Caring Brands, Inc. (CABR) - 10-K Summary
Business Context and Reporting Period
Company: Caring Brands, Inc.
Filing Type: Form 10-K (Annual Report)
Reporting Period: Fiscal year ended December 31, 2025
Business Overview: Caring Brands is a wellness consumer products company focused on over-the-counter (OTC) and cosmetic products, including treatments for hair loss, eczema, psoriasis, vitiligo, and sun protection. The company operates as a single reporting segment and is classified as an "emerging growth company" and a "smaller reporting company."
The company separated from Safety Shot, Inc. in September 2024. As of December 31, 2025, the company had 14,761,925 shares of common stock issued and outstanding.
Key Financial Metrics
| Metric | Year Ended Dec 31, 2025 | Year Ended Dec 31, 2024 |
|---|---|---|
| Revenue | $4,215 | $465 |
| Cost of Revenue | $1,873 | $2,072 |
| Gross Profit | $2,342 | $(1,607) |
| Operating Expenses | $5,937,367 | $1,525,787 |
| Operating Loss | $(5,935,025) | $(1,527,394) |
| Net Loss | $(6,278,191) | $(1,517,431) |
| Cash and Cash Equivalents (Ending) | $2,189,232 | $468,998 |
| Total Assets | $2,326,818 | $3,877,481 |
| Total Liabilities | $235,494 | $186,105 |
| Stockholders' Equity | $2,091,324 | $3,691,376 |
Material Changes vs. Prior Period
- Revenue: Revenue increased nominally from $465 in 2024 to $4,215 in 2025, reflecting minimal commercial activity. The company remains in the development and early commercialization phase.
- Operating Expenses: Expenses surged by approximately $4.4 million, driven by a $2.55 million impairment loss on intellectual property, a $500,000 impairment loss on an investment in NovoDX, and increased payroll and professional fees associated with public company compliance and restructuring.
- Asset Base: Total assets decreased by $1.55 million primarily due to the full write-down of intangible assets (Intellectual Property and Investment in NovoDX) to zero. This was partially offset by a $1.72 million increase in cash.
- Liquidity: Cash balances increased significantly from $468,998 to $2,189,232, primarily due to net proceeds of approximately $3.24 million from an Initial Public Offering (IPO) completed in November 2025.
Guidance, Outlook, Risks, and Unusual Items
Outlook and Guidance: Management believes existing cash resources are sufficient to fund operations for at least the next twelve months. The company plans to continue product development and commercialization, specifically targeting a U.S. relaunch of "Photocil" in 2026 and further expansion of the "Hair Enzyme Booster" (JW-700).
Unusual Items:
- Impairments: Recorded a $2.55 million impairment on intellectual property and a $500,000 impairment on an investment in NovoDX due to lack of commercialization and ongoing litigation.
- Debt Settlement: Recognized a $175,000 gain on debt settlement and a $78,980 capital contribution from the forgiveness of related party debt.
Risks and Contingencies:
- Going Concern: The auditor has raised substantial doubt about the company's ability to continue as a going concern due to recurring losses and negative cash flows from operations, despite the recent IPO proceeds.
- Internal Controls: The company identified material weaknesses in internal controls over financial reporting, including ineffective controls over period-end financial disclosure and related party transactions.
- Regulatory: Products are subject to FDA and international regulations. Failure to comply could result in enforcement actions or recalls.
- Related Party Transactions: Significant transactions exist with Safety Shot, NovoDX, and executive officers, including loans and equity settlements.
Investor Verification Checklist
- Going Concern Status: Verify the sufficiency of the $2.19 million cash balance against the burn rate of ~$1.7 million in operating cash used in 2025.
- Internal Control Remediation: Review the plan and progress for remedying the identified material weaknesses in financial reporting controls.
- Product Commercialization: Assess the timeline and regulatory status for the U.S. relaunch of Photocil and the sales performance of the Hair Enzyme Booster.
- Related Party Agreements: Scrutinize the terms of the settlement with NovoDX and the stock repurchase agreements with insiders (CEO and Chairman) disclosed in subsequent events.
- Intellectual Property Value: Confirm the rationale for the full impairment of the $3 million intellectual property asset and the $500,000 NovoDX investment.