Iconic Brands Reports Record Revenues for its Third Quarter 2021 Financial Results - Seite 3

Third Quarter 2021 Financial Results

Iconic generated revenue of $2,846,437, compared to revenue of $712,198 for the three months ended September 30, 2020, an increase of $2,134,239 or approximately 300%. This increase of $2,134,239 was due primarily to a $2,045,000 increase in sales from newly acquired TopPop, as well as a $89,000 increase in sales of alcohol-related products.

The Company had a net loss for the three months ended September 30, 2021, of $3,657,565, as compared to net loss of $1,219,101 for the three months ended September 30, 2020. The net loss for the three months ended September 30, 2021 included non-cash stock-based compensation expense of approximately $469,000 and expenses associated with the financing and acquisition of TopPop of approximately $2,000,000.

Regarding results of operations for the nine months ended September 30, 2021, we generated revenue of $4,065,884, as compared to revenue of $2,173,684 for the nine months ended September 30, 2020, an increase of $1,892,200 or approximately 87%. The increase of $1,892,200 was due primarily to a $2,045,000 increase in sales from newly acquired TopPop, offset by a decrease of $152,800 in sales of our alcohol-related products.

The Company had a net loss for the nine months ended September 30, 2021 of $6,000,537, compared to a net loss of $2,608,729 for the nine months ended September 30, 2020.

Operating expenses were $4,040,691 for the three months ended September 30, 2021, compared to $1,080,336 for the three months ended September 30, 2020, an increase of $2,960,355 or approximately 267%. Net operating (loss) was ($3,345,342) for the three months ended September 30, 2021, compared to ($637,901) for the three months ended September 30, 2020, an increase of $2,707,441 or approximately 424%.

Cost of sales was $2,151,088, or approximately 75% of sales, for the three months ended September 30, 2021, and $269,763, or approximately 38% of sales, for the three months ended September 30, 2020. Cost of sales included the cost of the products purchased from the Company’s suppliers, freight-in costs and import duties. The significant increase in cost of goods as a percentage of sales, year-over-year, was due to the change in product mix in 2021 as a result of the TopPop acquisition. Cost of goods for the three months ended September 30, 2021 for our alcohol sales were approximately 38%, which is similar to the prior year, while the costs associated with the TopPop acquisition were approximately 95% during the three months ended September 30, 2021, due to significant labor costs and write down of perishable items as the summer production season wound down. The historical cost of goods for TopPop is approximately 65% and the Company expects to achieve that margin in future quarters.