$MEHA

Functional Brands Inc.

CIK:0001837254|SEC Filings

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Statement of Comprehensive Income [Abstract]
Revenue, net of returns	$ 1,870,548	$ 1,832,532	$ 3,516,072	$ 3,422,788
Cost of goods sold	750,207	864,437	1,434,598	1,587,929
Gross profit	1,120,341	968,095	2,081,474	1,834,859
Operating expenses
Sales and marketing	340,384	165,039	604,091	343,669
General and administrative	2,100,355	958,493	3,480,586	1,678,727
Total operating expenses	2,440,739	1,123,532	4,084,677	2,022,396
Operating loss	(1,320,398)	(155,437)	(2,003,203)	(187,537)
Other income / (expense)
Interest income	4,237	393	7,147	692
Other income	61		61	113
Interest expense	(97,801)	(71,012)	(123,605)	(166,106)
Other expenses	(50,000)		(50,000)
Change in fair value of derivative liabilities	(967,942)		(942,568)
Loss on issuance of preferred stock			(6,310,464)
Loss on default	(198,705)		(198,705)
Total other income / (expense)	(1,310,150)	(70,619)	(7,618,134)	(165,301)
Net loss	$ (2,630,548)	$ (226,056)	$ (9,621,337)	$ (352,838)
Net loss per share of common stock attributable to common stockholders
Basic (in Dollars per share)	$ (0.06)	$ (0.03)	$ (0.31)	$ (0.05)
Diluted (in Dollars per share)	$ (0.06)	$ (0.03)	$ (0.31)	$ (0.05)
Weighted average shares used in computing net loss per share of common stock
Basic (in Shares)	42,671,660	6,951,766	31,314,614	6,910,023
Diluted (in Shares)	42,671,660	6,951,766	31,314,614	6,910,023

Consolidated Statements of Cash Flow (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net loss	$ (9,621,337)	$ (352,838)
Reconcile net loss to cash provided by operating activities
Allowance for doubtful accounts receivable		(3,796)
Allowance for inventory obsolescence	(2,075)	12,895
Depreciation of property and equipment	9,096	11,048
Amortization of right-of-use assets	177,820	162,512
Amortization of intangible assets	23,065	23,065
Stock-based compensation	437,973	510,356
Issuance of shares to debenture holder		50,630
Issuance of warrants		45,263
Change in fair value of derivative liabilities	942,568
Loss on issuance of convertible note	198,705
Loss on issuance of preferred stock	6,310,464
Dividends	(77,050)
Changes in operating assets and liabilities:
Accounts receivable	15,034	(60,320)
Inventories	(128,840)	(36,790)
Prepaid expenses and other current assets	186,662	101,292
Accounts payable and accrued liabilities	788,364	346,170
Other current liabilities	(19,872)	(932)
Lease liabilities	(184,034)	(160,798)
Net cash (used in) provided by operating activities	(943,457)	647,757
Cash flows from investing activities:
Purchase of property and equipment
Net cash provided by (used in) investing activities
Cash flows from financing activities:
Deferred offering costs		(540,061)
Dividends paid	(114,262)
Proceeds from loans		100,000
Payments for payable for acquisition		(114,999)
Repayment of liability conditional timing	(450,000)
Repayment of loans	(240,911)	(29,011)
Buyback of preferred stock	(616,027)
Proceeds from line of credit		73,379
Line of credit repayment	(8,109)	(89,316)
SBA loan repayment	(1,788)	(1,709)
Net cash used in financing activities	(1,431,097)	(601,717)
Increase (decrease) in cash	(2,374,554)	46,040
Cash beginning of period	2,726,696	211,642
Cash, end of period	352,142	257,682
Supplemental disclosures of cash flow information
Cash paid for interest	38,221	132,786
Non-cash investing and financing activities
Derecognition of derivative liabilities upon extinguishment of Series A&B preferred shares	(97)
Extinguishment of Series A&B preferred shares	(3,027,287)
Issuance of Series C preferred shares	(6,032,160)
Recognition of derivative liabilities upon issuance of Series C preferred shares & convertible notes	(529,854)
Recognition of Series C convertible notes	(837,000)
Warrant exercise	$ 2

Consolidated Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash	$ 352,142	$ 2,726,696
Accounts receivable, net	503,440	518,474
Inventories, net	1,680,426	1,549,511
Prepaid expenses and other current assets	206,337	392,999
Total current assets	2,742,345	5,187,680
Noncurrent assets:
Property and equipment, net	28,283	37,379
Right-of-use assets, net	1,489,873	1,667,693
Intangible assets, net	1,374,346	1,397,411
Goodwill	818,139	818,139
Total non-current assets	3,710,641	3,920,622
Total assets	6,452,986	9,108,302
Current liabilities:
Accounts payable and accrued liabilities	2,217,482	1,554,243
Line of credit		8,109
SBA loan, current	3,648	3,595
Lease liabilities, current	379,781	371,272
Other current liabilities	21,956	41,828
Derivative liabilities, current		3,306,745
Loans payable	191,151	402,650
Preferred shares liabilities	2,764,160
Total current liabilities	5,645,725	5,750,084
Non-current liabilities:
Lease liabilities, net of current	1,242,962	1,435,505
SBA loan, net of current	135,032	136,873
Convertible note	993,525
Derivative liabilities, noncurrent	1,181,787
Total non-current liabilities	3,762,498	1,816,887
Total liabilities	9,408,223	7,566,971
Stockholders’ equity / (deficit)
Common stock, $0.00001 par value, 220,000,000 shares authorized, 64,901,095 and 18,704,649 shares outstanding	650	187
Additional paid-in capital	13,723,825	8,522,354
Accumulated deficit	(16,679,712)	(6,981,325)
Total stockholders’ equity / (deficit)	(2,955,237)	1,541,331
Total liabilities and stockholders’ equity / (deficit)	6,452,986	9,108,302
Related Party
Current liabilities:
Loans payable (related party), current	67,547	61,642
Non-current liabilities:
Loan payable (related party), net of current	209,192	244,509
Series A Preferred Stock
Stockholders’ equity / (deficit)
Preferred Stock, Value		87
Series B Preferred Stock
Stockholders’ equity / (deficit)
Preferred Stock, Value		28
Series C Preferred Stock
Stockholders’ equity / (deficit)
Preferred Stock, Value