New Risk • May 18
New major risk - Financial position The company has less than a year of cash runway based on its current free cash flow trend. Free cash flow: -US$1.9m This is considered a major risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-US$1.9m free cash flow). Share price has been highly volatile over the past 3 months (21% average weekly change). Negative equity (-US$4.5m). Earnings have declined by 11% per year over the past 5 years. Market cap is less than US$10m (US$1.88m market cap). Reported Earnings • May 18
First quarter 2026 earnings released: US$0.36 loss per share (vs US$0.018 loss in 1Q 2025) First quarter 2026 results: US$0.36 loss per share (further deteriorated from US$0.018 loss in 1Q 2025). Revenue: US$1.65m (up 3.5% from 1Q 2025). Net loss: US$6.99m (loss widened US$6.86m from 1Q 2025). New Risk • Apr 23
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of American stocks, typically moving 17% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (17% average weekly change). Market cap is less than US$10m (US$2.68m market cap). Reported Earnings • Mar 30
Full year 2025 earnings released: EPS: US$0.092 (vs US$0.084 loss in FY 2024) Full year 2025 results: EPS: US$0.092 (up from US$0.084 loss in FY 2024). Revenue: US$6.61m (flat on FY 2024). Net income: US$758.5k (up US$1.32m from FY 2024). Profit margin: 12% (up from net loss in FY 2024). お知らせ • Jan 04
Functional Brands Inc. Receives Notice of Nasdaq Deficiency Letter for Minimum Bid Price Compliance On December 30, 2025, Functional Brands Inc. (the “Company”) received a deficiency letter from the Nasdaq Listing Qualifications Department (the “Staff”) of The Nasdaq Stock Market LLC (“Nasdaq”) notifying the Company that, for the last 30 consecutive business days, the closing bid price for the Company’s common stock has been below the minimum $1.00 per share required for continued listing on The Nasdaq Capital Market pursuant to Nasdaq Listing Rule 5550(a)(2) (the “Minimum Bid Price Requirement”). The Nasdaq deficiency letter has no immediate effect on the listing of the Company’s common stock, and its common stock will continue to trade on The Nasdaq Capital Market under the symbol “MEHA” at this time. In accordance with Nasdaq Listing Rule 5810(c)(3)(A) the Company has been provided a compliance period of 180 calendar days, or until June 29, 2026, in which to regain compliance with the minimum bid price requirement. If the Company evidences a closing bid price of at least $1 per share for a minimum of 10 consecutive business days during the 180-day compliance period, the Company will automatically regain compliance. In the event the Company does not regain compliance with the $1 bid price requirement by June 29, 2026, the Company may be eligible for consideration of a second 180-day compliance period if it meets the continued listing requirement for market value of publicly held shares and all other initial listing standards for Nasdaq’s Capital Market, other than the minimum bid price requirement. In addition, the Company would also be required to notify Nasdaq of its intent to cure the minimum bid price deficiency. If the Company does not regain compliance with the Minimum Bid Price Requirement by the end of the compliance period (or the second compliance period, if applicable), the Company’s common stock will become subject to delisting. In the event that the Company receives notice that its common stock is being delisted, the Nasdaq listing rules permit the Company to appeal a delisting determination by the Staff to a hearings panel. The Company intends to monitor the closing bid price of its common stock and may, if appropriate, consider available options to regain compliance with the Minimum Bid Price Requirement, including initiating a reverse stock split. However, there can be no assurance that the Company will be able to regain compliance with the Minimum Bid Price Requirement or will otherwise be in compliance with other Nasdaq Listing Rules. Reported Earnings • Dec 16
Third quarter 2025 earnings released: EPS: US$0.037 (vs US$0.043 loss in 3Q 2024) Third quarter 2025 results: EPS: US$0.037 (up from US$0.043 loss in 3Q 2024). Revenue: US$1.69m (up 21% from 3Q 2024). Net income: US$259.0k (up US$547.1k from 3Q 2024). Profit margin: 15% (up from net loss in 3Q 2024). The move to profitability was primarily driven by higher revenue. Board Change • Nov 06
Less than half of directors are independent Following Independent Director Lourdes Felix's arrival on 01 November 2025, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 3 non-independent directors. Independent Director Lourdes Felix was the last independent director to join the board, commencing their role in the last week. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model.