FAST CASUAL CONCEPTS, INC. 10-Q

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations FORWARD-LOOKING STATEMENTS AND FACTORS THAT MAY AFFECT FUTURE RESULTS This Quarterly Report on Form 10-Q contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they do not materialize or prove correct, could cause our results to differ materially from those expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including, but not limited to, statements concerning: our plans, strategies and objectives for future operations; new products or developments; future economic conditions, performance or outlook; the outcome of contingencies; expected cash flows or capital expenditures; our beliefs or expectations; activities, events or developments that we intend, expect, project, believe or anticipate will or may occur in the future; and assumptions underlying any of the foregoing. Forward-looking statements may be identified by their use of forward-looking terminology, such as “ believes, ” “ expects, ” “ may, ” “ should, ” “ would, ” “ will, ” “ intends, ” “ plans, ” “ estimates, ” “ anticipates, ” “ projects ” and similar words or expressions. You should not place undue reliance on these forward-looking statements, which reflect our management ’ s opinions only as of the date of the filing of this Quarterly Report on Form 10-Q and are not guarantees of future performance or actual results. Overview Fast Casual was incorporated to develop, build, operate and franchise casual eating establishments. All restaurant development, building, operations and franchising operations were discontinued by the end of 2024. Fast Casual acquired CK Distribution (“CK”) in November 2024 to pursue production, market and sale of specialty drink mixes. During June 2025, Fast Casual and the former owner of CK agreed to terminate the acquisition agreement. As such, all balances and activity related to the CK specialty drink mix business have been shown as discontinued operations for the three months ended March 31, 2025. On September 23, 2025, the Company incorporated GDS Lumina, Inc. (“GDS”) under the laws of the state of Wyoming to pursue digital marketing, our current operations. Going Concern At March 31, 2026, we had $15,903 in total assets, all current, $37,195 in current liabilities and a $2,049,155 accumulated deficit. Our current liquidity resources are not sufficient to fund the anticipated level of operations for at least the next 12 months from the date these consolidated financial statements were issued. As a result, there is substantial doubt regarding the Company’s ability to continue as a going concern. The ability to continue Fast Casual’s operations depends on its ability to generate and grow revenue and results of operations as well as our ability to access capital markets when necessary to accomplish strategic objectives. We expect to continue to incur losses for the immediate future and will need additional equity or debt financing until we can achieve profitability and positive cash flows from operating activities. Our future capital requirements for operations will depend on many factors, including the ability to generate revenues and obtain capital. There is no assurance that we will ever be profitable or that debt or equity financing will be available to us. The consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result should we be unable to continue as a going concern. There is no assurance we will be successful in any of these goals. Results of Operations For the Three Months Ended March 31, 2026 and 2025 Revenues We recognized $27,900 and $0 in revenues during the three months ended March 31, 2026 and 2025, respectively, from providing digital marketing services. Operating Expenses Operating expenses were $28,798 during the three months ended March 31, 2026, compared to $9,659 during the three months ended March 31, 2025. Operating expenses consisted of $17,831 and $0 in contract labor related to the delivery of digital marketing services, $8,569 and $9,589 in professional fees and $2,398 and $70 in general and administrative expenses during the three months ended March 31, 2026 and 2025, respectively. Increases in contract labor and general and administrative expenses are mainly related to the Company’s discontinuation of the specialty beverage distribution business and entry into the digital marketing business during 2025. 10 Other Expenses Total other expenses were $1,059 of interest expense during the three months ended March 31, 2026. There were no other expenses during the three months ended March 31, 2025. Net Loss from Continuing Operations As a result of the above, we recognized net loss of $1,957 and $9,659 for the three months ended March 31, 2026 and 2025, respectively. Net Loss from Discontinued Operations Net loss from discontinued operations related to the specialty beverage distribution business totaled $0 and $27,302 for the three months ended March 31, 2026 and 2025, respectively. Net Loss As a result of the above, we recognized net losses of $1,957 and $36,961 for the three months ended March 31, 2026 and 2025, respectively. Liquidity and Capital Resources of the Company Total and Current Assets Total assets were $15,903 and $10,127 at March 31, 2026 and December 31, 2025, respectively, all current. Current assets consisted of $9,653 in cash and $6,250 in prepaid assets. Current assets as of December 31, 2025 totaled $10,127, consisting of $202 in cash, $9,300 in accounts receivable and prepaid assets of $625. Total Liabilities Total liabilities were $172,679 and $164,946 at March 31, 2026 and December 31, 2025, respectively. Total liabilities consists of current liabilities of $37,195 and $50,462 and non-current liabilities of $135,484 and $114,484 at March 31, 2026 and December 31, 2025, respectively. Current Liabilities Current liabilities totaled $37,195 and $50,462 as of as of March 31, 2026 and December 31, 2025, respectively. Current liabilities consisted of accounts payable and accrued expenses totaling $17,714 and $30,981, respectively, and notes payable to related parties totaling $19,481 and $19,481, respectively. Non-Current Liabilities Non-current liabilities totaled $114,484 and $114,484 as of as of March 31, 2026 and December 31, 2025, respectively. Non-current liabilities consisted of a notes payable of $114,484 and $114,400, respectively, and notes payable to related parties totaling $21,000 and $0, respectively. Net Cash Used in Operating Activities During the three months ended March 31, 2026, our operating activities used net cash of $11,549. Uses of cash during the three months ended March 31, 2026 are mainly due to a $13,267 decrease in accounts payable and accrued expenses, a $5,625 increase in prepaid assets and the $1,957 in net loss, partially offset by a $9,300 decrease in accounts payable. During the three months ended March 31, 2025, our operating activities used net cash of $29,095. Uses of cash during the three months ended March 31, 2025 are mainly due to the $36,961 net loss as well as a $7,500 increase in prepaid assets. Uses are partially offset by a $9,403 increase in accounts payable and accrued expenses and net changes of $5,963 in discontinued lease assets and liabilities. 11 Net Cash Provided by Financing Activities During the three months ended March 31, 2026 and 2025, we received $21,000 and $29,000 from notes payable from related parties, respectively. At March 31, 2026 and December 31, 2025, we had a working capital deficit of $21,292 and $40,335, respectively. Off-Balance Sheet Arrangements We had no off-balance sheet arrangements of any kind for the three months ended March 31, 2026 or 2025. Critical Accounting Policies Our discussion and analysis of our financial condition and results of operations are based upon our financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities. We continuously evaluate our critical accounting policies and estimates. We base our estimates on historical experience and on various assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ materially from these estimates under different assumptions or conditions. We believe the following critical accounting policies are important to the portrayal of our financial condition and results of operations and require our management’s subjective or complex judgment because of the sensitivity of the methods, assumptions and estimates used in the preparation of our financial statements. Accounts Receivable Trade accounts receivable are recorded at invoiced amounts. Fast Casual does not provide any unusual contractual trade terms, sales incentive programs or discounts. Allowances for doubtful accounts are established for estimated losses resulting from the inability of customers to make required payments. Allowances are determined based on a review of specific customer accounts where collection is doubtful, as well as an assessment of the collectability of total receivables. Receivables are written off against the allowance when it is determined that the amounts will not be recovered. Revenue Recognition We recognize revenue in accordance with the provisions of Financial Accounting Standards Board (“FASB”) Accounting Series Codification (“ASC”) 606, Revenue From Contracts With Customers (“ASC 606”), which provides guidance on the recognition, presentation, and disclosure of revenue in financial statements. ASC 606 outlines the basic criteria that must be met to recognize revenue and provides guidance for disclosure related to revenue recognition policies. Accordingly, we recognize revenue based on the allocation of the transaction price to each performance obligation as each performance obligation in a contract is satisfied. We generated revenue from continuing operations from the sale of digital marketing services during the three months endedMarch 31, 2026. Leases Operating lease liabilities represented the present value of lease payments not yet paid. Operating lease assets represented rights to use an underlying asset and are based upon the operating lease liabilities adjusted for prepayments or accrued lease payments, initial direct costs, lease incentives, and impairment of operating lease assets. To determine the present value of lease payments not yet paid, incremental borrowing rates corresponding to the reasonably certain lease term were estimated. If the estimate of our incremental borrowing rate was changed, operating lease assets and liabilities could differ materially. Stock Based Compensation Stock Based Compensation We record stock-based compensation using the fair value method. Equity instruments issued to employees and the cost of the services received as consideration are measured and recognized based on the fair value of the equity instruments issued. All transactions with non-employees in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable. 12 Income Taxes We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Item 3. Quantitative and Qualitative Disclosures about Market Risk As a "smaller reporting company” as defined by Item 10 of Regulation S-K, we are not required to provide information required by this Item.