PickleJar Entertainment Group, Inc. (OTC Pink: PKLE), a music and entertainment software company, 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 results highlight significant operational progress: revenue grew approximately 138% to $557,585 in fiscal 2024, and loss from operations narrowed approximately 45% to $1,537,352.
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.
Selected audited results for fiscal 2024 include total revenue of $557,585, compared with $233,762 in fiscal 2023; gross profit of $405,483, compared with $155,155; and a net loss of $1,975,754, compared with net income of $1,206,415 in fiscal 2023. The prior year's net income was primarily driven by 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 and is not indicative of operating performance. The company reported an accumulated deficit of $6,046,945 and a working capital deficit of $6,331,207 as of December 31, 2024.
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.
Jeff James, Chief Executive Officer, commented, "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. We intend to do that work transparently and deliberately."
Despite the positive revenue and loss trends, the audited financial statements include disclosures that raise substantial doubt about the company's ability to continue as a going concern for one year from the date the financial statements were issued. As disclosed in Note 2 to the audited financial statements, 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.
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. The company's ability to achieve SEC-reporting status and sustain growth depends on successfully addressing these financial and internal control challenges.
