Bespoke Extracts, Inc. Announces Financial Results and Strategic Rebranding for the First Quarter Ended March 31, 2025

Rhea-AI Summary

Bespoke Extracts (OTCQB: BSPK) reported its Q1 2025 financial results and strategic rebranding initiatives. The company achieved revenue of $263,159, a 1% increase from Q1 2024, despite an 8.8% contraction in Colorado's cannabis market. Gross profit improved to $110,779 from $102,581 year-over-year, while net loss decreased to $260,521 from $314,118.

The company successfully rebranded as The Joint Company (TJC), launching two new products - Doobskis and Dutch Blunts. Operational improvements led to a 32% increase in daily pre-roll production compared to Q1 2024. For Q2 2025, the company projects revenue to exceed $385,000, significantly higher than Q2 2024's $278,163.

Despite these improvements, the company faces financial challenges with a total stockholders' deficit of $2,334,200 as of March 31, 2025, and current liabilities of $1,241,535 against current assets of $123,120.

[ "Revenue increased 1% YoY to $263,159 despite market contraction", "Gross profit improved to $110,779 from $102,581 YoY", "Operating expenses reduced by 12.2% to $356,117", "Net loss decreased to $260,521 from $314,118 YoY", "Daily pre-roll production increased by 32%", "Q2 2025 revenue projected to exceed $385,000, significantly higher than Q2 2024's $278,163" ]

Positive

• None.

Negative

• Significant stockholders' deficit of $2,334,200
• Current liabilities ($1,241,535) substantially exceed current assets ($123,120)
• Cash position decreased to $30,365 from $60,305
• Accounts receivable declined to $36,757 from $57,276
• Operating loss of $245,338 despite improved metrics

AURORA, Colo., July 01, 2025 (GLOBE NEWSWIRE) -- Bespoke Extracts, Inc. (OTCQB: BSPK), a Colorado based company focused on operating in the regulated cannabis markets in the United States, today announced its financial results for the first quarter ended March 31, 2025, and highlighted the successful rebranding of its product offerings under The Joint Company.

Financial Highlights for Q1 2025:

• Revenue Growth: Sales increased to $263,159, up 1.0% from $260,428 in Q1 2024, fueled by strong direct sales of branded pre-rolled joints and expanded joint production services for licensed dispensaries in Colorado.
  
  
• Improved Gross Profit: Gross profit rose to $110,779 from $102,581 in Q1 2024, driven by enhanced production efficiencies in pre-rolled joints, though partially offset by higher packaging and testing costs for new product launches.
  
  
• Reduced Operating Expenses: Operating expenses fell to $356,117 from $405,384 in Q1 2024, reflecting lower stock-based compensation, reduced salaries, and decreased professional fees.
  
  
• Reduced Net Loss: Net loss decreased to $260,521, from $314,118 in Q1 2024.
  
  

Strategic Rebranding and Product Expansion under The Joint Company (TJC)

In Q1 2025, Bespoke Extracts successfully rebranded as The Joint Company (TJC), a pivotal step in its growth strategy. TJC scaled its white-label processing business and launched two new branded products, Doobskis and Dutch Blunts, which have gained significant traction in Colorado’s regulated cannabis market. The Fresh Joint product line continues to increase product revenue, primarily through growth in multi-packs.

Operational Highlights:

• Through its subsidiary, Bespoke Extracts Colorado, LLC, the Company operates a marijuana-infused products manufacturing facility in Aurora, selling its products and services to licensed dispensaries in Colorado.
  
  
• Achieved cost efficiencies in raw materials, packaging, and labor, boosting gross margins despite increased marketing and sampling costs for new product launches.
  
  
• Daily pre-roll production increased by 32% compared to Q1 2024, enhancing TJC’s ability to offer competitive processing services and lower priced products in Colorado.
  
  
• The Company is exploring expansion of TJC into other state-regulated cannabis markets, leveraging its successful Colorado operations experience to pursue new growth opportunities.
  
  
• Management is focused on expanding market share and optimizing operations for sustainable, long-term growth.
  
  

Management Commentary:

Michael Feinsod, CEO of Bespoke Extracts, stated: “Q1 2025 marked a transformative period for Bespoke Extracts as we rebranded to The Joint Company and introduced Doobskis and Dutch Blunts. These initiatives, combined with enhanced third-party processing capabilities, have significantly strengthened our market position and revenue potential. Despite an 8.8% contraction in Colorado’s regulated cannabis market during the quarter ending March 31, 2025 compared to Q1 2024, we achieved year-over-year growth. Our improved manufacturing processes are delivering strong results, and we expect continued gross margin improvements as we scale. We remain committed to disciplined financial management and strategic expansion in the regulated cannabis market.”

Fiscal Q2 2025 Outlook:

• Revenue Growth:    Based on preliminary Q2 2025 sales data, we have seen significant sales traction in our new product lines during the second quarter. The Company projects revenue exceeding $385,000 for the quarter ending June 30, 2025, compared to $278,163 in the quarter ended June 30, 2024, driven by continued growth of FreshJoints , strong demand for Doobskis and Dutch Blunts and expanded third-party processing services.
  
  
• Operational Efficiencies: Continued improvements in manufacturing processes are expected to support higher production volumes and consistent product quality.
  
  
• Gross Margin Improvement: Enhanced production efficiencies and cost management in raw materials, packaging, and labor are projected to drive higher gross margins, despite increased marketing investments for new product launches.
  
  

Balance Sheet Condensed Consolidated Balance Sheets (unaudited)
	March 31, 2025				December 31, 2024
Assets
Current assets
Cash	$	30,365			$	60,305
Accounts receivable, net		36,757				57,276
Prepaid Expense		17,094				15,150
Inventory, net		38,904				32,526
Total current assets		123,120				165,257
Furniture and equipment		29,557				31,342
License		10,000				10,000
Right of Use Asset		73,448				140,489
Deposits		12,000				12,000
Total assets	$	248,125			$	359,088
Liabilities and Stockholders’ (Deficit)
Current liabilities
Accounts payable and accrued liabilities	$	1,123,600			$	958,276
Note payable		13,000				20,000
Advances – related party		66,872				66,872
Operating lease liability		38,063				73,523
Total current liabilities		1,241,535				1,118,671
Long-Term Liabilities
Notes Payable – secured (net of discount )		286,945				241,351
Notes Payable		169,000				169,000
Note Payable – related party		849,500				849,500
Long-Term Operating Lease Liability		35,345				72,504
Total liabilities		2,582,325				2,451,026
Shareholders’ Deficit
Series C Convertible Preferred Stock, 1 share issued and outstanding as of March 31,2025 and December 31, 2024		-				-
Common stock, $0.001 par value: 3,000,000,000 authorized: 11,153,220 issued and outstanding as of March 31, 2025 and December 31, 2024		11,151				11,151
Additional paid-in capital		24,319,286				24,301,027
Accumulated deficit		(26,664,637	)			(26,404,116	)
Total stockholders’ deficit		(2,334,200	)			(2,091,938	)
Total liabilities and shareholders’ deficit		248,125				359,088

Condensed Consolidated Statement of Operations (Unaudited)
	For the Three Months Ended March 31,
	March 31, 2025				March 31, 024
Sales	$	263,159			$	260,428
Cost of products sold		152,380				157,847
Gross Profit		110,779				102,581
Operating expenses:
Selling, general and administrative expenses		313,153				347,859
Professional fees		42,964				57,525
Total operating expenses		356,117				405,384
Loss from Operations		(245,338	)			(302,803	)
Other income/(expenses)
Interest expense		(15,183	)			(11,315	)
Total other (expense)/income		(15,183	)			(11,315	)
Loss before income tax		(260,521	)			(314,118	)
Provision for income tax
Net Loss	$	(260,521	)		$	(314,118	)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic and Diluted		11,153,220				10,168,220
NET LOSS PER COMMON SHARE OUTSTANDING
Basic and Diluted	$	(0.02	)		$	(0.03	)

Forward-Looking Statements:

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause circumstances, events or results to differ materially from those projected in the forward-looking statements as a result of various factors and other risks, including, without limitation, those set forth in the Company's latest Form 10-K, filed with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and the Company undertakes no obligation to update such statements.

About Bespoke Extracts, Inc.:

Bespoke Extracts, Inc. is a Nevada corporation operating in the regulated cannabis markets in the United States. Through its wholly-owned subsidiary, Bespoke Extracts Colorado, LLC, the Company operates a marijuana-infused products manufacturing facility in Aurora, Colorado, focusing on delivering high-quality products to licensed dispensaries under its rebranded portfolio, The Joint Company.

Contact:

Bespoke Extracts, Inc.
Email: info@bespokeextracts.com
Website: www.bespokeextracts.com

Note: The financial data in this press release is derived from the Company’s unaudited consolidated financial statements included in its Form 10-Q for the quarter ended March 31, 2025, filed with the SEC. Forward-looking revenue projections and expansion plans are based on management’s current expectations and are subject to change.

FAQ

What were Bespoke Extracts (BSPK) Q1 2025 earnings results?

BSPK reported Q1 2025 revenue of $263,159 (up 1% YoY), gross profit of $110,779, and a net loss of $260,521 (improved from $314,118 in Q1 2024).

How much revenue is BSPK projecting for Q2 2025?

BSPK projects Q2 2025 revenue to exceed $385,000, compared to $278,163 in Q2 2024, driven by new product lines and expanded processing services.

What new products did Bespoke Extracts launch under The Joint Company rebranding?

Under The Joint Company rebranding, BSPK launched two new products: Doobskis and Dutch Blunts, while continuing to grow their Fresh Joint product line.

How did BSPK's operating expenses change in Q1 2025?

Operating expenses decreased to $356,117 from $405,384 in Q1 2024, due to lower stock-based compensation, reduced salaries, and decreased professional fees.

What is BSPK's current financial position as of March 31, 2025?

BSPK has current assets of $123,120, current liabilities of $1,241,535, and a stockholders' deficit of $2,334,200.

How much did BSPK's pre-roll production increase in Q1 2025?

BSPK reported a 32% increase in daily pre-roll production compared to Q1 2024, enhancing their ability to offer competitive processing services.