false 2026 Q2 --12-31 0001916558 1 1 0001916558 2026-01-01 2026-06-30 0001916558 2026-08-19 0001916558 2026-06-30 0001916558 2025-12-31 0001916558 2026-04-01 2026-06-30 0001916558 2025-04-01 2025-06-30 0001916558 2025-01-01 2025-06-30 0001916558 TRWD:ManagementFeeIncomeMember 2026-04-01 2026-06-30 0001916558 TRWD:ManagementFeeIncomeMember 2025-04-01 2025-06-30 0001916558 TRWD:ManagementFeeIncomeMember 2026-01-01 2026-06-30 0001916558 TRWD:ManagementFeeIncomeMember 2025-01-01 2025-06-30 0001916558 TRWD:DistributionIncomeMember 2026-04-01 2026-06-30 0001916558 TRWD:DistributionIncomeMember 2025-04-01 2025-06-30 0001916558 TRWD:DistributionIncomeMember 2026-01-01 2026-06-30 0001916558 TRWD:DistributionIncomeMember 2025-01-01 2025-06-30 0001916558 us-gaap:ProductMember 2026-04-01 2026-06-30 0001916558 us-gaap:ProductMember 2025-04-01 2025-06-30 0001916558 us-gaap:ProductMember 2026-01-01 2026-06-30 0001916558 us-gaap:ProductMember 2025-01-01 2025-06-30 0001916558 us-gaap:CommonStockMember 2024-12-31 0001916558 us-gaap:AdditionalPaidInCapitalMember 2024-12-31 0001916558 TRWD:StockSubscriptionsReceivableMember 2024-12-31 0001916558 us-gaap:RetainedEarningsMember 2024-12-31 0001916558 2024-12-31 0001916558 us-gaap:CommonStockMember 2025-03-31 0001916558 us-gaap:AdditionalPaidInCapitalMember 2025-03-31 0001916558 TRWD:StockSubscriptionsReceivableMember 2025-03-31 0001916558 us-gaap:RetainedEarningsMember 2025-03-31 0001916558 2025-03-31 0001916558 us-gaap:CommonStockMember 2025-12-31 0001916558 us-gaap:AdditionalPaidInCapitalMember 2025-12-31 0001916558 TRWD:StockSubscriptionsReceivableMember 2025-12-31 0001916558 us-gaap:RetainedEarningsMember 2025-12-31 0001916558 us-gaap:CommonStockMember 2026-03-31 0001916558 us-gaap:AdditionalPaidInCapitalMember 2026-03-31 0001916558 TRWD:StockSubscriptionsReceivableMember 2026-03-31 0001916558 us-gaap:RetainedEarningsMember 2026-03-31 0001916558 2026-03-31 0001916558 us-gaap:CommonStockMember 2025-01-01 2025-03-31 0001916558 us-gaap:AdditionalPaidInCapitalMember 2025-01-01 2025-03-31 0001916558 TRWD:StockSubscriptionsReceivableMember 2025-01-01 2025-03-31 0001916558 us-gaap:RetainedEarningsMember 2025-01-01 2025-03-31 0001916558 2025-01-01 2025-03-31 0001916558 us-gaap:CommonStockMember 2025-04-01 2025-06-30 0001916558 us-gaap:AdditionalPaidInCapitalMember 2025-04-01 2025-06-30 0001916558 TRWD:StockSubscriptionsReceivableMember 2025-04-01 2025-06-30 0001916558 us-gaap:RetainedEarningsMember 2025-04-01 2025-06-30 0001916558 us-gaap:CommonStockMember 2026-01-01 2026-03-31 0001916558 us-gaap:AdditionalPaidInCapitalMember 2026-01-01 2026-03-31 0001916558 TRWD:StockSubscriptionsReceivableMember 2026-01-01 2026-03-31 0001916558 us-gaap:RetainedEarningsMember 2026-01-01 2026-03-31 0001916558 2026-01-01 2026-03-31 0001916558 us-gaap:CommonStockMember 2026-04-01 2026-06-30 0001916558 us-gaap:AdditionalPaidInCapitalMember 2026-04-01 2026-06-30 0001916558 TRWD:StockSubscriptionsReceivableMember 2026-04-01 2026-06-30 0001916558 us-gaap:RetainedEarningsMember 2026-04-01 2026-06-30 0001916558 us-gaap:CommonStockMember 2025-06-30 0001916558 us-gaap:AdditionalPaidInCapitalMember 2025-06-30 0001916558 TRWD:StockSubscriptionsReceivableMember 2025-06-30 0001916558 us-gaap:RetainedEarningsMember 2025-06-30 0001916558 2025-06-30 0001916558 us-gaap:CommonStockMember 2026-06-30 0001916558 us-gaap:AdditionalPaidInCapitalMember 2026-06-30 0001916558 TRWD:StockSubscriptionsReceivableMember 2026-06-30 0001916558 us-gaap:RetainedEarningsMember 2026-06-30 0001916558 us-gaap:CommonStockMember 2026-01-01 2026-06-30 0001916558 us-gaap:AdditionalPaidInCapitalMember 2026-01-01 2026-06-30 0001916558 TRWD:ConsultingExpenseMember 2026-01-01 2026-06-30 0001916558 TRWD:OperatingSegmentMember 2026-01-01 2026-06-30 0001916558 TRWD:OperatingSegmentMember 2025-01-01 2025-06-30 0001916558 us-gaap:CommonStockMember 2026-06-30 0001916558 TRWD:NonAffiliatedEntityMember 2025-06-07 2025-06-08 0001916558 TRWD:NonAffiliatedIndividualMember 2025-06-07 2025-06-09 0001916558 TRWD:NonAffiliatedIndividualMember 2025-07-04 2025-07-05 0001916558 TRWD:NonAffiliatedEntityMember 2025-07-07 2025-07-08 0001916558 TRWD:NonAffiliatedIndividualMember 2025-07-28 2025-07-29 0001916558 TRWD:NonAffiliatedEntityMember 2025-08-19 2025-08-20 0001916558 TRWD:NonAffiliatedIndividualMember 2025-09-22 2025-09-23 0001916558 TRWD:NonAffiliatedEntityMember 2025-10-09 2025-10-10 0001916558 us-gaap:CommonStockMember 2025-10-15 0001916558 TRWD:NonAffiliatedEntityMember 2025-10-14 2025-10-15 0001916558 TRWD:NonAffiliatedIndividualMember 2025-10-29 2025-11-01 0001916558 TRWD:NonAffiliatedIndividualMember 2025-11-02 2025-11-03 0001916558 TRWD:NonAffiliatedIndividualMember 2025-11-11 2025-11-12 0001916558 TRWD:NonAffiliatedIndividualMember 2025-11-27 2025-11-28 0001916558 TRWD:NonAffiliatedIndividualMember 2026-01-22 2026-01-23 0001916558 TRWD:NonAffiliatedIndividualMember 2026-01-27 2026-01-28 0001916558 TRWD:NonAffiliatedIndividualMember 2026-04-12 2026-04-13 0001916558 TRWD:NonAffiliatedIndividualMember 2026-04-14 2026-04-15 0001916558 TRWD:NonAffiliatedIndividualMember 2026-04-14 2026-04-16 0001916558 TRWD:NonAffiliatedIndividualMember 2026-06-16 2026-06-17 0001916558 TRWD:NonAffiliatedInvestorMember 2026-01-20 2026-01-21 0001916558 2026-04-13 0001916558 us-gaap:NoteWarrantMember 2026-06-30 0001916558 us-gaap:NoteWarrantMember 2026-01-01 2026-06-30 0001916558 TRWD:WarrantsMember 2026-01-01 2026-06-30 0001916558 TRWD:WarrantsMember 2026-06-30 0001916558 TRWD:Warrants1Member 2026-01-01 2026-06-30 0001916558 TRWD:Warrants1Member 2026-06-30 0001916558 TRWD:Warrants2Member 2026-01-01 2026-06-30 0001916558 TRWD:Warrants2Member 2026-06-30 0001916558 TRWD:Warrants3Member 2026-01-01 2026-06-30 0001916558 TRWD:Warrants3Member 2026-06-30 0001916558 TRWD:Warrants4Member 2026-01-01 2026-06-30 0001916558 TRWD:Warrants4Member 2026-06-30 0001916558 TRWD:Warrants5Member 2026-01-01 2026-06-30 0001916558 TRWD:Warrants5Member 2026-06-30 0001916558 TRWD:Warrants6Member 2026-01-01 2026-06-30 0001916558 TRWD:Warrants6Member 2026-06-30 0001916558 TRWD:EquityLineOfCreditAgreementMember 2026-01-27 2026-01-29 0001916558 TRWD:EquityLineOfCreditAgreementMember 2026-01-29 0001916558 TRWD:EquityLineOfCreditAgreementMember 2026-01-20 2026-01-21 0001916558 TRWD:EquityLineOfCreditAgreementMember 2026-06-20 2026-06-21 0001916558 TRWD:EquityLineOfCreditAgreementMember 2026-01-21 iso4217:USD xbrli:shares iso4217:USD xbrli:shares xbrli:pure TRWD:Integer

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

 Washington, D.C. 20549

 

Form 10-Q

 

 Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

For the quarter ended June 30, 2026

 

 Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

For the transition period from __________ to __________

 

Commission file number: 333-276233 

 

Tradewinds Universal

(Exact name of registrant as specified in its charter)

———————

Wyoming 2000 87-4254479

(State or other jurisdiction of

incorporation or organization)

(Primary Standard Industrial

Classification Code Number)

(I.R.S. Employer Identification

Code Number)

 

 

501 Mercury Lane
Brea, CA. 92821
855-434-4488
TradewindsUniversal.com
Andrewreadtw@gmail.com

(Address and telephone number of registrant's principal executive offices and principal place of business)

 

Buffalo Registered Agents LLC
401 N Main Street
Buffalo, WY 82834
855-434-4488

(Name, address, including zip code, and telephone number, including area code, of agent for service)

 

 

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes         No 

 

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Yes         No 

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes         No 

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).   Yes         No 

 

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.   Yes         No 

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act:

 

       
Large accelerated Filer Accelerated Filer
Non-accelerated Filer Smaller reporting company
(Do not check if a smaller reporting company) Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act.

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes         No 

 

Number of shares of registrant's common stock, par value $.001, outstanding as of August 19, 2026: 129,810,580.

 

 
 

 

Financial Statements

Tradewinds Universal

Table of Contents

June 30, 2026

 

Financial Statements 1
Balance Sheets as of June 30, 2026 (unaudited), and December 31, 2025 2
Statements of Operations for the three months and six months ended June 30, 2026 and June 30, 2025 (unaudited) 3
Statements of Changes in Stockholders Equity for the three and six months ended June 30, 2026 and 2025 (unaudited) 4
Statements of Cash Flow for the six months ended June 30, 2026 and 2025 (unaudited) 5
Notes to the Financial Statements 6

 

 

 1

 
 

 

 

TRADEWINDS UNIVERSAL

BALANCE SHEETS AS OF JUNE 30, 2026 AND DECEMBER 31, 2025

         
  

June 30,
2026

(Unaudited)

   December 31,
2025
 
ASSETS          
Current Assets          
Cash and Cash Equivalents  $8,636   $16,638 
Prepaid Expense   445    25,445 
Accounts Receivable   70,750    48,750 
Total Current Assets   79,831    90,833 
Other Assets-Intangible Assets          
Intangible Asset - AI App -net of Amortization   170,000    190,000 
Formula-Pets-net   25,000    25,000 
Trademarks   1,500    1,500 
Total Other Assets (net)  $196,500   $216,500 
Total Assets   276,331    307,333 
Liabilities and Stockholders' Equity          
Accounts Payable  $27,000   $ 
Loan Payable   65,000     
Total Current Liabilities   92,000     
Total Liabilities   92,000     
           
Commitments and Contingencies (Note 3)        
           
Stockholders' Equity          
Common stock, $0.001 par value, 150,000,000 shares authorized, 129,810,580 issued and outstanding at June 30, 2026 and 42,690,580 issued and outstanding at December 31, 2025   129,811    42,691 
Additional Paid in Capital   4,412,599    1,447,709 
Stock Subscription Receivable   (182,810)    
Accumulated Deficit   (4,175,269)   (1,183,067)
Total Stockholders' Equity   184,331    307,333 
Total Liabilities and Stockholders' Equity  $276,331   $307,333 

 

 

The accompanying notes are an integral part of these unaudited financial statements.

 

 

2 
 

 

TRADEWINDS UNIVERSAL

STATEMENTS OF OPERATIONS

(Unaudited)

                 
   For the Three Months ended June 30, 2026   For the Three Months ended June 30, 2025   For the Six Months ended June 30, 2026   For the Six Months ended June 30, 2025 
Revenue                    
   Management Fee Income  $25,000   $0   $25,000   $12,972 
   Distribution Income   0    20,000    6,800    20,000 
   Product Sales   0    0    15,000    0 
Total Sales   25,000    20,000    46,800    32,972 
                     
Cost of Sales   0    0    0    0 
                     
Gross Profit   25,000    20,000    46,800    32,972 
Operating Expenses                    
   Professional Fees   27,287    10,000    51,083    10,000 
   Consulting   2,814,798    27,200    2,858,498    39,850 
   Amortization   10,000    1,200    20,000    2,400 
   Marketing   25,724    853    90,313    853 
   General and Administrative   14,051    5,890    19,107    6,124 
Total Operating Expenses   2,891,860    45,143    3,039,001    59,227 
Net Income (Loss) Before Taxes   (2,866,860)   (25,143)   (2,992,201)   (26,255)
   Income Tax Benefit   0    0    0    0 
Net (Loss) Income  $(2,866,860)  $(25,143)  $(2,992,201)  $(26,255)
                     
Net (Loss) Income Per share - Basic and Diluted  $(0.02)  $0.00   $(0.04)  $0.00 
                     
Basic and diluted weighted average shares used in the calculation of net income per common share   59,337,614    34,670,000    51,416,436    34,670,000 

 

The accompanying notes are an integral part of these unaudited financial statements.

 

 

3 
 

 

TRADEWINDS UNIVERSAL

STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 (Unaudited) AND JUNE 30, 2025 (Unaudited)

 

                               
   Common
Shares
   Common
Shares
Amount
   Additional
Paid-in
Capital
   Stock
Subscriptions
Receivable
   Accumulated
Deficit
   Total
Stockholders’
Equity
 
Balance December 31, 2024   32,170,000    32,170    289,530        (290,190)   31,510 
Net Loss                   (1,112)   (1,112)
Balance March 31, 2025   32,170,000    32,170    289,530        (291,302)   30,398 
Shares Issued   2,500,000    2,500    22,500            25,000 
Net Loss                   (25,143)   (25,143)
Balance June 30, 2025   34,670,000    34,670    312,030        (316,445)   30,255 

 

   Common
Shares
   Common
Shares
Amount
   Additional
Paid-in
Capital
   Stock
Subscriptions
Receivable
   Accumulated
Deficit
   Total
Stockholders’
Equity
 
Balance December 31, 2025   42,690,580    42,691    1,447,709        (1,183,067)   307,333 
Shares Issued for Cash   1,000,000    1,000    49,000            50,000 
Net Loss                   (125,341)   (125,341)
Balance March 31, 2026   43,690,580    43,691    1,496,709        (1,308,408)   231,992 
Shares Issued for Cash   1,200,000    1,200    16,800            18,000 
Shares Issued for Services   79,000,000    79,000    2,722,200            2,801,200 
Shares Issued for ELOC   5,920,000    5,920    176,890    (182,810)        
Net Loss                   (2,866,860)   (2,866,860)
Balance June 30, 2026   129,810,580    129,811    4,412,599    (182,810)   (4,175,269)   184,331 

 

The accompanying notes are an integral part of these unaudited financial statements.

 

 

4 
 

 

TRADEWINDS UNIVERSAL

STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30, 2026 AND JUNE 30, 2025

  

         
   June 30, 2026
(unaudited)
   June 30, 2025
(unaudited)
 
Operating Activities          
   Net Loss  $(2,992,201)  $(26,255)
Adjustments to Reconcile Net Loss to Net Cash from Operating Activities          
   Amortization of Intangible Assets   20,000    2,400 
   Stock Issued for Services (non-cash)   2,801,200    25,000 
Changes in Operating Assets and Liabilities          
   Accounts Receivable   (22,000)   (1,025)
   Prepaid Expense   25,000     
   Accounts Payable   27,000     
 Net Cash from Operating Activities   (141,002)   120 
           
Investing Activities          
   Purchase of Intangible Asset        
Net Cash from Investing Activities        
           
Financing Activities          
   Proceeds from Sale of Common Stock   68,000     
   Proceeds from Notes Payable   65,000     
Net Cash from Financing Activities   133,000     
           
Net Change in Cash and Cash Equivalents   (8,002)   120 
           
Cash and Cash Equivalents at Beginning of Period   16,638    210 
           
Cash and Cash Equivalents at End of Period  $8,636   $330 
           
Supplemental Cash Flow Information          
Cash Paid for Interest  $   $ 
Cash Paid for Taxes  $   $ 
Shares Issued for Services (non-cash)  $   $ 
Common Stock Issued for Stock Subscription Receivable  $182,810   $ 

 

 

The accompanying notes are an integral part of these unaudited financial statements

 

 

5 
 

 

TRADEWINDS UNIVERSAL

NOTES TO THE FINANCIAL STATEMENTS

June 30, 2026 (Unaudited)

 

Note 1 – Nature of Operations

 

Nature of Operations

 

Tradewinds Universal, Inc. (the “Company”) was incorporated in the State of Wyoming on December 28, 2021. The Company operates as a holding company focused on acquiring, developing, and managing businesses with long-term value, resilience, and growth potential.

 

The Company’s initial operations focused on the development and distribution of high-nutrition foods and beverages, including edible insect protein-based products. In 2022, the Company acquired a canine pain relief formula for development into pet-related products. During the year ended December 31, 2025, the Company expanded its strategic focus to include distribution and licensing activities.

 

On August 19, 2025, we entered into a non-binding Letter of Intent, or LOI, with Scar Holdings LLC, also known as Peppermint Hippo™, regarding the potential formation of a division focused on the acquisition and development of nightlife and hospitality venues under the Peppermint Hippo brand.

 

The first proposed acquisition contemplated by the LOI is Peppermint Hippo Toledo, located in Toledo, Ohio. The LOI further contemplates that we may, together with Peppermint Hippo, evaluate the possible acquisition of additional Peppermint Hippo-branded venues over time.

 

The LOI is non-binding and no definitive acquisition agreement has been entered into with respect to Peppermint Hippo Toledo or any other venue. Completion of any acquisition would be subject to a number of conditions, including completion of due diligence, negotiation and execution of definitive agreements, receipt of required consents, financing, and regulatory and licensing approvals. As a result, there can be no assurance that we will complete the acquisition of Peppermint Hippo Toledo, pursue any additional acquisition opportunity with Peppermint Hippo, or otherwise establish a nightlife and hospitality division.

 

Note 2 - Summary of Significant Accounting Policies

 

Basis of Presentation

 

The accompanying unaudited interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”). In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the Company’s financial position as of June 30, 2026 and December 31, 2025 and the results of operations and cash flows for the three and six months ended June 30, 2026 and 2025 have been included.

 

Estimates

 

The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect certain reported amounts. Accordingly, actual results could differ from those estimates.

 

Cash And Cash Equivalents

 

The Company maintains cash balances in non-interest-bearing accounts that currently do not exceed federally insured limits. For purposes of the statements of cash flows, all highly liquid investments with an original maturity of three months or less are considered cash equivalents. There were no cash equivalents as of June 30, 2026, June 30, 2025, or December 31, 2025.

 

Accounts Receivable

 

Accounts receivable consist of trade receivables and are stated at the amount management expects to collect. As of June 30, 2026 and December 31, 2025, accounts receivable totaled $70,750 and $48,750, respectively. The Company evaluates accounts receivable for expected credit losses in accordance with ASC 326, Financial Instruments—Credit Losses. In estimating expected credit losses, management considers relevant available information, including historical collection experience, the financial condition and creditworthiness of the customer, current economic conditions, and reasonable and supportable forecasts of future conditions that may affect collectibility. Based on this evaluation, no allowance for credit losses was recorded as of June 30, 2026 or December 31, 2025.

 

6 

TRADEWINDS UNIVERSAL

NOTES TO THE FINANCIAL STATEMENTS

June 30, 2026 (Unaudited)

 

Prepaid Expenses

 

Prepaid expenses consist primarily of payments made for services to be received in future periods and are expensed as the services are consumed. As of June 30, 2026 and December 31, 2025, prepaid expenses totaled $445 and $25,445, respectively.

 

Intangible Asset

 

Intangible assets are recorded at cost and amortized over their estimated useful lives unless determined to have an indefinite useful life.

 

For definite-lived intangible assets, the Company evaluates impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If such indicators are present, the Company compares the expected undiscounted future cash flows attributable to the asset to its carrying amount. If the carrying amount exceeds the expected undiscounted future cash flows, an impairment loss is recognized for the amount by which the carrying amount exceeds the asset’s fair value.

 

Indefinite-lived intangible assets are not amortized but are evaluated for impairment at least annually, or more frequently if events or changes in circumstances indicate that it is more likely than not that the asset is impaired.

 

As of June 30, 2026, the Company’s intangible assets, net, totaled $196,500. During the six months ended June 30, 2026, the Company recorded amortization expense of $20,000 and no additions to intangible assets.

 

  Intangible assets, gross $216,500
  Less accumulated amortization $(20,000)
  Intangible assets, net $196,500

Total intangible assets, net, were $196,500 as of June 30, 2026 and $216,500 as of December 31, 2025. The decrease reflects $20,000 of amortization expense recorded during the six months ended June 30, 2026. No additions to intangible assets and no impairment expense were recorded during the six months ended June 30, 2026 or 2025.

 

As of June 30, 2025, the Company’s intangible assets totaled approximately $28,900, compared with $31,300 at December 31, 2024, reflecting $2,400 of amortization expense during the six-month period.

 

Finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives. The Company’s AI application is amortized over five years, and the Company’s website was amortized over two years and was fully amortized as of December 31, 2025. Amortization expense was $20,000 for the six months ended June 30, 2026 and $2,400 for the six months ended June 30, 2025.

 

Stock Compensation

 

The Company accounts for stock-based compensation in accordance with ASC 718, Compensation—Stock Compensation. Stock-based compensation expense is recognized based on the fair value of equity instruments issued.

The Company is authorized to issue 150,000,000 shares of common stock, par value $0.001 per share. As of June 30, 2026 and December 31, 2025, there were 129,810,580 and 42,690,580 shares of common stock issued and outstanding, respectively (see Note 5).

 

7 

TRADEWINDS UNIVERSAL

NOTES TO THE FINANCIAL STATEMENTS

June 30, 2026 (Unaudited)

 

During the six months ended June 30, 2026, the Company issued 79,000,000 shares of common stock for services and recognized aggregate stock-based compensation of $2,801,200. The issuances increased common stock by $79,000 and additional paid-in capital by $2,722,200. Shares issued for cash and pursuant to the equity line of credit are not included in stock-based compensation.

 

The Company recorded consulting expense of $2,858,498 during the six months ended June 30, 2026, including $2,801,200 of stock-based compensation related to shares issued for services. The financial statements should be read together with Notes 5 and 6 regarding changes in common stock, additional paid-in capital, and stock subscriptions receivable.

 

Impairment Of Long-Lived Assets

 

The Company accounts for impairment of intangible assets in accordance with ASC 350, Intangibles—Goodwill and Other. Definite-lived intangible assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Indefinite-lived intangible assets are not amortized but are tested for impairment at least annually, or more frequently if events or changes in circumstances indicate potential impairment.

 

As of June 30, 2026, the Company reviewed its finite- and indefinite-lived intangible assets for indicators of impairment. No impairment charge was recorded during the three or six months ended June 30, 2026 or 2025.

 

Revenue Recognition

 

The Company accounts for revenue in accordance with ASC 606, Revenue from Contracts with Customers. Under ASC 606, revenue is recognized when control of promised goods or services is transferred to customers in an amount that reflects the consideration the Company expects to receive in exchange for those goods or services.

 

Revenue for the three months ended June 30, 2026 consisted of $25,000 of management fee income. Revenue for the six months ended June 30, 2026 consisted of $25,000 of management fee income, $6,800 of distribution income, and $15,000 of product sales. Revenue for the three months ended June 30, 2025 consisted of $20,000 of distribution income, and revenue for the six months ended June 30, 2025 consisted of $12,972 of management fee income and $20,000 of distribution income.

 

For each contract, the Company first determines whether an arrangement exists that creates enforceable rights and obligations. The Company then identifies the distinct performance obligations promised in the contract. The transaction price is determined based on the consideration the Company expects to receive under the terms of the arrangement, including fixed amounts and, when applicable, estimates of variable consideration to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur. When a contract contains more than one performance obligation, the transaction price is allocated to each performance obligation based on its relative standalone selling price.

 

Revenue from distribution rights is recognized at the point in time or over the period in which the customer obtains control of the contractual rights, depending on the nature of the arrangement and the Company’s performance obligations under the contract.

 

Revenue from licenses is recognized when the licensed intellectual property is made available to the customer or over the license term, depending on whether the license provides a right to use intellectual property as it exists at a point in time or a right to access intellectual property as it evolves over time.

 

Revenue from affiliate commissions is recognized at the time the underlying qualifying transaction occurs and the commission is earned, which is the point at which the Company’s performance obligation is satisfied. The Company evaluates each contract to determine whether it acts as principal or agent, as applicable, and records revenue on a gross or net basis consistent with that determination. Payment terms vary by contract but are generally due within 30 to 90 days. Amounts billed and collected in advance of satisfying the related performance obligations are recorded as deferred revenue. No deferred revenue was recorded as of June 30, 2026 or December 31, 2025.

 

8 

TRADEWINDS UNIVERSAL

NOTES TO THE FINANCIAL STATEMENTS

June 30, 2026 (Unaudited)

 

Fair Value of Financial Instruments

 

ASC 825, Financial Instruments, requires disclosure of the fair value of certain financial instruments. The carrying amounts of cash and cash equivalents, accounts receivable, loan payable, and accounts payable approximate fair value because of the short-term maturities of these instruments. The Company applies ASC 820, Fair Value Measurement, which establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels: Level 1, quoted prices in active markets for identical assets or liabilities; Level 2, observable inputs other than quoted prices included in Level 1; and Level 3, unobservable inputs reflecting the Company’s own assumptions. As of June 30, 2026 and December 31, 2025, the Company had no financial instruments measured at fair value on a recurring basis.

 

Income Taxes

 

In accordance with ASC 740 Income Taxes, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under ASC 740, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in Income in the period that includes the enactment date.

 

The Company has adopted the provisions set forth in ASC 740 to account for uncertainty in income taxes. In the preparation of income tax returns in federal and state jurisdictions, the Company asserts certain tax positions based on its understanding and interpretation of the income tax law. The taxing authorities may challenge such positions, and the resolution of such matters could result in recognition of Income tax expense in the Company's financial statements. Management believes it has used reasonable judgments and conclusions in the preparation of its income tax returns. The Company uses the "more likely than not" criterion for recognizing the tax benefit of uncertain tax positions and to establish measurement criteria for income tax benefits. The Company' s policy is to recognize interest and/or penalties related to income tax matters in income tax expense. The Company had no accrual for interest or penalties on its balance sheets as of June 30, 2026 and December 31, 2025.

 

The Company has incurred net operating losses and has established a full valuation allowance against its deferred tax assets. As a result, no income tax expense or benefit was recorded for the three or six months ended June 30, 2026 or 2025.

 

Earnings Per Share of Common Stock

 

Net loss per share is computed in accordance with ASC 260, Earnings Per Share. Basic net loss per share is calculated by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted net loss per share gives effect to potentially dilutive securities, including warrants, using the treasury stock method. Potentially dilutive securities were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive.

 

Recently Adopted Accounting Pronouncements

 

Management does not believe that any recently issued, but not yet effective, accounting pronouncements would have a material effect on the accompanying interim financial statements.

 

Note 3 - Commitments and Contingencies

 

During the normal course of business, the Company may be exposed to litigation. When the Company becomes aware of potential litigation, it evaluates the merits of the case in accordance with ASC 450, Contingencies. As of June 30, 2026 and December 31, 2025, the Company was not aware of any contingent liabilities or commitments that required accrual or disclosure in the accompanying unaudited financial statements.

 

9 

TRADEWINDS UNIVERSAL

NOTES TO THE FINANCIAL STATEMENTS

June 30, 2026 (Unaudited)

 

 

Note 4 - Segment Disclosure

 

ASC 280, Segment Reporting, establishes standards for reporting information about operating segments. The Company manages its business on the basis of one reportable segment and derives revenues mainly from products, licensing rights, distribution rights, and affiliate commissions.

 

The Company operates as one operating segment. Operating segments are defined as components of an enterprise for which separate financial information is regularly evaluated by the chief operating decision maker (“CODM”). The Company’s CODM is its chief executive officer, who reviews financial information and operating plans for purposes of making operating decisions, evaluating financial performance, and allocating resources. The key measure of segment profit or loss that the CODM uses to allocate resources and assess performance is the Company’s net loss.

 

Segment Disclosures for the Three Months Ended:

        
   June 30, 2026   June 30, 2025 
Sales          
  Revenues  $25,000   $20,000 
Net Sales   25,000    20,000 
 Cost of Goods Sold        
Gross Profit   25,000    20,000 
Sales, marketing and support          
  Marketing costs   25,724    853 
  Professional fees   27,287    10,000 
  Amortization   10,000    1,200 
  Consulting   2,814,798    27,200 
  General  and Administrative costs   14,051    5,890 
Net Income (Loss) Before Taxes  $(2,866,860)  $(25,143)

 

Note 5 – Stockholders' Equity

 

The Company is authorized to issue 150,000,000 shares of common stock, par value $0.001 per share. As of June 30, 2026, there were 129,810,580 shares of common stock issued and outstanding. As of December 31, 2025, there were 42,690,580 shares issued and outstanding.

 

Since January 1, 2025 through June 30, 2026, the Company issued shares for services, asset acquisitions, cash, and subscription consideration. During the six months ended June 30, 2026, the Company issued an aggregate of 87,120,000 shares of common stock and recorded an aggregate increase of $87,120 to common stock and $2,964,890 to additional paid-in capital. A stock subscription receivable of $182,810 was recorded as contra-equity. The net increase in stockholders’ equity resulting from the 2026 issuances, before the effect of net loss, was $2,869,200. The accompanying financial statements reflect 129,810,580 shares issued and outstanding as of June 30, 2026.

 

Set forth below is information regarding the issuance and sales of securities without registration through June 30, 2026. No such sales involved the use of an underwriter, no advertising or public solicitation was involved, the securities bear a restrictive legend, and no commissions were paid in connection with the sale of any securities.

 

The individual issuances are summarized below:

 

• On June 8, 2025, the Company issued 1,500,000 shares of common stock to a non-affiliated entity for services.

• On June 9, 2025, the Company issued 1,000,000 shares of common stock to a non-affiliated individual for services.

• On July 5, 2025, the Company issued 500,000 shares of common stock to a non-affiliated individual for services.

• On July 8, 2025, the Company issued 1,000,000 shares of common stock to a non-affiliated entity for services.

• On July 29, 2025, the Company issued 66,667 shares of common stock to a non-affiliated individual for cash.

 

10 

TRADEWINDS UNIVERSAL

NOTES TO THE FINANCIAL STATEMENTS

June 30, 2026 (Unaudited)

 

• On August 20, 2025, the Company issued 173,913 shares of common stock to a non-affiliated entity in exchange for an asset.

• On September 23, 2025, the Company issued 200,000 shares of common stock to a non-affiliated individual for services.

• On October 10, 2025, the Company issued 500,000 shares of common stock to a non-affiliated entity for services.

• On October 15, 2025, the Company issued an aggregate of 1,780,000 shares of common stock, consisting of 1,500,000 shares issued to a non-affiliated entity for services and 280,000 shares issued to a non-affiliated individual for cash.

• On November 1, 2025, the Company issued 1,400,000 shares of common stock to a non-affiliated individual for services.

• On November 3, 2025, the Company issued 1,000,000 shares of common stock to a non-affiliated individual for services.

• On November 12, 2025, the Company issued 1,000,000 shares of common stock to a non-affiliated individual for services.

• On November 28, 2025, the Company issued 400,000 shares of common stock to a non-affiliated individual for cash.

• On January 23, 2026, the Company issued 500,000 shares of common stock to a non-affiliated individual for cash.

• On January 28, 2026, the Company issued 500,000 shares of common stock to a non-affiliated individual for cash.

• On April 13, 2026, the Company issued 1,200,000 shares of common stock to a non-affiliated individual for cash.

• On April 15, 2026, the Company issued 2,000,000 shares of common stock to a non-affiliated corporation for services.

• On April 16, 2026, the Company issued 2,000,000 shares of common stock to a non-affiliated corporation for services.

• On June 17, 2026, the Company issued 75,000,000 shares of common stock to an affiliated individual (Andrew Read, CEO) for services.

• On June 21, 2026, the Company issued 5,920,000 shares of common stock to a non-affiliated investor pursuant to the equity line of credit agreement. The Company recorded aggregate consideration of $182,810. The consideration had not been collected as of June 30, 2026 and was recorded as a stock subscription receivable within stockholders’ equity.

 

As of June 30, 2026, the Company had 129,810,580 shares of common stock issued and outstanding.

 

Warrants

 

During 2025, the Company issued warrants to purchase an aggregate of 946,667 shares of common stock to the Beling Family Trust. During the six months ended June 30, 2026, the Company issued additional warrants to purchase an aggregate of 2,200,000 shares of common stock to the Beling Family Trust, including a warrant issued on April 13, 2026 to purchase up to 1,200,000 shares of common stock at an exercise price of $0.015 per share. The April 13, 2026 warrant expires on April 13, 2029.

 

A summary of warrant activity for the six months ended June 30, 2026 is as follows:

         
    Warrants   Weighted Average Exercise Price 
 Outstanding at December 31, 2025    946,667   $0.08 
 Granted    2,200,000   $0.03 
 Exercised       $ 
 Expired       $ 
 Outstanding at June 30, 2026    3,146,667   $0.05 
 Exercisable at June 30, 2026    3,146,667   $0.05 

 

11 

TRADEWINDS UNIVERSAL

NOTES TO THE FINANCIAL STATEMENTS

June 30, 2026 (Unaudited)

 

 

A summary of warrant activity for the six months ended June 30, 2025 is as follows:

             
      Warrants    Weighted Average Exercise Price 
 Outstanding at December 31, 2025         
 Granted         
 Exercised         
 Expired         
 Outstanding at June 30, 2026         
 Exercisable at June 30, 2026         

 

As of June 30, 2026, 3,146,667 warrants were outstanding and exercisable, with a weighted average exercise price of approximately $0.05 per share.

 

The following table summarizes warrants outstanding at June 30, 2026:

               
Grant Date  Shares Under Warrant   Exercise Price   Expiration Date  Exercise Terms 
July 29, 2025   (2,992,201   $0.30   July 29, 2028   Cash exercise 
September 8, 2025   (628,362   $0.10   September 8, 2028   Cash exercise 
October 15, 2025   280,000   $0.05   October 15, 2028   Cash exercise 
November 28, 2025   628,362   $0.05   November 28, 2028   Cash exercise 
January 23, 2026   500,000   $0.05   January 23, 2029   Cash exercise 
January 28, 2026   500,000   $0.05   January 28, 2029   Cash exercise 
April 13, 2026   1,200,000   $0.015   April 13, 2029   Cash exercise 
Total / Weighted Average   3,146,667   $0.05         

 

Weighted Average term remaining:

 

For the current period issuances:

 

2,200,000 warrants issued during the six months ended June 30, 2026 had a weighted-average remaining contractual term of approximately 2.69 years as of June 30, 2026.

 

For the total warrants outstanding at June 30, 2026:

 

3,146,667 warrants outstanding had a weighted-average remaining contractual term of approximately 2.58 years as of June 30, 2026.

 

We have never utilized an underwriter for an offering of our securities. Other than the securities mentioned above and the common stock issuances described below, we have not issued or sold any other securities.

 

During the six months ended June 30, 2026, the Company issued an aggregate of 87,120,000 shares of common stock. The financial statements record an aggregate increase of $87,120 in common stock and $2,964,890 in additional paid-in capital. The Company also recorded a stock subscription receivable of $182,810 as contra-equity, resulting in a net increase in stockholders’ equity of $2,869,200 for these issuances before the effect of net loss.

 

Note 6 – Equity Line of Credit and Stock Subscription Receivable

On January 29, 2026, the Company entered into a Common Stock Purchase Agreement and related Registration Rights Agreement with RH2 Equity Partners, L.P. (the “Investor”), collectively referred to as the equity line of credit agreement. Under the agreement, the Company may, at its sole election and subject to the terms, conditions, and limitations of the agreement, sell and issue to the Investor up to $10,000,000 of the Company’s common stock.

12 

TRADEWINDS UNIVERSAL

NOTES TO THE FINANCIAL STATEMENTS

June 30, 2026 (Unaudited)

 

The Company filed a registration statement on Form S-1 registering the offer and resale of up to 20,000,000 shares of common stock issuable to the Investor under the equity line of credit agreement. The registration statement was declared effective by the Securities and Exchange Commission on May 6, 2026. The Board of Directors previously authorized the reservation of 20,000,000 authorized but unissued shares of common stock for issuance under the agreement.

On June 21, 2026, the Board of Directors approved Purchase Notice No. 1 and authorized the issuance and sale of 5,920,000 shares of the Company’s common stock to the Investor pursuant to the equity line of credit agreement. The Board also authorized the Company’s officers to execute the purchase notice, transfer-agent instructions, issuance forms, and other documents necessary to cause the shares to be issued and delivered to the Investor in direct registration system format.

On June 21, 2026, the Company issued 5,920,000 shares of common stock to the Investor pursuant to the equity line of credit agreement and recorded aggregate consideration of $182,810. The Company recorded $5,920 in common stock, representing the $0.001 par value of the shares issued, and $176,890 in additional paid-in capital.

As of June 30, 2026, the Company had not received payment from the Investor for the shares. Accordingly, the Company recorded a stock subscription receivable of $182,810 as a contra-equity account within stockholders’ equity. No cash proceeds related to the issuance were included in the accompanying statement of cash flows for the six months ended June 30, 2026. The issuance is disclosed as a supplemental noncash financing activity.

The stock subscription receivable will remain classified as contra-equity until the related consideration is collected. Upon receipt of payment, the Company will reduce the stock subscription receivable and record the corresponding increase in cash.

Note 7 - Going Concern

 

The Company has incurred recurring losses and, as of June 30, 2026 and December 31, 2025, had accumulated deficits of $4,175,269 and $1,183,067, respectively. In addition, the Company used $141,002 of cash in operating activities during the six months ended June 30, 2026. These conditions raise substantial doubt about the Company’s ability to continue as a going concern.

 

The Company’s ability to continue as a going concern is dependent upon its ability to obtain additional financing and achieve profitable operations. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

Note 8 - Income Taxes

 

The Company recognizes deferred income tax assets and liabilities for the expected future tax consequences of events that have been recognized in the financial statements or tax returns. Deferred tax assets and liabilities are determined based on temporary differences between the financial statement carrying amounts and the tax bases of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse.

 

The components of the Company’s reconciliation of income taxes computed at the statutory rate of 21% to the income tax amount recorded for the six months ended June 30, 2026 and 2025 are as follows:

                
   June 30, 2026   Rate   June 30, 2025   Rate 
Net Loss Before Taxes   628,362)   100%   (26,255)   100%
Tax benefit at federal statutory rate   (628,362)   (21)%   (5,514)   (21)%
State income taxes, net of federal benefit       0.0%       0.0%
Change in valuation allowance   619,710    21%   5,514    21%
Provision from Income Taxes       0.0%       0.0%

 

                
   June 30, 2026   Rate   June 30, 2025   Rate 
Deferred Tax Asset   619,710    21%   5,514    21%
Less Valuation Allowance   (619,710)   (21)%   (5,514)   (21)%
Net Deferred Tax Asset       0.0%       0.0%

 

Because of uncertainties surrounding the Company’s ability to generate future taxable income to realize deferred tax assets, a full valuation allowance has been established. Accordingly, no income tax provision or benefit was recorded for the six months ended June 30, 2026 or 2025.

 

Note 9 - Subsequent Events

 

In accordance with ASC 855, Subsequent Events, the Company has evaluated subsequent events through the date these financial statements were issued. Management has determined that there were no material subsequent events requiring recognition or disclosure in the financial statements for the quarter ended June 30, 2026.

 

 

13 
 

 

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our financial statements and the related notes to those statements included elsewhere in this prospectus. In addition to historical financial information, the following discussion and analysis contain forward-looking statements involving risks, uncertainties, and assumptions. Our actual results and timing of selected events may differ materially from those anticipated in these forward-looking statements due to many factors, including, but not limited to, those discussed under the section titled “Risk Factors” and elsewhere in this prospectus. See the section titled “Special Note Regarding Forward-Looking Statements” elsewhere in this prospectus.

 

Overview

 

Tradewinds Universal (“Tradewinds” or the “Company”) is a holding company focused on acquiring and developing businesses with long-term value, resilience, and growth potential. Our initial operations focused on the development and distribution of high-nutrition foods and beverages, including edible insect protein-based bars marketed under the Universal Proteins (UP) brand. In 2022, we also acquired a canine pain relief formula for development into pet treats.

 

On August 19, 2025, we entered into a non-binding Letter of Intent with Scar Holdings LLC, also known as Peppermint Hippo(TM), regarding the potential formation of a division focused on the acquisition and development of nightlife and hospitality venues under the Peppermint Hippo brand. The first proposed acquisition contemplated by the LOI is Peppermint Hippo Toledo, located in Toledo, Ohio, and the LOI further contemplates that we may evaluate possible acquisitions of additional Peppermint Hippo-branded venues over time. No definitive acquisition agreement has been entered into, and any acquisition would be subject to due diligence, definitive agreements, required consents, financing, and regulatory and licensing approvals. Accordingly, there can be no assurance that any proposed acquisition or nightlife and hospitality division will be completed or established.

 

We successfully completed the development, manufacturing, and initial distribution of two protein bar SKUs (Chocolate Almond and Peanut Butter Fruit) in 2023 through our partnership with YouBar, Inc. In 2024, we entered into a purchase agreement with a distributor for 1,040 cases of UP bars, all of which were sold by September 30, 2024. We continue to market our bars online and to retail outlets, but larger-scale distribution agreements remain uncertain. Development of additional SKUs is ongoing.

 

Looking ahead, we intend to keep expanding our UP product line, move forward with commercializing our canine pain relief formula, explore licensing and distribution opportunities, and evaluate opportunities in the nightlife and hospitality markets. We expect operating expenses to remain elevated as we develop new product lines, pursue strategic opportunities, and continue as a public company. Net losses are likely to vary depending on the timing of marketing efforts, research and development activities, professional fees, and potential acquisitions. We are working on securing funding through additional equity or debt financing to support our growth plans.

 

Comparison of the Three and Six Months Ended June 30, 2026 and June 30, 2025

 

Revenue

 

For the three months ended June 30, 2026, the Company generated revenue of $25,000, compared to $20,000 for the three months ended June 30, 2025, an increase of $5,000, or 25%. For the six months ended June 30, 2026, revenue was $46,800, compared to $32,972 for the six months ended June 30, 2025, an increase of $13,828, or approximately 42%. Revenue for the three months ended June 30, 2026 consisted of management fee income. Revenue for the six months ended June 30, 2026 consisted of $25,000 of management fee income, $6,800 of distribution income, and $15,000 of product sales. The comparable 2025 periods included management fee and distribution income.

 

14 
 

Gross Profit

 

Gross profit was $25,000 for the three months ended June 30, 2026 and $46,800 for the six months ended June 30, 2026, compared to $20,000 and $32,972 for the three and six months ended June 30, 2025, respectively. The Company did not report cost of sales for any period presented; therefore, gross profit equaled revenue.

 

Operating Expenses

 

Total operating expenses for the three months ended June 30, 2026 were $2,891,860, compared to $45,143 for the three months ended June 30, 2025, an increase of $2,846,717. For the six months ended June 30, 2026, total operating expenses were $3,039,001, compared to $59,227 for the six months ended June 30, 2025, an increase of $2,979,774. The 2026 six-month expenses included consulting expense of $2,858,498, professional fees of $51,083, marketing expense of $90,313, amortization expense of $20,000, and general and administrative expense of $19,107.

 

The increase in operating expenses was primarily attributable to substantially higher consulting costs, together with increased professional fees, marketing activity, amortization, and general and administrative costs incurred in connection with business development activities, strategic initiatives, capital-raising activities, and the Company’s public-company obligations.

 

Net Loss

 

For the three months ended June 30, 2026, the Company recorded a net loss of $2,866,860, compared to a net loss of $25,143 for the three months ended June 30, 2025. For the six months ended June 30, 2026, the Company recorded a net loss of $2,992,201, compared to a net loss of $26,255 for the six months ended June 30, 2025. The increase in net loss was primarily driven by the increase in operating expenses, particularly consulting expense, including stock-based compensation. Basic and diluted net loss per share was $0.02 and $0.04 for the three- and six-month 2026 periods, respectively, compared to $0.00 for each comparable 2025 period.

 

Liquidity and Capital Resources

 

As of June 30, 2026, the Company had total assets of $276,331, compared to $307,333 as of December 31, 2025. Current assets at June 30, 2026 were $79,831, consisting of cash and cash equivalents of $8,636, accounts receivable of $70,750, and prepaid expenses of $445. Intangible assets, net, were $196,500 at June 30, 2026, compared to $216,500 at December 31, 2025. The decrease in intangible assets reflects $20,000 of amortization expense recorded during the six months ended June 30, 2026.

 

As of June 30, 2026, the Company had total liabilities of $92,000, consisting of accounts payable of $27,000 and a loan payable of $65,000, compared to no liabilities reported at December 31, 2025. Stockholders’ equity totaled $184,331 at June 30, 2026, compared to $307,333 at December 31, 2025. The decrease in stockholders’ equity was primarily attributable to the net loss of $2,992,201, partially offset by issuances of common stock.

 

At June 30, 2026, the Company had 129,810,580 shares of common stock issued and outstanding, compared to 42,690,580 shares at December 31, 2025. Common stock totaled $129,811 at June 30, 2026, compared to $42,691 at December 31, 2025. Additional paid-in capital was $4,412,599 at June 30, 2026, compared to $1,447,709 at December 31, 2025. The Company also recorded a stock subscription receivable of $182,810 as contra-equity at June 30, 2026. The accumulated deficit increased to $4,175,269 at June 30, 2026 from $1,183,067 at December 31, 2025.

 

On January 29, 2026, the Company entered into a Common Stock Purchase Agreement and related Registration Rights Agreement with RH2 Equity Partners, L.P. under an equity line of credit that permits the Company, at its election and subject to the agreement's terms and limitations, to sell up to $10,000,000 of common stock. On June 21, 2026, the Company issued 5,920,000 shares to RH2 pursuant to the equity line of credit agreement and recorded aggregate consideration of $182,810. The issuance increased common stock by $5,920 and additional paid-in capital by $176,890. Because the consideration had not been received as of June 30, 2026, the Company recorded a $182,810 stock subscription receivable as a contra-equity account. Consequently, the issuance increased the number of shares issued and outstanding but did not provide cash liquidity as of June 30, 2026.

 

15 
 

 

The Company continues to have limited cash resources. At June 30, 2026, cash and cash equivalents were $8,636. The recurring losses, accumulated deficit of $4,175,269, and $141,002 of cash used in operating activities during the six months ended June 30, 2026 raise substantial doubt about the Company’s ability to continue as a going concern. The Company will require additional capital to fund ongoing operations and future growth initiatives. Management intends to pursue additional equity financing, debt financing, revenue growth, and strategic partnerships; however, there can be no assurance that financing or revenue will be available on acceptable terms, or at all.

 

Cash Flows

 

Operating Activities

 

Net cash used in operating activities was $141,002 for the six months ended June 30, 2026, compared to net cash provided by operating activities of $120 for the six months ended June 30, 2025. The 2026 amount was primarily attributable to the net loss of $2,992,201 and an increase in accounts receivable of $22,000, partially offset by $20,000 of non-cash amortization, $2,801,200 of stock issued for services, a $25,000 decrease in prepaid expenses, a $27,000 increase in accounts payable, and a $1 rounding adjustment.

 

Investing Activities

 

The Company had no cash provided by or used in investing activities for the six months ended June 30, 2026 and June 30, 2025.

 

Financing Activities

 

Net cash provided by financing activities was $133,000 for the six months ended June 30, 2026, consisting of $68,000 of proceeds from the sale of common stock and $65,000 of proceeds from notes payable. The Company also issued 5,920,000 shares to RH2 Equity Partners, L.P. on June 21, 2026 pursuant to the equity line of credit agreement and recorded aggregate consideration of $182,810. Because payment had not been received as of June 30, 2026, the Company recorded the amount as a stock subscription receivable within contra-equity, and the transaction was excluded from cash provided by financing activities and disclosed as a supplemental non-cash financing activity. The Company had no cash provided by or used in financing activities for the six months ended June 30, 2025.

 

As a result of the foregoing, cash and cash equivalents decreased by $8,002 during the six months ended June 30, 2026, from $16,638 at December 31, 2025 to $8,636 at June 30, 2026. For the six months ended June 30, 2025, cash and cash equivalents increased by $120, from $210 at December 31, 2024 to $330 at June 30, 2025.

 

Off Balance Sheet Items

 

The Company does not have any off-balance sheet arrangements, special purpose entities, or other relationships that would have a material effect on its financial condition or results of operations.

 

Significant Accounting Policies and Estimates

 

The Company’s financial statements are prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses. Significant estimates include the valuation and impairment of intangible assets, stock-based compensation, and the recognition of revenue from licensing and distribution agreements. Actual results may differ from those estimates.

 

Outlook

 

Management expects operating expenses to remain elevated as the Company continues to develop licensing opportunities, pursue strategic acquisitions, evaluate opportunities in the nightlife and hospitality sector, and meet its obligations as a public company. While management believes that the Company’s strategic shift toward licensing, distribution, and selected acquisitions may provide improved margins and scalability, the Company expects to continue incurring net losses in the near term. The Company’s ability to achieve profitability will depend on its ability to generate sustainable revenues, control operating costs, and secure additional financing as needed.

 

16 
 

 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

Not applicable.

 

ITEM 4. CONTROLS AND PROCEDURES

 

Evaluation of Disclosure Controls and Procedures. Our principal executive officer and principal financial officer, after evaluating the effectiveness of our disclosure controls and procedures (as defined

in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of the end of the period covered by this Quarterly Report on Form 10-Q, have concluded that, based on such evaluation, our disclosure controls and procedures were effective to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms, and is accumulated and communicated to our management, including our principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

 

Changes in Internal Control over Financial Reporting. There were no changes in our internal control over financial reporting, identified in connection with the evaluation of such internal control that occurred during the quarter ended June 30, 2026, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

Management’s Quarterly Report on Internal Control over Financial Reporting. Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over financial reporting is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act, as a process designed by, or under the supervision of, our principal executive officer and principal financial officer and effected by our board of directors, management and other personnel to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. Our internal control over financial reporting includes those policies and procedures that:

 

  pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets;

 

  provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with authorizations of management and our directors; and

 

  provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements.

 

Based on our evaluation of internal controls, our management concluded that there is a lack of segregation of duties identified. As a result, our internal controls over financial reporting were not effective as of June 30, 2026.

 

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

 

17 
 

PART II - OTHER INFORMATION

  

ITEM 1. LEGAL PROCEEDINGS

 

We know of no material, existing, or pending legal proceedings against our company, nor are we involved as a plaintiff in any material proceeding or pending litigation. There are no proceedings in which any of our directors, officers, or affiliates, or any registered or beneficial shareholder, is an adverse party or has a material interest adverse to our interest.

 

ITEM 1A. RISK FACTORS

 

As a smaller reporting company, we are not required to provide the information required by this item.  

 

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

 

The Company is authorized to issue 150,000,000 shares of common stock, par value $0.001 per share. As of June 30, 2026, there were 129,810,580 shares of common stock issued and outstanding. As of December 31, 2025, there were 42,690,580 shares issued and outstanding.

 

Set forth below is information regarding the issuance and sales of securities without registration through June 30, 2026. No such sales involved the use of an underwriter, no advertising or public solicitation was involved, the securities bear a restrictive legend, and no commissions were paid in connection with the sale of any securities.

 

Since January 1, 2025 through June 30, 2026, the Company issued shares for services, asset acquisitions, cash, and subscription consideration. During the six months ended June 30, 2026, the Company issued an aggregate of 81,200,420 shares of common stock and recorded an aggregate increase of $87,120 to common stock and capital stock and $2,923,480 to additional paid-in capital. Of the aggregate consideration, $182,810 remained unpaid as of June 30, 2026 and was recorded as a stock subscription receivable presented as contra-equity, resulting in a net increase in stockholders’ equity of $2,833,000. The accompanying financial statements reflect 129,810,580 shares issued and outstanding as of June 30, 2026.

 

• On June 8, 2025, the Company issued 1,500,000 shares of common stock to a non-affiliated entity for services.

• On June 9, 2025, the Company issued 1,000,000 shares of common stock to a non-affiliated individual for services.

• On July 5, 2025, the Company issued 500,000 shares of common stock to a non-affiliated individual for services.

• On July 8, 2025, the Company issued 1,000,000 shares of common stock to a non-affiliated entity for services.

• On July 29, 2025, the Company issued 66,667 shares of common stock to a non-affiliated individual for cash.

• On August 20, 2025, the Company issued 173,913 shares of common stock to a non-affiliated entity in exchange for an asset.

• On September 23, 2025, the Company issued 200,000 shares of common stock to a non-affiliated individual for services.

• On October 10, 2025, the Company issued 500,000 shares of common stock to a non-affiliated entity for services.

• On October 15, 2025, the Company issued an aggregate of 1,780,000 shares of common stock, consisting of 1,500,000 shares issued to a non-affiliated entity for services and 280,000 shares issued to a non-affiliated individual for cash.

• On November 1, 2025, the Company issued 1,400,000 shares of common stock to a non-affiliated individual for services.

• On November 3, 2025, the Company issued 1,000,000 shares of common stock to a non-affiliated individual for services.

• On November 12, 2025, the Company issued 1,000,000 shares of common stock to a non-affiliated individual for services.

• On November 28, 2025, the Company issued 400,000 shares of common stock to a non-affiliated individual for cash.

• On January 23, 2026, the Company issued 500,000 shares of common stock to a non-affiliated individual for cash.

• On January 28, 2026, the Company issued 500,000 shares of common stock to a non-affiliated individual for cash.

• On April 13, 2026, the Company issued 1,200,000 shares of common stock to a non-affiliated individual for cash.

• On April 15, 2026, the Company issued 2,000,000 shares of common stock to a non-affiliated corporation for services.

• On April 16, 2026, the Company issued 2,000,000 shares of common stock to a non-affiliated corporation for services.

• On June 17, 2026, the Company issued 75,000,000 shares of common stock to an affiliated individual (Andrew Read, CEO) for services.

• On June 21, 2026, the Company issued 5,920,000 shares of common stock to a non-affiliated investor at a purchase price of $0.03 per share, for aggregate consideration of $182,810. The consideration had not been collected as of June 30, 2026 and was recorded as a stock subscription receivable within stockholders’ equity. No cash proceeds related to the issuance were included in the statement of cash flows for the six months ended June 30, 2026.

 

18 
 

 

As of June 30, 2026, the Company had 129,810,580 shares of common stock issued and outstanding.

 

Warrants

 

During 2025, the Company issued warrants to purchase an aggregate of 946,667 shares of common stock to the Beling Family Trust. During the six months ended June 30, 2026, the Company issued additional warrants to purchase an aggregate of 2,200,000 shares of common stock to the Beling Family Trust, including a warrant issued on April 13, 2026 to purchase up to 1,200,000 shares of common stock at an exercise price of $0.015 per share. The April 13, 2026 warrant expires on April 13, 2029.

 

A summary of warrant activity for the six months ended June 30, 2026 is as follows:

          
    Warrants   Weighted Average Exercise Price 
 Outstanding at December 31, 2025    946,667   $0.08 
 Granted    2,200,000   $0.03 
 Exercised       $ 
 Expired       $ 
 Outstanding at June 30, 2026    3,146,667   $0.05 
 Exercisable at June 30, 2026    3,146,667   $0.05 

 

As of June 30, 2026, 3,146,667 warrants were outstanding and exercisable, with a weighted average exercise price of approximately $0.05 per share.

 

The following table summarizes warrants outstanding at June 30, 2026:

                
Grant Date  Shares Under Warrant   Exercise Price   Expiration Date  Exercise Terms 
July 29, 2025   66,667   $0.30   July 29, 2028   Cash exercise 
September 8, 2025   200,000   $0.10   September 8, 2028   Cash exercise 
October 15, 2025   280,000   $0.05   October 15, 2028   Cash exercise 
November 28, 2025   400,000   $0.05   November 28, 2028   Cash exercise 
January 23, 2026   500,000   $0.05   January 23, 2029   Cash exercise 
January 28, 2026   500,000   $0.05   January 28, 2029   Cash exercise 
April 13, 2026   1,200,000   $0.015   April 13, 2029   Cash exercise 
Total / Weighted Average   3,146,667   $0.05         

 

Weighted Average term remaining:

 

For the current period issuances:

 

2,200,000 warrants issued during the six months ended June 30, 2026 had a weighted-average remaining contractual term of approximately 2.69 years as of June 30, 2026.

 

For the total warrants outstanding at June 30, 2026:

 

3,146,667 warrants outstanding had a weighted-average remaining contractual term of approximately 2.58 years as of June 30, 2026.

 

We have never utilized an underwriter for an offering of our securities. Other than the securities mentioned above and the common stock issuances described below, we have not issued or sold any other securities.

 

During the six months ended June 30, 2026, the Company issued an aggregate of 81,200,420 shares of common stock. The financial statements record an aggregate increase of $2,833,000 in common stock and additional paid-in capital for these issuances.

 

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

 

None.

 

ITEM 4. MINE SAFETY DISCLOSURES

 

Not applicable.

 

ITEM 5. OTHER INFORMATION

 

None.

 

19 
 

 

 

ITEM 6. EXHIBITS

        Incorporated by Reference  

Filed or

Furnished

No.   Exhibit Description   Form   Date Filed   Number   Herewith
                     
31.1   Certification of the Chief Executive Officer, as the principal executive officer and the principal financial officer, under 18 U.S.C. Section 1350, as adopted in accordance with section 302 of the Sarbanes-Oxley Act of 2002.               Filed 
32.1   Certification of the Chief Executive Officer, as the principal executive officer and the principal financial officer, under 18 U.S.C. Section 1350, as adopted in accordance with Section 906 of the Sarbanes-Oxley Act of 2002.                Furnished
101.   Interactive Data files                Filed

 

 

20 
 

 

 

 

 

SIGNATURES

 

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 Dated: August 19, 2026 TRADEWINDS UNIVERSAL
     
  By: /s/ Andrew Read  
    Andrew Read,
    Chief Executive Officer
     
    /s/ Andrew Read
    Andrew Read,
    Chief Financial Officer
     

 

 

In accordance with the requirements of the Securities Act of 1933, as amended, this registration statement has been signed by the following persons in the capacities and on the dates stated.

 

     
SIGNATURE TITLE DATE
     

/s/ Andrew Read

Andrew Read

President/Chief Executive Officer and Director(principal executive officer) August 19, 2026
     
     

/s/ Andrew Read

Andrew Read

Chief Financial Officer and Director (principal accounting officer) August 19, 2026

 

 

 

21 
 

 


ATTACHMENTS / EXHIBITS

ATTACHMENTS / EXHIBITS

EXHIBIT 31.1

EXHIBIT 32.1

XBRL SCHEMA FILE

XBRL CALCULATION FILE

XBRL DEFINITION FILE

XBRL LABEL FILE

XBRL PRESENTATION FILE

IDEA: R1.htm

IDEA: R2.htm

IDEA: R3.htm

IDEA: R4.htm

IDEA: R5.htm

IDEA: R6.htm

IDEA: R7.htm

IDEA: R8.htm

IDEA: R9.htm

IDEA: R10.htm

IDEA: R11.htm

IDEA: R12.htm

IDEA: R13.htm

IDEA: R14.htm

IDEA: R15.htm

IDEA: R16.htm

IDEA: R17.htm

IDEA: R18.htm

IDEA: R19.htm

IDEA: R20.htm

IDEA: R21.htm

IDEA: R22.htm

IDEA: R23.htm

IDEA: R24.htm

IDEA: R25.htm

IDEA: R26.htm

IDEA: R27.htm

IDEA: R28.htm

IDEA: R29.htm

IDEA: R30.htm

IDEA: R31.htm

IDEA: R32.htm

IDEA: FilingSummary.xml

IDEA: MetaLinks.json

IDEA: trwd_10q_htm.xml