Exhibit 99

 

 

Yoshiharu Reports First Quarter 2025 Financial Results

 

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, CA – May 5, 2025 – 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 Holub

Director

MZ North America

YOSH@mzgroup.us

312-261-6412

 

 
 

 

 

Yoshiharu Global Co. and Subsidiaries

Unaudited 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 Subsidiaries

Unaudited 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 Subsidiaries

Unaudited 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   $-