Groove Botanicals Reports $33,031 Net Loss for Q4 2024, Seeks Funding for EV Battery Technologies

Groove Botanicals, Inc. reported a net loss of $33,031 for the three months ended December 31, 2024, a significant decline from a net gain of $13,796 during the same period in 2023. The loss attributable to common stockholders was $87,649, compared to a loss of $40,821 in the prior year. For the nine months ending December 31, 2024, the company recorded a net loss of $99,404, down from $206,968 in the same period of 2023. The accumulated deficit increased to $35,110,533 as of December 31, 2024, from $34,847,277 at the end of the previous fiscal period.

Total operating expenses for the three months ended December 31, 2024, were $33,031, a decrease from $55,196 in the same quarter of 2023. This reduction was primarily due to a significant drop in legal and professional fees, which fell from $33,227 to $12,176. For the nine-month period, operating expenses decreased to $99,404 from $206,968, largely attributed to a reduction in consulting expenses, which dropped from $78,300 to $1,250. The company has not generated any revenue since its inception and does not anticipate doing so in the near future.

In terms of financial position, Groove Botanicals reported total current assets of $4,733 as of December 31, 2024, compared to $2,142 at the end of March 2024. Current liabilities increased to $1,028,546 from $762,699 during the same period, driven by an increase in related party payables, which rose to $577,949 from $453,057. The company’s cash position decreased to $1,251 from $1,688, reflecting ongoing operational challenges.

Strategically, Groove Botanicals is focusing on assembling a portfolio of early-stage electric vehicle (EV) battery technologies developed in collaboration with universities in Norway, Sweden, and Finland. The company is actively seeking grants from the State of Minnesota Department of Economic Development to support these initiatives. However, the company has expressed substantial doubt about its ability to continue as a going concern, citing the need for additional capital to maintain operations and pursue its business objectives.

Looking ahead, Groove Botanicals plans to raise between $500,000 and $5,000,000 to support its growth strategies. The company is in the early stages of development and has not yet established a market for its intended products. Management is working to identify strategic partners and technologies to facilitate commercialization and generate revenue, although it acknowledges the challenges associated with securing the necessary funding and resources.