SNAKES & LATTES INC. (OTC: FUNN) is Pleased to Report an Almost 200% Increase in Year Over Year FY22 Revenue at $6,064,896, up From $2,027,988 for FY21, With Gross Profits up From $1,369,514 to $4,223,022
TORONTO, ON, Sept. 27, 2022 (GLOBE NEWSWIRE) — via NewMediaWire – SNAKES & LATTES INC. (OTC: FUNN) is pleased to report an almost 200% increase in year over year FY22 revenue at $6,064,896, up from $2,027,988 for FY21, with gross profits up from $1,369,514 to $4,223,022.
Cash on hand at the end of the fiscal year was $55,156 with total assets of $4,083,773 over total liabilities of $9,037,903.
Cost of goods sold remains in line with expectations, hovering around 30% for the year.
Net Income was -$2,089,972 FY22 compared to -$3,564,440 FY21.
The total outstanding common share count of the company was 758,849,876 as of June 30th, 2022.
“Fiscal year 2022 was a challenging but transitional year. The numerous operational efficiencies designed and implemented are bearing fruit. We continuously look for ways to increase our KPI metrics and see positive trends in customer receipt value and operational cost reductions. Our revenues are trending significantly positive and closing the gap between gross profit and net income towards overall profitability. We are invigorated by this trend and believe it possible FY23 is the year we achieve aggregate profitability,” said Snakes & Lattes Inc. Founder, Ben Castanie.
During the pandemic, a significant amount of liability was incurred from government subsidy loans. Per accounting principles, these must be listed as liabilities. As debt forgiveness is processed, these come out of liabilities and move to income. While a significant portion has already been completed, there is still close to one half million remaining under liabilities that will be moved to income once forgiveness is finalized.
The past fiscal year represents a positive shift for Snakes & Lattes. The pandemic and resultant environment created numerous hurdles for the company, a couple which are still being navigated. Staffing and training remains a focal point for the company. The company experienced temporary location closures and/or operational restrictions in some locations during this fiscal year. While we have recovered from these and are trending positive, this fact had some impact on the overall annual numbers. However, as the numbers show, a healthy increase in comparative year over year revenues was still achieved. As we now have few restrictions and full operations, we are positioned well for the upcoming busy holiday season and the rest of FY23.
The pandemic also created a need for critical focus. This led to a hard look at all the areas of the company and the projects it was working on, and deprioritizing anything that did not directly contribute to maximizing revenues/location profitability. The current operational goal now being to open up profitable locations across the United States. We will only expand in Canada if the location is extremely attractive from all aspects. The US locations are needed for data leading to a higher level of financial growth; be it scale, bank and institutional level investment, profitability, auditing and uplist.
Within this strategy; if we find a location is not performing up to expectations despite operational improvements and we cannot see a path forward to profitability, then we may elect to divest ourselves of that location. This was the case for our Snakes & Lattes location in Guelph. After a comprehensive review of its operational metrics, costs, and revenues the company decided this location would ultimately not achieve profitability without significant financial and human resources. Even if such additional resources were applied, the risk of continued loss was too great. The location was closed on September 12th, 2022. On the opposite end of the spectrum, Tempe Snakes & Lattes continues to be the largest revenue generator and is trending well. This location remains the flagship for the United States locations and a model for operations. During Q4 of FY22, we also began to recognize revenue in our Provo, UT Snakes & Lattes location.
While the company continues to work on promising initiatives, implementation of many has seen a delay while we apply resources to work through staffing and training. We will report on initiative implementation as solid news becomes available. Until then, the sole focus is on optimizing current locations and US location expansion. As previously mentioned we currently have a signed loan agreement for specific locations to be funded. Currently, two locations are undergoing due diligence. Profitability is still a necessity and is a continued process until the goal is achieved.
As always, a big thank you to all our supporters and loyal customers, we continue to serve in honor to create the best possible experience for our patrons. The future of Snake and Lattes is very bright as we continue to focus on operational improvements and add on new locations; building our brand. Creating memorable quality human interactive experiences keeps us going, and at all times we keep the mission of ‘Snakes and Lattes locations coast in coast’ at the forefront of our strategy.
See you at Snakes & Lattes!
About Snakes & Lattes Inc.
Snakes & Lattes Inc. currently operates 7 tabletop gaming bars and cafes: 3 located in Toronto, Ontario, Canada, 1 in Tempe, Arizona, 1 in Tucson, Arizona, 1 in Provo, Utah, and 1 in Chicago, Illinois. The company is in the process of expanding throughout North America. Snakes & Lattes Inc. was the first board game bar and cafe in North America, and is believed to be the largest in the world. Our board game cafes have the largest circulating public library of board games in North America for customers to choose from.
For more information on Snakes & Lattes Inc., please visit the website at www.snakesandlattes.com.
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Snakes & Lattes Inc.
Telephone: (416) 500-2911