Groove Botanicals Reports Improved Net Loss and Plans Rebranding to Nordmark Technologies

Groove Botanicals, Inc. reported a net loss of $21,171 for the three months ended June 30, 2026, a significant improvement compared to a net loss of $38,170 during the same period in 2025. The loss attributable to common shareholders was $75,789, down from $92,787 in the prior year. The company has not generated any revenue since its inception and continues to face challenges in achieving profitability. Total operating expenses decreased to $28,318 from $38,170, primarily due to a reduction in legal and professional expenses, which fell from $15,605 to $5,999, reflecting lower audit fees following a change in the independent registered public accounting firm.

In terms of financial position, Groove Botanicals reported total current assets of $2,525,000 as of June 30, 2026, down from $4,432,000 at the end of the previous fiscal period. Current liabilities increased to $1,546,562 from $1,472,680, driven by a rise in related party payables. The company’s accumulated deficit grew to $35,630,757 from $35,554,968, indicating ongoing financial strain. The total stockholders’ deficit also widened to $1,544,037 from $1,468,248, reflecting the company's continued operational losses.

Strategically, Groove Botanicals is in the process of transitioning its business model and intends to change its name to Nordmark Technologies, Inc. This rebranding aims to better align the company’s identity with its focus on evaluating early-stage intellectual property and applied technologies from Norwegian research institutions. The company has not yet entered into any licensing agreements or formal arrangements with these institutions, and it remains in the early stages of development without any identified technologies for commercialization.

Operationally, the company continues to rely heavily on its sole officer and director, Kent Rodriguez, who also holds a significant portion of the preferred stock, granting him substantial control over corporate decisions. As of June 30, 2026, the company had cash reserves of $1,494, down from $2,737 a year earlier, and a working capital deficit of $1,544,037. The company’s cash flow from operating activities showed an improvement, with net cash used decreasing to $14,187 from $19,786 in the previous year, primarily due to lower net losses.

Looking ahead, Groove Botanicals acknowledges the need for additional capital to sustain operations and fund its strategic initiatives. The company is exploring options for raising between $500,000 and $5,000,000 to support its business objectives. However, there is no assurance that financing will be available on favorable terms, which raises substantial doubt about the company's ability to continue as a going concern. The management is actively seeking to establish strategic partnerships and technologies to generate revenue and improve its financial standing.