AURORA, Colo., Aug. 27, 2025 (GLOBE NEWSWIRE) -- Bespoke Extracts, Inc. ("Bespoke" or the "Company") (OTCQB: BSPK), today reported its financial results for the quarter ended June 30, 2025. Financial results are reported in accordance with U.S. generally accepted accounting principles ("GAAP"), and all currency is in U.S. dollars.
Michael Feinsod, Chairman and CEO of Bespoke, stated, "Second quarter revenue was $390,553, up 48.4% compared to $263,159 in the first quarter of 2025 and 40.4% compared to $278,163 in the second quarter of 2024. Gross margin of 50.6% increased 1,250 basis points compared to the prior year period. As we continue the Colorado expansion of The Joint Company, we produced and shipped a record number of pre-rolls during the quarter."
Three Months Ended June 30, 2025 Financial Highlights:
- Revenue of $390,553, an increase of 40.4% over the prior year.
- Gross profit of $197,499 and gross margin of 50.6%, an increase of 1,250 basis points year-over-year.
- GAAP net loss of $205,106, compared to $260,895 in the three months ending June 30, 2024
- Net loss per share of $0.02 per basic and diluted share, compared to a net loss per basic and diluted share of $0.03 in the three months ending June 30, 2024.
Six Months Ended June 30, 2025 Financial Highlights:
- Revenue of $653,712, an increase of 21.4% over the prior year.
- Gross profit of $308,278 and gross margin of 47.2%, an increase of 850 basis points year-over-year.
- GAAP net loss of $465,627, compared to $575,013 in the six months ending June 30, 2024
- Net loss per share of $0.04 per basic and diluted share, compared to a net loss per basic and diluted share of $0.06 in the six months ending June 30, 2024.
Second Quarter Operational Highlights:
- Record production during the second quarter of over 177,000 pre-rolls.
- Continued to achieve cost efficiencies in raw materials, packaging, and labor, increasing gross margins despite increased sampling costs for new product launches and customer acquisition.
- Continued year-over-year growth of core Fresh Joints product line.
- Doobskis and Dutch Blunts both achieved meaningful market penetration in the second quarter.
- Strong growth in our third-party processing business, driven by new client contracts.
| For the Three Months Ended | |||||||||||
| 30-Jun-25 | 31-Mar-25 | 30-Jun-24 | |||||||||
| Revenue | $ | 390,553 | $ | 263,159 | $ | 278,163 | |||||
| Gross Profit | 197,499 | 110,779 | 106,117 | ||||||||
| Gross Profit Margin | 50.6 | % | 42.1 | % | 38.1 | % | |||||
| Income (Loss) from Operations | (161,958 | ) | (245,338 | ) | (250,895 | ) | |||||
| Net Income | (205,106 | ) | (260,521 | ) | (260,895 | ) | |||||
| Shares Outstanding | 11,153,220 | 11,153,220 | 10,168,220 | ||||||||
| Net Loss Per Share Out. | $ | (0.02 | ) | $ | (0.02 | ) | $ | (0.03 | ) | ||
| Production Data | |||||||||||
| Joints Produced | 177,995 | 113,428 | 102,148 | ||||||||
| For the Six Months Ended | |||||||||
| 30-Jun-25 | 30-Jun-24 | ||||||||
| Revenue | $ | 653,712 | $ | 538,591 | |||||
| Gross Profit | 308,278 | 208,698 | |||||||
| Gross Profit Margin | 47.2 | % | 38.7 | % | |||||
| Income (Loss) from Operations | (407,296 | ) | (553,046 | ) | |||||
| Net Income | (465,627 | ) | (575,013 | ) | |||||
| Shares Outstanding | 11,153,220 | 10,168,220 | |||||||
| Net Loss Per Share Out. | $ | (0.04 | ) | $ | (0.06 | ) | |||
| Production Data | |||||||||
| Joints Produced | 291,423 | 187,477 | |||||||
Management Commentary
In the second quarter of 2025, our Colorado business, rebranded as The Joint Company, demonstrated robust brand growth and enhanced operational capabilities amid a challenging Colorado cannabis market. Our core Fresh Joints line continued its year-over-year expansion, while new product lines like Doobskis and Dutch Blunts achieved successful market penetration, contributing to a record production of over 177,000 pre-rolls. Bolstered by strong demand in our third-party processing business and ongoing improvements in manufacturing efficiencies-including cost reductions in raw materials, packaging, and labor-we delivered a 40.4% revenue increase to $390,553 and a gross margin expansion to 50.6%. These advancements underscore our ability to scale high-quality pre-roll production and innovate in consumer packaged goods, positioning us for sustained growth and market share gains in the adult-use sector.
Bespoke President Hunter Garth added, "Building on this momentum, the second quarter proved highly productive, marked by strong market share gains in the Colorado pre-roll segment. Looking ahead, we remain confident in our team's capabilities and strategic approach to thrive amid ongoing market challenges. Our ability to achieve record production and market share gains in a competitive and regulated market underscores the strength of The Joint Company brand and operational strategy."
Third Quarter 2025 Outlook:
Revenue Growth: Based on preliminary third quarter 2025 sales data, we continue to experience sales growth in our new product lines compared the quarter ended September 30, 2024. The Company projects revenue between $425,000 and $450,000 for the quarter ending September 30, 2025, a 53% to 62% increase over $277,471 in the quarter ended September 30, 2024, driven by continued growth of FreshJoints, strong demand for Doobskis and Dutch Blunts, and expanded third-party processing services.
Operational Efficiencies: Continued improvements in manufacturing processes are expected to support higher production volumes and consistent product quality.
Gross Margin Improvement: Enhanced production efficiencies and cost management in raw materials, packaging, and labor are projected to drive improved gross margins during the third quarter when compared to the second quarter.
We continue to explore expansion opportunities for The Joint Company in other regulated cannabis markets, such as Massachusetts and New York, to leverage our production expertise. The Company continues to consider opportunities in other business lines.
| Bespoke Extracts, Inc Condensed Consolidated Balance Sheets | ||||||||
| June 30, | December 31, | |||||||
| 2025 | 2024 | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash | $ | 1,363 | $ | 60,305 | ||||
| Accounts receivable, net | 101,007 | 57,276 | ||||||
| Prepaid expense | 10,645 | 15,150 | ||||||
| Inventory, net | 41,721 | 32,526 | ||||||
| Total current assets | 154,736 | 165,257 | ||||||
| Furniture and equipment, net | 27,104 | 31,342 | ||||||
| License | 10,000 | 10,000 | ||||||
| Right of Use Asset | 63,198 | 140,489 | ||||||
| Deposits | 12,000 | 12,000 | ||||||
| Total assets | $ | 267,038 | $ | 359,088 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable and accrued liabilities | $ | 1,344,241 | $ | 958,276 | ||||
| Note payable | 15,000 | 20,000 | ||||||
| Advances - related party | 66,872 | 66,872 | ||||||
| Operating lease liability | 59,353 | 73,523 | ||||||
| Total current liabilities | 1,485,466 | 1,118,671 | ||||||
| Long-Term liabilities | ||||||||
| Notes payable -- secured (Net of discount of $61,427 and $68,649, respectively) | 298,573 | 241,351 | ||||||
| Notes payable | 169,000 | 169,000 | ||||||
| Note payable - related party | 849,500 | 849,500 | ||||||
| Long-Term Operating Lease Liability | 3,805 | 72,504 | ||||||
| Total liabilities | 2,806,344 | 2,451,026 | ||||||
| Commitments and contingencies (Note 8) | ||||||||
| Stockholders' Deficit | ||||||||
| Preferred stock, par value $0.001, 50,000,000 shares authorized, 0 share issued and outstanding as of June 30, 2025 and December 31,2024, respectively | - | - | ||||||
| Series C Convertible Preferred Stock, $0.001 par value, 1 share designated; 1 share issued and outstanding as of June 30, 2025 and December 31, 2024, respectively, stated value $24,000. | - | - | ||||||
| Common stock, $0.001 par value: 3,000,000,000 authorized; 11,153,220 and 11,153,220 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively | 11,151 | 11,151 | ||||||
| Common stock to issue 6,478 shares | - | - | ||||||
| Additional paid-in capital | 24,319,286 | 24,301,027 | ||||||
| Accumulated deficit | (26,869,743 | ) | (26,404,116 | ) | ||||
| Total stockholders' deficit | (2,539,306 | ) | (2,091,938 | ) | ||||
| Total liabilities and stockholders' deficit | $ | 267,038 | $ | 359,088 | ||||
See the accompanying notes to the condensed consolidated financial statements.
Bespoke Extracts, Inc
Condensed Consolidated Statements of Operations
| For the three months ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Sales | $ | 390,553 | $ | 278,163 | $ | 653,712 | $ | 538,591 | ||||||||
| Cost of products sold | 193,054 | 172,046 | 345,434 | 329,893 | ||||||||||||
| Gross Profit | 197,499 | 106,117 | 308,278 | 208,698 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Selling, general and administrative expenses | 337,625 | 325,885 | 650,778 | 673,744 | ||||||||||||
| Professional fees | 21,832 | 30,475 | 64,796 | 88,000 | ||||||||||||
| Total operating expenses | 359,457 | 356,360 | 715,574 | 761,744 | ||||||||||||
| Loss from operations | (161,958 | ) | (250,243 | ) | (407,296 | ) | (553,046 | ) | ||||||||
| Other income / (expenses) | ||||||||||||||||
| Interest expense | (43,148 | ) | (10,652 | ) | (58,331 | ) | (21,967 | ) | ||||||||
| Total other (expense) / income | (43,148 | ) | (10,652 | ) | (58,331 | ) | (21,967 | ) | ||||||||
| Loss before income tax | (205,106 | ) | (260,895 | ) | (465,627 | ) | (575,013 | ) | ||||||||
| Provision for income tax | - | - | - | - | ||||||||||||
| Net Loss | $ | (205,106 | ) | $ | (260,895 | ) | $ | (465,627 | ) | $ | (575,013 | ) | ||||
| WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | ||||||||||||||||
| Basic and Diluted | 11,153,220 | 10,168,220 | 11,153,220 | 10,168,220 | ||||||||||||
| NET LOSS PER COMMON SHARE OUTSTANDING | ||||||||||||||||
| Basic and Diluted | $ | (0.02 | ) | $ | (0.03 | ) | $ | (0.04 | ) | $ | (0.06 | ) | ||||
Forward-Looking Statements:
This press release contains "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, and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause circumstances, events or results to differ materially from those projected in the forward-looking statements as a result of various factors and other risks, including, without limitation, those set forth in the Company's latest Form 10-K, filed with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and the Company undertakes no obligation to update such statements.
About Bespoke Extracts, Inc.:
Bespoke Extracts, Inc. is a Nevada corporation operating in the regulated cannabis markets in the United States. Through its wholly-owned subsidiary, Bespoke Extracts Colorado, LLC, the Company operates a marijuana-infused products manufacturing facility in Aurora, Colorado, focusing on delivering high-quality products to licensed dispensaries under its rebranded portfolio, The Joint Company.
Contact:
Bespoke Extracts, Inc.
Email: info@bespokeextracts.com
Website: www.bespokeextracts.com
Note: The financial data in this press release is derived from the Company's unaudited consolidated financial statements included in its Form 10-Q for the quarter ended June 30, 2025, filed with the SEC. Forward-looking revenue projections and expansion plans are based on management's current expectations and are subject to change.
