Business Overview
Amass Brands, Inc. is a Los Angeles-based company that sells alcoholic and non-alcoholic beverages through wholesale and online platforms globally. In September 2024, the company acquired 50.0001% of 222 Spirits Holdco, LLC and its subsidiaries. The company continues to face operational challenges with significant operating losses and limited available capital, raising substantial doubt about its ability to continue as a going concern.
Segment Performance
Spirits & wine revenues for the three months ended March 31, 2026 were $3,986,436 compared to $4,159,776 in the prior year period, a decrease of approximately 4.2%. Other revenues declined from $180,768 to $162,910. Total net revenues decreased from $4,340,544 to $4,149,346. Gross profit declined from $1,214,760 to $1,072,944. Operating losses widened to $2,521,740 from $1,896,747, driven by higher general and administrative expenses ($2,516,805 vs. $2,118,102) and an impairment loss of $110,402.
Forward Guidance
"The Company's ability to continue as a going concern for the next twelve months is dependent upon its ability to generate sufficient cash flows from operations to meet its obligations, which it has not been able to accomplish to date, and/or to obtain additional working capital. The Company plans to raise additional capital as necessary to support its operating losses through the issuances of stock and loans. No assurances can be given that the Company will be successful in these efforts."
Key Risk Factors
The company faces substantial doubt about its ability to continue as a going concern due to accumulated losses, negative cash flow from operations since inception, and limited available capital. Key risks include dependence on successful capital raises through stock and loan issuances, concentration of credit risk with major customers (15.4% of Q1 2026 sales from one customer), and valuation uncertainty related to Level 3 fair value measurements of investments and derivative liabilities which rely heavily on unobservable inputs and management judgments. The company also operates in a highly competitive and rapidly changing beverage industry with exposure to regulatory changes.
