If you’re curious about how Kona Gold Beverage, Inc. (OTC: KGKG) is performing financially, you’re not alone. As someone who’s followed small-cap beverage stocks for years—sometimes getting my hands dirty with actual filings, sometimes just shaking my head at the hype—I know how tough it can be to cut through jargon and get real answers. In this article, I’ll walk you through KGKG’s most recent earnings report, break down the main numbers and trends, and share a bit of personal insight (including where I’ve tripped up reading these reports myself). Along the way, we’ll look at how to verify financial results, touch on regulatory frameworks, and even compare international standards for "verified trade" reporting. Whether you’re a retail investor, a curious observer, or just trying to make sense of pink sheet disclosures, you’ll find actionable information here.
Let’s get practical first. If you want the latest numbers for KGKG, the primary sources are:
The interface is pretty basic—no Yahoo Finance-style charts here. You’ll see PDFs like “Quarterly Report – Q1 2024” or “Annual Report – 2023.” I once accidentally downloaded a disclosure from two years ago, thinking it was current—so always check the date! (I now double-check the filing timestamp in the rightmost column; lesson learned.)
For the three months ended March 31, 2024, here are the main takeaways from KGKG’s official disclosure:
So, revenue growth is there—the company’s product pipeline (including its hemp-infused energy drinks and new Ooh La Lemin line) seems to be gaining traction. But the losses are growing too, mainly due to higher operating expenses and increased cost of goods sold. This is typical for beverage startups: scaling production and marketing before reaching profitability.
To put it in perspective, a friend of mine in beverage distribution once told me, “Most upstart drink brands bleed money for years before they find their groove. What you want to see is sales velocity and evidence they’re not burning cash faster than they can raise it.” I’ve seen companies with far worse burn rates than KGKG, but the tiny cash balance here is a yellow flag—especially if you’re used to more established players with big war chests.
Here’s a curveball: how do we know these numbers are real? For OTC companies, financials are often “unaudited”. KGKG’s Q1 2024 filing is a self-reported document, not a full-blown 10-Q reviewed by an independent auditor. The OTC Markets platform requires companies to follow “Alternative Reporting Standard” (ARS) rules (source), which are less strict than SEC requirements.
If KGKG were trading on a major exchange or had significant international trade, you’d see references to international accounting standards (like IFRS), and filings would be subject to more rigorous review. In fact, the OECD’s Common Reporting Standard and the WTO’s transparency rules set global baselines for trade documentation and company financial reporting.
| Country/Region | Standard Name | Legal Basis | Enforcing Agency |
|---|---|---|---|
| USA | SEC 10-Q/10-K, GAAP | Securities Exchange Act of 1934 | SEC |
| EU | IFRS, ESEF | EU Transparency Directive | ESMA, National Regulators |
| China | China GAAP | Company Law of PRC | CSRC |
| OTC US | Alternative Reporting Standard | OTC Markets Group Rulebook | OTC Markets Group |
Here’s the thing: KGKG, being an OTC company, falls under the bottom row—disclosures are “verified” only to the extent that management asserts their truthfulness. There’s no outside auditor unless the company pays for one.
Let’s say a US-based beverage startup like KGKG wants to export to the EU. Imagine the EU customs authority demands an IFRS-audited financial statement, but KGKG only has an ARS/unaudited report. The shipment is delayed, and the company’s local distributor in France complains: “We can’t clear your goods until your paperwork is up to EU standards.” This is a real problem for lots of fast-growing US OTC companies. Some end up hiring international auditors just to move product across borders.
In a 2023 industry webinar, an EU trade compliance expert commented, “We routinely see documentation issues with North American microcaps. If they want to play in our market, compliance with ESEF and IFRS is not optional.” (source)
I once asked a compliance officer at a mid-sized beverage firm about this. She laughed: “Our CEO thought the OTC Pink disclosure was enough. Customs disagreed.” She advised any company with global ambitions to “plan ahead for the reporting leap, or risk losing deals.”
In my view, KGKG’s latest financials show a company with some real sales momentum but also significant capital constraints. The unaudited nature of their reports means you have to read between the lines—and maybe take the numbers with a pinch of salt. If you’re thinking about investing, pay attention not just to revenue growth but to cash burn, upcoming capital raises, and any signs of auditor involvement in future filings.
If you want to dig deeper, check the KGKG disclosure page regularly for new updates. For those considering international trade or investment, remember that documentation standards matter—a lot more than most OTC companies realize.
As a next step, I’d recommend comparing KGKG’s filings with those of a peer that’s uplisted to NASDAQ or NYSE. Notice the difference in audit rigor, detail, and market reaction. It’s an eye-opener, and it’ll make you a savvier reader of small-cap financials.
If you have your own war stories or questions about reading OTC financials, let me know—I’ve made my share of mistakes and learned a lot the hard way. And if you want to see the official documentation on verified trade standards, check out the WTO Trade Facilitation Agreement and the OECD CRS for a global perspective.