Amaze Holdings (AMZE) Q2 2024 earnings summary

Executive summary

• Net revenue for Q2 2024 was $70,484, down 79% year-over-year, with a gross loss of $43,676, reflecting a significant slowdown as the company pursued a merger that was later terminated.

• Operating loss for Q2 2024 was $879,569, with a net loss attributable to common stockholders of $905,702, compared to a net loss of $4.4 million in Q2 2023.

• The company faces substantial doubt about its ability to continue as a going concern due to ongoing losses, a $2.7 million working capital deficit, and limited cash expected to last only into Q3 2024.

• Strategic options are being evaluated following the termination of the merger agreement with Notes Live, including potential asset sales, further strategic transactions, or dissolution.

Financial highlights

• Net revenue for the six months ended June 30, 2024 was $175,052, down 76% year-over-year.

• Gross loss for the six months was $154,924, a 92% improvement from the prior year due to lower inventory write-downs.

• Operating expenses for the six months were $1.93 million, down 47% year-over-year, reflecting cost-cutting measures.

• Net loss for the six months was $2.1 million, compared to $6.4 million in the prior year.

• Cash and restricted cash at June 30, 2024 totaled $195,000, with a $2.7 million working capital deficit.

Outlook and guidance

• Management projects existing cash will fund operations only into Q3 2024; additional financing is required to continue operations.

• The board is considering all strategic alternatives, including further capital raises, asset sales, or liquidation.

• Failure to secure financing may result in suspension or cessation of operations and potential bankruptcy.