Groovy Company Reports No Revenue in Q3 2025, Net Loss Improves Amid Strategic Changes

Groovy Company, Inc. reported significant financial changes in its latest 10-Q filing for the quarter ending September 30, 2025. The company generated no revenue during the third quarter, a decrease from $1,364 in the same period last year. For the nine months ending September 30, 2025, Groovy Company recorded total revenues of $11,676, compared to $1,250 for the same period in 2024. The company reported a net loss of $134,274 for the third quarter, an improvement from a loss of $1,033,546 in the prior year. However, the nine-month net income showed a substantial gain of $7,429,220, largely due to a non-cash gain of $7,772,404 from a share purchase agreement with Pineapple Express Cannabis Company.

The company’s total operating expenses for the third quarter were $134,274, a notable increase from $61,202 in the same quarter of 2024. The increase in expenses was attributed to higher contractor costs and management fees. For the nine-month period, total operating expenses decreased slightly to $353,360 from $361,804 in the previous year. The company’s accumulated deficit has decreased significantly from $11,339,099 at the end of 2024 to $3,642,435 as of September 30, 2025, reflecting the impact of the aforementioned non-recurring gain.

Strategically, Groovy Company has undergone significant organizational changes, including a name change from Santo Mining Corp. and a shift in focus towards blockchain technology and securities tokenization. The company entered into an exchange agreement with Pineapple Express Cannabis Company, acquiring an 87% controlling interest in the latter while continuing to develop its Groovy Platform as a Service (PaaS). This strategic pivot aims to leverage blockchain technology to create liquidity solutions for over-the-counter traded companies.

Operationally, Groovy Company reported a working capital deficit of $199,025 as of September 30, 2025, with cash and cash equivalents totaling $3,133. The company has relied on capital generated from public and private offerings to support its operations. The filing indicates that the company has not yet established a consistent source of revenue sufficient to cover its operating costs, raising substantial doubt about its ability to continue as a going concern. Management is actively seeking additional funding to support ongoing operations and product development.

Looking ahead, Groovy Company acknowledges the challenges posed by a competitive market and the need for additional capital to sustain its operations. The company is focused on enhancing its blockchain platform and addressing regulatory compliance as it navigates the evolving landscape of securities tokenization. Management's outlook remains cautious, emphasizing the necessity of securing adequate funding to achieve its business objectives and maintain operational viability.