Full Press Release Details
Functional Brands Announces Fourth Quarter and
Full-Year 2025 Financial Results
Fourth quarter net income improved to $0.9 million
compared to a net loss of $0.3 million in the prior year period
Lake Oswego, OR - (March 30, 2026) - Functional
Brands Inc. (NASDAQ: MEHA), a leading innovator in wellness and performance products, today announced financial results for the fourth
quarter and full-year ended December 31, 2025.
Fourth Quarter 2025 highlights
Full Year 2025 highlights
"We were pleased to deliver another year of strong bottom-line
results as we continue to transform our business model," said Eric Gripentrog, CEO of Functional Brands Inc. "Over the past
several months, we've executed a series of key initiatives that mark a pivotal period in the Company's evolution and establish
a strong foundation for sustainable, profitable growth in the future. We achieved significant strategic breakthroughs that differentiate
us in the marketplace and demonstrate our commitment to innovation across multiple fronts.
"In February, we launched Tru2u.health, our comprehensive digital
health platform that integrates peptide solutions, GLP-1-based weight management programs, board-certified telehealth support, and clean
supplements into a seamless consumer experience, providing us with a scalable, digitally native growth engine. We also expanded our Kirkman
brand portfolio with two innovative product bundles - our Skin, Beauty & Anti-Aging Bundle in December and our Detox Aid Bundle in
January. Additionally, we forged a strategic partnership with iHerb to make P2i by Kirkman available to international consumers across
Asia, Europe, the Middle East, and Latin America, dramatically expanding our addressable market for the world's cleanest prenatal vitamin.
These accomplishments demonstrate strong execution against our strategic goals and underscore our commitment to our mission of Making
Everyone Healthy Again'."
About Functional Brands Inc.
Brands Inc. is a health and wellness company focused on acquiring and growing science-based consumer brands. With a portfolio that includes
trusted names like Kirkman , P2i by Kirkman , Tru2u.Health ; Functional Brands is committed to providing high-quality,
effective solutions that support healthier lives.
For more information, visit www.functionalbrandsinc.com
and www.kirkmangroup.com, and www.Tru2u.health
Investor Relations Contact:
Cautionary Note Regarding Forward Looking Statements
This news release and statements of Functional Brands' management in
connection with this news release or related events contain or may contain "forward-looking statements" within the meaning of
Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. In this context,
forward-looking statements mean statements (including statements related to the closing, and the anticipated benefits to the Company,
of the private placement described herein) related to future events, which may impact our expected future business and financial performance,
and often contain words such as "expects," "anticipates," "intends," "plans," "believes,"
"potential," "will," "should," "could," "would," "optimistic" or "may"
and other words of similar meaning. These forward-looking statements are based on information available to us as of the date of this news
release and represent management's current views and assumptions. Forward-looking statements are not guarantees of future performance,
events or results and involve significant known and unknown risks, uncertainties and other factors which may be beyond our control.
Readers are cautioned not to place undue reliance on these forward-looking
statements, which apply only as of the date of this news release. Potential investors should review Functional Brands' Registration Statement
filed with the SEC on Form S-1 on October 16, 2025 and the Company's Annual Report on Form 10-K filed with the SEC on March 27,
2026 for more complete information, including the risk factors that may affect future results, which are available for review at www.sec.gov.
Accordingly, forward-looking statements should not be relied upon as a predictor of actual results. We do not undertake to update our
forward-looking statements to reflect events or circumstances that may arise after the date of this news release, except as required by
FUNCTIONAL BRANDS INC.
CONSOLIDATED BALANCE SHEETS (AUDITED)
(In U.S. dollars, except share data or otherwise
| December 31, 2025 | December 31, 2024 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash | $ | 2,726,696 | $ | 211,642 | ||||
| Accounts receivable, net | 518,474 | 303,471 | ||||||
| Inventories, net | 1,549,511 | 1,709,458 | ||||||
| Prepaid expenses and other current assets | 392,999 | 45,112 | ||||||
| Deferred offering costs | - | 588,641 | ||||||
| Total current assets | 5,187,680 | 2,858,324 | ||||||
| Noncurrent assets: | ||||||||
| Property and equipment, net | 37,379 | 49,564 | ||||||
| Right-of-use assets, net | 1,667,693 | 2,000,092 | ||||||
| Intangible assets, net | 1,397,411 | 1,443,541 | ||||||
| Goodwill | 818,139 | 818,139 | ||||||
| Total non-current assets | 3,920,622 | 4,311,336 | ||||||
| Total assets | $ | 9,108,302 | $ | 7,169,660 | ||||
| Liabilities and stockholders' equity / (deficit) | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued liabilities | $ | 1,554,243 | $ | 1,956,165 | ||||
| Line of credit | 8,109 | 32,235 | ||||||
| SBA loan, current | 3,595 | 3,436 | ||||||
| Lease liabilities, current | 371,272 | 291,213 | ||||||
| Other current liabilities | 41,828 | 35,332 | ||||||
| Derivative liabilities | 3,306,745 | - | ||||||
| Payable for acquisition, current | - | 2,342,366 | ||||||
| Loans payable (related party), current | 61,642 | 370,703 | ||||||
| Loans payable | 402,650 | 171,500 | ||||||
| Total current liabilities | 5,750,084 | 5,202,950 | ||||||
| Non-current liabilities: | ||||||||
| Lease liabilities, net of current | 1,435,505 | 1,844,819 | ||||||
| SBA loan, net of current | 136,873 | 140,468 | ||||||
| Loan payable (related party), net of current | 244,509 | - | ||||||
| Convertible debenture | - | 100,000 | ||||||
| Total non-current liabilities | 1,816,887 | 2,085,287 | ||||||
| Total liabilities | 7,566,971 | 7,288,237 | ||||||
| Stockholders' equity / (deficit) | ||||||||
| Series A Preferred stock, par value $0.001 stated value $100, 100,000 and 0 shares authorized as of December 31, 2025 and 2024; 87,445 and 0 shares issued and outstanding, respectively | 87 | - | ||||||
| Series B Preferred stock, par value $0.001 stated value $100, 80,000 and 0 shares authorized as of December 2025 and 2024; 28,475 shares issued and 0 outstanding, respectively | 28 | - | ||||||
| Common stock, par value $0.00001, 220,000,000 shares authorized; 18,704,649 and 6,694,880 shares issued and outstanding at December 31, 2025 and 2024 | 187 | 67 | ||||||
| Additional paid-in capital | 8,522,354 | 7,542,286 | ||||||
| Accumulated deficit | (6,981,325 | ) | (7,660,930 | ) | ||||
| Total stockholders' equity / (deficit) | 1,541,331 | (118,577 | ) | |||||
| Total liabilities and stockholders' equity / (deficit) | $ | 9,108,302 | $ | 7,169,660 |
FUNCTIONAL BRANDS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In U.S. dollars, except share data or otherwise
| (UNAUDITED) Three Months Ended December 31, | (AUDITED) Year Ended December 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Revenue, net of returns | $ | 1,494,521 | $ | 1,680,096 | $ | 6,611,484 | $ | 6,566,455 | ||||||||
| Cost of goods sold | 823,766 | 690,623 | 3,127,518 | 2,959,609 | ||||||||||||
| Gross profit | 670,755 | 989,473 | 3,483,966 | 3,606,846 | ||||||||||||
| Operating expenses | ||||||||||||||||
| Sales and marketing | 169,869 | 121,601 | 632,414 | 576,315 | ||||||||||||
| General and administrative expenses | 1,633,636 | 1,003,619 | 4,250,124 | 3,259,623 | ||||||||||||
| Total operating expenses | 1,803,505 | 1,125,220 | 4,882,538 | 3,835,938 | ||||||||||||
| Operating income / (loss) | (1,132,750 | ) | (135,747 | ) | (1,398,572 | ) | (229.092 | ) | ||||||||
| Interest expense | (80,982 | ) | (142,284 | ) | (402,398 | ) | (331.836 | ) | ||||||||
| Other income - ERTC refund | - | - | 419,947 | - | ||||||||||||
| Other income | - | - | 112 | - | ||||||||||||
| Interest income | 1,352 | 281 | 74,696 | 1,572 | ||||||||||||
| Change in fair value of derivative liabilities | 7,358,935 | - | 7,358,935 | - | ||||||||||||
| Loss on issuance of preferred stock derivative liability | (5,294,242 | ) | - | (5,294,242 | ) | - | ||||||||||
| Total other income / (expenses) | 1,985,063 | (142,003 | ) | 2,157,050 | (330.264 | ) | ||||||||||
| Net income / (loss) | $ | 852,313 | $ | (277,750 | ) | $ | 758,478 | $ | (559,356 | ) | ||||||
| Net income (loss) per share of common stock attributable to common stockholders | ||||||||||||||||
| Basic | $ | 0.08 | $ | (0.08 | ) | $ | 0.08 | $ | (0.08 | ) | ||||||
| Diluted | $ | 0.01 | $ | (0.08 | ) | $ | 0.01 | $ | (0.08 | ) | ||||||
| Weighted average shares used in computing net loss per share of common stock | ||||||||||||||||
| Basic | 8,241,266 | 6,694,880 | 8,241,266 | 6,694,880 | ||||||||||||
| Diluted | 85,120,861 | 6,694,880 | 85,120,861 | 6,694,880 |
FUNCTIONAL BRANDS INC.
CONSOLIDATED STATEMENTS OF CASH FLOW (AUDITED)
(In U.S. dollars, except share data or otherwise
| Year Ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income (loss) | $ | 758,478 | $ | (559,356 | ) | |||
| Reconcile net income (loss) to cash (used in) provided by operating activities | ||||||||
| Allowance for doubtful accounts receivable | (3,796 | ) | (32,491 | ) | ||||
| Allowance for inventory obsolescence | 53,855 | (14,206 | ) | |||||
| Depreciation of property and equipment | 20,698 | 48,371 | ||||||
| Amortization of right-of-use assets | 332,399 | 306,935 | ||||||
| Amortization of intangible assets | 46,130 | 46,130 | ||||||
| Financing expense on warrant issuance | 45,413 | - | ||||||
| Stock-based compensation | 543,068 | 414,900 | ||||||
| Change in fair value of derivative liabilities | (7,358,935 | ) | - | |||||
| Loss on issuance of preferred stock of derivative liabilities | 5,294,242 | - | ||||||
| Issuance of shares for note extension | 80,500 | - | ||||||
| Issuance of common stock for convertible debenture | 122,331 | - | ||||||
| Issuance of shares for financing expense | 50,629 | - | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (211,207 | ) | (100,042 | ) | ||||
| Inventories | 106,092 | (1,233 | ) | |||||
| Prepaid expenses and other current assets | (347,887 | ) | 27,329 | |||||
| Accounts payable and accrued liabilities | (480,795 | ) | 132,161 | |||||
| Other current liabilities | 6,496 | (5,493 | ) | |||||
| Lease liabilities | (329,255 | ) | (261,015 | ) | ||||
| Net cash (used in) provided by operating activities | (1,271,544 | ) | 1,990 | |||||
| Cash flows from investing activities: | ||||||||
| Purchase of property and equipment | (8,513 | ) | (1,881 | ) | ||||
| Net cash used in investing activities: | (8,513 | ) | (1,881 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Deferred offering costs | (1,721,228 | ) | (163,125 | ) | ||||
| Proceeds from loans | 489,324 | 301,500 | ||||||
| Payments for payable for acquisition | (2,342,366 | ) | (255,002 | ) | ||||
| Proceeds from debt facilities | 99,733 | 180,662 | ||||||
| Repayment of loans | (422,727 | ) | (6,931 | ) | ||||
| Proceeds from issuance of preferred stock | 8,000,000 | - | ||||||
| Buyback of preferred stock | (180,330 | ) | - | |||||
| Line of credit repayment | (123,859 | ) | (216,742 | ) | ||||
| SBA loan repayment | (3,436 | ) | (3,264 | ) | ||||
| Net cash provided by (used in) financing activities | 3,795,111 | (162,902 | ) | |||||
| Increase (decrease) in cash | 2,515,054 | (162,793 | ) | |||||
| Cash beginning of period | 211,642 | 374,435 | ||||||
| Cash, end of period | $ | 2,726,696 | $ | 211,642 | ||||
| Supplemental disclosures of cash flow information | ||||||||
| Cash paid for interest | $ | 401,411 | $ | 224,428 | ||||
| Non-cash investing and financing activities | ||||||||
| Recognition of derivative liability of preferred stock | $ | 13,294,242 | $ | - | ||||
| Conversion of preferred stock resulting in a non-cash reduction of the derivative liability recorded to APIC | 2,628,242 | - | ||||||
| Fair value adjustment decreasing derivative liability | 7,358,935 | |||||||
| Change in Preferred Stock | 115 | - | ||||||
| Conversion of preferred stock | 112 | - | ||||||
| Deferred offering costs | (2,309,869 | ) | - | |||||
| Declaration of preferred stock dividend recorded as an increase in accrued liabilities | 78,873 | - | ||||||
| Common stock issued for convertible note payable and accrued interest | 122,331 | - | ||||||
| Loan payable, related party | $ | 225,000 | $ | - |