NYSE: SBEV

The Company
now expects it can close the acquisition of Medterra in May 2026. The closing will be subject to the Company’s planned meetings
with investors during the week of April 13th and its ability to raise the necessary capital as well as reaching a definitive
agreement with Medterra and the parties meeting the closing conditions.

Because the Company recently rescinded its June 2025 acquisition of certain water
rights in Costa Rica, it derecognized the $20 million of stockholders’ equity which created a stockholders’ deficit of $15,300,828
at December 31, 2025. The NYSE American Rules required us to have at least $6 million in stockholders’ equity. With the expected
stockholder’s equity created by the Medterra acquisition, the Company will be in compliance with the NYSE American Rules. The Company
is seeking to meet with the NYSE American Staff as soon as possible. There is no assurance that the NYSE American will permit us to maintain
the listing of our Common Stock. See Item 1A – “Risk Factors.”

Our Strategy

Our primary focus is to complete the acquisition of
Medterra as described above under “Letter of Intent.”

In addition, we are focusing on re-commencing material revenue-generating
operations through our beverage business, including through sales of our Chispo Tequila brand subject to obtaining sufficient capital.
In the furtherance of this Chispo tequila opportunity, in December 2025 we purchased $50,000 of inventory for the potential Senior Frogs
order described under “Chispo Tequila” below.

The
Company did not make any sales in the 2025 calendar year after March 2025 due to its lack of capital resources. The
Company estimates that it will initially require $3,000,000 for the Chispo brand as well as general and administrative expenses
for the next 12 months.

Chispo Tequila

Chispo is a tequila brand
which we recently began distributing to one customer. See “Senor Frogs Selection” below. Chispo is an authentic
blue agave blanco tequila, with fresh, sweet citrus, herbal floral notes ideal for cocktail mixing. We have entered into an arrangement
with the Chispo producer under which we agreed to distribute the brand in certain states in the U.S., as well as in Guatemala and Europe.
We expect that we will need approximately $500,000 in new financing to implement this business.

2

Senior Frogs Selection

In January 2026 the Company announced that Senor Frog’s, an internationally
recognized restaurant and entertainment brand known for its vibrant atmosphere and authentic cuisine, selected Chispo Tequila as its house
tequila across an initial group of locations in Florida, the Bahamas, and Mexico. Senor Frog’s belongs to Grupo Anderson’s
Mexico who owns more than 50 business units and 15 distinct restaurant brands across 4 countries. In March 2026, we shipped initial inventory
to a distributor which we expect will permit us to recognize revenue for the three months ended March 31, 2026.

The rollout marks Chispo’s first high-profile
national hospitality partner, providing early validation of the brand’s positioning and quality as it begins to scale in the on-premise
channel. Senor Frog’s selected Chispo following an extensive evaluation of authentic tequila brands, with a focus on taste profile,
consistency, and resonance with its broad and diverse customer base. Chispo’s smooth character and approachable style distinguished
it in a competitive field of premium and value-positioned tequilas. Chispo Tequila is produced in Jalisco, Mexico in partnership with
ZB Distillery, a respected distilling operation known for its commitment to quality and traditional tequila craftsmanship.

Costa Rica Water

On June 25, 2025, the Company entered into an Asset
Purchase Agreement (the “Asset Purchase Agreement”) with a third party (the “Seller”) under which the Seller
sold certain water assets located in Costa Rica to the Company in exchange for $20 million of Series C Convertible Preferred Stock
(the “Series C”). The Company issued the Series C to the Seller. Section 1.04 of the Asset Purchase Agreement required the
Seller to deliver the water assets by December 31, 2025 or pay the Company $20 million in cash. Section 1.04 of the Asset Purchase
Agreement further stated that failure to deliver either the water assets or the $20 million by December 31, 2025 rendered the Series
C to be “null, void, and of no further force or effect.” The Seller failed to comply with either requirement. As a result,
on April 14, 2026, the Board of Directors of the Company terminated the Asset Purchase Agreement and cancelled the Series C effective
December 31, 2025.

3

Competition

We compete with a large variety of other companies
in the marketplace for the sale of alcoholic products. The beverage sector is highly competitive, and include international, national,
regional and local producers and distributors. Competitive factors in the beverage industry include price and promotional activity, advertising
and marketing programs, point-of-sale merchandising, retail space management, customer service, product differentiation, packaging innovations
and distribution methods.

Manufacturing and Co-packing

Although we are responsible for manufacturing tequila
products, we do not directly manufacture these products, but instead outsource such manufacturing to third party bottlers and contract
packers and distillers.

Chispo products are manufactured in Mexico, under
contract manufacturing arrangements. These co-packaging arrangements are terminable upon request and do not obligate us to produce any
minimum quantities of products within specified periods.

Historically our business strategy has entailed purchasing
concentrates, flavors, dietary ingredients, cans, bottles, caps, labels, and other components and ingredients for our beverage products
from our suppliers, which are delivered to our manufacturing operations and various third-party bottlers and co-packers. In some cases,
certain common supplies may be purchased by our various third-party bottlers and co-packers. Depending on the product, the third-party
bottlers or packers add other ingredients for the manufacture and packaging of the finished products into our approved containers in accordance
with our formulas.

Distribution

For our beverage-alcohol products, we operated within
what is referred to as a “Three Tier Distribution System” where manufacturers are not permitted to sell directly to retailers,
but instead contract for local and regional distribution with independent distributors. These distributors typically have geographic rights
to distribute major beverage brands and call on every store in a given area such as major cities or regions. Our President and CMO has
extensive experience working within this channel and believes that we may be successful in building a strong network of these distributors.

In addition to working with these independent distributors,
we also previously established distribution arrangements with national retail accounts.

Employees

We have one full-time employee our President who has
extensive experience in the beverage business, one part-time employee, our Chief Financial Officer and a part-time accounting consultant.
All of our employees and our consultant work remotely.

Listing on the NYSE American

Our Common Stock is listed on the NYSE American exchange
under the ticker symbol “SBEV”.

Corporate Information

We are a Nevada corporation. Our website address is www.splashbeveragegroup.com.
Our website is not incorporated into this Report.

4

Available Information

We file annual, quarterly, and current reports, proxy
statements and other information with the U.S. Securities Exchange Commission (the “SEC”). These filings are available to
the public through the SEC’s website at http://www.sec.gov. All statements made in any of our securities filings, including all
forward-looking statements or information, are made as of the date of the document in which the statement is included unless otherwise
specified, and we do not assume or undertake any obligation to update any of those statements or documents unless we are required to do
so by law.