Functional Brands, Inc. Common Stock

Functional Brands Inc. announced financial results for the second quarter ended June 30, 2026, with revenue growing 2% to $1.87 million from $1.83 million in the prior year period. Gross profit increased to $1.12 million from $0.97 million, and gross margin expanded approximately 710 basis points to 59.9%, driven by a continued shift toward higher-margin channels and the Amazon business model transition. Operating loss widened to $1.3 million from $0.16 million, primarily reflecting increased general and administrative costs, including professional fees and public-company related expenses. Net loss was $2.6 million, compared to a net loss of $0.2 million in the prior year period, driven by higher general and administrative expenses and a non-cash change in the fair value of derivative liabilities. For the six months ended June 30, 2026, net loss was $9.6 million, including a $6.3 million non-cash charge related to the first quarter 2026 preferred stock exchange, compared to a net loss of $0.4 million in the prior year period. The company also disclosed that BullionFX terminated a binding letter of intent regarding a proposed acquisition of blockchain-related intellectual property, its common stock was delisted from Nasdaq and began trading on OTC Markets under ticker MEHA, and a court largely ruled in its favor in litigation brought by True Health Medical Center. Management noted that recurring losses, cash used in operations, and stockholders' deficit raise substantial doubt about the company's ability to continue as a going concern.