OTC:FUNI
Hypha Labs, Inc.
A speculative OTC technology firm with a massive stock-based compensation program and recurring operating losses seeking capital through frequent equity offerings.
Key Metrics
Investment Thesis
Bull Case
An investor might consider FUNI for high-risk capital appreciation if the company successfully pivots its business model to generate revenue from its current asset base.
Bear Case
The stock carries extreme risk due to negative net income trends, zero revenue in the latest period, and a balance sheet that is technically insolvent with liabilities of $2.5M against only $38k in cash.
About Hypha Labs, Inc.
Hypha Labs, Inc. (FUNI) operates within the technology sector with a focus on software development and digital solutions, though recent financials indicate minimal current revenue generation. The company serves niche markets relying heavily on capital raises to fund operations rather than traditional product sales streams. Key activities include significant share issuances to support growth initiatives while managing substantial accumulated deficits.
Analysis
Management Discussion
Management has failed to generate positive revenue or net income, resulting in a deep retained earnings deficit of $23.6M over recent years. Cash flow from operations turned sharply negative at -$379,975, funded entirely by financing activities and share issuances rather than organic growth. The company is burning through cash reserves with ending cash dropping to $38,118 while liabilities exceed assets.
Industry Overview
The broader technology industry often rewards innovation, but FUNI currently struggles to convert R&D or operational efforts into marketable products or services.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $2.7M | $0 | $0 | $0 |
| Cost of Revenue | $1.6M | $0 | $0 | $0 |
| Gross Profit | $1.1M | $0 | $0 | $0 |
| Operating Expenses | $2.1M | $437.4K | $1.8M | $3.0M |
| Operating Income | $-1.0M | $-437.4K | $-1.8M | $-3.0M |
| G&A | $1.4M | $103.3K | $943.7K | $1.4M |
| Stock-Based Comp | $566.2K | $59.2K | $733.7K | $1.9M |
| D&A | $204.2K | — | — | — |
| Depreciation | — | — | $1.0K | $10.8K |
| Other OpEx | $721.3K | $334.1K | $883.3K | $1.6M |
| Non-Operating Income | $0 | $0 | $470.6K | $-100.5K |
| Interest Expense | $260.3K | $364.3K | — | — |
| Pre-Tax Income | $-1.0M | $-437.4K | $-1.4M | $-3.1M |
| Income Tax | $1.0M | $244.3K | $14.2K | $0 |
| Continuing Ops | $-2.1M | $-681.7K | $-1.4M | $-3.1M |
| Discontinued Ops | $0 | $928.4K | $585.2K | $0 |
| Net Income | $-2.1M | $246.8K | $-785.4K | $-3.1M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $-2.1M | $246.8K | $-785.4K | $-3.1M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $562.1K | $765.8K | $410.2K | $320.5K |
| Cash & Equivalents | $56.2K | — | — | — |
| Accounts Receivable | $335.1K | — | — | — |
| Prepaid Expenses | — | — | — | $26.6K |
| Other Current Assets | $170.9K | — | — | $294.0K |
| Long-Term Assets | $777.8K | $643.7K | $83.6K | $88.7K |
| PP&E (Net) | $460.8K | — | $26.6K | $62.5K |
| Operating Leases | $317.0K | — | $57.0K | $26.2K |
| Other LT Assets | $0 | — | $0 | $0 |
| Total Assets | $1.3M | $1.4M | $493.8K | $409.2K |
| Current Liabilities | $3.0M | $3.1M | $1.4M | $2.5M |
| Accounts Payable | $550.5K | $122.1K | $86.3K | $472.6K |
| Current Leases | $100.7K | — | $36.4K | $26.8K |
| Other Current Liab | $1.9M | $3.0M | $1.3M | $2.0M |
| Long-Term Liabilities | $795.3K | $159.2K | $26.8K | $0 |
| LT Operating Leases | $229.8K | — | $26.8K | — |
| Other LT Liab | $565.4K | — | $0 | — |
| Total Liabilities | $3.7M | $3.3M | $1.4M | $2.5M |
| Shareholders' Equity | $-2.7M | $-2.2M | $-1.3M | $-2.4M |
| Paid-In Capital | $17.1M | $17.5M | $19.2M | $21.1M |
| Retained Earnings | $-20.0M | $-19.8M | $-20.5M | $-23.6M |
| Total L&E | $1.3M | $1.4M | $493.8K | $409.2K |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $-2.1M | $246.8K | $-785.4K | $-3.1M |
| Non-Cash Adjustments | $1.4M | $-160.3K | $-131.0K | $2.6M |
| Working Capital Changes | $431.3K | $26.1K | $-117.4K | $166.2K |
| Cash from Operations | $-184.8K | $112.5K | $-1.0M | $-380.0K |
| Capital Expenditures | $17.7K | — | $27.7K | $33.0K |
| Cash from Investing | $-660.4K | $263.3K | $2.1M | $-33.0K |
| Cash from Financing | $605.4K | $-161.0K | $-1.3M | $359.9K |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $-239.8K | $214.8K | $-179.8K | $-53.0K |
| Beginning Cash | $295.9K | $56.2K | $271.0K | $91.2K |
| Ending Cash | $56.2K | $271.0K | $91.2K | $38.1K |
Frequently Asked Questions
How does Hypha Labs, Inc. make money?
Primary revenue stream appears to be non-operating or discontinued given zero reported cost of revenue and gross profit in recent periods, supplemented by strategic financing activities.
What are the main risks for FUNI?
Persistent operating losses totaling $3.1M in 2025 and a negative shareholders' equity of $2.4M indicate severe financial distress.
What is FUNI's competitive advantage?
The company leverages a significant share-based compensation structure ($1.9M) to align employee interests with growth goals while maintaining minimal cash burn relative to total assets.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.