Item 1A. Risk Factors
ITEM 1A. RISK FACTORS
There can be
no assurances that the common stock will not be subject to potential delisting if the Company do not continue to maintain
the listing requirements of the NYSE American.
Since June 11, 2021,
the common stock has been listed on the NYSE American, under the symbol “SBEV”. The NYSE American has rules for
continued listing, including, without limitation, minimum market capitalization and other requirements. Failure to maintain our
listing (i.e., being de-listed from the NYSE American), would make it more difficult for shareholders to sell our common stock
and more difficult to obtain accurate price quotations on our common stock. This could have an adverse effect on the price of common
stock. The ability to issue additional securities for financing or other purposes, or otherwise to arrange for any financing the
Company may need in the future, may also be materially and adversely affected if common stock is not traded on a national securities
exchange.
As of September 30, 2023, we have
a negative stockholders’ equity. If we are unable to raise additional capital, or otherwise become unable
to satisfy our obligations as they become due, we may become insolvent and face the risk of bankruptcy.
Since our inception and throughout most
of our history, we have incurred net losses, including but not limited to, a net loss of $16,897,065 incurred in Fiscal 2022. As
of December 31, 2022, we also reported positive stockholders’ equity of $9,322,134 and a gross loss of $$112,331,027. However,
as of September 30, 2023, our current shareholders’ equity is ($657,830). We incur substantial expenditures related to manufacturing
products in the United States, sales and marketing, general and administrative and research and development purposes. Our ability
to achieve profitability in the future will primarily depend on our ability to increase sales of our products. Stockholders’
equity improvement will also be dependent on our ability to increase sales which will increase the value of our assets and decrease
our liabilities. Future profitability is dependent on our ability to reduce manufacturing costs. However, some manufacturing costs
are fixed and cannot be reduced.
Upon the occurrence of a breach relating to our outstanding notes,
the lender may seek to remedy.
We may have breached terms on certain of our outstanding loans by violating
certain covenants. Although we have not been informed by any of our lenders that we are in default, such lenders could do so, and at such
time the lenders may seek to remedy. It is possible that the occurrence of such an event could place us in breach of other outstanding
agreements as well. At this time we are current on all of our outstanding payments with respect to all of our outstanding agreements.
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