Conversion of Existing $2.5 Million in Debt to Equity and Additional Financing Commitments of $1.65 Million Strengthens Balance Sheet and Lowers Near-Term Cash Needs BUENA PARK, Calif., March 26, 2025 (GLOBE NEWSWIRE) -- Yoshiharu Global Co. (NASDAQ: YOSH) ("Yoshiharu" or the "Company"), a restaurant operator specializing in authentic Japanese ramen & rolls, today announced that it entered into additional financing commitments with certain investors for $1.65 million and, as a result of such financing trans ...

Company Overview - Yoshiharu Global Co. is a restaurant operator specializing in authentic Japanese ramen and rolls, recognized as a leading ramen restaurant in Southern California since its debut in 2016 [4] - The company currently operates 15 restaurants across Southern California and Las Vegas [4] Appointment of Board Member - Sungjoon Chae has been appointed to the Board of Directors effective March 17, 2025, bringing extensive experience in architecture and urban design [1][2] - Mr. Chae is the CEO of Grundot and has previously worked with renowned architectural firms, contributing to high-profile projects globally [2] - His expertise in merging aesthetics with functionality is expected to support the company's expansion efforts [3] Strategic Vision - The President and CEO of Yoshiharu, James Chae, emphasized that Mr. Chae's design and business experience will be invaluable for driving expansion in both the company's footprint and cuisine offerings [3]

Company Secures Financing Commitments of $1.9 Million From Multiple Parties New Capital Positions Yoshiharu to Achieve Stockholders’ Equity Minimum Ahead of Nasdaq Hearing on April 1, 2025 BUENA PARK, Calif., March 20, 2025 (GLOBE NEWSWIRE) -- Yoshiharu Global Co. (NASDAQ: YOSH) ("Yoshiharu" or the "Company"), a restaurant operator specializing in authentic Japanese ramen & rolls, today provided an update regarding the notice of delisting from Nasdaq and its stockholders’ equity. On February 18, 2025, the C ...

Core Insights - Yoshiharu Global Co. has opened its 15th restaurant location in Menifee, California, with one additional location under development in Ontario, CA [1][3][4] - The new Menifee location is strategically situated in a rapidly growing city that has invested over $100 million in traffic and infrastructure improvements [2] - The company aims to expand its presence through corporate-owned restaurants and a franchise program to accelerate national and international growth [3][4] Company Overview - Yoshiharu specializes in authentic Japanese ramen and has gained recognition as a leading ramen restaurant in Southern California since its debut in 2016 [4] - The company currently operates 15 restaurants across Southern California and Las Vegas [4]

Core Points - Yoshiharu Global Co. has received a notice of delisting from Nasdaq due to non-compliance with Listing Rule 5550(b)(1) which requires a minimum stockholders' equity of $2,500,000 [2][3] - The company was previously notified of its non-compliance on August 23, 2024, and was given until February 17, 2025, to regain compliance, which it failed to do [3] - Yoshiharu intends to appeal the delisting decision and has until February 25, 2025, to request a hearing [4] Company Overview - Yoshiharu Global Co. specializes in authentic Japanese ramen and rolls, and has expanded to operate 14 restaurants in Southern California and Las Vegas since its debut in 2016 [5]

Financing and Securities Purchase Agreement - The company entered into a securities purchase agreement with Crom Structured Opportunities Fund I, LP, issuing a senior unsecured convertible promissory note with an original principal amount of $1.1 million [2] - The company also established an equity line of credit (ELOC) with the same investor, allowing the company to issue and sell up to $10.0 million in shares of its common stock [2] - The conversion price for the note is set at the lesser of $5.00 or 90% of the lowest dollar volume weighted average price during the five trading days preceding the conversion date [3] - The company agreed to pay the investor a commitment fee of 31,948 shares of Class A Common Stock for entering into the purchase agreement [4] - The note was issued at a 10% original issue discount (OID), with a purchase price of $1,000,000 for the $1,100,000 principal amount, and carries a one-time interest charge of 5% [5] - The ELOC allows the company to issue and sell shares at 93% of the lowest VWAP during the five trading days following the clearing date of the respective advance shares [6] Use of Proceeds and Corporate Strategy - The company intends to use the net proceeds from the note and ELOC for working capital and general corporate purposes to support future growth [1] - The financing provides additional operating liquidity and financial flexibility to support the company's U.S. and international expansion plans [2] Company Overview - Yoshiharu Global Co. is a fast-growing restaurant operator specializing in authentic Japanese ramen and rolls [10] - The company has gained recognition as a leading ramen restaurant in Southern California and currently owns and operates 14 restaurants across Southern California and Las Vegas [10] Regulatory and Disclosure Information - The company agreed to file a registration statement with the SEC covering the resale of all Class A Common Stock that the investor may acquire [1] - Further details on the securities purchase agreement will be disclosed in a Current Report on Form 8-K to be filed with the SEC on January 13, 2025 [7]

Core Insights - Yoshiharu Global Co. reported a significant revenue increase of 49% in Q3 2024, reaching $3.0 million compared to $2.0 million in the same period last year, driven by new restaurant openings and acquisitions [8][10] - The company is expanding its international presence through strategic partnerships in China and plans to enter the growing Korean BBQ segment, which is expected to complement its existing ramen business [2][6] Financial Performance - For the first nine months of 2024, revenues increased by 36.3% to $9.2 million, up from $6.7 million in the prior year [10] - Restaurant-level contribution margin improved to 11.0% from 8.1% in the previous year, indicating better cost management alongside revenue growth [10] - Operating loss for Q3 2024 was $1.0 million, an increase from a loss of $0.8 million in the prior year, primarily due to higher general and administrative expenses related to acquisitions [9][12] Operational Highlights - The company opened its 15th restaurant in San Clemente, CA, with two additional locations under construction, expected to open in December 2024 and January 2025 [2][7] - Partnerships with Chengdu Octaday Entertainment Group and Xing Sheng Group aim to establish flagship restaurants in Sichuan and Liaoning provinces in China, targeting a combined population of over 126 million [5][6] - The company plans to leverage a $1.0 million investment to expand into the Korean BBQ segment, capitalizing on synergies with its ramen offerings [6][7] Strategic Initiatives - The company is focusing on optimizing operating expenses while maintaining strong average unit volumes despite challenges from rising input costs and consumer price sensitivity [3][4] - Future growth strategies include the addition of kiosks and the use of cooking robots to reduce labor costs, aiming for profitability in the near term [7]

Financial Performance - Total revenue for the nine months ended September 30, 2024, was $9,152,530, a 36.2% increase from $6,714,429 in the same period of 2023[20] - Net loss for the nine months ended September 30, 2024, was $(3,203,137), compared to a net loss of $(3,048,961) for the same period in 2023[20] - Loss from operations for the nine months ended September 30, 2024, was $(2,768,309), slightly improved from $(2,856,710) in the same period of 2023[20] - Basic and diluted loss per share for the nine months ended September 30, 2024, was $(2.39), compared to $(2.29) for the same period in 2023[20] - EBITDA for the nine months ended September 30, 2024, was $(2,132,849), an improvement from $(2,436,628) in the prior year[210] - Adjusted EBITDA for the same period was $(1,937,234), compared to $(2,014,476) in 2023, indicating a reduction in losses[210] Assets and Liabilities - Total current assets increased to $1,837,923 as of September 30, 2024, from $1,535,349 as of December 31, 2023, representing a 19.7% growth[17] - Total liabilities rose to $17,711,882 as of September 30, 2024, compared to $10,365,885 as of December 31, 2023, indicating a 70.5% increase[17] - Total non-current assets reached $15,474,153 as of September 30, 2024, up from $11,484,015 as of December 31, 2023, marking a 35.0% increase[17] - Total stockholders' equity (deficit) as of September 30, 2024, was $(399,806), a decrease from $2,653,479 as of December 31, 2023[17] - Total stockholders' equity (deficit) as of September 30, 2024, was $(399,806), a decrease from $(9,349,370) as of September 30, 2023[23] Cash Flow - Cash provided by operating activities was $1,164,719 for the nine months ended September 30, 2024, compared to cash used of $3,311,317 in 2023[26] - Cash balance increased to $1,712,064 as of September 30, 2024, from $1,462,326 as of December 31, 2023, reflecting a 17.0% increase[17] - Cash at the end of the period for September 30, 2024, was $1,712,064, down from $2,155,057 at the end of September 30, 2023[26] Expenses - Restaurant operating expenses totaled $8,746,360 for the nine months ended September 30, 2024, compared to $6,568,160 for the same period in 2023, a 32.9% increase[20] - Depreciation expense increased to $596,701 for the nine months ended September 30, 2024, from $396,388 in 2023[26] - Operating lease expense for the nine months ended September 30, 2024, was $942,945, compared to $683,947 for the same period in 2023, indicating an increase of approximately 37.8%[141] - General and administrative expenses for the nine months ended September 30, 2024, were $2.95 million, an increase of $254 thousand or 9.4% compared to the same period in 2023, with a decrease in percentage of sales to 32.2%[200] Growth and Expansion - The company plans to open new ramen stores in Ontario and Menifee, California[29] - The Company operates 14 restaurant stores with an additional 3 under construction as of September 30, 2024, aiming for over 100% annual unit growth over the next three to five years[162][168] - Positive comparable restaurant sales growth has been achieved, with future growth expected through increased brand awareness and new menu offerings[170] - The Company plans to initiate franchise sales in 2025 to further expand its market presence[170] - Recent developments include the opening of a new restaurant in San Clemente, CA, increasing the total number of locations to 15[174] Financing Activities - The company acquired LV entities for $1,800,000 during the nine months ended September 30, 2024[26] - Proceeds from borrowings for the acquisition of LV entities amounted to $900,000[26] - The company executed a loan of $150,000 on September 13, 2023, for working capital, with a remaining balance of $122,705 as of September 30, 2024[93] - The company has a loan of $650,000 secured on January 30, 2024, with a balance of $650,000 as of September 30, 2024, indicating full utilization of the loan[101] - A loan of $900,000 was executed on June 4, 2024, for acquiring assets of three restaurants in Las Vegas, with a balance of $865,151 as of September 30, 2024[103] Stock and Securities - The Company completed its initial public offering (IPO) in September 2022, selling 2,940,000 shares at $4.00 per share, generating gross proceeds of $11.76 million[38] - The Company entered into a Securities Purchase Agreement to sell up to $5,000,000 in Class A common stock, with shares sold at either 85% or 96% of the lowest trading price over the five days prior to closing[150] - The Company issued 34,846 additional shares of Class A common stock due to rounding up fractional shares from the reverse stock split[33] Management and Strategy - The management team is led by CEO James Chae, who founded the Company in 2016 and has extensive experience in financial and operational management[173] - The company has invested in infrastructure and personnel to drive higher profitability at both restaurant and corporate levels[171] - The Company has a disciplined growth strategy focused on new restaurant development and optimizing labor costs as the restaurant base matures[168][171] Tax and Compliance - Total current income tax provision for the nine months ended September 30, 2024, was $33,437, compared to $6,988 for the same period in 2023, representing a significant increase[130] - The company reported cumulative net operating loss carryforwards of approximately $10,052,000 for federal tax purposes as of September 30, 2024[135] - The company is in compliance with non-financial covenants imposed by the line of credit agreement[73]

Company Overview - Yoshiharu Global Co. specializes in authentic Japanese ramen and rolls, and has expanded to 15 locations with 2 more under construction [1][3] - The company aims to introduce a modernized Japanese dining experience globally and has gained recognition as a leading ramen restaurant in Southern California since its debut in 2016 [4] New Location Details - The new restaurant in San Clemente, CA, opens on October 31, 2024, and is located at 638 Camino De Los Mares in Ocean View Plaza, a prime coastal area [2][3] - This location is expected to attract approximately 8,300 visits daily and over 3 million annually, benefiting from high visibility and access to I-5 [2] Expansion Plans - The company plans to open additional locations in Menifee, CA, in December 2024 and Ontario, CA, in January 2025 [3] - Yoshiharu is also expanding its international presence with new partnerships in China and the acquisition of three restaurants in Las Vegas, along with entering the Korean BBQ segment [3]

Core Viewpoint - Yoshiharu Global Co. has entered a non-binding Memorandum of Understanding with Chengdu Octaday Entertainment Group to expand its presence in Sichuan Province, China, aiming to introduce its cuisine in multiple hotel locations [1][4]. Company Overview - Yoshiharu Global Co. specializes in authentic Japanese ramen and rolls, having gained recognition as a leading ramen restaurant in Southern California since its debut in 2016, currently operating 14 restaurants [7]. - Chengdu Octaday Entertainment Group operates in the entertainment and cultural industries, managing large-scale projects such as theme parks and cultural tourism in Chengdu, China [2][6]. Strategic Partnership - The partnership with Chengdu Octaday aims to open locations within the 30 corporate-owned hotels managed by Chengdu Octaday in Sichuan Province, enhancing Yoshiharu's international growth momentum [3][4]. - This announcement follows Yoshiharu's recent partnership to open a flagship restaurant in Shenyang, indicating a strategic focus on expanding in key Chinese cities and provinces [3][4].