PickleJar Entertainment Group, Inc. (OTC Pink: PKLE), a music and entertainment software company, has completed the audit of its financial statements for fiscal years ended December 31, 2024 and 2023. The audit, conducted by Astra Audit & Advisory, LLC, a Public Company Accounting Oversight Board (PCAOB)-registered firm, resulted in an unqualified opinion. The audited results reveal significant operational progress: total revenue grew approximately 138% to $557,585 in fiscal 2024, compared to $233,762 in fiscal 2023. Gross profit increased to $405,483 from $155,155, while loss from operations narrowed by approximately 45% to $1,537,352, down from $2,786,231 in the prior year.
The completion of the PCAOB audit marks a foundational step in PickleJar’s objective to become a fully reporting issuer with the U.S. Securities and Exchange Commission. However, the company cautions that no assurance can be given regarding the timing or completion of such registration. The audited financial statements, including the report of the Independent Registered Public Accounting Firm and accompanying footnotes, are available on the OTC Markets Disclosure & News Service and at investors.picklejar.com.
Despite the positive revenue and operational loss trends, the audit also highlights significant challenges. 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 as of December 31, 2024 raise substantial doubt about PickleJar’s ability to continue as a going concern for one year from the date the financial statements were issued. The company reported an accumulated deficit of $6,046,945 and a working capital deficit of $6,331,207 as of December 31, 2024. Net loss for fiscal 2024 was $1,975,754, compared to net income of $1,206,415 in fiscal 2023, which included a non-cash gain of approximately $4.4 million from fair-value remeasurement of Simple Agreements for Future Equity in connection with the November 2023 reverse recapitalization.
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 through additional personnel and qualified external specialists, formalizing policies and procedures, strengthening journal-entry review and approval, enhancing monitoring activities, and improving information technology general controls. The material weaknesses relate to the design and operation of a control environment commensurate with SEC-registrant requirements and are described in the audited financial statements. Remediation is expected to occur over multiple reporting periods.
Chief Executive Officer Jeff James commented, “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. We are proud of the operational progress reflected in these results, and we are clear-eyed about the work ahead - strengthening internal controls, addressing near-term liquidity, and executing toward SEC-reporting status. We intend to do that work transparently and deliberately.”
Management’s plans to address the going concern issues include obtaining additional financing and extending, restructuring, or converting existing obligations. Investors are encouraged to review the audited financial statements in their entirety, including disclosures regarding the company’s revolving credit facility, related-party transactions, and subsequent events. The forward-looking statements in this release are subject to risks and uncertainties, including those related to the company’s ability to continue as a going concern, material weaknesses in internal control, and reliance on related-party financing.
