1. LQR House is like the exclusive digital marketing and brand development department for an online alcohol retailer similar to Drizly or ReserveBar, meaning they control how brands are promoted on that platform.

2. Think of them as a specialized beverage brand accelerator (akin to a venture arm of Constellation Brands for spirits) that also holds exclusive marketing rights to a significant online alcohol marketplace, like Drizly.

• Digital Marketing and Brand Development Services: LQR House offers full-service digital marketing and brand development, primarily for alcoholic beverages and related products, including managing user-facing content and promotional initiatives on the CWS Platform.
• SWOL Tequila Brand: The company owns and markets the SWOL brand of tequila, coordinating its manufacturing and import for distribution through its partner, CWS.
• Soleil Vino Brand: LQR House owns and markets the Soleil Vino brand, encompassing all associated trademarks, intellectual property, and digital content.

LQR House (YHC) sells primarily to other companies. Its major customers are:

• Country Wine & Spirits Inc. (CWS): CWS is a key partner and customer. LQR House receives purchase orders from CWS for its SWOL tequila brand, and CWS pays LQR House for these orders. Additionally, CWS relies on LQR House for exclusive marketing rights, user-facing content management, and promotional initiatives on the CWS platform. CWS is not a public company.
• Third-Party Brands: Other alcoholic beverage brands that seek to have their products marketed on the CWS Platform must become clients of LQR House Inc. This indicates that other brands are customers for LQR House's marketing and brand promotion services. No specific third-party brands are named as current customers in the provided text, and their public status is unknown.

• Country Wine & Spirits Inc.
• Ssquared Spirits, LLC
• Rilo Import & Export Inc.
• Leticia Hermosillo Raverero

Sean Dollinger - Chief Executive Officer and Director

Sean Dollinger, appointed CEO of LQR House in January 2021, is a serial entrepreneur with a diverse background in e-commerce. He founded LQR House and launched SWOL Tequila in 2020. In the early 2000s, he started a food delivery service and later built a successful e-commerce business selling satellite parts. He also founded PlantX Life Inc. in 2019, taking it public. Dollinger previously served as CEO & Director of Veg House Holdings, Inc., President, CEO & Non-Independent Director of Namaste Technologies, Inc. (now Lifeist Wellness Inc.), and Founder of JIVA Technologies, Inc. He continues to consult for various public companies while also working on his own startups.

Kumar Abhishek - Chief Financial Officer and Principal Accounting Officer

Kumar Abhishek has served as LQR House's CFO since May 2023. He is a seasoned operations manager with over 15 years of experience overseeing financial and daily operations for multiple companies simultaneously. Prior to LQR House, he was the owner and director of Boston Crest Private Limited, where he managed financial and daily operations for several companies. Through his work at Boston Crest, he served as LQR House's director of finance and operations from January 2021 to May 2023. He also held the role of director of finance and operations at PlantX Life Inc. from January 2020 to May 2023, and at Lifeist Wellness Inc. (formerly Namaste Technologies Inc.) from January 2015 to January 2020.

Jaclyn Hoffman - Chief Marketing Officer

Jaclyn Hoffman has been the Chief Marketing Officer for LQR House since January 2021, responsible for internal and partner brand design projects, brand development, brand communication, and digital campaigns. Since October 2021, she has also served as the Creative Director at PlantX Life Inc.

Yilin Lu - Director and President

Yilin Lu serves as a Director and the President of LQR House.

Lijun Chen - Chairman of the Board

Lijun Chen is the Chairman of the Board for LQR House.

The key risks to LQR House's business are primarily centered around its foundational partnership and the protection of its owned brands.

1. Heavy Dependence on the Exclusive Marketing Agreement with Country Wine & Spirits (CWS) and Ssquared Spirits: LQR House's entire business model, including its ability to market its own brands like SWOL and Soleil Vino, is contingent upon its exclusive Marketing Agreement with CWS and Ssquared, which runs until April 1, 2031. This agreement grants LQR House the sole right to promote and market products through the CWS website and social media channels and manage user-facing content on the CWS platform. LQR House relies on CWS for access to approximately 241,000 customers and a steady stream of visitors to the CWS Platform, while CWS and Ssquared handle critical functions such as inventory management, sales, importation, fulfillment, and distribution of all products. The background explicitly states that LQR House does not engage in the sale or distribution of alcoholic products. A material breach or termination of this agreement would severely impact LQR House's operational capacity and revenue generation.

2. Risk of Third-Party Production of SWOL Tequila Due to Pending Intellectual Property Registration in Mexico: LQR House owns the SWOL tequila brand, but the registration of critical agreements, including the assignment of rights of the Shared Responsibility and Bonding Agreement and the Bottled at Origin Joint Responsibility Agreement, with the Mexican Institute of Industrial Property is not yet complete. The company submitted documents on July 12, 2023, and July 13, 2023, but cannot predict when the registration will be finalized. Until this registration is complete, "third parties in Mexico may be able to produce tequila under the SWOL name," posing a direct threat to LQR House's exclusive brand control, potential market dilution, and financial losses.

The addressable market for LQR House's main products and services is detailed below:

• Digital Marketing and Brand Development Services: Null
• SWOL Tequila: The United States tequila market was valued at approximately USD 9.5 billion in 2025.
• Soleil Vino (Wine): Null

LQR House Inc. (YHC) is poised for future revenue growth over the next two to three years, driven by several strategic initiatives and expansions.

1. Expansion and Monetization of Digital Marketing and E-commerce Platform: LQR House aims to accelerate revenue growth through its enhanced digital marketing and e-commerce platform, CWSpirits.com. This includes leveraging advanced search engine optimization (SEO) strategies, which have already demonstrated significant month-over-month and year-over-year revenue increases with minimal to zero paid advertising. Furthermore, the company's strategic collaboration with TikTok through its subsidiary YHC Online Ltd. to develop, manage, and monetize creator-led content is expected to enhance media monetization capabilities across multiple platforms, including TikTok, Meta, and Google. This integrated digital marketing operation is foundational to supporting future growth initiatives.
2. Geographic Expansion and Increased Sales of Owned Brands: The company plans to grow revenue by expanding the reach and sales of its proprietary alcoholic beverage brands, such as SWOL Tequila. Recent initiatives include an exclusive partnership to distribute SWOL Tequila in new international markets like Greece and Thailand. Additionally, LQR House has secured new purchase orders and distribution approvals for SWOL Tequila in Canadian provinces like Ontario, indicating a strategic push into new territories beyond its current U.S. focus.
3. Strategic Acquisitions of New Brands and Companies: LQR House has established an at-the-market (ATM) equity offering program, with the proceeds intended to support capital expenditures and future acquisitions of additional companies or brands. This strategy suggests an intent to expand its portfolio and market presence through mergers and acquisitions within the spirits and beverage industry, similar to its past acquisitions of the SWOL and Soleil Vino brands.
4. Integration of Cryptocurrency and Blockchain Technology: LQR House is strategically broadening its corporate focus by integrating cryptocurrency and blockchain technology into its long-term business model. This strategic shift aims to evolve LQR House into a "crypto-integrated brand platform" that combines the strengths of e-commerce with digital assets, potentially opening new revenue streams and positioning the company at the forefront of internet-native consumer brands.

Share Repurchases

• LQR House increased its share buyback program to $5 million from an initial $2 million on January 16, 2024.
• The company repurchased 3,050,722 shares in November 2023 and 499,940 shares in December 2023.

Share Issuance

• LQR House established an at-the-market (ATM) offering program on March 11, 2026, to sell shares with an aggregate offering price of up to $50,273,610.
• The company previously sold an additional $27,136,550.49 through an ATM Agreement as of July 14, 2025.
• On December 18, 2025, LQR House completed a registered direct offering, selling 7,249,972 common shares for approximately $6.52 million in gross proceeds.

Inbound Investments

• An investor group led by Diveroli Investment Group LLC and Kingbird Ventures LLC acquired 737,000 shares of LQR House common stock, representing 7.1% of the outstanding class as of August 12, 2025, for a total of $1,222,290.29.

Outbound Investments

• On March 19, 2021, LQR House purchased the SWOL brand of tequila.
• On May 31, 2021, LQR House acquired all trademarks and intellectual property rights for Soleil Vino.
• LQR House acquired minority stakes in Cannon Estate Winery Ltd. and DRNK Beverage Corp., for which an impairment expense of $4,500,000 related to the investment in DRNK Beverage Corp. was recorded as of December 31, 2024.

Capital Expenditures

• LQR House reported negligible historical capital expenditures, with its latest trailing twelve months (TTM) CapEx and average CapEx over the past 5 years standing at $0.
• Proceeds from the $50,273,610 at-the-market program established in March 2026 are planned for capital expenditures, potential acquisitions, sales and marketing, working capital, and general corporate purposes.