Functional Brands Inc. 2026年度季度报告

FUNCTIONAL BRANDS INC.CONSOLIDATED BALANCE SHEETS (UNAUDITED) Current liabilities: Total liabilities Stockholders’ equity / (deficit) Series A Preferred stock, par value $0.001 stated value $100, 100,000 shares authorized in 2026 and2025; 0 and 87,445 shares issued and outstanding, respectively-87Series B Preferred stock, par value $0.001 stated value $100, 80,000 authorized in 2026 and 2025;2,400 and 28,475 shares issued and outstanding, respectively228Series C Preferred stock, par value $0.001 stated value $1,000, 6,100 and 0 authorized in 2026 and2025; 6,032 and 0 shares issued and outstanding, respectively-- The accompanying notes are an integral part of these unaudited consolidated financial statements. FUNCTIONAL BRANDS INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 1.Organization and Nature of Operations Functional Brands Inc. (formerly HT Naturals Inc., the “Company”) was organized under the General Corporation Law in the State ofDelaware on November 19, 2020.The Company’s principal business is the production, marketing, sales, and distribution of On March 22, 2023, the Company changed its name from HT Naturals Inc. to Functional Brands Inc. to better reflect its corporate On January 22, 2025, the Company effected a 1-for-18.338622 reverse stock split of its outstanding common stock. The authorizedcommon stock of the Company remained unchanged at 220,000,000. All references to share and per share amounts in the consolidatedfinancial statements and accompanying notes thereto have been retroactively restated to reflect the reverse stock split. In addition, the As of March 31, 2026, and 2025, the consolidated financial statements consist of the Company and its wholly owned subsidiary HTONevada Inc. (d/b/a Kirkman), which is a nutraceutical manufacturer and distributor based in the Pacific Northwest. All intercompany 2.Summary of Significant Accounting Policies Going Concern The accompanying financial statements have been prepared assuming the Company will continue as a going concern. For the threemonths ended March 31, 2026, the Company had net loss of $6,990,789, and a working capital of $559,483, and an accumulateddeficit of $14,049,164. As of March 31, 2026 the Company had cash of $1,077,967. These conditions raise substantial doubt about the Management believes that its existing cash balances combined with future capital raises through debt and equity and cash receiptsfrom product sales will be sufficient to fund ongoing operations through at least one year from the date the audited consolidatedfinancial statements are issued. In order to continue as a going concern, the Company will need, among other things, additional capital The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or theamounts of and classification of liabilities that might be necessary in the event the Company cannot continue in existence. These Unaudited Financial Information The Company’s unaudited consolidated financial statements have been prepared in accordance with accounting principles generallyaccepted in the United States (“U.S. GAAP”) for interim financial reporting and with the instructions to Form 10-Q and Rule 10-01 ofRegulation S-X. Pursuant to these rules and regulations, they do not include all information and notes required by U.S. GAAP forcomplete financial statements. In the opinion of management, the unaudited consolidated financial statements reflect all adjustments,consisting of a normal recurring nature, considered necessary for a fair statement of the Company’s financial condition and results of During the three months ended March 31, 2026, there were no changes to the Company’s significant accounting policies as describedin the Company’s audited consolidated financial statements as of and for the year ended December 31, 2025. Principles of Consolidation The financial statements of the subsidiary are prepared for the same reporting period as the parent company, using consistentaccounting policies. Functional Brands Inc. (formerly HT Naturals Inc.) ●Functional Brands Inc. (formerly HT Naturals Inc.) is the parent company. HTO Nevada Inc. dba Kirkman ●HTO Nevada Inc. dba Kirkman, which is owned by the Company is the sole subsidiary. As part of the restructuring efforts, ownership of HTO Nevada Inc. dba Kirkman was transferred from HTO Holdings Inc. toFunctional Brands Inc. (formerly HT Naturals Inc.) on May 19, 2023, in exchange for 4,362,378 shares of common stock of the Certain prior period amounts have been reclassified to conform to the current period presentation. These reclassifications had no effecton previously reported net income or stockholders’ equity. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates andassumptions that affect amounts reported in the financial statements and accompanying notes. Actual results cou