Beverage Business Early Momentum
Generated over $600,000 in gross revenue in Q1 2026 (surpassing all of 2025 beverage revenue), implying a ~$2.5M 2026 run rate; millions of RTD and shot cans in stock and new distribution wins including EG of America (Cumberland Farms), Wakefern Foods, and multiple regional distributors.
Mexico Subsidiary and Retail Entry
Established a wholly owned subsidiary in Mexico and initiated first product shipments to Costco Mexico in December 2025, enabling direct build-out of the retail network in a large international market.
Expanded Kroger Distribution
Shipped 3 new supplement SKUs to all ~1,600 Kroger locations, strengthening core supplement retail presence.
Cash and Working Capital Improvement
Cash and cash equivalents increased to $2.6M at Dec 31, 2025 from $687.9k a year earlier (increase of ~$1.9M); working capital moved to a surplus of $1.78M from a deficit of $1.12M, reflecting improved liquidity and collections.
Reduced Operating Cash Burn
Cash used in operating activities improved to $2.6M for the 12 months ended Dec 31, 2025 versus $4.8M a year ago, aided by improved collections and noncash charges.
Normalized Gross Margin Strength
Reported full-year gross margin of 66.8% (vs 67.9% prior year). Management stated that excluding one-time inventory write-offs, normalized gross margin would have been ~70.3% (and Q4 normalized would have been 68.8%), indicating underlying margin stability or improvement.