SUPA Consolidated Inc. 2025 Annual Report: Strategic Shift to Food Technology, Leadership Changes, and Financial Overview

SUPA Consolidated Inc. 2025 Annual Report: Key Investor Takeaways

SUPA Consolidated Inc. (“SFCX”) has released its Annual Report for the fiscal year ending December 31, 2025. The company is quoted on the OTC Markets under the symbol “SFCX” and is classified as a “smaller reporting company” and an “emerging growth company” under SEC rules. Below are the most important highlights and price-sensitive disclosures for investors and shareholders.

Key Financial Highlights

Cash Position: As of December 31, 2025, SUPA Consolidated had only \$17,675 in cash.
Working Capital Deficit: The company reported a working capital deficit of \$1,087,070.
Accumulated Deficit: The accumulated deficit reached \$3,092,223.
No Revenue: SUPA Consolidated generated no revenue in fiscal years 2025 or 2024.
Current Liabilities: Current liabilities totaled \$1,112,845, significantly exceeding current assets of \$25,775.

Going Concern Warning

Substantial doubt exists regarding SUPA Consolidated’s ability to continue as a going concern within one year. This is due to its low cash balance, high working capital deficit, accumulated losses, and lack of revenue. This warning is a major red flag for shareholders and potential investors, as it can impact the share value and market confidence.

Liquidity and Funding Plans

External Financing: The company plans to raise additional capital through equity or debt financing from third-party investors or lenders. However, there is no assurance that these efforts will be successful, especially given SUPA’s financial condition and lack of revenue.
Related Party Support: In 2025, advances from Spark Capital Investments LLC (controlled by majority shareholder Imran Firoz) totaled \$238,200. Continued reliance on related party support is expected.
Revenue Generation: SUPA intends to generate revenue and positive cash flow from its equity investment in Boumarang Inc. and related business operations. However, there is no clear timeline or guarantee of success.
Cost Reduction: Management plans to implement cost reduction measures to extend the company’s cash runway.

Corporate Structure & Stock Information

Principal Office: 530 Technology Dr Suite 100, Irvine, CA 92618. Telephone: (844) 787-2720.
Common Stock: As of March 24, 2026, 835,500 shares of common stock were outstanding. The stock is traded on OTC Markets under the symbol “SFCX”.
Transfer Agent: Olde Monmouth Stock Transfer Co., Inc., Atlantic Highlands, NJ.
Shareholders: Approximately 30 holders of common stock as of March 24, 2026 (not including beneficial owners whose shares are held by brokers and registered clearing agencies).
Penny Stock Status: The common stock is considered a penny stock, which may decrease liquidity and increase transaction costs for investors.

Equity Compensation and Warrants

Options: Effective June 20, 2020, the company granted options to purchase 300,000 shares of common stock at \$0.01 per share to Messrs. Grimes, Prasad, and Ritacco.
Warrants: On November 10, 2021, warrants to purchase up to 750,000 shares at \$1.00 per share were issued to AJB Capital Investments, LLC.
Available for Future Issuance: 2,200,000 shares remain available for issuance under equity compensation plans approved by security holders.

Ownership Structure

Major Holders: Supa Food Services LLC owns 250,000,000 shares (85.96%). Spark Capital Investments LLC owns 20,000,000 shares (6.88%). These two entities dominate the shareholding structure.

Internal Controls & Material Weaknesses

Material Weaknesses: The company has identified material weaknesses in internal control over financial reporting. Specifically, there are deficiencies related to lack of segregation of duties, inadequate governance and oversight, and insufficient internal control documentation.
Remediation Plan: Management is developing a remediation plan, including the creation of a formal policy manual to address financial controls. Until fully implemented and tested, these weaknesses remain.

Emerging Growth Company Status

SUPA Consolidated is classified as an “emerging growth company” under the JOBS Act, enabling it to take advantage of reduced reporting requirements and exemptions, including auditor attestation, adoption of new accounting standards, and reduced executive compensation disclosure.

Executive Compensation

Chief Executive Officer (2024): Yessenia Hernandez received no salary, stock awards, or other compensation.
Chief Executive Officer, Joseph Grimes (2025): No compensation disclosed.
Chief Financial Officer, Don Smith (2025): No compensation disclosed.

Insider Trading Policy

SUPA Consolidated has adopted an insider trading policy applicable to the company, its officers and directors, and employees with access to material non-public information. The policy is intended to promote legal compliance and is filed as Exhibit 19.1.

Other Notable Issues

No Full-Time Employees: As of December 31, 2025, the company had no full-time employees; operations are conducted through directors, officers, and third-party consultants/subcontractors.
Segment Reporting: The company operates as a single reportable segment and has adopted the new FASB segment reporting standard (ASU 2023-07).
Legal Proceedings: No unresolved staff comments or disclosure regarding foreign jurisdictions preventing inspections. No legal proceedings or mine safety disclosures noted.

Risks & Forward-Looking Statements

The report contains extensive forward-looking statements about possible future operations, financing needs, competitive position, acquisition strategy, and risks. Investors should note that actual results may differ materially from these statements.
Key risks include market and economic conditions, ability to acquire customers and raise capital, success of new products, timing of introductions, competitor actions, effectiveness of sales and marketing, supply chain constraints, litigation, barriers to entry, and government actions.

Potential Price Sensitivity

Investors should be aware:

Going concern warning: This is a significant risk factor that could affect share value.
Material weaknesses in internal controls: These could impact financial reporting reliability, investor confidence, and share liquidity.
No revenue and heavy reliance on related party funding: These issues highlight the company’s operational and financial vulnerability.
Concentration of ownership: Nearly all shares are held by two entities, which may impact corporate governance and minority shareholder interests.
Penny stock status: Increased transaction costs and reduced liquidity could deter new investors and affect trading volumes.

Disclaimer: The above article summarizes key information from SUPA Consolidated Inc.’s 2025 Annual Report. This is not investment advice. Investors should conduct their own due diligence and consult with financial advisors before making investment decisions. The company faces significant operational and financial risks, as well as uncertainties about its ability to continue as a going concern. Past performance is not indicative of future results.