Financial Performance - Revenue for Q3 2025 was $1.7 million, an increase of 21.4% compared to Q3 2024, driven primarily by growth in direct-to-consumer sales[8] - Gross profit rose by 28.1% year-over-year, with gross profit margin improving by 310 basis points to 57.8% due to higher revenue and better cost control[8] - Net income for Q3 2025 was $0.3 million, or $0.04 per diluted share, compared to a net loss of $0.3 million, or $(0.04) per diluted share in the prior year[8] - Net loss for the nine months ended September 30, 2025, was $93,837, compared to a net loss of $281,606 for the same period in 2024[18] - The company reported a significant other income of $491,801 from an ERTC refund, contributing to the positive net income for the quarter[15] Assets and Liabilities - Total current assets increased to $4.21 million as of September 30, 2025, up from $2.86 million at the end of 2024[13] - Total assets reached $8.23 million, compared to $7.17 million at the end of 2024, reflecting a strong financial position[13] - Total liabilities increased to $7.63 million as of September 30, 2025, compared to $7.29 million at the end of 2024[13] Cash Flow - Net cash provided by operating activities was $1,478,358, a significant increase from a cash used of $54,178 in the prior year[18] - Cash at the end of the period increased to $1,005,324, up from $250,170 at the end of the previous year[18] - Cash paid for interest amounted to $241,662, compared to $187,031 in the prior year[18] Strategic Initiatives - The company completed a direct listing on the Nasdaq Capital Market under the symbol MEHA, enhancing its capital foundation for expansion[4] - A strategic partnership with Market Performance Group was established to enhance the growth of the Kirkman brand across eCommerce and digital channels[5] - The P2i by Kirkman prenatal supplement became the first to comply with California's SB 646 QR-code disclosure law ahead of the January 2027 deadline[5] Accounts and Expenses - The company recorded an allowance for doubtful accounts receivable of $3,796, while the allowance for inventory obsolescence was $12,895[18] - Total accounts receivable increased by $218,054, contrasting with a decrease of $103,316 in the previous year[18] - The company incurred financing expenses on warrant issuance totaling $45,263[18] - Deferred offering costs were $667,810, significantly higher than $95,625 in the prior year[18] - Proceeds from loans were $195,277, down from $280,000 in the previous year[18] - The company issued common stock for convertible note payable and accrued interest amounting to $122,331[18]
Functional Brands(MEHA) - 2025 Q3 - Quarterly Results