|
|
|
|
|
(State or other jurisdiction of
incorporation or organization) |
|
(I.R.S. Employer
Identification No.) |
|
|
|
|
|
|
|
|
|
(Address of principal executive offices) |
|
(Zip Code) |
|
Title of each class |
|
Trading Symbol(s) |
|
Name of each exchange on which registered |
|
|
|
|
|
|
|
Large accelerated filer
|
Accelerated filer
|
|
|
Smaller reporting company
|
|
Emerging growth company
|
| i |
|
the implementation of our business model and our strategic plans for our business, product, services and technology; |
|
our commercialization and marketing capabilities and strategy; |
|
our ability to establish or maintain collaborations or strategic relationships or obtain additional funding; |
|
our competitive position; |
|
the scope of protection that we are able to establish and maintain for intellectual property rights covering our products, services and technology; |
|
developments and projections relating to our competitors and our industry; |
|
our estimates regarding expenses, future revenue, capital requirements and needs for additional financing; |
|
the period over which we estimate our existing cash and cash equivalents will be sufficient to fund our future operating expenses and capital expenditure requirements; and |
|
the impact of new or existing laws and regulations on our business and strategy. |
| ii |
Page |
|
| 1 |
|
|
|
June 30, 2026 |
|
|
December 31, 2025 |
|
||
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
|
|
|
$ |
|
|
|
Accounts receivable, net |
|
|
|
|
|
|
|
|
|
Due from related parties |
|
|
|
|
|
|
|
|
|
Inventory, net |
|
|
|
|
|
|
|
|
|
Interest receivable |
|
|
|
|
|
|
|
|
|
Prepaid expenses and other current assets |
|
|
|
|
|
|
|
|
|
Total current assets |
|
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
|
|
|
|
|
|
|
Intangible assets, net |
|
|
|
|
|
|
|
|
|
Goodwill |
|
|
|
|
|
|
|
|
|
Securities pledged as collateral, at fair value |
|
|
|
|
|
|
|
|
|
Investments at fair value |
|
|
|
|
|
|
|
|
|
Investments at cost |
|
|
|
|
|
|
|
|
|
Related-party investment |
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
|
|
|
$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and stockholders' equity ( deficit )
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
|
|
|
$ |
|
|
|
Accrued expenses |
|
|
|
|
|
|
|
|
|
Secured credit facility, current |
|
|
|
|
|
|
|
|
|
Loans payable, current |
|
|
|
|
|
|
|
|
|
Contract liabilities |
|
|
|
|
|
|
|
|
|
Promissory notes payable, current |
|
|
|
|
|
|
|
|
|
Derivative liabilities |
|
|
|
|
|
|
|
|
|
Customer deposits |
|
|
|
|
|
|
|
|
|
Interest payable |
|
|
|
|
|
|
|
|
|
Obligation under repurchase agreement |
|
|
|
|
|
|
|
|
|
Total current liabilities |
|
|
|
|
|
|
|
|
|
Loans payable |
|
|
|
|
|
|
|
|
|
Promissory notes payable, net |
|
|
|
|
|
|
|
|
|
Convertible notes payable |
|
|
|
|
|
|
|
|
|
SAFE notes |
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
|
|
|
|
|
|
|
Commitments and contingencies (Note 15) |
|
|
|
|
|
|
|
|
|
Series C Convertible Preferred Stock, $
liquidation value of $7,608,720 plus accrued and unpaid preferred return,
at carrying value (mezzanine equity)
|
|
|
|
|
|
|
|
|
|
Stockholders' equity ( deficit ) : |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series B Preferred Stock, $ |
|
|
|
|
|
|
|
|
|
Series A Preferred Stock, $ |
|
|
|
|
|
|
|
|
|
Series Seed Preferred Stock, $ |
|
|
|
|
|
|
|
|
|
Common stock, $ |
|
|
|
|
|
|
|
|
|
Additional paid-in capital |
|
|
|
|
|
|
|
|
|
Treasury stock, |
|
|
( |
) |
|
|
|
|
|
Accumulated other comprehensive income |
|
|
|
|
|
|
|
|
|
Accumulated deficit |
|
|
( |
) |
|
|
( |
) |
|
Total Amass stockholders’ deficit |
|
|
( |
) |
|
|
( |
) |
|
Non-controlling interest |
|
|
|
|
|
|
|
|
|
Total stockholders’ equity (deficit) |
|
|
|
|
|
( |
) |
|
|
Total liabilities and stockholders' equity
(deficit)
|
|
$ |
|
|
|
$ |
|
|
| 2 |
|
|
|
Three months ended June 30, 2026 |
|
|
Three months ended June 30, 2025 |
|
|
Six months ended June 30, 2026 |
|
|
Six months ended June 30, 2025 |
|
||||
|
Net revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Spirits & wine revenues |
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
Other revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of net revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of spirits & wine revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of other revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cost of net revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
Change in fair value of derivative liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in fair value of SAFEs |
|
|
( |
) |
|
|
|
|
|
|
( |
) |
|
|
|
|
|
Other income (expense), net |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
Total other income (expense) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
Net loss |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
Net loss attributable to non
-
controlling interest
|
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
Net loss attributable to parent |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
Foreign currency translation adjustment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive loss |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
Weighted average common shares outstanding — basic and diluted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per common share — basic and diluted |
|
$ |
( |
|
|
$ |
( |
|
|
$ |
( |
|
|
$ |
( |
|
| 3 |
|
Preferred (Shares) |
|
|
Preferred (Amount) |
|
|
Common (Shares) |
|
|
Common (Amount) |
|
|
Additional Paid-in Capital |
|
|
Accumulated Other Comprehensive Income |
|
|
Accumulated Deficit |
|
|
Non-controlling Interest |
|
|
Total Stockholders’
Equity
(Deficit) |
|
|||||||||||
|
Balances at December 31, 2024 |
|
|
|
|
|
$ |
|
|
|
|
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
( |
) |
|
$ |
|
|
|
$ |
|
|
|
Exercise of stock options |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
Exercise of stock warrants |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
Stock-based compensation - options |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
Warrants issued with promissory notes payable |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
Offering costs |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
( |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
( |
) |
|
Net loss (incl. NCI) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
Balances at March 31, 2025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
|
Stock-based compensation - options |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
Issuance of Common Stock |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
Offering costs |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
( |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
( |
) |
|
Net loss (incl. NCI) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
Balances at June 30, 2025 |
|
|
|
|
|
$ |
|
|
|
|
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
( |
) |
|
$ |
|
|
|
$ |
|
|
|
|
|
Preferred (Shares) |
|
|
Preferred (Amount) |
|
|
Common (Shares) |
|
|
Common (Amount) |
|
|
Additional Paid-in Capital |
|
|
Treasury Stock (Shares) |
|
|
Treasury Stock (Amount) |
|
|
Accumulated Other Comprehensive Income |
|
|
Accumulated Deficit |
|
|
Non-controlling Interest |
|
|
Total Stockholders’
Equity
(Deficit) |
|
|||||||||||
|
Balances at December 31, 2025 |
|
|
|
|
|
$ |
|
|
|
|
|
|
|
$ |
|
|
|
$ |
|
|
|
|
- |
|
|
$ |
|
|
|
$ |
|
|
|
$ |
( |
) |
|
$ |
|
|
|
$ |
( |
) |
|
Issuance of Common Stock for services
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Exercise of stock options |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Exercise of stock warrants |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Shares issued for extinguishment of interest payable |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Repurchase of Common Stock |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
( |
) |
|
Stock-based compensation - options |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Offering costs |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
( |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
( |
) |
|
Net loss (incl. NCI) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
Balances at March 31, 2026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
( |
) |
|
|
|
|
|
|
( |
) |
|
Conversion of Preferred Stock to Common Stock |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Corrective ssuance of Common Stocki
, net
of cost |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Conversion of convertible notes upon Direct Listing |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Exercise of stock warrants |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Exercise of stock options |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Warrants issued in connection with Series C Convertible Preferred Stock |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Issuance of Common Stock for services |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Stock-based compensation - options |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Offering costs |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
( |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
( |
) |
|
Stock warrant exercise inducement |
|
|
-
|
|
|
|
- |
|
|
|
- |
|
|
|
-
|
|
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
- |
|
|
|
|
|
|
Net loss (incl. NCI) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
Balances at June 30, 2026 |
|
|
- |
|
|
$ |
|
|
|
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
( |
) |
|
$
|
( |
) |
|
$
|
|
|
|
$
|
( |
) |
|
$
|
|
|
|
$
|
|
|
| 4 |
|
|
|
Six months ended June 30, 2026 |
|
|
Six months ended June 30, 2025 |
|
||
|
Cash flows from operating activities |
|
|
||||||
|
Net loss |
|
$ |
( |
) |
|
$
|
( |
) |
|
Adjustments to reconcile net loss to net cash used in operating activities |
|
|
||||||
|
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
Stock-based compensation |
|
|
|
|
|
|
|
|
|
Issuance of common stock shares for services
|
|
|
|
|
|
|
|
|
|
Amortization of debt discounts |
|
|
|
|
|
|
|
|
|
Warrant modifications of the terminated inducement
offering charged to operations |
|
|
|
|
|
|
|
|
|
Reserve for expected credit losses |
|
|
|
|
|
|
( |
) |
|
Impairment of intangible assets and investments |
|
|
|
|
|
|
|
|
|
Change in fair value of derivative liabilities |
|
|
( |
) |
|
|
|
|
|
Change in fair value of SAFE |
|
|
|
|
|
|
|
|
|
Inventory obsolescence |
|
|
|
|
|
|
|
|
|
Loss on sale of securities at fair value |
|
|
|
|
|
|
|
|
|
Changes in operating assets and liabilities |
|
|
||||||
|
Accounts receivable |
|
|
( |
) |
|
|
( |
) |
|
Inventory, net |
|
|
( |
) |
|
|
|
|
|
Prepaid expenses and other current assets |
|
|
( |
) |
|
|
|
|
|
Accounts payable |
|
|
|
|
|
|
( |
) |
|
Accrued expenses |
|
|
|
|
|
|
( |
) |
|
Interest receivable |
|
|
|
|
|
|
( |
) |
|
Interest payable |
|
|
|
|
|
|
|
|
|
Customer deposits |
|
|
( |
) |
|
|
|
|
|
Contract liabilities |
|
|
( |
) |
|
|
( |
) |
|
Net cash used in operating activities
|
|
|
( |
) |
|
|
( |
) |
|
Cash flows from investing activities |
|
|
||||||
|
Advances to related parties |
|
|
( |
) |
|
|
( |
) |
|
Sale of investment |
|
|
|
|
|
|
|
|
|
Proceeds from notes receivable |
|
|
|
|
|
|
|
|
|
Purchase of related-party investment |
|
|
( |
) |
|
|
|
|
|
Purchases of property and equipment, net of disposals |
|
|
|
|
|
|
|
|
|
Purchases / disposals of intangible assets, net |
|
|
|
|
|
|
( |
) |
|
Net cash (used in) provided by investing activities |
|
|
( |
) |
|
|
|
|
|
Cash flows from financing activities |
|
|
||||||
|
Proceeds from (repayments of) secured credit facility, net |
|
|
|
|
|
|
( |
) |
|
R epayments of loans payable, net |
|
|
( |
) |
|
|
( |
) |
|
Proceeds from issuance of promissory notes |
|
|
|
|
|
|
|
|
|
Proceeds from convertible notes, net |
|
|
|
|
|
|
|
|
|
Proceeds from issuance of Series C Convertible Preferred Stock |
|
|
|
|
|
|
|
|
|
Proceeds from issuance of Common Stock |
|
|
|
|
|
|
|
|
|
Offering costs |
|
|
( |
) |
|
|
( |
) |
|
Proceeds from exercise of stock options |
|
|
|
|
|
|
|
|
|
Proceeds from exercise of warrants |
|
|
|
|
|
|
|
|
|
Obligation under repurchase agreement |
|
|
( |
) |
|
|
|
|
|
Net cash provided by financing activities |
|
|
|
|
|
|
|
|
|
Net change in cash and cash equivalents |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, beginning of the period |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, end of the period |
|
$ |
|
|
|
$ |
|
|
|
Supplemental Disclosure of Cash Flow Information |
|
|
||||||
|
Cash paid for income taxes |
|
|
|
|
|
|
|
|
|
Cash paid for interest |
|
|
|
|
|
|
|
|
|
Noncash Investing and Financing Activities |
|
|
||||||
|
Transfer of investment for relief of debt |
|
|
|
|
|
|
|
|
|
Warrants issued with promissory notes |
|
|
|
|
|
|
|
|
|
Exchange of shareholder promissory note for convertible note |
|
|
|
|
|
|
|
|
|
Conversion of Convertible Notes and accrued interest into Common Stock |
|
|
|
|
|
|
|
|
|
Common Stock issued as Series C commitment fee shares
|
|
|
|
|
|
|
|
|
|
Incremental fair value of Warrant modifications capitalized to deferred offering costs |
|
|
|
|
|
|
|
|
|
Derivative recognized with Series C financing |
|
|
|
|
|
|
|
|
|
Warrants issued with Series C Preferred Stock |
|
|
|
|
|
|
|
|
|
Shares issued in extinguishment of accrued interest |
|
|
|
|
|
|
|
|
|
Reclassification of securities pledged as collateral to investments at fair value upon De Soi collateral release |
|
|
|
|
|
|
|
|
|
Issuance of SAFE for reduction of promissory note principal |
|
|
|
|
|
|
|
|
| 5 |
| 6 |
|
|
|
Three months ended June 30, 2026 |
|
|
Six months ended June 30, 2026 |
|
||
|
Customer A |
|
|
|
|
|
|
|
|
|
Net Sales |
|
|
|
% |
|
|
|
% |
|
Accounts Receivable |
|
|
|
% |
|
|
|
% |
|
Customer B |
|
|
|
|
|
|
|
|
|
Net Sales |
|
|
|
% |
|
|
|
% |
|
Accounts Receivable |
|
|
|
% |
|
|
|
% |
|
|
Level 1 – Quoted prices in active markets for identical assets or liabilities. |
|
|
Level 2 – Observable inputs (other than Level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data. |
|
|
Level 3 – Unobservable inputs that are supported by little or no market activity that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies, and similar techniques. |
|
Investments at Fair Value / Securities Pledged as Collateral |
|
Amount |
|
|
|
Balance, December 31, 2025 (securities pledged as collateral) |
|
|
|
|
|
Reclassification upon release of collateral (Q2 2026) |
|
|
|
|
|
Balance, June 30, 2026 (investments at fair value) |
|
$ |
|
|
|
Derivative Liabilities at Fair Value |
|
Amount |
|
|
|
Balance, December 31, 2025 |
|
|
|
|
|
Issuance of Convertible Notes and Warrants |
|
|
|
|
|
Issuance of Series C Convertible Preferred Stock — conversion feature |
|
|
|
|
|
Change in fair value |
|
|
( |
) |
|
Settlement upon conversion of Convertible Notes at the Direct Listing |
|
|
( |
) |
|
Balance, June 30, 2026 |
|
$ |
|
|
|
SAFEs at Fair Value |
|
Amount |
|
|
|
Balance, December 31, 2025 |
|
|
|
|
|
Change in fair value |
|
|
|
|
|
Balance, June 30, 2026 |
|
$ |
|
|
| 7 |
|
|
|
June 30, 2026 |
|
|
December 31, 2025 |
|
||
|
Raw materials |
|
|
|
|
|
|
|
|
|
Work in process |
|
|
|
|
|
|
|
|
|
Finished goods |
|
|
|
|
|
|
|
|
|
Inventory reserve |
|
|
( |
) |
|
|
( |
) |
|
Total inventory |
|
$ |
|
|
|
$ |
|
|
|
|
|
June 30, 2026 |
|
|
December 31, 2025 |
|
||
|
Plant and equipment |
|
|
|
|
|
|
|
|
|
Office and storage equipment |
|
|
|
|
|
|
|
|
|
Furniture and fixtures |
|
|
|
|
|
|
|
|
|
Leasehold improvements |
|
|
|
|
|
|
|
|
|
Property and equipment, gross |
|
|
|
|
|
|
|
|
|
Less: Accumulated depreciation and amortization |
|
|
( |
) |
|
|
( |
) |
|
Property and equipment, net |
|
$ |
|
|
|
$ |
|
|
|
|
|
June 30, 2026 |
|
|
December 31, 2025 |
|
||
|
Website development |
|
|
|
|
|
|
|
|
|
Tradename/transferred IP |
|
|
|
|
|
|
|
|
|
Customer base |
|
|
|
|
|
|
|
|
|
Non-competes |
|
|
|
|
|
|
|
|
|
Brand names |
|
|
|
|
|
|
|
|
|
Intangible assets, gross |
|
|
|
|
|
|
|
|
|
Less: Accumulated amortization |
|
|
( |
) |
|
|
( |
) |
|
Intangible assets, net |
|
$ |
|
|
|
$ |
|
|
|
Goodwill |
|
$ |
|
|
|
$ |
|
|
| 8 |
| 9 |
| 10 |
| 11 |
| 12 |
|
|
|
June 30, 2026 Authorized |
|
|
June 30, 2026 Outstanding |
|
|
December 31, 2025 Authorized |
|
|
December 31, 2025 Outstanding |
|
||||
|
Common Stock |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Non-Voting Stock |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series Seed Preferred Stock (all sub-series) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series A Preferred Stock |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series B Preferred Stock (all sub-series) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series C Convertible Preferred Stock |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 13 |
|
|
|
Options |
|
|
Weighted Average Exercise Price |
|
|
Intrinsic Value |
|
|||
|
Outstanding as of December 31, 2025 |
|
|
|
|
|
$ |
|
|
|
$ |
|
|
|
Granted |
|
|
|
|
|
|
|
|
|
|
|
|
|
Exercised |
|
|
( |
) |
|
$ |
|
|
|
|
|
|
|
Forfeited |
|
|
( |
) |
|
$ |
|
|
|
|
|
|
|
Outstanding as of June 30, 2026 |
|
|
|
|
|
$ |
|
|
|
$ |
|
|
|
Exercisable as of June 30, 2026 |
|
|
|
|
|
$ |
|
|
|
$ |
|
|
|
|
|
Shares |
|
|
Weighted Average Exercise Price |
|
||
|
Outstanding as of December 31, 2025 |
|
|
|
|
|
$ |
|
|
|
Granted |
|
|
|
|
|
|
|
|
|
Exercised |
|
|
( |
) |
|
|
|
|
|
Cancelled or expired |
|
|
( |
) |
|
|
|
|
|
Outstanding as of June 30, 2026 |
|
|
|
|
|
$ |
|
|
|
Exercisable as of June 30, 2026 |
|
|
|
|
|
$ |
|
|
| 14 |
| 15 |
| 16 |
For the three months ended June 30, 2026 |
Wine & Spirits |
Non- Alcoholic and Functional |
Total segment (a) |
Unallocated amounts (b) |
Comparable Adjustments (c) |
Consolidated |
||||||||||||||||||
Net revenues |
||||||||||||||||||||||||
Cost of net revenues |
||||||||||||||||||||||||
Gross profit, non-GAAP (d) |
||||||||||||||||||||||||
Sales and marketing |
||||||||||||||||||||||||
General and administrative |
||||||||||||||||||||||||
Impairment loss |
||||||||||||||||||||||||
Loss from operations |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||||||
For the three months ended June 30, 2025 |
Wine & Spirits |
Non- Alcoholic and Functional |
Total segment (a) |
Unallocated amounts (b) |
Comparable Adjustments (c) |
Consolidated |
||||||||||||||||||
Net revenues |
||||||||||||||||||||||||
Cost of net revenues |
||||||||||||||||||||||||
Gross profit, non-GAAP (d) |
||||||||||||||||||||||||
Sales and marketing |
||||||||||||||||||||||||
General and administrative |
||||||||||||||||||||||||
Impairment loss |
||||||||||||||||||||||||
Income (loss) from operations |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||||||||||
| 17 |
For the six months ended June 30, 2026 |
Wine & Spirits |
Non- Alcoholic and Functional |
Total segment (a) |
Unallocated amounts (b) |
Comparable Adjustments (c) |
Consolidated |
||||||||||||||||||
Net revenues |
||||||||||||||||||||||||
Cost of net revenues |
||||||||||||||||||||||||
Gross profit, non-GAAP (d) |
||||||||||||||||||||||||
Sales and marketing |
||||||||||||||||||||||||
General and administrative |
||||||||||||||||||||||||
Impairment loss |
||||||||||||||||||||||||
Loss from operations |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||||||
For the six months ended June 30, 2025 |
Wine & Spirits |
Non- Alcoholic and Functional |
Total segment (a) |
Unallocated amounts (b) |
Comparable Adjustments (c) |
Consolidated |
||||||||||||||||||
Net revenues |
||||||||||||||||||||||||
Cost of net revenues |
( |
) |
||||||||||||||||||||||
Gross profit, non-GAAP (d) |
( |
) |
||||||||||||||||||||||
Sales and marketing |
||||||||||||||||||||||||
General and administrative |
||||||||||||||||||||||||
Impairment loss |
||||||||||||||||||||||||
Loss from operations |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||||||
(a) |
Segment amounts are derived from the Company’s entity- and brand-level general ledger reporting: the Non-Alcoholic and Functional segment reflects the Good Twin brand activity and the Amass Electrolyte entity; the Wine & Spirits segment reflects the remaining operating entities. |
(b) |
Unallocated amounts include costs held in the corporate infrastructure that are not allocated to any reporting segment. |
(c) |
Comparable Adjustments are determined and presented on a non-GAAP basis and are intended to reflect our current operations. For 2026 they comprise stock-based compensation and impairment losses; for 2025 they comprise bulk wine sales and related costs and storage, and stock-based compensation. |
(d) |
Our presentation of gross profit is non-GAAP. Segment gross profit is reconciled to gross profit on the consolidated statement of operations with the inclusion of unallocated amounts and comparable adjustments. |
|
Three months ended June 30, 2026 |
Three months ended June 30, 2025 |
Six months ended June 30, 2026 |
Six months ended June 30, 2025 |
|||||||||||||
Net revenues — sales of bulk wine (a) |
||||||||||||||||
Cost of net revenues — bulk wine and write-downs (a) |
||||||||||||||||
General and administrative — stock-based compensation (b) |
||||||||||||||||
General and administrative — storage on bulk wine (a) |
||||||||||||||||
Impairment loss (b) |
||||||||||||||||
Comparable adjustments, Operating loss |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||
(a) |
The Company sold and is expected to sell excess bulk wine for losses. These are not part of the Company’s regular operations and thus are excluded from the CODM’s review of the business, including related storage costs. |
(b) |
The Company does not include stock-based compensation nor impairment losses in its evaluation of performance. |
| 18 |
|
Three months ended June 30, 2026 |
Three months ended June 30, 2025 |
Six months ended June 30, 2026 |
Six months ended June 30, 2025 |
|||||||||||||
Net revenues |
||||||||||||||||
U.S. |
||||||||||||||||
Non-U.S. |
||||||||||||||||
Total net revenues |
$ |
$ |
$ |
$ |
||||||||||||
| 19 |
| 20 |
|
Direct Listing (May 20, 2026). On May 20, 2026, our common stock commenced trading on the Nasdaq Global Market under the ticker symbol “AMSS” pursuant to a direct listing registering the resale of up to 12,432,021 shares of common stock held by existing stockholders.
We engaged a financial advisor in connection with the Direct Listing, as required by Nasdaq Rule 4120(c)(8)
.
|
|
Conversion of Preferred Stock (April 2026). On April 8, 2026, concurrently with the initial public filing of our registration statement, all outstanding shares of our Series Seed, Seed-1 through Seed-5, Series A, and Series B-1 through B-3 Preferred Stock automatically converted into an aggregate of 7,483,093 shares of common stock pursuant to our Seventh Amended and Restated Certificate of Incorporation
.
|
· |
Streeterville Series C Private Placement (April–May 2026). At the First Closing on April 8, 2026, we issued 28,125 commitment fee shares and a warrant to purchase up to 3,500,000 shares of common stock (warrant purchase price $10,000). At the Second Closing on May 20, 2026, we issued 7,000 shares of Series C Convertible Preferred Stock for $6,990,000, less a $30,000 transaction expense deduction, under the SPA (aggregate proceeds from the First and Second Closings, including the $10,000 warrant purchase price, were $7.0 million), which provides for up to $30.0 million of Series C purchases, subject to conditions. See Note 12. |
· |
Conversion of Convertible Notes (May 20, 2026). Upon the Direct Listing, which constituted a qualified financing under the notes, the outstanding principal of $2.8 million plus accrued interest automatically converted into shares of common stock at 80% of the qualified-financing price, and the remaining unamortized debt discount was charged to interest expense. See Note 10
.
|
· |
Secured Promissory Note installments commenced (May 2026). We made the first two $50,000 monthly installments under Amendment No. 3, reducing the outstanding balance to $966,998 at June 30, 2026. |
· |
De Soi collateral released (June 2026). Afterdream repaid the loan for which our De Soi investment served as collateral; the investment was returned to us, the $400,000 repurchase obligation was extinguished, and the investment is again presented as investments at fair value. See Notes 6 and 14. |
· |
Afterdream SAFE (June 2026). We invested an aggregate of $1.7 million in a SAFE issued by AFTERDREAM, Inc., a related party, with a $7.5 million post-money valuation cap. See Note 6. |
· |
Nasdaq continued-listing notices; Series C Trigger Event (July 2026). On July 22, 2026, we received notices from Nasdaq stating that we are not in compliance with the minimum Market Value of Listed Securities and minimum Market Value of Publicly Held Shares requirements for continued listing on the Nasdaq Global Market, with a 180-calendar-day period to regain compliance. Receipt of the notices constituted a Trigger Event under the Series C Certificate of Designation, permitting conversions of the Series C Convertible Preferred Stock at the alternate conversion price described under “Liquidity and capital resources” below. In addition, effective July 10, 2026, the exercise price of the Streeterville warrant was reduced to $1.50 per share, and the extension of the Mezzanine Secured Notes expired in July 2026, with the notes past due as of the date of this Report. See Notes 9, 13 and 17 to our unaudited condensed consolidated financial statements. |
| 21 |
|
Three months ended June 2026 |
Three months ended June 2025 |
Dollar Change |
Percent Change |
|||||||||||||
Net revenue
|
5,592,744
|
5,504,832
|
87,912
|
2
|
%
|
|||||||||||
Cost of net revenue
|
4,097,195
|
3,360,279
|
736,916
|
22
|
%
|
|||||||||||
Gross profit |
1,495,549 |
2,144,553 |
(649,004 |
) |
-30 |
% |
||||||||||
Sales and marketing
|
1,059,877
|
976,375
|
83,502
|
9
|
%
|
|||||||||||
General and administrative
|
6,054,188
|
1,917,192
|
4,136,996
|
216
|
%
|
|||||||||||
Impairment expense
|
339,283
|
-
|
339,283
|
N/A
|
||||||||||||
Total operating expenses |
7,453,348 |
2,893,567 |
4,559,781 |
158 |
% |
|||||||||||
Loss from operations |
(5,957,799 |
) |
(749,014 |
) |
(5,208,785 |
) |
695 |
% |
||||||||
Other income (expense)
|
(1,591,416
|
)
|
(516,409
|
)
|
(1,075,007
|
)
|
208
|
%
|
||||||||
Net loss |
(7,549,215 |
) |
(1,265,423 |
) |
(6,283,792 |
) |
497 |
% |
||||||||
|
Six months ended June 2026 |
Six months ended June 2025 |
Dollar Change |
Percent Change |
|||||||||||||
Net revenue
|
9,742,087
|
9,845,375
|
(103,288
|
)
|
-1
|
%
|
||||||||||
Cost of net revenue
|
7,173,596
|
6,486,063
|
687,533
|
11
|
%
|
|||||||||||
Gross profit |
2,568,491 |
3,359,312 |
(790,821 |
) |
-24 |
% |
||||||||||
Sales and marketing
|
2,027,354
|
1,969,780
|
57,574
|
3
|
%
|
|||||||||||
General and administrative
|
8,570,993
|
4,035,292
|
4,535,701
|
112
|
%
|
|||||||||||
Impairment expense
|
449,685
|
-
|
449,685
|
N/A
|
||||||||||||
Total operating expenses |
11,048,032 |
6,005,072 |
5,042,960 |
84 |
% |
|||||||||||
Loss from operations |
(8,479,541 |
) |
(2,645,760 |
) |
(5,833,781 |
) |
220 |
% |
||||||||
Other income (expense)
|
(2,111,281
|
)
|
(2,339,284
|
)
|
228,003
|
-10
|
%
|
|||||||||
Net loss |
(10,590,822 |
) |
(4,985,044 |
) |
(5,605,778 |
) |
112 |
% |
||||||||
|
Three months ended June 30, 2026 |
Three months ended June 30, 2025 |
Six months ended June 30, 2026 |
Six months ended June 30, 2025 |
|||||||||||||
Net revenues |
||||||||||||||||
Sales of bulk wine (a) |
- |
- |
- |
128,736 |
||||||||||||
Comparable adjustments, Net revenues |
- |
- |
- |
128,736 |
||||||||||||
Cost of net revenues |
||||||||||||||||
Cost of sales of bulk wine (a) |
- |
- |
- |
146,565 |
||||||||||||
Cost of write-down of unutilized wine pre-acquisition (b) |
- |
- |
- |
168,930 |
||||||||||||
Comparable adjustments, Cost of net revenues |
- |
- |
- |
315,495 |
||||||||||||
General and administrative |
||||||||||||||||
Stock-based compensation (c) |
226,613 |
176,916 |
447,545 |
221,464 |
||||||||||||
Storage on bulk wine (a) |
- |
88,185 |
- |
146,344 |
||||||||||||
Comparable adjustments, general and administrative |
226,613 |
265,101 |
447,545 |
367,808 |
||||||||||||
Impairment loss (d) |
339,283 |
- |
449,685 |
- |
||||||||||||
Comparable adjustments, Operating loss |
(565,896 |
) |
(265,101 |
) |
(897,230 |
) |
(554,567 |
) |
||||||||
| 22 |
|
Three months ended June 30, 2026 |
|
|
Three months ended June 30, 2025 |
|
|
Dollar Change |
|
|
Percent Change |
|
||||||
Wine & Spirits
|
5,183,325 |
5,318,393 |
(135,068 |
) |
-3
|
%
|
||||||||||
Non-Alcoholic and Functional
|
409,419 |
176,438 |
232,981 |
132
|
%
|
|||||||||||
Unallocated amounts
|
- |
10,001 |
(10,001 |
) |
-100
|
%
|
||||||||||
Comparable adjustments
|
- |
- |
- |
N/A |
||||||||||||
Consolidated net revenues |
5,592,744 |
5,504,832 |
87,912 |
2 |
% |
|||||||||||
|
Six months ended June 30, 2026 |
Six months ended June 30, 2025 |
Dollar Change |
Percent Change |
|||||||||||||
Wine & Spirits |
8,809,142 |
9,306,617 |
(497,475 |
) |
-5 |
% |
||||||||||
Non-Alcoholic and Functional |
932,945
|
400,022 |
532,923
|
133 |
% |
|||||||||||
Unallocated amounts |
- |
10,000 |
(10,000 |
) |
-100 |
% |
||||||||||
Comparable adjustments |
- |
128,736 |
(128,736 |
) |
-100 |
% |
||||||||||
Consolidated net revenues |
9,742,087 |
9,845,375 |
(103,288 |
) |
-1 |
% |
||||||||||
|
Three months ended June 30, 2026 |
|
|
Three months ended June 30, 2025 |
|
|
Dollar Change |
Percent Change |
|||||||||
Core brands
|
3,949,497 |
3,527,940 |
421,557 |
12
|
%
|
|||||||||||
Other brands
|
1,754,310 |
1,924,239 |
(169,929 |
) |
-9
|
%
|
||||||||||
Discontinued brands
|
151,218 |
208,195 |
(56,977 |
) |
-27
|
%
|
||||||||||
Revenue attributable to brands |
5,855,025 |
5,660,374 |
194,651 |
3 |
% |
|||||||||||
Trade spend and other amounts not attributed to a brand
|
(262,281 |
) |
(155,542 |
) |
(106,739 |
) |
69
|
%
|
||||||||
Consolidated net revenues |
5,592,744 |
5,504,832 |
87,912 |
2 |
% |
|||||||||||
| 23 |
|
Six months ended June 2026 |
Six months ended June 2025 |
Dollar Change |
Percent Change |
|||||||||||||
Core brands
|
6,443,873
|
5,782,440
|
661,433
|
11
|
%
|
|||||||||||
Other brands
|
3,390,388
|
3,700,600
|
(310,212
|
)
|
-8
|
%
|
||||||||||
Discontinued brands
|
299,858
|
623,366
|
(323,508
|
)
|
-52
|
%
|
||||||||||
Brand-level net revenues |
10,134,119 |
10,106,406 |
27,713 |
0 |
% |
|||||||||||
Trade spend and other amounts not attributed to a brand
|
(392,032
|
)
|
(261,031
|
)
|
(131,001
|
)
|
50
|
%
|
||||||||
Consolidated net revenues |
9,742,087 |
9,845,375 |
(103,288 |
) |
-1 |
% |
||||||||||
|
Three months ended June 2026 |
Three months ended June 2025 |
Six months ended June 2026 |
Six months ended June 2025 |
|||||||||||||
Direct-to-consumer and e-commerce
|
178,125
|
30,699
|
327,538
|
77,997
|
||||||||||||
Wholesale and other
|
5,414,619
|
5,474,133
|
9,414,549
|
9,767,378
|
||||||||||||
Consolidated net revenues |
5,592,744 |
5,504,832 |
9,742,087 |
9,845,375 |
||||||||||||
| 24 |
|
Three months ended June 30, 2026 |
|
|
Three months ended June 30, 2025 |
|
|
Dollar Change |
Percent Change |
|||||||||
Wine & Spirits
|
1,420,712 |
2,073,269 |
(652,557 |
) |
-31
|
%
|
||||||||||
Non-Alcoholic and Functional
|
74,837 |
61,283 |
13,554 |
22
|
%
|
|||||||||||
Unallocated amounts
|
- |
10,001 |
(10,001 |
) |
-100
|
%
|
||||||||||
Comparable adjustments
|
- |
- |
- |
N/A |
||||||||||||
Consolidated gross profit |
1,495,549 |
2,144,553 |
(649,004 |
) |
-30 |
% |
||||||||||
|
Six months ended June 30, 2026 |
|
|
Six months ended June 30, 2025 |
|
|
Dollar Change |
Percent Change |
|||||||||
Wine & Spirits
|
2,358,767 |
3,400,288 |
(1,041,521 |
) |
-31
|
%
|
||||||||||
Non-Alcoholic and Functional
|
209,724
|
135,733 |
73,991
|
55
|
%
|
|||||||||||
Unallocated amounts
|
- |
10,050 |
(10,050 |
) |
-100 |
|||||||||||
Comparable adjustments
|
- |
(186,759 |
) |
186,759 |
N/M |
|||||||||||
Consolidated gross profit |
2,568,491 |
3,359,312 |
(790,821 |
) |
-24 |
% |
||||||||||
| 25 |
|
Three months ended June 30, 2026 |
|
|
Three months ended June 30, 2025 |
|
|
Six months ended June 30, 2026 |
|
|
Six months ended June 30, 2025 |
|
||||||
Direct-to-consumer and e-commerce gross profit
|
29,798 |
9,419 |
39,096 |
39,852 |
||||||||||||
Gross margin
|
16.7
|
%
|
30.7
|
%
|
11.9
|
%
|
51.1
|
%
|
||||||||
Wholesale and other gross profit
|
1,836,866 |
2,134,260 |
3,028,084 |
3,496,031 |
||||||||||||
Gross margin
|
33.9
|
%
|
39.0
|
%
|
32.2
|
%
|
35.8
|
%
|
||||||||
Inventory write-downs and other costs not attributed to a channel
|
(371,115 |
) |
874 |
(498,689 |
) |
(176,571 |
) |
|||||||||
Total gross profit
|
1,495,549 |
2,144,553 |
2,568,491 |
3,359,312 |
||||||||||||
|
|
|
Three ended June 2026 |
Three ended June 2025 |
Six months ended June 2026 |
Six months ended June 2025 |
|||||||||||
Core brands product margin
|
1,726,868
|
1,583,753
|
2,682,180
|
2,477,215
|
||||||||||||
Product margin percentage
|
43.7
|
%
|
44.9
|
%
|
41.6
|
%
|
42.8
|
%
|
||||||||
Other brands product margin
|
493,430
|
735,350
|
716,660
|
1,417,716
|
||||||||||||
Product margin percentage
|
28.1
|
%
|
38.2
|
%
|
21.1
|
%
|
38.3
|
%
|
||||||||
Discontinued brands product margin
|
21,430
|
72,779
|
79,154
|
126,919
|
||||||||||||
Product margin percentage
|
14.2
|
%
|
35.0
|
%
|
26.4
|
%
|
20.4
|
%
|
||||||||
Trade spend and costs not attributed to individual items
|
(746,179
|
)
|
(247,329
|
)
|
(909,503
|
)
|
(662,538
|
)
|
||||||||
Total gross profit |
1,495,549 |
2,144,553 |
2,568,491 |
3,359,312 |
||||||||||||
|
Three months ended June 30, 2026 |
Three months ended June 30, 2025 |
Six months ended June 30, 2026 |
Six months ended June 30, 2025 |
|||||||||||||
Consolidated gross profit |
1,495,549 |
2,144,553 |
2,568,491 |
3,359,312 |
||||||||||||
Gross margin |
26.7 |
% |
39.0 |
% |
26.4 |
% |
34.1 |
% |
||||||||
Inventory write-downs and variance, net |
140,577 |
- |
268,152 |
168,930 |
||||||||||||
Bulk wine, net |
- |
- |
- |
17,829 |
||||||||||||
Adjusted gross profit, non-GAAP |
1,636,126 |
2,144,553 |
2,836,643 |
3,546,071 |
||||||||||||
Adjusted gross margin |
29.3 |
% |
39.0 |
% |
29.1 |
% |
36.0 |
% |
||||||||
| 26 |
|
Three months ended June 30, 2026 |
Three months ended June 30, 2025 |
Dollar Change |
Percent Change |
|||||||||||||
Wine & Spirits |
773,713 |
943,782 |
(170,069 |
) |
-18 |
% |
||||||||||
Non-Alcoholic and Functional |
207,446 |
31,973 |
175,473 |
549 |
% |
|||||||||||
Unallocated amounts |
78,718 |
620 |
78,098 |
12596 |
% |
|||||||||||
Comparable adjustments |
- |
- |
- |
N/A |
||||||||||||
Consolidated sales and marketing |
1,059,877 |
976,375 |
83,502 |
9 |
% |
|||||||||||
|
Six months ended June 30, 2026 |
Six months ended June 30, 2025 |
Dollar Change |
Percent Change |
|||||||||||||
Wine & Spirits |
1,495,438 |
1,840,388 |
(344,950 |
) |
-19 |
% |
||||||||||
Non-Alcoholic and Functional |
415,168 |
117,686 |
297,482 |
253 |
% |
|||||||||||
Unallocated amounts |
116,748 |
11,706 |
105,042 |
897 |
% |
|||||||||||
Comparable adjustments |
- |
- |
- |
N/A |
||||||||||||
Consolidated sales and marketing |
2,027,354 |
1,969,780 |
57,574 |
3 |
% |
|||||||||||
|
Three months ended 2026 |
Three months ended 2025 |
Dollar Change |
Percent Change |
|||||||||||||
Wine & Spirits
|
921,103
|
1,003,169
|
(82,066
|
)
|
-8
|
%
|
||||||||||
Non-Alcoholic and Functional
|
178,845
|
32,970
|
145,875
|
442
|
%
|
|||||||||||
Unallocated amounts
|
4,727,627
|
615,952
|
4,111,675
|
668
|
%
|
|||||||||||
Comparable adjustments
|
226,613
|
265,101
|
(38,488
|
)
|
-15
|
%
|
||||||||||
Consolidated general and administrative |
6,054,188 |
1,917,192 |
4,136,996 |
216 |
% |
|||||||||||
|
Six months ended 2026 |
Six months ended 2025 |
Dollar Change |
Percent Change |
|||||||||||||
Wine & Spirits
|
1,750,715
|
2,386,219
|
(635,504
|
)
|
-27
|
%
|
||||||||||
Non-Alcoholic and Functional
|
324,748
|
99,981
|
224,767
|
225
|
%
|
|||||||||||
Unallocated amounts
|
6,047,985
|
1,181,284
|
4,866,701
|
412
|
%
|
|||||||||||
Comparable adjustments
|
447,545
|
367,808
|
79,737
|
22
|
%
|
|||||||||||
Consolidated general and administrative |
8,570,993 |
4,035,292 |
4,535,701 |
112 |
% |
|||||||||||
| 27 |
|
Three months ended June 2026 |
Three months ended June 2025 |
Dollar Change |
Percent Change |
|||||||||||||
Wine & Spirits
|
(274,104
|
)
|
126,318
|
(400,422
|
)
|
N/M
|
||||||||||
Non-Alcoholic and Functional
|
(311,454
|
)
|
(3,660
|
)
|
(307,794
|
)
|
8410
|
%
|
||||||||
Unallocated amounts
|
(4,806,345
|
)
|
(606,571
|
)
|
(4,199,774
|
)
|
692
|
%
|
||||||||
Comparable adjustments
|
(565,896
|
)
|
(265,101
|
)
|
(300,795
|
)
|
113
|
%
|
||||||||
Consolidated operating loss |
(5,957,799 |
) |
(749,014 |
) |
(5,208,785 |
) |
695 |
% |
||||||||
|
Six months ended June 2026 |
Six months ended June 2025 |
Dollar Change |
Percent Change |
|||||||||||||
Wine & Spirits
|
(887,386
|
)
|
(826,319
|
)
|
(61,067
|
)
|
7
|
%
|
||||||||
Non-Alcoholic and Functional
|
(530,192
|
)
|
(81,934
|
)
|
(448,258
|
)
|
547
|
%
|
||||||||
Unallocated amounts
|
(6,164,733
|
)
|
(1,182,940
|
)
|
(4,981,793
|
)
|
421
|
%
|
||||||||
Comparable adjustments
|
(897,230
|
)
|
(554,567
|
)
|
(342,663
|
)
|
62
|
%
|
||||||||
Consolidated operating loss |
(8,479,541 |
) |
(2,645,760 |
) |
(5,833,781 |
) |
220 |
% |
||||||||
|
Three months ended June 2026 |
Three months ended June 2025 |
Six months ended June 2026 |
Six months ended June 2025 |
|||||||||||||
Net loss |
(7,549,215 |
) |
(1,265,423 |
) |
(10,590,822 |
) |
(4,985,044 |
) |
||||||||
Interest expense
|
1,337,046
|
491,992
|
1,791,902
|
2,036,252
|
||||||||||||
Interest income
|
-
|
(27,752
|
)
|
(3,709
|
)
|
(34,235
|
)
|
|||||||||
Provision for income taxes
|
-
|
-
|
-
|
-
|
||||||||||||
Depreciation and amortization
|
132,387
|
184,868
|
269,607
|
335,137
|
||||||||||||
EBITDA |
(6,079,782 |
) |
(616,315 |
) |
(8,533,022 |
) |
(2,647,890 |
) |
||||||||
One-off deal and direct-listing costs
|
1,378,365
|
-
|
1,398,365
|
-
|
||||||||||||
Write-off of deferred offering costs
|
514,313
|
-
|
514,313
|
-
|
||||||||||||
Stock-based compensation
|
226,613
|
176,916
|
447,545
|
221,464
|
||||||||||||
Impairment loss and bad debt, net
|
339,283
|
34,114
|
467,548
|
(10,298
|
)
|
|||||||||||
Change in fair value of derivative liabilities
|
(236,969
|
)
|
-
|
(187,753
|
)
|
-
|
||||||||||
Change in fair value of SAFEs
|
10,635
|
-
|
21,062
|
-
|
||||||||||||
Stock-settled banker and advisory fees
|
1,938,141
|
-
|
2,631,800
|
-
|
||||||||||||
Bulk wine, net
|
-
|
-
|
-
|
17,829
|
||||||||||||
Inventory write-downs and variance, net
|
140,577
|
-
|
268,152
|
168,930
|
||||||||||||
Juice storage
|
30,179
|
98,652
|
(3,512
|
)
|
548,739
|
|||||||||||
Merchant and factoring fees
|
4,561
|
16,605
|
24,935
|
22,021
|
||||||||||||
One-time credits, net
|
-
|
-
|
(111,863
|
)
|
-
|
|||||||||||
Total adjustments |
4,345,698 |
326,287 |
5,470,592 |
968,685 |
||||||||||||
Adjusted EBITDA |
(1,734,084 |
) |
(290,028 |
) |
(3,062,430 |
) |
(1,679,205 |
) |
||||||||
| 28 |
|
Three months ended June 30, 2026 |
|
|
Three months ended June 30, 2025 |
|
|
Dollar Change |
|
|
Percent Change |
|
||||||
Interest income
|
- |
27,752 |
(27,752 |
) |
-100
|
%
|
||||||||||
Interest expense
|
(1,337,046 |
) |
(491,992 |
) |
(845,054 |
) |
172
|
%
|
||||||||
Change in fair value of derivative liabilities
|
236,969 |
- |
236,969 |
N/A |
||||||||||||
Change in fair value of SAFEs
|
(10,635 |
) |
- |
(10,635 |
) |
N/A |
||||||||||
Other income (expense), net
|
(480,704
|
) |
(52,169 |
) |
(428,535
|
) |
N/M |
|||||||||
Consolidated other income (expense) |
(1,591,416 |
) |
(516,409 |
) |
(1,075,007 |
) |
208 |
% |
||||||||
|
Six months ended June 30, 2026 |
|
|
Six months ended June 30, 2025 |
|
|
Dollar Change |
|
|
Percent Change |
|
||||||
Interest income
|
3,709 |
34,235 |
(30,526 |
) |
-89
|
%
|
||||||||||
Interest expense
|
(1,791,902 |
) |
(2,036,252 |
) |
244,350 |
-12
|
%
|
|||||||||
Change in fair value of derivative liabilities
|
187,753 |
- |
187,753 |
N/A |
||||||||||||
Change in fair value of SAFEs
|
(21,062 |
) |
- |
(21,062 |
) |
N/A |
||||||||||
Other income (expense), net
|
(489,779
|
) |
(337,267 |
) |
(152,512
|
) |
N/M |
|||||||||
Consolidated other income (expense) |
(2,111,281 |
) |
(2,339,284 |
) |
228,003 |
-10 |
% |
|||||||||
| 29 |
|
Six months ended June 2026 |
Six months ended June 2025 |
Dollar Change |
||||||||||
Net cash used in operating activities
|
(6,131,553
|
)
|
(1,346,544
|
)
|
(4,785,009
|
)
|
||||||
Net cash (used in) provided by investing activities
|
(1,790,310
|
)
|
753,117
|
(2,543,427
|
)
|
|||||||
Net cash provided by financing activities
|
8,667,418
|
806,972
|
7,860,446
|
|||||||||
Net increase in cash |
745,555 |
213,545 |
532,010 |
|||||||||
| 30 |
Category |
Next 12 Months |
|
|
Thereafter |
Total |
|||||||
Secured credit facility principal and interest (1) |
$ |
3,789 |
$ |
— |
$ |
3,789 |
||||||
Other debt principal and interest (2) |
3,226 |
177 |
3,403 |
|||||||||
SAFEs and convertible instruments (3) |
— |
541 |
541 |
|||||||||
Leases and licensing fees (4) |
253 |
— |
253 |
|||||||||
Supplier payables (5) |
6,125 |
— |
6,125 |
|||||||||
Professional service payables (6) |
3,494 |
— |
3,494 |
|||||||||
Total material cash requirements |
$ |
16,887 |
$ |
718 |
$ |
17,605 |
||||||
| 31 |
| 32 |
| 33 |
| 34 |
| 35 |
|
Absence of a comprehensive and formalized accounting and financial reporting policies and procedures manual. We did not have a comprehensive and formalized accounting and financial reporting policies and procedures manual sufficient to ensure accurate and timely financial reporting, including with respect to periodic and year-end closing procedures, accrual and cutoff of accounts receivable and accounts payable, reconciliation of significant accounts, the establishment and review of accounting estimates, the preparation and review of closing and recurring journal entries, the documentation of the responsibilities of accounting personnel and management review procedures, and the design and maintenance of effective controls over information technology systems relevant to the preparation of financial statements. |
|
Insufficient segregation of duties. Certain controls were concentrated in a small number of employees and members of management, primarily as a result of our size, which prevented appropriate segregation of duties and could amplify the risk arising from related party transactions. |
|
developing, adopting and maintaining a comprehensive accounting policies and procedures manual documenting our significant accounting policies in accordance with U.S. GAAP; |
|
establishing formalized month-end, quarter-end and year-end closing procedures and checklists, including standardized close calendars, account reconciliation requirements, materiality thresholds and reviewer sign-offs; |
| 36 |
|
designing and implementing formal management review controls, including variance analysis and independent review and approval of manual, non-routine and related party journal entries; |
|
assessing and enhancing information technology general controls over our financial reporting systems, including user access provisioning and deprovisioning and change management controls; and |
|
performing a financial reporting risk assessment, including a fraud risk assessment, and mapping identified risks to specific controls. |
|
assessing our accounting organization and developing a formal segregation of duties matrix to identify and resolve conflicting responsibilities; |
|
preparing formal role descriptions and authorization limits, and adding or reallocating personnel as necessary so that a secondary party reviews and/or approves transactions across all significant processes; |
|
establishing a formal policy and process for the identification, approval, review and monitoring of related party transactions, including Audit Committee or independent director pre-approval; |
|
reviewing and configuring user roles and permissions within our enterprise resource planning system to enforce segregation of duties; and |
|
implementing compensating controls, including independent Chief Financial Officer review and approval of journal entries and dual-authorization requirements for disbursements above defined thresholds, together with ongoing monitoring and periodic reporting to the Audit Committee. |
| 37 |
|
Exhibit No. |
Description |
|
101.INS |
Inline XBRL Instance Document. |
|
101.SCH |
Inline XBRL Taxonomy Extension Schema Document. |
|
101.CAL |
Inline XBRL Taxonomy Extension Calculation Linkbase Document. |
|
101.DEF |
Inline XBRL Taxonomy Extension Definition Linkbase Document. |
|
101.LAB |
Inline XBRL Taxonomy Extension Label Linkbase Document. |
|
101.PRE |
Inline XBRL Taxonomy Extension Presentation Linkbase Document. |
|
104 |
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
| 38 |
AMASS Brands Inc |
||
By: |
/s/ Mark T. Lynn |
|
Mark T. Lynn |
||
Chief Executive Officer |
||
(Principal Executive Officer) |
||
By: |
/s/ Zachary Ament |
|
Zachary Ament |
||
Chief Financial Officer |
||
(Principal Financial and Accounting Officer) |
||
| 39 |
EXHIBIT 31.1
CERTIFICATION PURSUANT TO
SECTION 302 OF THE SARBANES-OXLEY ACT Of 2002
I, Mark T. Lynn, certify that:
1. |
I have reviewed this quarterly report on Form 10-Q of AMASS Brands 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 registrant as of, and for, the periods presented in this report; |
4. |
The registrant’s other certifying officer(s) 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 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, including its consolidated subsidiaries, is made known to us by others within those entities, 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(s) 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: |
August 14, 2026 |
By: |
/s/ Mark T. Lynn |
|
|
|
Mark T. Lynn |
|
|
|
Chief Executive Officer |
|
|
|
(Principal executive officer) |
EXHIBIT 31.2
CERTIFICATION PURSUANT TO
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Zachary Ament, certify that:
1. |
I have reviewed this quarterly report on Form 10-Q of AMASS Brands 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 registrant as of, and for, the periods presented in this report; |
4. |
The registrant’s other certifying officer(s) 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 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, including its consolidated subsidiaries, is made known to us by others within those entities, 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(s) 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: |
August 14, 2026 |
By: |
/s/ Zachary Ament |
|
|
|
Zachary Ament |
|
|
|
Chief Financial Officer |
|
|
|
(Principal financial and accounting officer) |
EXHIBIT 32.1
SARBANES-OXLEY ACT SECTION 906 CERTIFICATION
In connection with the Quarterly Report of AMASS Brands Inc (the “Company”) on Form 10-Q for the period ended June 30, 2026 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Mark T. Lynn, Chief Executive Officer of the Company, and Zachary Ament, Chief Financial Officer of the Company, each hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of his knowledge:
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 operation of the Company. |
Date: |
August 14, 2026 |
By: |
/s/ Mark T. Lynn |
|
|
|
Mark T. Lynn |
|
|
|
Chief Executive Officer |
|
|
|
(Principal executive officer) |
|
|
|
|
|
|
By: |
/s/ Zachary Ament |
|
|
|
Zachary Ament |
|
|
|
Chief Financial Officer |
|
|
|
(Principal Financial and Accounting Officer) |