PickleJar Entertainment Group, Inc. (OTC Pink: PKLE) announced the completion of audited financial statements for fiscal years 2024 and 2023, conducted by Astra Audit & Advisory, LLC, a PCAOB-registered firm. The audit resulted in an unqualified opinion, confirming revenue growth of approximately 138% to $557,585 in fiscal 2024 compared to $233,762 in fiscal 2023, and a narrowing of loss from operations by approximately 45% to $1,537,352. The completion of this audit is a foundational step in the Company's stated objective of becoming a fully reporting issuer with the U.S. Securities and Exchange Commission, though no assurance can be given regarding the timing or completion of any such registration.
The audited financial statements, available on the OTC Markets Disclosure & News Service and at investors.picklejar.com, also show gross profit of $405,483, compared with $155,155 for fiscal 2023. Net loss for fiscal 2024 was $1,975,754, compared with net income of $1,206,415 for fiscal 2023, which included a non-cash gain of approximately $4.4 million on the fair-value remeasurement of Simple Agreements for Future Equity in connection with the November 2023 reverse recapitalization. As of December 31, 2024, the Company reported an accumulated deficit of $6,046,945 and a working capital deficit of $6,331,207.
Jeff James, Chief Executive Officer of PickleJar, stated, "Completing a PCAOB audit of two full fiscal years is a meaningful milestone for PickleJar. It gives our investors, our label and distribution partners, and our commercial counterparties a common, independently verified set of facts to work from. We are proud of the operational progress reflected in these results, and we are clear-eyed about the work ahead - strengthening internal controls, addressing near-term liquidity, and executing toward SEC-reporting status."
Despite the positive operational progress, the audited financial statements disclose substantial doubt about the Company's ability to continue as a going concern for one year from the date the financial statements were issued. This doubt arises from recurring operating losses, accumulated and working-capital deficits, and certain notes payable at or past their stated maturity dates. Management's plans to address these conditions include obtaining additional financing and extending, restructuring, or converting existing obligations. Investors are encouraged to review the audited financial statements in their entirety, including disclosures regarding the Company's revolving credit facility, related-party transactions, and subsequent events.
In connection with the audit, PickleJar is implementing a remediation plan to address material weaknesses in internal control over financial reporting. The plan includes expanding financial reporting resources through additional personnel and qualified external specialists, formalizing policies and procedures, strengthening journal-entry review and approval, enhancing monitoring activities, and improving information technology general controls. The material weaknesses, which relate to the design and operation of a control environment commensurate with SEC-registrant requirements, are described in the audited financial statements. Remediation is expected to occur over multiple reporting periods.
The full audited financial statements, including the report of the Independent Registered Public Accounting Firm and accompanying footnotes, are available on the OTC Markets Disclosure & News Service and at investors.picklejar.com. The Company cautions that forward-looking statements in this release involve risks and uncertainties, including those related to the Company's ability to continue as a going concern, remediate internal control weaknesses, and achieve SEC reporting status.
