Executive Summary
Groove Botanicals Inc (GRVE) reported a nominal net loss of $92,787 for QQ1 2026, with operating expenses totaling $38,170 and no disclosed revenue. The quarter showed a modest cash burn from operations of $19,786, offset by financing activities providing $20,481, resulting in a net increase in cash of $695 to end the period with $2,737 in cash on hand. The balance sheet reveals a precarious liquidity position: total assets of $3,686 against current liabilities of $1,206,334 and a negative stockholders’ equity of -$1,202,648, alongside a retained earnings balance of -$35,289,368. The company’s earnings per share (EPS) stood at -0.0016, consistent with a business in early-stage development with minimal revenue visibility.
Looking at the quarterly trend, Groove has posted losses in recent quarters (Q4 2024 net income of -$122,000 and Q2 2025 at -$29,833, etc.), with no revenue reported in QQ1 2026. The modest YoY improvement in EPS (reported as -0.0016 for QQ1 2026 with a 20% YoY EPS change in the metrics) is not indicative of meaningful operating leverage given the revenue absence and outsized liabilities. The cash runway remains tight, and the financing reliance persists as a key driver of liquidity.
Outlook remains highly contingent on securing revenue-generating activities or material financing arrangements. Investors should monitor liquidity dynamics, any capital-raising actions, and progress toward monetization milestones or strategic partnerships. In the absence of credible revenue visibility, Groove’s equity remains highly speculative with elevated downside risk should financing conditions tighten.
Key Performance Indicators
QoQ: -180.91% | YoY:23.95%
Key Insights
Revenue: No disclosed revenue for QQ1 2026; data reported as null. YoY/QoQ comparisons unavailable for revenue.
Net Income: -$92,787 for QQ1 2026; EPS -0.0016. YoY: +23.95% (per the provided metrics); QoQ: -180.91% (topic from data).
Operating Cash Flow: -$19,786 from operations; Free Cash Flow: -$19,786.
Cash and Liquidity: Cash at end of period $2,737; Cash flow from financing activities +$20,481; Net change in cash +$695.
Balance Sheet Highlights: Total assets $3,686; Total current liabil...
Financial Highlights
Revenue: No disclosed revenue for QQ1 2026; data reported as null. YoY/QoQ comparisons unavailable for revenue.
Net Income: -$92,787 for QQ1 2026; EPS -0.0016. YoY: +23.95% (per the provided metrics); QoQ: -180.91% (topic from data).
Operating Cash Flow: -$19,786 from operations; Free Cash Flow: -$19,786.
Cash and Liquidity: Cash at end of period $2,737; Cash flow from financing activities +$20,481; Net change in cash +$695.
Balance Sheet Highlights: Total assets $3,686; Total current liabilities $1,206,334; Total liabilities $1,206,334; Retained earnings -$35,289,368; Stockholders’ equity -$1,202,648; Cash and equivalents comprise the bulk of liquidity. Shares outstanding/w.a.s.o. 59,643,062.
Key Ratios and Leverage: Current ratio approximately 0.0031 (3,686 / 1,206,334) and a highly negative equity position due to large current liabilities relative to assets; no long-term debt disclosed.
Industry Benchmark Context: Compared to typical early-stage healthcare/pharma peers, Groove’s lack of disclosed revenue and negative equity are significantly weaker than peers that generate even modest revenue and maintain positive equity. However, the sector often operates with ongoing losses during development phases; the real benchmark concern here is liquidity and milestone-driven monetization timelines rather than profitability alone.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Net Income |
-92.79K |
23.95% |
-180.91% |
| EPS |
0.00 |
20.00% |
-6.67% |
Management Commentary
Transcript highlights not provided in the supplied data. When available, summarize management themes such as strategy pivots, capital strategy, monetization milestones, regulatory or market condition updates, and operational execution. Recommend extracting quotes on liquidity actions, partnership discussions, and roadmap milestones.
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Forward Guidance
No formal forward guidance was disclosed in the provided materials. Given the current liquidity profile and lack of revenue, investors should anticipate guidance focused on capital-raising plans, liquidity runway, and any near-term milestones for revenue generation or licensing deals. Our assessment is that achievability hinges on successful financing or a credible path to revenue within the next 12–18 months. Key factors to monitor include: planned capital raises, debt or equity issuance terms, licensing or partnership milestones, and any changes in strategy that could unlock revenue or reduce cash burn.