OTC:BSPK
Bespoke Extracts, Inc.
Bespoke Extracts, Inc. is an industrial service provider focusing on specialized extraction solutions with a recent revenue turnaround.
Key Metrics
Investment Thesis
Bull Case
Investors might consider BSPK if they believe in the viability of its extraction technology and the potential for the recent capital expenditures to drive future revenue growth. The improving net income trend suggests operational stabilization, and the company has avoided tax expenses which preserves cash relative to peers.
Bear Case
The stock carries high risk due to negative equity of -$2.1M and a retained earnings deficit of -$26.4M indicating long-term solvency concerns. Operating cash flow remains deeply negative at -$289k, suggesting the business model struggles to generate organic liquidity without external financing.
About Bespoke Extracts, Inc.
Bespoke Extracts, Inc. (BSPK) operates in the industrial sector, providing specialized extraction services and related operational support to niche markets. The company has recently generated revenue of $1.1M with significant capital expenditures of $600k aimed at expanding its infrastructure. Despite recent profitability improvements, the firm continues to manage substantial debt levels and a historical retained earnings deficit.
Analysis
Management Discussion
Management has successfully improved net losses from -$4.1M in 2022 to -$1.0M in 2024 while growing revenue from zero to $1.1M over the last three years. However, the company still faces a cash flow deficit of nearly $290k and relies on non-cash adjustments totaling $272k to balance its books.
Industry Overview
The industrial extraction sector is competitive but offers opportunities for specialized players who can reduce costs and improve efficiency through technological innovation. Companies in this space often face cyclical demand driven by raw material prices and regulatory changes affecting extraction permits.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue | $3.4K | $785.5K | $1.1M |
| Cost of Revenue | $1.1K | $442.3K | $664.5K |
| Gross Profit | $2.3K | $343.2K | $452.9K |
| Operating Expenses | $4.0M | $1.8M | $1.4M |
| Operating Income | $-4.0M | $-1.5M | $-994.6K |
| G&A | $3.7M | $1.6M | $1.3M |
| Stock-Based Comp | $1.1M | $380.4K | $197.5K |
| Depreciation | — | $9.0K | $9.6K |
| Other OpEx | $280.6K | $228.5K | $168.2K |
| Non-Operating Income | $-95.6K | $-10.9K | $-42.8K |
| Pre-Tax Income | $-4.1M | $-1.5M | $-1.0M |
| Income Tax | $0 | $0 | $0 |
| Continuing Ops | $-4.1M | $-1.5M | $-1.0M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $-4.1M | $-1.5M | $-1.0M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $-4.1M | $-1.5M | $-1.0M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Current Assets | $111.7K | $81.8K | $165.3K |
| Cash & Equivalents | $24.4K | $6.6K | — |
| Accounts Receivable | — | $45.2K | $57.3K |
| Inventory | — | $15.8K | $32.5K |
| Other Current Assets | $87.3K | $14.2K | $75.5K |
| Long-Term Assets | $297.9K | $272.5K | $193.8K |
| PP&E (Net) | $9.9K | $41.0K | $31.3K |
| Operating Leases | $275.9K | $209.5K | $140.5K |
| Other LT Assets | $12.0K | $22.0K | $22.0K |
| Total Assets | $409.6K | $354.4K | $359.1K |
| Current Liabilities | $865.6K | $1.1M | $1.1M |
| Current Leases | $64.3K | $64.3K | $73.5K |
| Other Current Liab | $801.3K | $1.0M | $1.0M |
| Long-Term Liabilities | $216.0K | $1,000.0K | $1.3M |
| LT Operating Leases | $216.0K | $150.5K | $72.5K |
| Other LT Liab | $0 | $849.5K | $1.3M |
| Total Liabilities | $1.1M | $2.1M | $2.5M |
| Shareholders' Equity | $-672.1K | $-1.7M | $-2.1M |
| Paid-In Capital | $23.2M | $23.6M | $24.3M |
| Retained Earnings | $-23.9M | $-25.4M | $-26.4M |
| Total L&E | $409.6K | $354.4K | $359.1K |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Net Income (CFO) | $-4.1M | $-1.5M | $-1.0M |
| Non-Cash Adjustments | $3.2M | $368.6K | $272.5K |
| Working Capital Changes | $136.2K | $699.1K | $475.2K |
| Cash from Operations | $-798.1K | $-415.2K | $-289.8K |
| Capital Expenditures | $7.2K | — | $600.0K |
| Cash from Investing | $-88.0K | $0 | $0 |
| Cash from Financing | $762.2K | $397.4K | $343.5K |
| FX Effect | $0 | $0 | $0 |
| Net Change in Cash | $-123.8K | $-17.8K | $53.7K |
| Beginning Cash | $148.2K | $24.4K | $6.6K |
| Ending Cash | $24.4K | $6.6K | $60.3K |
Frequently Asked Questions
How does Bespoke Extracts, Inc. make money?
Primary revenue streams include core extraction services, ancillary operational support contracts, and potential future ventures in asset redevelopment supported by recent capital investments.
What are the main risks for BSPK?
Significant debt burden with total liabilities of $2.5M against negative shareholders' equity, persistent negative operating cash flow, high general and administrative expenses relative to revenue, and reliance on a small customer base.
What is BSPK's competitive advantage?
The company leverages proprietary extraction methodologies, maintains flexibility in niche market entry, and utilizes recent capital expenditures to modernize its operational capacity.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.