Overview

The company has been engaged in the business of developing and marketing nutritional products that promote wellness and a healthy lifestyle since January 30, 2017. All of its sales to date have been of cordyceps-related products, except for a single sale of a metallothionein MT-3 elizer product in the quarter ended September 30, 2018. The company believes its business was impacted by COVID-19 and the Chinese government’s Zero COVID policy, as well as political instability in Hong Kong, where some of its customers were based.

The company currently has no full-time employees, with only its part-time CEO who does not receive compensation. It faces significant risks in developing its business, including its ability to raise necessary financing, increase its customer base and supply chain, improve gross margins, and hire qualified personnel. The company has not generated any revenue since December 31, 2022, and cannot assure that it will be able to develop or market any products in the future.

Results of Operations

For the three months ended June 30, 2026, and 2025, the company had no revenue or cost of revenue. Its operating expenses were $17,554 and $13,614, respectively, primarily related to general and administrative expenses and professional fees. The company also incurred interest expenses of $3,802 and $1,948 to two minority stockholders. The net loss for the three-month period increased from $15,562 in 2025 to $21,356 in 2026, due to the increase in operating expenses and interest expenses.

For the six months ended June 30, 2026, and 2025, the company also had no revenue or cost of revenue. Its operating expenses increased from $22,548 in 2025 to $77,825 in 2026, again primarily related to general and administrative expenses and professional fees. Interest expenses to two minority stockholders increased from $3,315 in 2025 to $7,305 in 2026. However, the company recorded a gain of $20,000 from liability forgiveness during the six-month period in 2026. The net loss for the six-month period increased from $25,863 in 2025 to $65,130 in 2026, due to the significant increase in operating expenses and interest expenses, partially offset by the gain from liability forgiveness.

Liquidity and Capital Resources

As of June 30, 2026, the company had a working capital deficiency of $444,789, with current assets of $3,648 and current liabilities of $448,437. The working capital deficiency increased by $57,825 from December 31, 2025, due to a decrease in current assets and an increase in current liabilities.

The company has not generated positive cash flows from operating activities, with net cash used in operating activities of $60,325 and $116,515 for the six months ended June 30, 2026, and 2025, respectively. The company’s primary source of funds has been advances from a minority stockholder, and it will have to continue to rely on this source of funding.

The company’s financial statements have been prepared assuming it will continue as a going concern, but its minimal cash, lack of revenue, and history of losses raise substantial doubt about its ability to do so. The company’s independent auditor has also expressed substantial doubt about its ability to continue as a going concern.

Outlook

The company faces significant challenges in developing and marketing its products, including its ability to raise necessary financing, increase its customer base and supply chain, improve gross margins, and hire qualified personnel. Without any revenue since December 31, 2022, and the absence of an active trading market for its common stock, the company’s financial condition and lack of operating history make it difficult to raise funds. The company’s continued reliance on advances from a minority stockholder raises concerns about its long-term viability.