PickleJar Entertainment Group, Inc. (OTC Pink: PKLE) announced the completion of audited financial statements for the fiscal years ended December 31, 2024 and December 31, 2023. The audit, conducted by Astra Audit & Advisory, LLC, a firm registered with the Public Company Accounting Oversight Board (PCAOB), resulted in an unqualified opinion. The company reported revenue of $557,585 for fiscal 2024, a 138% increase from $233,762 in fiscal 2023, while loss from operations narrowed 45% to $1,537,352 from $2,786,231 in the prior year.
The completion of the audit is a foundational step in PickleJar's stated objective of becoming a fully reporting issuer with the U.S. Securities and Exchange Commission. However, the company cautioned that no assurance can be given regarding the timing or completion of any such registration. The 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.
Selected fiscal year 2024 results include gross profit of $405,483, compared with $155,155 in fiscal 2023. Net loss for fiscal 2024 was $1,975,754, compared with net income of $1,206,415 in 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 had an accumulated deficit of $6,046,945 and a working capital deficit of $6,331,207.
Jeff James, Chief Executive Officer, 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."
The audited financial statements disclose substantial doubt about PickleJar's ability to continue as a going concern for one year from the date the financial statements were issued. Recurring operating losses, accumulated and working-capital deficits, and certain notes payable at or past their stated maturity dates as of December 31, 2024 contribute to this uncertainty. Management's plans to address these conditions include obtaining additional financing and extending, restructuring, or converting existing obligations.
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 company's reliance on related-party financing and the existence of indebtedness in default, including a revolving credit facility in default, are additional risks highlighted in the release. 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.
