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.