Yoshiharu Reports First Quarter 2025 Financial Results

May 05, 2025 18:50 ET | Source: Yoshiharu Global Co. First Quarter 2025 Revenues Increase 25% to $3.5 Million Cash Balance Increases 59% to $3.0 Million Secured Financing Commitments of $3.56 Million and Converted $2.5 Million in Debt to Equity Regains Compliance with NASDAQ Stockholders’ Equity Requirement BUENA PARK, Calif., May 05, 2025 (GLOBE NEWSWIRE) -- Yoshiharu Global Co. (NASDAQ: YOSH) ("Yoshiharu" or the "Company"), a restaurant operator specializing in authentic Japanese ramen & rolls, today reported results for the first quarter ended March 31, 2025. First Quarter 2025 and Recent Operational Highlights Secured financing commitments of $3.56 million from multiple parties and converted $2.5 million in debt to equity and, as a result of such financing transactions, regained compliance with the stockholders’ equity requirement for continued listing on Nasdaq.Grand opening of a new restaurant in Menifee, CA brings the number of locations to 15 with 1 additional location under development in Ontario, CA.Appointed Sungjoon Chae to its Board of Directors, a distinguished architect and urban designer with extensive experience in shaping sustainable and innovative spaces, to help support expansion.Elected two new members to the Board of Directors: Abe Lim, a seasoned real estate and investment professional with over 21 years of experience.Jae-Hyo Seo, an experienced legal practitioner and consultant. Anticipated Milestones Domestic and International Expansion Open 2 – 3 new locations focusing on Southern California, while expanding to other locations including Boston, Seattle, and North California.Open new locations in Paris, London, and South Korea. Expect to initiate sales of franchises in 2025 Management Commentary James Chae, Yoshiharu’s President, CEO and Chairman of the Board, commented, “The first quarter was highlighted by strong revenue growth and a strengthened balance sheet to fuel momentum and growth initiatives. In the first quarter, revenue grew 25% to $3.5 million, driven primarily by sales at our three new restaurants in Las Vegas, which we acquired in second quarter 2024. “During the quarter we secured financing commitments of $3.56 million from multiple parties. We also entered into agreements with certain creditors to convert $2.5 million of existing debt obligations. These efforts served to increase stockholders' equity, improve our overall financial position by reducing total debt, principal and interest payments, and lower near-term cash needs. As a result, we were able to regain compliance with Nasdaq’s minimum stockholders’ equity requirement. “Our newest location in fast-growing Menifee, California is now in operation, bringing us to a total of 15 locations in the U.S. Menifee is recognized for its rapid development and business-friendly environment, with the city committing over $100 million to traffic and infrastructure improvements, enhancing connectivity and accessibility. We have one additional location currently under development in Ontario, and continue to explore and evaluate new opportunities via corporate-owned restaurants, and through the development of a franchise program to accelerate national expansion and international openings. “Looking ahead, we are focused on further improvement to top- and bottom-line growth, and additional strategic expansion in the U.S. and China. New initiatives such as diversifying our mix of service channels, adding kiosks across our stores, and utilizing cooking robots to reduce labor costs will further growth and efficiencies. We look forward to additional updates on our anticipated milestones in the weeks and months to come,” concluded Chae. First Quarter 2025 Financial Results Revenues were $3.5 million for the three months ended March 31, 2025 compared to $2.8 million for the three months ended March 31, 2024, representing an increase of approximately $0.7 million, or 24.9%. The increase in sales for the three-month period was primarily driven by new sales at our three new restaurants in Las Vegas, which we acquired in second quarter 2024. Total restaurant operating expenses were $3.4 million compared to $2.6 million in the prior year. The increase was primarily driven by costs incurred in generating increased revenues from the three new Las Vegas restaurants, primarily food, beverages and supplies, labor, and rent and utilities. General and administrative expenses were approximately $1.3 million for the three months ended March 31, 2025 compared to $0.9 million for the three months ended March 31, 2024, primarily due to an increase in professional fees. Operating loss increased to ($1.3) million compared to an operating loss of ($0.8) million for the prior year as a result of the increased operating expenses related to increased sales. The Company’s cash balance totaled $3.0 million on December 31, 2024, compared to $1.2 million on December 31, 2024. For more information regarding Yoshiharu’s financial results, including financial tables, please see our Form 10-Q for quarter ended March 31, 2025 filed with the U.S. Securities and Exchange Commission (the “SEC"). The Company’s SEC filings can be found on the SEC’s website at www.sec.gov or the Company’s investor relations site at ir.yoshiharuramen.com. About Yoshiharu Global Co. Yoshiharu is a fast-growing restaurant operator and was born out of the idea of introducing the modernized Japanese dining experience to customers all over the world. Specializing in Japanese ramen, Yoshiharu gained recognition as a leading ramen restaurant in Southern California within six months of its 2016 debut and has continued to expand its top-notch restaurant service across Southern California and Las Vegas, currently owning and operating 15 restaurants. For more information, please visit www.yoshiharuramen.com. Forward-Looking Statements This press release includes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including without limitation, statements regarding our position to execute on our growth strategy, and our ability to expand our leadership position. These forward-looking statements include, but are not limited to, the Company's beliefs, plans, goals, objectives, expectations, assumptions, estimates, intentions, future performance, other statements that are not historical facts and statements identified by words such as "expects", "anticipates", "intends", "plans", "believes", "seeks", "estimates" or words of similar meaning. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in, or suggested by, these forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations or strategies will be attained or achieved. Forward-looking statements involve inherent risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements, as a result of various factors including those risks and uncertainties described in the Risk Factors and Management's Discussion and Analysis of Financial Condition and Results of Operations sections of our filings with the SEC including our Form 10-K for the year ended December 31, 2024, and subsequent reports we file with the SEC from time to time, which can be found on the SEC's website at www.sec.gov. We caution readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law. Investor Relations Contact:Larry W HolubDirectorMZ North AmericaYOSH@mzgroup.us312-261-6412 Yoshiharu Global Co. and SubsidiariesUnaudited Consolidated Balance Sheets (unaudited)(audited) March 31,December 31, 2025 2024 ASSETS Current Assets: Cash $3,011,038 $1,241,036 Accounts receivable 57,739 84,110 Inventories 143,181 139,422 Total current assets 3,211,958 1,464,568 Non-Current Assets: Property and equipment, net 4,985,804 5,130,229 Operating lease right-of-use asset, net 7,027,345 7,465,611 Intangible asset 477,947 491,223 Goodwill 1,985,645 1,985,645 Other assets 1,051,771 1,035,990 Total non-current assets 15,528,512 16,108,698 Total assets $18,740,470 $17,573,266 LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities: Accounts payable and accrued expenses $930,020 $843,322 Line of Credit 1,000,000 1,000,000 Current portion of operating lease liabilities 1,061,224 975,210 Current portion of bank notes payables – 1,366,350 Current portion of loan payable, EIDL – 10,924 Loans payable to financial institutions 3,332 34,282 Due to related party 9,333 732,710 Other payables 1,041,557 1,078,291 Total current liabilities 4,045,466 6,041,089 Operating lease liabilities, less current portion 6,752,468 7,324,677 Bank notes payables, less current portion 2,785,384 1,747,611 Loan payable, EIDL, less current portion 412,639 404,490 Notes payable to related party 600,000 600,000 Convertible notes to related party – 1,200,000 Total liabilities 14,595,957 17,317,867 Commitments and contingencies Stockholders' Equity Class A Common Stock – $0.0001 par value; 49,000,000 authorized shares; 1,662,245 and 1,300,197 shares issued and outstanding at March 31, 2025 and December 31, 2024 166 130 Class B Common Stock – $0.0001 par value; 1,000,000 authorized shares; 100,000 shares issued and outstanding at March 31, 2024 and at December 31, 2023 10 10 Additional paid-in-capital 17,528,777 11,464,813 Warrant subscription receivable (750,000) – Accumulated deficit (12,634,440) (11,209,554)Total stockholders' equity 4,144,513 255,399 Total liabilities and stockholders' equity $18,740,470 $17,573,266 Yoshiharu Global Co. and SubsidiariesUnaudited Consolidated Statements of Operations (unaudited) For the three months ended March 31 2025 2024 Revenue: Food and beverage $3,511,789 $2,811,609 Total revenue 3,511,789 2,811,609 Restaurant operating expenses: Food, beverages and supplies 945,804 667,892 Labor 1,557,771 1,286,534 Rent and utilities 556,999 318,568 Delivery and service fees 129,667 143,361 Depreciation 227,047 170,682 Total restaurant operating expenses 3,417,288 2,587,037 Net restaurant operating income 94,501 224,572 Operating expenses: General and administrative 1,265,157 920,401 Related party compensation 42,154 42,154 Advertising and marketing 60,787 33,904 Total operating expenses 1,368,098 996,459 Loss from operations (1,273,597) (771,887) Other income (expense): Other income 206,983 – Interest (341,347) (104,318)Total other income (134,364) (104,318) Loss before income taxes (1,407,961) (876,205) Income tax provision 16,925 – Net loss $(1,424,886)$(876,205) Loss per share: Basic and diluted $(0.96)$(0.65) Weighted average number of common shares outstanding: Basic and diluted 1,489,599 1,341,488 Yoshiharu Global Co. and SubsidiariesUnaudited Consolidated Statements of Cash Flows (unaudited) For the three months ended March 31 2025 2024 Cash flows from operating activities: Net loss $(1,424,886)$(876,205)Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 227,047 170,682 Amortization 13,276 Gain on disposal of fixed asset (50,000) – PPP loan forgiveness – – RRF loan forgiveness – – Changes in assets and liabilities: Accounts Receivable 26,371 (94,135)Inventories (3,759) (4,128)Other assets (15,781) 346,962 Accounts payable and accrued expenses 38,769 26,707 Due to related party (23,377) 56,921 Other payables (36,734) – Net cash used in operating activities (1,249,074) (373,196) Cash flows from investing activities: Purchases of property and equipment (32,622) (356,642)Net cash used in investing activities (32,622) (356,642) Cash flows from financing activities: Proceeds from notes payable 2,137,773 – Proceeds from borrowings (266,350) 812,000 Repayments on bank notes payables (1,102,775) (84,130)Repayment of loan payable to financial institutions (30,950) (168,769)Proceeds from sale of common shares 2,314,000 64,149 Net cash provided by financing activities 3,051,698 623,250 Net (decrease) increase in cash 1,770,002 (106,588) Cash – beginning of period 1,241,036 1,462,326 Cash – end of period $3,011,038 $1,355,738 Supplemental disclosures of non-cash financing activities: Supplemental disclosures of cash flow information Cash paid during the periods for: Interest $341,347 $104,318 Income taxes $16,925 $–

Yoshiharu Reports First Quarter 2025 Financial Results

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