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LQR House (LQR House) Beneish M-Score : -6.53 (As of May. 13, 2024)


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What is LQR House Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -6.53 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for LQR House's Beneish M-Score or its related term are showing as below:

LQR' s Beneish M-Score Range Over the Past 10 Years
Min: -6.53   Med: -6.53   Max: -6.53
Current: -6.53

During the past 3 years, the highest Beneish M-Score of LQR House was -6.53. The lowest was -6.53. And the median was -6.53.


LQR House Beneish M-Score Historical Data

The historical data trend for LQR House's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

LQR House Beneish M-Score Chart

LQR House Annual Data
Trend Dec21 Dec22 Dec23
Beneish M-Score
- - -6.53

LQR House Quarterly Data
Jun21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only - - - - -6.53

Competitive Comparison of LQR House's Beneish M-Score

For the Beverages - Wineries & Distilleries subindustry, LQR House's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


LQR House's Beneish M-Score Distribution in the Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, LQR House's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where LQR House's Beneish M-Score falls into.



LQR House Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of LQR House for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.4095+0.528 * -1.8306+0.404 * 0.0009+0.892 * 1.8669+0.115 * 1.0381
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 4.5454+4.679 * -0.439542-0.327 * 0.1395
=-6.53

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Dec23) TTM:Last Year (Dec22) TTM:
Total Receivables was $0.17 Mil.
Revenue was 0.609 + 0.171 + 0.191 + 0.151 = $1.12 Mil.
Gross Profit was 0.095 + 0.008 + 0.055 + 0.048 = $0.21 Mil.
Total Current Assets was $15.07 Mil.
Total Assets was $15.09 Mil.
Property, Plant and Equipment(Net PPE) was $0.01 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.21 Mil.
Selling, General, & Admin. Expense(SGA) was $13.91 Mil.
Total Current Liabilities was $0.47 Mil.
Long-Term Debt & Capital Lease Obligation was $0.00 Mil.
Net Income was -6.328 + -5.541 + -3.556 + -0.322 = $-15.75 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was -4.545 + -3.676 + -0.659 + -0.233 = $-9.11 Mil.
Total Receivables was $0.23 Mil.
Revenue was 0.368 + 0.13 + 0.075 + 0.028 = $0.60 Mil.
Gross Profit was 0.172 + 0.04 + -0.129 + -0.285 = $-0.20 Mil.
Total Current Assets was $0.55 Mil.
Total Assets was $2.63 Mil.
Property, Plant and Equipment(Net PPE) was $0.00 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.25 Mil.
Selling, General, & Admin. Expense(SGA) was $1.64 Mil.
Total Current Liabilities was $0.59 Mil.
Long-Term Debt & Capital Lease Obligation was $0.00 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(0.172 / 1.122) / (0.225 / 0.601)
=0.153298 / 0.374376
=0.4095

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(-0.202 / 0.601) / (0.206 / 1.122)
=-0.336106 / 0.183601
=-1.8306

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (15.074 + 0.008) / 15.093) / (1 - (0.547 + 0) / 2.63)
=0.000729 / 0.792015
=0.0009

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=1.122 / 0.601
=1.8669

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(0.252 / (0.252 + 0)) / (0.21 / (0.21 + 0.008))
=1 / 0.963303
=1.0381

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(13.908 / 1.122) / (1.639 / 0.601)
=12.395722 / 2.727121
=4.5454

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((0.003 + 0.47) / 15.093) / ((0 + 0.591) / 2.63)
=0.031339 / 0.224715
=0.1395

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(-15.747 - 0 - -9.113) / 15.093
=-0.439542

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

LQR House has a M-score of -6.53 suggests that the company is unlikely to be a manipulator.


LQR House Beneish M-Score Related Terms

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LQR House (LQR House) Business Description

Traded in Other Exchanges
N/A
Address
6800 Indian Creek Drive, Suite 1E, Miami Beach, FL, USA, 33141
LQR House Inc intends to become the full-service digital marketing and brand development face of the alcoholic beverage space. It also intends to integrate the supply, sales, and marketing facets of the alcoholic beverage space into one easy-to-use platform and become the one-stop shop for everything related to alcohol. The company's primary business includes the development of premium limited-batch spirit brands, establishing an exclusive wine club, and marketing internal and external brands through an exclusive agreement with a U.S.-based e-commerce portal. It believes that the marketing and brand management services it provides to its wholly owned and third-party clients will increase brand recognition thereof, and drive sales thereof through its e-commerce platform partner.
Executives
Sean Dollinger director, 10 percent owner, officer: Chief Executive Officer 6800 INDIAN CREEK DRIVE, SUITE 1E, MIAMI BEACH FL 33141
Gary L Herman director 720 FIFTH AVE, 10TH FLOOR, NEW YORK NY 10019
James C. Huber director 127 FLORENCE DRIVE, JUPITER FL 33458
Kbros, Llc 10 percent owner 23658 SAN VICENTE ROAD, RAMONA CA 92065
Guy Dollinger director 283 RUE PICASSO, DOLLARD-DES-ORMEAUX A8 H9A 3K2
Jaclyn Hoffman officer: Chief Marketing Officer 166 2ND AVENUE, APT 2A, NEW YORK NY 10003
Kumar Abhishek officer: Chief Financial Officer 25/3A, RAIL VIHAR, SECTOR 56, GURGAON K7 122002
Darren Collins director 22 RIVERVIEW ROAD, ALLISTON A6 L9M 1R2
Alexandra Hoffman director 6800 INDIAN CREEK DRIVE, APT 101, MIAMI BEACH FL 33141
James P. O'brien director 3000-360 MAIN STREET, WINNIPEG A2 R3C 4G1