PickleJar Entertainment Group, Inc. (OTC Pink: PKLE), a music and entertainment software company, announced the completion of audited financial statements for 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 growth of approximately 138% to $557,585 in fiscal 2024, while loss from operations narrowed approximately 45% to $1,537,352.
The completion of the audit is a foundational step in the company's objective to become a fully reporting issuer with the U.S. Securities and Exchange Commission. The audited financial statements are available on the OTC Markets Disclosure & News Service and at investors.picklejar.com.
Jeff James, Chief Executive Officer of PickleJar, 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." He added that the company is focused on strengthening internal controls, addressing near-term liquidity, and executing toward SEC-reporting status.
Selected fiscal year 2024 results include gross profit of $405,483, compared with $155,155 in 2023. Net loss for 2024 was $1,975,754, compared with net income of $1,206,415 in 2023, which included a non-cash gain of approximately $4.4 million from fair-value remeasurement of Simple Agreements for Future Equity. As of December 31, 2024, the company had an accumulated deficit of $6,046,945 and a working capital deficit of $6,331,207.
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 give rise to substantial doubt about PickleJar's ability to continue as a going concern for one year from the date the financial statements were issued. Management's plans 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, formalizing policies and procedures, strengthening journal-entry review and approval, enhancing monitoring activities, and improving information technology general controls. Remediation is expected to occur over multiple reporting periods.
The company cautions that forward-looking statements involve risks and uncertainties, including those related to its ability to continue as a going concern, remediate material weaknesses, and achieve SEC-reporting status. Investors are encouraged to review the audited financial statements in their entirety.
