Functional Brands FY26 Q2 net loss widens to $2.63 million; net revenue rises 2% to $1.87 million

• Functional Brands posted a GAAP net loss of $2.63 million for the quarter ended June 30, 2026, widening from a year earlier.
• Net revenue rose 2% to $1.87 million, while operating loss widened to $1.32 million.
• General and administrative expenses more than doubled to $2.1 million, while sales and marketing expenses more than doubled to $340,384.
• Other expense ballooned to $1.31 million, driven by a $967,942 loss from changes in fair value of derivative liabilities.
• Series C and Senior Secured Convertible Notes fell into default, lifting the Series C dividend rate to 24% and raising going-concern uncertainty.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Functional Brands Inc. published the original content used to generate this news brief via EDGAR, the Electronic Data Gathering, Analysis, and Retrieval system operated by the U.S. Securities and Exchange Commission (Ref. ID: 0001213900-26-089996), on August 14, 2026, and is solely responsible for the information contained therein.