Yuenglings Ice Cream Corp SEC 10-Q Report

Yuenglings Ice Cream Corp, a company traditionally known for its ice cream products, has released its Form 10-Q report for the third quarter of 2024. The report reveals significant financial growth and a strategic pivot in business operations following the acquisition of ReachOut Technology Corp. This shift marks the company's transition from the ice cream industry to providing cybersecurity and IT services for small and medium-sized businesses (SMBs).

Financial Highlights

Revenue: The company reported revenue of $1,036,171 for the three months ended September 30, 2024, and $4,447,273 for the nine months ended September 30, 2024. This reflects significant growth compared to the same periods in 2023.

Gross Profit: Gross profit stood at $783,578 for the three months ended September 30, 2024, and $2,758,990 for the nine months ended September 30, 2024, indicating improved cost management and efficiency.

Loss from Operations: The company reported a loss from operations of $(191,865) for the three months ended September 30, 2024, and $(3,434,102) for the nine months ended September 30, 2024, highlighting challenges in managing operating expenses.

Net Income: Net income was $13,383,099 for the three months ended September 30, 2024, and $2,722,956 for the nine months ended September 30, 2024, driven by gains from changes in fair market value and debt extinguishment.

Basic Income (Loss) per Share: Basic income per share was $0.04 for the three months ended September 30, 2024, and $0.01 for the nine months ended September 30, 2024, reflecting the impact of net income improvements.

Business Highlights

Geographical Performance: The company reported revenue from two main regions: the Northeast region generated $2,662,182, while the Southeast region contributed $1,825,091 for the nine months ended September 30, 2024. This indicates a stronger performance in the Northeast region compared to the Southeast.

Business Transition: In November 2023, Yuengling’s Ice Cream Corporation completed its acquisition of ReachOut Technology Corp., a Managed Service Provider specializing in cybersecurity and IT services for SMBs. This acquisition marks a significant shift in the company's business focus from ice cream to technology services.

Operational Changes: Following the acquisition of ReachOut, the company assigned its ice cream assets to Mid Penn Bank in exchange for the cancellation of bank debt and ceased its Aureus Micro Markets operations. This strategic move aligns with the company's new focus on technology services.

Reverse Merger: The acquisition of ReachOut Technology Corp. was structured as a reverse merger, with ReachOut being treated as the acquirer for accounting purposes. This means that the historical financial results now reflect those of ReachOut, emphasizing the company's pivot to technology services.

Future Outlook: The company is focused on integrating and expanding the operations of its newly acquired subsidiaries, ReachOut IND and RedGear, to enhance its service offerings in cybersecurity and IT management solutions. The management is experienced in business operations, acquisition, and integration, which is expected to support future growth.

SEC Filing: Yuenglings Ice Cream Corp [ YCRM ] - 10-Q - Jan. 31, 2025