PickleJar Entertainment Group, Inc. (OTC Pink: PKLE), a music and entertainment software company, 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 and revealed that total revenue grew approximately 138% to $557,585 in fiscal 2024, compared to $233,762 in fiscal 2023. Gross profit increased to $405,483 from $155,155, and loss from operations narrowed by approximately 45% to $1,537,352 from $2,786,231. Net loss for fiscal 2024 was $1,975,754, compared to net income of $1,206,415 in fiscal 2023, which included a non-cash gain of approximately $4.4 million from the fair-value remeasurement of Simple Agreements for Future Equity.
The audit marks a foundational step toward PickleJar's objective of becoming a fully reporting issuer with the U.S. Securities and Exchange Commission. However, the financial statements raise substantial doubt about the company's ability to continue as a going concern for one year from the issuance date, citing recurring operating losses, an accumulated deficit of $6,046,945, and a working capital deficit of $6,331,207 as of December 31, 2024. Additionally, certain notes payable were at or past their stated maturity dates. Management plans to address these conditions through additional financing, extension, restructuring, or conversion of existing obligations.
In connection with the audit, PickleJar is implementing a remediation plan to address material weaknesses in internal control over financial reporting, including expanding financial reporting resources, formalizing policies, strengthening journal-entry review, and improving information technology general controls. The material weaknesses relate to the design and operation of a control environment commensurate with SEC-registrant requirements. Remediation is expected to occur over multiple reporting periods.
The full audited financial statements are available on the OTC Markets Disclosure & News Service and at investors.picklejar.com. CEO Jeff James 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.'
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. No assurance can be given regarding the timing or completion of SEC registration.
