Innovation Beverage Group (IBG) Registration Filing summary

Company overview and business model

• Developer, manufacturer, marketer, exporter, and retailer of 60 beverage formulations across 13 alcoholic and non-alcoholic brands, focusing on premium and super-premium segments.

• Operates through direct-to-consumer eCommerce platforms and distribution partnerships, including a key agreement with Coca-Cola Europacific Partners for bitters in Australia.

• Owns subsidiaries IBG USA LLC (for U.S. market expansion) and Reg Liquors LLC d/b/a Wired For Wine (U.S. e-commerce wine/spirits retailer).

• Vertically integrated with in-house manufacturing in Australia, offering high-margin products and leveraging digital marketing and logistics.

• Expanding into the non-alcoholic spirits market with the Drummerboy brand and scaling bottled cocktail offerings.

Financial performance and metrics

• Net revenues for the year ended December 31, 2023: $3.15M, down from $4.53M in 2022, primarily due to a strategic pause in eCommerce ad spend.

• Gross margin improved to 65% in 2023 from 53% in 2022, driven by a higher mix of branded products with margins above 75%.

• Net loss for 2023: $2.01M, an improvement from a $4.13M loss in 2022, reflecting reduced operating expenses.

• As of December 31, 2023: $14K in cash, $4.93M in total assets, and $608K in stockholders' equity.

• For the six months ended June 30, 2024, unaudited net revenues estimated at $1.6–$1.9M, up 26% year-over-year, with gross margins of 75–80%.

Use of proceeds and capital allocation

• Net proceeds of approximately $4.96M expected from the IPO, after expenses.

• $600K allocated to complete the acquisition of Reg Liquors LLC (Wired For Wine); remainder for working capital, general corporate purposes, and potential future acquisitions.

• Proceeds expected to fund operations for at least 24 months.