Bespoke Extracts' Sales Surge 68% Amid Deepening Going Concern Doubts

TL;DR

**BSPK's sales are booming, but their massive debt and negative cash flow mean they're burning cash faster than they're growing, making this a high-risk bet on a turnaround.**

AI Summary

Bespoke Extracts, Inc. (BSPK) reported a significant increase in sales for the three months ended September 30, 2025, reaching $467,945, up 68.6% from $277,471 in the prior year. For the nine months, sales grew to $1,121,657, a 37.5% increase from $816,062 in 2024. Despite revenue growth, the company continues to operate at a net loss, reporting a net loss of $78,088 for the quarter, a substantial improvement from a $275,613 net loss in the same period last year. The nine-month net loss also improved to $543,715 from $850,626. However, BSPK faces significant financial challenges, including negative cash flows from operations of $123,562, a working capital deficit of $1,675,749, and an accumulated deficit of $26,947,831 as of September 30, 2025, raising substantial doubt about its ability to continue as a going concern. The company's total liabilities increased to $2,891,081 from $2,451,026 at December 31, 2024, driven by a rise in accounts payable and accrued liabilities to $1,392,869.

Why It Matters

Bespoke Extracts' robust sales growth of 68.6% quarter-over-quarter is a positive signal for its market penetration in the regulated cannabis sector, potentially attracting investors looking for growth stories. However, the persistent and significant accumulated deficit of $26,947,831 and a working capital deficit of $1,675,749 pose an existential threat, indicating severe liquidity issues. This financial instability could impact employees through job insecurity, customers through potential service disruptions, and the broader market by highlighting the challenges smaller players face in capital-intensive, highly regulated industries like cannabis, especially against larger, better-capitalized competitors.

Risk Assessment

Risk Level: high — Bespoke Extracts has a working capital deficit of $1,675,749 and an accumulated deficit of $26,947,831 as of September 30, 2025. The company also reported negative cash flows from operations of $123,562 for the nine months ended September 30, 2025, which collectively raises substantial doubt about its ability to continue as a going concern.

Analyst Insight

Investors should exercise extreme caution and consider this a highly speculative investment. Await clear evidence of sustained profitability and significant improvement in working capital and overall financial health before considering a position, as the going concern risk is substantial.

Financial Highlights

debt To Equity

N/A

revenue

$467,945

operating Margin

-11.5%

total Assets

$295,573

total Debt

$2,891,081

net Income

$(78,088)

eps

N/A

gross Margin

50.0%

cash Position

$16,743

revenue Growth

+68.6%

Key Numbers

• $467,945 — Quarterly Sales (Increased 68.6% from $277,471 in Q3 2024)
• $1,121,657 — Nine-Month Sales (Increased 37.5% from $816,062 in 2024)
• $(78,088) — Quarterly Net Loss (Improved from $(275,613) in Q3 2024)
• $(543,715) — Nine-Month Net Loss (Improved from $(850,626) in 2024)
• $(123,562) — Net Cash Used in Operating Activities (For the nine months ended September 30, 2025)
• $(1,675,749) — Working Capital Deficit (As of September 30, 2025, indicating severe liquidity issues)
• $(26,947,831) — Accumulated Deficit (As of September 30, 2025, highlighting historical losses)
• $1,392,869 — Accounts Payable and Accrued Liabilities (Increased from $958,276 at December 31, 2024)
• $16,743 — Cash at End of Period (As of September 30, 2025, down from $60,305 at December 31, 2024)
• 11,253,552 — Common Shares Outstanding (As of November 10, 2025)

Key Players & Entities

• Bespoke Extracts, Inc. (company) — registrant
• Bespoke Extracts Colorado, LLC (company) — wholly owned subsidiary
• Michael Feinsod (person) — Chief Executive Officer
• Infinity Management, LLC (company) — related party lender
• SEC (regulator) — filing authority
• $467,945 (dollar_amount) — sales for three months ended September 30, 2025
• $1,121,657 (dollar_amount) — sales for nine months ended September 30, 2025
• $78,088 (dollar_amount) — net loss for three months ended September 30, 2025
• $1,675,749 (dollar_amount) — working capital deficit as of September 30, 2025
• $26,947,831 (dollar_amount) — accumulated deficit as of September 30, 2025

FAQ

Risk Factors

• Going Concern Uncertainty [high — financial]: The company faces substantial doubt about its ability to continue as a going concern due to negative cash flows from operations of $123,562 for the nine months ended September 30, 2025, a working capital deficit of $1,675,749, and an accumulated deficit of $26,947,831 as of the same date. The company's ability to continue is contingent on achieving profitable operations and/or securing necessary financing.
• Increasing Liabilities [high — financial]: Total liabilities increased to $2,891,081 as of September 30, 2025, from $2,451,026 at December 31, 2024. This increase is primarily driven by a rise in accounts payable and accrued liabilities to $1,392,869, indicating potential short-term liquidity pressures.
• Deteriorating Cash Position [high — financial]: The company's cash at the end of the period significantly decreased to $16,743 as of September 30, 2025, down from $60,305 at December 31, 2024. This sharp decline in cash reserves exacerbates liquidity concerns.
• Operating Losses [medium — operational]: Despite significant revenue growth, the company continues to incur operating losses. For the nine months ended September 30, 2025, the loss from operations was $461,187, and for the quarter it was $53,891. This indicates that the cost of goods sold and operating expenses are outpacing revenue generation.
• Cannabis Market Operations [medium — regulatory]: The company operates within regulated cannabis markets in the United States through its Colorado subsidiary. This subjects the company to evolving and complex state and federal regulations, which can impact operations, compliance costs, and market access.

Industry Context

Bespoke Extracts operates in the highly regulated US cannabis market, specifically in infused product manufacturing in Colorado. This sector is characterized by rapid growth potential but also faces significant regulatory hurdles, intense competition, and evolving consumer preferences. Companies in this space often struggle with profitability due to high operating costs and compliance requirements.

Regulatory Implications

Operating in the cannabis industry subjects Bespoke Extracts to a complex and changing regulatory landscape at both state and federal levels. Compliance with these regulations is critical and can lead to significant operational costs and potential legal challenges if not managed effectively.

What Investors Should Do

1. Monitor cash burn and financing activities closely.
2. Analyze the sustainability of revenue growth against rising costs.
3. Assess the company's strategy for addressing its working capital deficit and accumulated deficit.

Key Dates

• 2025-09-30: End of Q3 2025 — Reporting period for the 10-Q, showing significant revenue growth but continued net losses and severe liquidity concerns, including a working capital deficit and negative operating cash flow.
• 2025-12-31: End of Fiscal Year 2024 — Prior period balance sheet data used for comparison, showing a higher cash position and lower total liabilities than at the end of Q3 2025.

Glossary

Going Concern

An accounting assumption that a company will continue to operate for the foreseeable future. If substantial doubt exists, it must be disclosed. (The company's financial condition raises substantial doubt about its ability to continue as a going concern, a critical disclosure for investors.)

Working Capital Deficit

Occurs when current liabilities exceed current assets, indicating a potential inability to meet short-term obligations. (Bespoke Extracts has a significant working capital deficit of $1,675,749, highlighting severe liquidity issues.)

Accumulated Deficit

The total cumulative net losses of a company since its inception that have not been offset by profits or capital contributions. (The company has a substantial accumulated deficit of $26,947,831, reflecting a history of unprofitability.)

Accounts Payable and Accrued Liabilities

Obligations to pay for goods or services received but not yet paid for, and other short-term expenses incurred but not yet paid. (These liabilities have increased significantly to $1,392,869, contributing to the company's liquidity challenges.)

Year-Over-Year Comparison

Compared to the prior year's comparable period, Bespoke Extracts has demonstrated impressive revenue growth, with quarterly sales up 68.6% to $467,945 and nine-month sales up 37.5% to $1,121,657. The net loss has also significantly improved, with the quarterly loss narrowing from $275,613 to $78,088. However, the company's financial health has deteriorated in other critical areas, notably a sharp decrease in cash reserves and a substantial increase in total liabilities, primarily driven by higher accounts payable and accrued liabilities, exacerbating its going concern issues.

Key Financial Figures

• $0.001 — he registrant's common stock, par value $0.001. TABLE OF CONTENTS Page No. PART I

Filing Documents

• ea0261159-10q_bespoke.htm (10-Q) — 529KB
• ea026115901ex31-1_bespoke.htm (EX-31.1) — 12KB
• ea026115901ex32-1_bespoke.htm (EX-32.1) — 4KB
• 0001213900-25-108632.txt ( ) — 3977KB
• bspk-20250930.xsd (EX-101.SCH) — 31KB
• bspk-20250930_cal.xml (EX-101.CAL) — 35KB
• bspk-20250930_def.xml (EX-101.DEF) — 201KB
• bspk-20250930_lab.xml (EX-101.LAB) — 360KB
• bspk-20250930_pre.xml (EX-101.PRE) — 211KB
• ea0261159-10q_bespoke_htm.xml (XML) — 357KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION 1 Item 1.

Financial Statements

Financial Statements 1 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 14 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 17 Item 4

Controls and Procedures

Controls and Procedures 18

- OTHER INFORMATION

PART II - OTHER INFORMATION 19 Item 1.

Legal Proceedings

Legal Proceedings 19 Item 1A.

Risk Factors

Risk Factors 19 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 19 Item 3. Defaults Upon Senior Securities 19 Item 4. Mine Safety Disclosures 19 Item 5. Other Information 19 Item 6. Exhibits 19 i PART I

Financial Statements

Item 1. Financial Statements. Bespoke Extracts, Inc. Consolidated Balance Sheets (Unaudited) September 30, December 31, 2025 2024 Assets Current assets Cash $ 16,743 $ 60,305 Accounts receivable, net 103,532 57,276 Prepaid expense 12,895 15,150 Inventory, net 63,662 32,526 Total current assets 196,832 165,257 Furniture and equipment 24,051 31,342 License 10,000 10,000 Right of Use Asset 52,690 140,489 Deposits 12,000 12,000 Total assets $ 295,573 $ 359,088 Liabilities and Stockholders' Equity Current liabilities Accounts payable and accrued liabilities $ 1,392,869 $ 958,276 Note payable 25,000 20,000 Advances - related party 66,872 66,872 Operating lease liability 52,650 73,523 Notes payable -- secured (Net of discount of $ 49,810 ) 335,190 - Total current liabilities 1,872,581 1,118,671 Long-Term liabilities Notes payable - - secured (Net of discount of $ 68,649 ) - 241,351 Notes payable 169,000 169,000 Note payable - related party 849,500 849,500 Long-Term Operating Lease Liability - 72,504 Total liabilities 2,891,081 2,451,026 Commitments and contingencies (Note 10) Stockholders' Deficit Preferred stock, par value $ 0.001 , 50,000,000 shares authorized, 1 share issued and outstanding as of September 30, 2025 and December 31,2024, respectively - - Series C Convertible Preferred Stock, $ 0.001 par value, 1 share designated; 1 share issued and outstanding as of September 30, 2025 and December 31, 2024, respectively, stated value $ 24,000 . - - Common stock, $ 0.001 par value: 3,000,000,000 authorized; 11,253,220 and 11,153,220 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively 11,251 11,151 Common stock to issue 6,478 shares - - Additional paid-in capital 24,341,072 24,301,027 Accumulated deficit ( 26,947,831 ) ( 26,404,116 ) Total stockholders' deficit ( 2,595,508 ) ( 2,091,938 ) Total liabil

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2025 (Unaudited) 1. NATURE OF OPERATIONS, SIGNIFICANT ACCOUNTING POLICIES AND GOING CONCERN Bespoke Extracts, Inc. is a Nevada corporation focused on operating in the regulated cannabis markets in the United States. Through Bespoke Extracts Colorado, LLC ("Bespoke Colorado"), we operate a marijuana infused products production facility in Aurora, Colorado. Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of Bespoke Extracts, Inc., and its wholly owned subsidiary Bespoke Extracts Colorado, LLC (collectively, the "Company"). All inter-company balances have been eliminated. The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP"). These of the consolidated financial statements and have been prepared on a consistent basis using the accounting policies described in the summary of accounting policies included in the Company's 2024 Annual Report on Form 10-K (the "Form 10-K"). Certain information and note disclosures normally included in the financial statements prepared in accordance with US GAAP have been condensed, or omitted pursuant to such rules and regulations, although the Company believes that the accompanying disclosures are adequate to make the information presented not misleading. The accompanying unaudited financial statements should be read in conjunction with the financial statements and notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 as filed with the SEC. Operating results for the three and nine months ended September 30, 2025 are not necessarily indicative of the results that may be expected for the year ending December

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