Groove Botanicals Reports Increased Net Loss and Ongoing Financial Challenges

Groove Botanicals, Inc. reported its financial results for the three and nine months ending December 31, 2025, revealing a net loss attributable to common stockholders of $88,485 for the quarter, slightly higher than the $87,649 loss recorded in the same period of the previous year. For the nine-month period, the company reported a net loss of $268,272, compared to a loss of $263,258 in the prior year. The company has not generated any revenue since its inception and does not anticipate doing so in the near future. Operating expenses for the three months ended December 31, 2025, totaled $33,867, a marginal increase from $33,031 in the previous year, primarily due to higher consulting fees.

In terms of financial position, Groove Botanicals reported total current assets of $6,260,000 as of December 31, 2025, up from $4,520,000 at the end of the previous fiscal period. However, total current liabilities also increased to $1,384,394 from $1,114,381, leading to a stockholders' equity deficit of $1,378,134, compared to a deficit of $1,109,861 in March 2025. The company’s accumulated deficit rose to $35,464,854, reflecting ongoing financial 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 aims to secure grants from the State of Minnesota Department of Economic Development to facilitate partnerships for commercializing these technologies. As of now, the company does not own any patents or technologies related to the EV battery industry, and management acknowledges that acquiring such assets can be costly and uncertain.

Operationally, the company has maintained a consistent employee headcount, with no new shares of common stock issued during the reporting period, keeping the total at 59,643,062 shares. The company’s cash position at the end of December 2025 was $1,494, a slight decrease from $1,251 at the end of December 2024. The company continues to rely on related party financing, with related party payables increasing to $719,961 from $608,833 in the previous period, indicating ongoing reliance on management for operational funding.

Looking ahead, Groove Botanicals faces significant challenges in securing the necessary capital to sustain operations and pursue its strategic objectives. The company estimates that it will require between $500,000 and $5,000,000 to support its growth strategies. Management has expressed substantial doubt regarding the company’s ability to continue as a going concern, emphasizing the need for additional financing to meet operational and developmental goals.