%.

The following is a summary of the Company’s stock option activity:

Schedule of stock option activity
Options	March 31, 2024				March 31, 2023
	Number of Options		Weighted Average Exercise Price		Number of Options		Weighted Average Exercise Price

Balance - January 1*		4,259,008	$	1.13		1,151,000	$	2.56

Granted		630,000		0.59		65,000		1.08
Exercises		—		—		—		—
Cancelled		—		—		—		—

Balance – March 31,		4,889,008	$	1.06		1,216,000	$	2.48

Exercisable – March 31,		4,332,344	$	1.06		732,746	$	2.58

During the three-month period ended March 31, 2024 and March 31, 2023, the company granted 630,000 and 65,000 options to new employees under the 2020 plan.

Common Stock Issuable, Liability to Issue Stock and Shareholder Advances

Outstanding balance for shareholder advances on March 31, 2024 and 2023 was $200,000.

Related Parties

3 Months Ended

Mar. 31, 2024

Related Parties

Note 6 – Related Parties

Investment in Salt Tequila USA, LLC

3 Months Ended

Mar. 31, 2024

Investments, All Other Investments [Abstract]

Investment in Salt Tequila USA, LLC

Note 7 – Investment in Salt Tequila USA, LLC

The Company has a marketing and distribution agreement with SALT Tequila USA, LLC (“SALT”) for the manufacturing of our Tequila product line in Mexico.

Leases

3 Months Ended

Mar. 31, 2024

Leases

Leases

Note 8 –Leases


Undiscounted Future Minimum Lease Payments	Operating Lease

2024 (Nine months remaining)		214,752
2025		287,193
2026		17,857
Total		519,802
Amount representing imputed interest		(20,074	)
Total operating lease liability		494,728
Current portion of operating lease liability		266,704
Operating lease liability, non-current	$	228,024

The table below presents lease-related terms and discount rates at March 31, 2024:


Remaining term on leases	1 to 27 months
Incremental borrowing rate	5.0	%

Segment Reporting

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

Segment Reporting

Note 9 – Segment Reporting

Note: The Copa di Vino business is included in our Splash Beverage Group segment.


Revenue, net	March 31, 2024		March 31, 2023
Splash Beverage Group		1,200,282		1,898,968
E-Commerce		340,398		3,923,759

Total revenues, net, continuing operations	$	1,540,680	$	5,822,727

Contribution after Marketing	March 31, 2024			March 31, 2023
Splash Beverage Group		(33,481	)		(286,930	)
E-Commerce		(5,358	)		1,311,602

Total contribution after marketing	$	(38,839	)	$	1,024,672

Contracted services		218,829			381,005
Salary and wages		1,234,926			1,234,127
Non-cash share-based compensation		556,672			215,760
Other general and administrative		1,201,031			2,648,701

Loss from continuing operations	$	(3,250,297	)	$	(3,454,921	)

Total assets	March 31, 2024		December 31, 2023
Splash Beverage Group		8,396,166		9,188,213
E-Commerce		162,301		710,555

Total assets	$	8,558,467	$	9,898,768

Commitment and Contingencies

3 Months Ended

Mar. 31, 2024

Commitments and Contingencies Disclosure [Abstract]

Commitment and Contingencies

Note 10 – Commitment and Contingencies

Subsequent Events

3 Months Ended

Mar. 31, 2024

Subsequent Events [Abstract]

Subsequent Events

Note 11 – Subsequent Events

The Company granted 75,000 shares in April to one of the Board directors under the 2020 plan.

Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2024

Accounting Policies [Abstract]

Basis of Accounting

Basis of Accounting

Basis of Presentation and Consolidation

Basis of Presentation and Consolidation

Our investment in Salt Tequila USA, LLC is accounted for at cost, as the company does not have the ability to exercise significant influence.

Our accounting and reporting policies confirm to accounting principles generally accepted in the United States of America (GAAP).

Use of Estimates

Use of Estimates

Cash Equivalents and Concentration of Cash Balance

Cash Equivalents and Concentration of Cash Balance

Accounts Receivable and Allowance for Doubtful Accounts

Accounts Receivable and Allowance for Doubtful Accounts

Inventory

Inventory

Property and Equipment

Property and Equipment

Schedule of property and equipment
	2024			2023
Auto		45,420			45,420
Machinery & equipment		1,160,278			1,160,578
Buildings		233,323			233,323
Leasehold improvements		723,639			723,638
Computer Software		5,979			5,979
Office furniture & equipment		9,157			9,157
Total cost		2,178,095			2,178,095
Accumulated depreciation		(1,865,506	)		(1,828,293	)
Property, plant & equipment, net		312,589			349,802

Excise taxes

Excise taxes

Fair Value of Financial Instruments

Fair Value of Financial Instruments

	Level 1 -	Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 1 primarily consists of financial instruments whose value is based on quoted market prices such as exchange-traded instruments and listed equities.

	Level 2 -	Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly (e.g., quoted prices of similar assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities in markets that are not active).

	Level 3 -	Unobservable inputs for the asset or liability. Financial instruments are considered Level 3 when their fair values are determined using pricing models, discounted cash flows or similar techniques and at least one significant model assumption or input is unobservable.

Embedded debt costs in convertible debt instruments

Revenue Recognition

Revenue Recognition

Distribution expenses to transport our products, and warehousing expense after manufacture are accounted for in Other General and Administrative cost.

Cost of Goods Sold

Cost of Goods Sold

Other General and Administrative Expenses

Other General and Administrative Expenses

Stock-Based Compensation

Stock-Based Compensation

Income Taxes

Income Taxes

Net income (loss) per share

Net income (loss) per share

Advertising

Advertising

Goodwill and Intangibles Assets

Goodwill and Intangibles Assets


	March 31, 2024
	Gross Amount		Accumulated Amortization		Amortization Period
Finite:						(in years)
Brands	$	4,459,000	$	966,120		15
Customer Relationships		957,000		207,350		15
License		360,000		241,238		11
Total Intangible Assets	$	5,776,000	$	1,414,708


	Future Intangible Asset Amortization Expense
Fiscal Year:
2024 (9 months)	$	294,051
2025		392,068
2026		392,068
2027		392,068
2028		363,580
Thereafter		2,527,457
Total	$	4,361,292

Long-lived assets

Long-lived assets

Foreign Currency Gains/Losses

Foreign Currency Gains/Losses

Liquidity, Capital Resources and Going Concern Considerations

Liquidity, Capital Resources and Going Concern Considerations

Recent Accounting Pronouncements

Recent Accounting Pronouncements

All other newly issued but not yet effective accounting pronouncements have been deemed to be not applicable or immaterial to the Company.

Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2024

Accounting Policies [Abstract]

Schedule of property and equipment

Schedule of property and equipment
	2024			2023
Auto		45,420			45,420
Machinery & equipment		1,160,278			1,160,578
Buildings		233,323			233,323
Leasehold improvements		723,639			723,638
Computer Software		5,979			5,979
Office furniture & equipment		9,157			9,157
Total cost		2,178,095			2,178,095
Accumulated depreciation		(1,865,506	)		(1,828,293	)
Property, plant & equipment, net		312,589			349,802

Schedule of intangible assets finite useful lives


	March 31, 2024
	Gross Amount		Accumulated Amortization		Amortization Period
Finite:						(in years)
Brands	$	4,459,000	$	966,120		15
Customer Relationships		957,000		207,350		15
License		360,000		241,238		11
Total Intangible Assets	$	5,776,000	$	1,414,708

Schedule of estimated amortization expense


	Future Intangible Asset Amortization Expense
Fiscal Year:
2024 (9 months)	$	294,051
2025		392,068
2026		392,068
2027		392,068
2028		363,580
Thereafter		2,527,457
Total	$	4,361,292

Notes Payable, Related Party Notes Payable, Convertible Bridge Loans Payable, Revenue Financing Arrangements and Bridge Loan Payable (Tables)

3 Months Ended

Mar. 31, 2024

Short-Term Debt [Line Items]

Schedule of notes payable


	Interest Rate			March 31, 2024			December 31, 2023
Notes Payable and Convertible Notes Payable

In December 2020, the Company entered into a 56- month loan with a company in the amount of $1,578,237. The loan requires payments of 3.75% through November 2022 and 4.00% through September 2025 of the previous month’s revenue. Note is due September 2025. Note is guaranteed by a related party see note 6.		17	%		294,779			371,693

In April 2021, the Company entered into a six-month loan with an individual in the amount of $84,000. The loan had an original maturity of October 2021 with principal and interest due at maturity. The loan was extended to October 31, 2024.		7	%		168,000			168,000

In May 2021, the Company entered into a six-month loan with an individual in the amount of $50,000. The loan had an original maturity of October 2021 with principal and interest due at maturity. The loan was extended to October 31, 2024.		7	%		60,000			60,000

In August 2022, the Company entered into a 56-months auto loan in the amount of $45,420.		2.35	%		30,635			32,996

In December 2022, the Company entered into various eighteen-month loans with individuals totaling in the amount of $4,000,000. The notes included 100% warrant coverage. The loans mature in June 2024 with principal and interest due at maturity with conversion price of $1.00 per share.		12	%		4,000,000			4,000,000

In February 2023, the Company entered into a twelve-month loan with an entity in the amount of $2,000,000. The convertible note included the issuance of 1,500,000 shares of common stock. The loan matures in February 2024 with conversion price of $0.85 per share and is non-interest bearing. The loan was extended to May, 2024.		—	%		1,381,656			1,769,656

In May 2023, the Company entered into various eighteen-month loans with individuals totaling in the amount of $800,000. The notes included 50% warrant coverage. The loans mature in November 2024 with principal and interest due at maturity with conversion price of $1.00 per share.		12	%		800,000			800,000

In June 2023, the Company entered into various eighteen-month loans with individuals totaling in the amount of $350,000. The notes included 50% warrant coverage. The loans mature in December 2024 with principal and interest due at maturity with conversion price of $1.00 per share.		12	%		350,000			350,000

In July 2023, the Company entered into a twelve-month loan with an individual in the amount of $750,000. The note included 50% warrant coverage. The loan matures in July 2024 with principal and interest due at maturity with conversion price of $1.00 per share.		12	%		750,000			750,000

In July 2023, the Company entered into a twelve-month loan with an individual in the amount of $100,000. The note included 50% warrant coverage. The loan matures in January 2025 with principal and interest due at maturity with conversion price of $1.00 per share.		12	%		100,000			100,000

In August 2023, the Company entered into a twelve-month loan with an individual in the amount of $300,000. The convertible note included the issuance of 150,000 shares of common stocks. The loan matures in August 2024 with principal and interest due at maturity with conversion price of $0.85 per share and is non-interest bearing.		—	%		300,000			300,000

In October 2023, the Company entered into a three-month loan with an individual in the amount of $500,000. The loan matures in January 2024 with principal and interest due at maturity. The loan was extended to June 2024.		10	%		500,000			500,000

In October 2023, the Company entered into a loan with an individual in the amount of $196,725 The loan matures in March 2024. Note is guaranteed by a related party.		—	%		—			91,785

In October 2023, the Company entered into a loan with an individual in the amount of $130,000. The loan requires payment of 17% of daily Shopify sales.		—	%		71,061			88,431

In October 2023, the Company entered into a eighteen-month loan with individuals totaling in the amount of $1,250,000. The note included 100% warrant coverage. The loan matures in April 2025 with principal and interest due at maturity with conversion price of $1.00 per share		12	%		1,250,000			1,250,000

In December 2023, we entered into a 2.5-month loan with an individual in the amount of $450,000. The loan had a maturity of March 2024 with principal and interest due at maturity. The loan was extended to June 2024.		10	%		450,000			450,000

In January 2024, we entered into a loan in the amount of $500,000. The loan had a maturity of March 2024 with principal and interest due at maturity. It was paid off with a new loan in April 2024		—	%		178,572			—

In January 2024, we entered into a 18-month loan with an individual in the amount of $250,000. The note included 100% warrant coverage. The loan had a maturity of July 2025 with principal and interest due at maturity with conversion price of $0.50 per share.		12	%		250,000			—

In February 2024, we entered into a 18-month loan with an individual in the amount of $150,000. The note included 100% warrant coverage. The loan had a maturity of August 2025 with principal and interest due at maturity with conversion price of $0.40 per share.		12	%		150,000			—

In February 2024, we entered into a 6-month loan with an individual in the amount of $315,000. The note included 60% warrant coverage. The loan had a maturity of August 2024 with principal and interest due at maturity with conversion price of $0.38 per share		12	%		315,000			—

In February 2024, the Company entered into a 18-month loan with an entity in the amount of $250,000. The note included 100% warrant coverage. The loan matures in August 2025 with principal and interest due at maturity with conversion price of $0.46 per share		12	%		250,000			—

		Total notes payable		$	11,649,703		$	11,082,561

		Less notes discount			(1,825,847	)		(2,876,387	)
		Less current portion			(9,013,690	)		(7,748,518	)

		Long-term notes payable		$	810,166		$	457,656

Related Party Notes Payable [Member]

Short-Term Debt [Line Items]

Schedule of notes payable

Schedule of notes payable
	Interest Rate	March 31, 2024			March 31, 2023
Shareholder Notes Payable

In February 2023, we entered into a loan with an individual in the amount of $200,000. The annual interest rate is 12%	12%		200,000			200,000

	Less current portion		(200,000	)		(200,000	)

	Long-term notes payable	$	—		$	—

Stockholders’ Equity (Tables)

3 Months Ended

Mar. 31, 2024

Equity [Abstract]

Schedule of stock option activity

Schedule of stock option activity
Options	March 31, 2024				March 31, 2023
	Number of Options		Weighted Average Exercise Price		Number of Options		Weighted Average Exercise Price

Balance - January 1*		4,259,008	$	1.13		1,151,000	$	2.56

Granted		630,000		0.59		65,000		1.08
Exercises		—		—		—		—
Cancelled		—		—		—		—

Balance – March 31,		4,889,008	$	1.06		1,216,000	$	2.48

Exercisable – March 31,		4,332,344	$	1.06		732,746	$	2.58

Leases (Tables)

3 Months Ended

Mar. 31, 2024

Leases

Schedule of maturities of operating lease liabilities


Undiscounted Future Minimum Lease Payments	Operating Lease

2024 (Nine months remaining)		214,752
2025		287,193
2026		17,857
Total		519,802
Amount representing imputed interest		(20,074	)
Total operating lease liability		494,728
Current portion of operating lease liability		266,704
Operating lease liability, non-current	$	228,024

Schedule of lease-related terms and discount rates


Remaining term on leases	1 to 27 months
Incremental borrowing rate	5.0	%

Segment Reporting (Tables)

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

Schedule of segment reporting information


Revenue, net	March 31, 2024		March 31, 2023
Splash Beverage Group		1,200,282		1,898,968
E-Commerce		340,398		3,923,759

Total revenues, net, continuing operations	$	1,540,680	$	5,822,727

Contribution after Marketing	March 31, 2024			March 31, 2023
Splash Beverage Group		(33,481	)		(286,930	)
E-Commerce		(5,358	)		1,311,602

Total contribution after marketing	$	(38,839	)	$	1,024,672

Contracted services		218,829			381,005
Salary and wages		1,234,926			1,234,127
Non-cash share-based compensation		556,672			215,760
Other general and administrative		1,201,031			2,648,701

Loss from continuing operations	$	(3,250,297	)	$	(3,454,921	)

Total assets	March 31, 2024		December 31, 2023
Splash Beverage Group		8,396,166		9,188,213
E-Commerce		162,301		710,555

Total assets	$	8,558,467	$	9,898,768

Summary of Significant Accounting Policies (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 2,178,095	$ 2,178,095
Accumulated depreciation	(1,865,506)	(1,828,293)
Property, plant & equipment, net	312,589	349,802
Auto [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	45,420	45,420
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,160,278	1,160,578
Building [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	233,323	233,323
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	723,639	723,638
Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	5,979	5,979
Office Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 9,157	$ 9,157

Summary of Significant Accounting Policies (Details 1)	Mar. 31, 2024 USD ($)
Finite-Lived Intangible Assets [Line Items]
Total intangible assets gross amount	$ 5,776,000
Total intangible assets accumulated amortization	1,414,708
Brands [Member]
Finite-Lived Intangible Assets [Line Items]
Total intangible assets gross amount	4,459,000
Total intangible assets accumulated amortization	$ 966,120
Total intangible assets amortization period	15 years
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Total intangible assets gross amount	$ 957,000
Total intangible assets accumulated amortization	$ 207,350
Total intangible assets amortization period	15 years
License [Member]
Finite-Lived Intangible Assets [Line Items]
Total intangible assets gross amount	$ 360,000
Total intangible assets accumulated amortization	$ 241,238
Total intangible assets amortization period	11 years

Summary of Significant Accounting Policies (Details 2) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Accounting Policies [Abstract]
2024 (9 months)	$ 294,051
2025	392,068
2026	392,068
2027	392,068
2028	363,580
Thereafter	2,527,457
Total	$ 4,361,292	$ 4,459,309

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Cash equivalents	$ 0		$ 0
Federally insured amount	250,000
Accounts receivable allowances	208,186		183,089
Inventory valuation reserves	253,128		290,524
Depreciation expense	$ 37,214	$ 46,701
Effective income tax rate reconciliation percentage	50.00%
Warrant shares granted	81,014,017
Advertising expense	$ 77,627	195,048
Allocation period	12 months
Amortization expense intangible assets	$ 98,017	98,017
Foreign currency translation net loss	7,437	$ 1,609
Net loss	4,700,000		21,000,000
Accumulated deficit	136,746,623		133,334,783
Cash flows from operating activities	1,300,000		$ 10,200,000
Proceeds from issuance of common stock	1,500,000
Reduction to the additional paid in capital	2,200,000
Additional paid in capital	$ 1,300,000
Minimum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment useful life	3 years
Maximum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment useful life	39 years

Notes Payable, Related Party Notes Payable, Convertible Bridge Loans Payable, Revenue Financing Arrangements and Bridge Loan Payable (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Short-Term Debt [Line Items]
Total notes payable	$ 11,649,703	$ 11,082,561
Less notes discount	(1,825,847)	(2,876,387)
Less current portion	(9,013,690)	(7,748,518)
Long-term notes payable	810,166	457,656
Notes Payables 1 [Member]
Short-Term Debt [Line Items]
Debt instrument face amount	$ 1,578,237
Interest rate	17.00%
Total notes payable	$ 294,779	371,693
Notes Payables 1 [Member] \| Through November 2022 [Member]
Short-Term Debt [Line Items]
Interest rate	3.75%
Notes Payables 1 [Member] \| Through September 2025 [Member]
Short-Term Debt [Line Items]
Interest rate	4.00%
Notes Payables 2 [Member]
Short-Term Debt [Line Items]
Debt instrument face amount	$ 84,000
Interest rate	7.00%
Total notes payable	$ 168,000	168,000
Notes Payables 3 [Member]
Short-Term Debt [Line Items]
Debt instrument face amount	$ 50,000
Interest rate	7.00%
Total notes payable	$ 60,000	60,000
Notes Payables 4 [Member]
Short-Term Debt [Line Items]
Debt instrument face amount	$ 45,420
Interest rate	2.35%
Total notes payable	$ 30,635	32,996
Notes Payables 5 [Member]
Short-Term Debt [Line Items]
Debt instrument face amount	$ 4,000,000
Interest rate	12.00%
Total notes payable	$ 4,000,000	4,000,000
Warrant coverage percentage	100.00%
Conversion price	$ 1.00
Notes Payables 6 [Member]
Short-Term Debt [Line Items]
Debt instrument face amount	$ 2,000,000
Interest rate	0.00%
Total notes payable	$ 1,381,656	1,769,656
Conversion price	$ 0.85
Issuance of common stock	1,500,000
Notes Payables 7 [Member]
Short-Term Debt [Line Items]
Debt instrument face amount	$ 800,000
Interest rate	12.00%
Total notes payable	$ 800,000	800,000
Warrant coverage percentage	50.00%
Conversion price	$ 1.00
Notes Payables 8 [Member]
Short-Term Debt [Line Items]
Debt instrument face amount	$ 350,000
Interest rate	12.00%
Total notes payable	$ 350,000	350,000
Warrant coverage percentage	50.00%
Conversion price	$ 1.00
Notes Payables 9 [Member]
Short-Term Debt [Line Items]
Debt instrument face amount	$ 750,000
Interest rate	12.00%
Total notes payable	$ 750,000	750,000
Warrant coverage percentage	50.00%
Conversion price	$ 1.00
Notes Payables 10 [Member]
Short-Term Debt [Line Items]
Debt instrument face amount	$ 100,000
Interest rate	12.00%
Total notes payable	$ 100,000	100,000
Warrant coverage percentage	50.00%
Conversion price	$ 1.00
Notes Payables 11 [Member]
Short-Term Debt [Line Items]
Debt instrument face amount	$ 300,000
Interest rate	0.00%
Total notes payable	$ 300,000	300,000
Conversion price	$ 0.85
Issuance of common stock	150,000
Notes Payables 12 [Member]
Short-Term Debt [Line Items]
Debt instrument face amount	$ 500,000
Interest rate	10.00%
Total notes payable	$ 500,000	500,000
Notes Payables 13 [Member]
Short-Term Debt [Line Items]
Debt instrument face amount	$ 196,725
Interest rate	0.00%
Total notes payable	$ 0	91,785
Notes Payables 14 [Member]
Short-Term Debt [Line Items]
Debt instrument face amount	$ 130,000
Interest rate	0.00%
Total notes payable	$ 71,061	88,431
Loan payment percentage	17.00%
Notes Payables 15 [Member]
Short-Term Debt [Line Items]
Debt instrument face amount	$ 1,250,000
Interest rate	12.00%
Total notes payable	$ 1,250,000	1,250,000
Warrant coverage percentage	100.00%
Conversion price	$ 1.00
Notes Payables 16 [Member]
Short-Term Debt [Line Items]
Debt instrument face amount	$ 450,000
Interest rate	10.00%
Total notes payable	$ 450,000	450,000
Notes Payables 17 [Member]
Short-Term Debt [Line Items]
Debt instrument face amount	$ 500,000
Interest rate	0.00%
Total notes payable	$ 178,572	0
Notes Payables 18 [Member]
Short-Term Debt [Line Items]
Debt instrument face amount	$ 250,000
Interest rate	12.00%
Total notes payable	$ 250,000	0
Warrant coverage percentage	100.00%
Conversion price	$ 0.50
Notes Payables 19 [Member]
Short-Term Debt [Line Items]
Debt instrument face amount	$ 150,000
Interest rate	12.00%
Total notes payable	$ 150,000	0
Warrant coverage percentage	100.00%
Conversion price	$ 0.40
Notes Payables 20 [Member]
Short-Term Debt [Line Items]
Debt instrument face amount	$ 315,000
Interest rate	12.00%
Total notes payable	$ 315,000	0
Warrant coverage percentage	60.00%
Conversion price	$ 0.38
Notes Payables 21 [Member]
Short-Term Debt [Line Items]
Debt instrument face amount	$ 250,000
Interest rate	12.00%
Total notes payable	$ 250,000	$ 0
Warrant coverage percentage	100.00%
Conversion price	$ 0.46

Notes Payable, Related Party Notes Payable, Convertible Bridge Loans Payable, Revenue Financing Arrangements and Bridge Loan Payable (Details 1) - USD ($)	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023
Short-Term Debt [Line Items]
Total notes payable	$ 11,649,703	$ 11,082,561
Less current portion	(200,000)		$ (200,000)
Long-term notes payable	0		0
Related Parties Notes Payable 1 [Member]
Short-Term Debt [Line Items]
Principal amount	$ 200,000
Annual interest rate	12.00%
Interest Rate	12.00%
Total notes payable	$ 200,000		$ 200,000

Notes Payable, Related Party Notes Payable, Convertible Bridge Loans Payable, Revenue Financing Arrangements and Bridge Loan Payable (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Short-Term Debt [Line Items]
Accrued interest amount	$ 2,222,398		$ 1,714,646
Number of shares converted	14,615,036
Notes Payables [Member]
Short-Term Debt [Line Items]
Interest expense	$ 533,578	$ 167,121
Accrued interest amount	501,752
Unamortized debt discount	1,825,848		$ 1,944,348
Additional paid in capital	2,191,103
Notes Payables [Member] \| Interest Expense [Member]
Short-Term Debt [Line Items]
Interest expense attributable to the amortization of the debt discount	886,838	247,661
B C F [Member]
Short-Term Debt [Line Items]
Interest expense attributable to the amortization of the debt discount	932,047
Increase in retained earnings adoption of ASU	1,259,056
Related Parties Notes Payable [Member]
Short-Term Debt [Line Items]
Interest expense	$ 6,000	$ 0
Effective interest rate	21.85%

Licensing Agreement and Royalty Payable (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Licensing Agreement And Royalty Payable
Royalty payments	$ 55,000	$ 55,000
Unpaid amount of royalties	0		$ 0
Royalty paid	$ 165,000	$ 165,000
Amortized useful life	10 years

Stockholders' Equity (Details) - Options Held [Member] - $ / shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Offsetting Assets [Line Items]
Number of options beginnig balance	4,259,008	1,151,000
Weighted average exercise price at beginning	$ 1.13	$ 2.56
Number of options granted	630,000	65,000
Weighted average exercise price granted	$ 0.59	$ 1.08
Number of options exercised	0	0
Weighted average exercise price exercises	$ 0	$ 0
Number of options cancelled	0	0
Weighted average exercise price cancelled	$ 0	$ 0
Number of options ending balance	4,889,008	1,216,000
Weighted average exercise price at ending	$ 1.06	$ 2.48
Number of options exercisable	4,332,344	732,746
Weighted average exercise price exercisable	$ 1.06	$ 2.58

Stockholders’ Equity (Details Narrative) - USD ($)	1 Months Ended			3 Months Ended
Stockholders’ Equity (Details Narrative) - USD ($)	Jan. 31, 2024	Feb. 28, 2023	Jan. 31, 2023	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Subsidiary, Sale of Stock [Line Items]
Number of shares issued				300,000
Common stcok, per share				$ 0.001		$ 0.001
Fair value options granted				$ 272,263
Exercise price				$ 0.59
Expected life				10 years
Expected volatility				82.28%
Expected dividends				0.00%
Risk free rate				4.00%
Shareholder advances				$ 200,000	$ 200,000	$ 200,000
Common Stock [Member] \| New Employees [Member]
Subsidiary, Sale of Stock [Line Items]
Option granted				630,000	65,000
Stock Incentive 2020 Plan [Member]
Subsidiary, Sale of Stock [Line Items]
Number of shares issued	2,984,276		2,054,276
Convertible Instruments [Member]
Subsidiary, Sale of Stock [Line Items]
Number of shares issued				300,000
shares for extension of note				1,552,000
Notes Payable [Member]
Subsidiary, Sale of Stock [Line Items]
shares for extension of note				200,000
Restricted Stock Units (RSUs) [Member]
Subsidiary, Sale of Stock [Line Items]
Number of shares issued		750
Restricted Stock [Member] \| Stock Incentive 2020 Plan [Member]
Subsidiary, Sale of Stock [Line Items]
Number of shares issued				2,313,133
Private Placement [Member]
Subsidiary, Sale of Stock [Line Items]
Number of shares issued		2,000,000
Common stcok, per share		$ 0.001
Purchase price		$ 1.00
Aggregate gross proceeds		$ 2,000,000

Related Parties (Details Narrative) - USD ($)	3 Months Ended	12 Months Ended
Related Parties (Details Narrative) - USD ($)	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023
Related Party Transaction [Line Items]
Note payable	$ 294,779		$ 371,693
Shareholder [Member]
Related Party Transaction [Line Items]
Shareholder notes payable	200,000
Chief Executive Officer [Member]
Related Party Transaction [Line Items]
Related party advances	$ 400,000	$ 400,000

Investment in Salt Tequila USA, LLC (Details Narrative) - S A L T Tequila U S A L L C [Member]	Mar. 31, 2024
Investment interest rate	22.50%
Ownership percentage	37.50%

Leases (Details)	Mar. 31, 2024 USD ($)
Leases
2024 (Nine months remaining)	$ 214,752
2025	287,193
2026	17,857
Total	519,802
Amount representing imputed interest	(20,074)
Total operating lease liability	494,728
Current portion of operating lease liability	266,704
Operating lease liability, non-current	$ 228,024

Leases (Details 1)	Mar. 31, 2024
Incremental borrowing rate	5.00%
Minimum [Member]
Remaining term on leases	1 month
Maximum [Member]
Remaining term on leases	27 months

Leases (Details Narrative) - USD ($)	3 Months Ended
Leases (Details Narrative) - USD ($)	Mar. 31, 2024	Mar. 31, 2023
Leases
Operating lease cost	$ 97,953	$ 93,328

Segment Reporting (Details) - USD ($)	3 Months Ended
Segment Reporting (Details) - USD ($)	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Revenue from External Customer [Line Items]
Total revenues, net, continuing operations	$ 1,540,680	$ 5,822,727
Total contribution after marketing	(38,839)	1,024,672
Contracted services	218,829	381,005
Salary and wages	1,234,926	1,234,127
Non-cash share-based compensation	556,672	215,760
Other general and administrative	1,201,031	2,648,701
Loss from continuing operations	(3,250,297)	(3,454,921)
Total assets	8,558,467		$ 9,898,768
Splash Beverage Group [Member]
Revenue from External Customer [Line Items]
Total revenues, net, continuing operations	1,200,282	1,898,968
Total contribution after marketing	(33,481)	(286,930)
Total assets	8,396,166		9,188,213
E Commerce [Member]
Revenue from External Customer [Line Items]
Total revenues, net, continuing operations	340,398	3,923,759
Total contribution after marketing	(5,358)	$ 1,311,602
Total assets	$ 162,301		$ 710,555

Subsequent Events (Details Narrative) - USD ($)	1 Months Ended
Subsequent Events (Details Narrative) - USD ($)	May 31, 2024	Apr. 30, 2024
Forecast [Member]
Subsequent Event [Line Items]
Proceeds from issuance private placement	$ 1,900,000
Accrues interest	12.00%
Conversion price per share	$ 0.0040
Warrant coverage percentage	100.00%
Forecast [Member] \| Common Stock [Member]
Subsequent Event [Line Items]
Conversion price per share	$ 0.85
Subsequent Event [Member]
Subsequent Event [Line Items]
Acquisition of loan		$ 815,000
Subsequent Event [Member] \| Stock Incentive 2020 Plan [Member] \| Director [Member]
Subsequent Event [Line Items]
Shares granted		75,000