Yoshiharu Reports First Quarter 2025 Financial Results

Rhea-AI Summary

Alvotech (NASDAQ: ALVO), a global biotech company, announced the acquisition of Xbrane Biopharma AB's R&D operations and biosimilar candidate XB003 for approximately SEK 275 million (USD 27 million). The deal includes Xbrane's R&D operations at Campus Solna, Karolinska Institute, and will be paid through SEK 102.2 million in cash and SEK 172.8 million in debt assumption. Xbrane retains pre-clinical assets and will focus on commercialization. The acquisition strengthens Alvotech's development capabilities and establishes presence in Sweden's life science sector. Alvotech plans to explore listing Swedish Depository Receipts on Nasdaq Stockholm. The deal, expected to close in April 2025, is supported by Xbrane's Board and key shareholders. Since 2013, Alvotech has invested $1.9 billion in biosimilars R&D and manufacturing, partnering with 19 companies across 90 global markets.

Positive

• Expansion of R&D capabilities through acquisition of Xbrane's operations
• Strategic entry into Swedish life science sector for talent acquisition and collaboration
• Addition of biosimilar candidate XB003 to product portfolio
• Majority of acquisition (SEK 152.8M) to be paid in equity shares, preserving cash
• Strong support from Xbrane's board and key shareholders

Negative

• Significant cash outlay of SEK 102.2M required for acquisition
• Assumption of SEK 172.8M in debt and accounts payable
• Deal completion subject to regulatory and shareholder approvals

Insights

Biotech Industry Analyst

Alvotech strategically expands R&D capacity and pipeline through Xbrane acquisition, strengthening its position in the biosimilar market.

This $27 million acquisition of Xbrane's R&D operations represents a strategic enhancement of Alvotech's development capabilities in the increasingly competitive biosimilar landscape. By acquiring established research operations at the prestigious Karolinska Institute, Alvotech gains immediate access to Sweden's advanced life science ecosystem without having to build from scratch.

The addition of biosimilar candidate XB003 (referencing Cimzia®/certolizumab pegol) provides an immediate pipeline expansion. Certolizumab is primarily used to treat inflammatory conditions including rheumatoid arthritis, Crohn's disease, and psoriasis - adding to Alvotech's portfolio potential.

This transaction aligns perfectly with Alvotech's vertical integration strategy. The company has already invested $1.9 billion in its biosimilar platform, and this acquisition further strengthens its in-house R&D capabilities - a critical differentiator in the biosimilar market where development expertise directly impacts competitiveness.

For Alvotech's existing network of 19 commercial partners covering over 90 global markets, enhanced development capacity means improved ability to deliver on partnerships. The establishment of operations in Sweden creates access to new scientific talent and potential research collaborations that could accelerate future pipeline development and innovation capacity.

The deal structure benefits both companies. Xbrane retains its core commercial assets, including its Lucentis biosimilar candidate already selling in Europe, while gaining financial stability. Meanwhile, Alvotech efficiently expands its R&D footprint without duplicating infrastructure costs. The transaction's unanimous approval from Xbrane's board and major shareholders indicates strong confidence in the strategic fit.

Financial Analyst

Capital-efficient acquisition structure minimizes cash outlay while expanding R&D capabilities and pipeline value through strategic debt conversion.

The acquisition's financial structure reveals sophisticated capital allocation strategy by Alvotech. At SEK 275 million ($27 million), the transaction employs an efficient payment structure requiring only SEK 102.2 million in cash at closing, with the remainder handled through assumption of SEK 172.8 million in debt and accounts payable.

Most notably, creditors have agreed to accept Alvotech equity for SEK 152.8 million of the assumed debt. This structure demonstrates several financial strengths: it preserves cash reserves, indicates creditor confidence in Alvotech's equity value, and allows the company to expand capabilities without significant liquidity impact.

The potential future listing of Swedish Depository Receipts (SDRs) on Nasdaq Stockholm represents strategic capital markets positioning. This would complement Alvotech's existing dual listings on Nasdaq Iceland and Nasdaq US, potentially improving European investor access and share liquidity while establishing stronger presence in the Nordic financial markets.

For Xbrane, the transaction provides immediate financial strengthening while allowing retention of what they describe as 75% of their competitively adjusted addressable market. Their focus shifts to commercializing remaining assets including their approved European Lucentis biosimilar (Ximluci) and their Opdivo biosimilar candidate (Xdivane) recently partnered with Intas.

The transaction's contingencies - regulatory approvals and shareholder vote at an April extraordinary meeting - appear to have strong likelihood of completion given the unanimous board support and commitments from major shareholders including Ashkan Pouya and a large institutional investor. The consensus support suggests market recognition of the deal's mutually beneficial structure.

First Quarter 2025 Revenues Increase 25% to $3.5 Million

Cash Balance Increases 59% to $3.0 Million

Secured Financing Commitments of $3.56 Million and Converted $2.5 Million in Debt to Equity

Regains Compliance with NASDAQ Stockholders’ Equity Requirement

BUENA PARK, Calif., May 05, 2025 (GLOBE NEWSWIRE) -- Yoshiharu Global Co. (NASDAQ: YOSH) ("Yoshiharu" or the "Company"), a restaurant operator specializing in authentic Japanese ramen & rolls, today reported results for the first quarter ended March 31, 2025.

First Quarter 2025 and Recent Operational Highlights

• Secured financing commitments of $3.56 million from multiple parties and converted $2.5 million in debt to equity and, as a result of such financing transactions, regained compliance with the stockholders’ equity requirement for continued listing on Nasdaq.
• Grand opening of a new restaurant in Menifee, CA brings the number of locations to 15 with 1 additional location under development in Ontario, CA.
• Appointed Sungjoon Chae to its Board of Directors, a distinguished architect and urban designer with extensive experience in shaping sustainable and innovative spaces, to help support expansion.
• Elected two new members to the Board of Directors:
  • Abe Lim, a seasoned real estate and investment professional with over 21 years of experience.
  • Jae-Hyo Seo, an experienced legal practitioner and consultant.

Anticipated Milestones

• Domestic and International Expansion
  • Open 2 – 3 new locations focusing on Southern California, while expanding to other locations including Boston, Seattle, and North California.
  • Open new locations in Paris, London, and South Korea.
• Expect to initiate sales of franchises in 2025

Management Commentary

James Chae, Yoshiharu’s President, CEO and Chairman of the Board, commented, “The first quarter was highlighted by strong revenue growth and a strengthened balance sheet to fuel momentum and growth initiatives. In the first quarter, revenue grew 25% to $3.5 million, driven primarily by sales at our three new restaurants in Las Vegas, which we acquired in second quarter 2024.

“During the quarter we secured financing commitments of $3.56 million from multiple parties. We also entered into agreements with certain creditors to convert $2.5 million of existing debt obligations. These efforts served to increase stockholders' equity, improve our overall financial position by reducing total debt, principal and interest payments, and lower near-term cash needs. As a result, we were able to regain compliance with Nasdaq’s minimum stockholders’ equity requirement.

“Our newest location in fast-growing Menifee, California is now in operation, bringing us to a total of 15 locations in the U.S. Menifee is recognized for its rapid development and business-friendly environment, with the city committing over $100 million to traffic and infrastructure improvements, enhancing connectivity and accessibility. We have one additional location currently under development in Ontario, and continue to explore and evaluate new opportunities via corporate-owned restaurants, and through the development of a franchise program to accelerate national expansion and international openings.

“Looking ahead, we are focused on further improvement to top- and bottom-line growth, and additional strategic expansion in the U.S. and China. New initiatives such as diversifying our mix of service channels, adding kiosks across our stores, and utilizing cooking robots to reduce labor costs will further growth and efficiencies. We look forward to additional updates on our anticipated milestones in the weeks and months to come,” concluded Chae.

First Quarter 2025 Financial Results

Revenues were $3.5 million for the three months ended March 31, 2025 compared to $2.8 million for the three months ended March 31, 2024, representing an increase of approximately $0.7 million, or 24.9%. The increase in sales for the three-month period was primarily driven by new sales at our three new restaurants in Las Vegas, which we acquired in second quarter 2024.

Total restaurant operating expenses were $3.4 million compared to $2.6 million in the prior year. The increase was primarily driven by costs incurred in generating increased revenues from the three new Las Vegas restaurants, primarily food, beverages and supplies, labor, and rent and utilities.

General and administrative expenses were approximately $1.3 million for the three months ended March 31, 2025 compared to $0.9 million for the three months ended March 31, 2024, primarily due to an increase in professional fees.

Operating loss increased to ($1.3) million compared to an operating loss of ($0.8) million for the prior year as a result of the increased operating expenses related to increased sales.

The Company’s cash balance totaled $3.0 million on December 31, 2024, compared to $1.2 million on December 31, 2024.

For more information regarding Yoshiharu’s financial results, including financial tables, please see our Form 10-Q for quarter ended March 31, 2025 filed with the U.S. Securities and Exchange Commission (the “SEC"). The Company’s SEC filings can be found on the SEC’s website at www.sec.gov or the Company’s investor relations site at ir.yoshiharuramen.com.

About Yoshiharu Global Co.

Yoshiharu is a fast-growing restaurant operator and was born out of the idea of introducing the modernized Japanese dining experience to customers all over the world. Specializing in Japanese ramen, Yoshiharu gained recognition as a leading ramen restaurant in Southern California within six months of its 2016 debut and has continued to expand its top-notch restaurant service across Southern California and Las Vegas, currently owning and operating 15 restaurants.

For more information, please visit www.yoshiharuramen.com.

Forward-Looking Statements

This press release includes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including without limitation, statements regarding our position to execute on our growth strategy, and our ability to expand our leadership position. These forward-looking statements include, but are not limited to, the Company's beliefs, plans, goals, objectives, expectations, assumptions, estimates, intentions, future performance, other statements that are not historical facts and statements identified by words such as "expects", "anticipates", "intends", "plans", "believes", "seeks", "estimates" or words of similar meaning. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in, or suggested by, these forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations or strategies will be attained or achieved. Forward-looking statements involve inherent risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements, as a result of various factors including those risks and uncertainties described in the Risk Factors and Management's Discussion and Analysis of Financial Condition and Results of Operations sections of our filings with the SEC including our Form 10-K for the year ended December 31, 2024, and subsequent reports we file with the SEC from time to time, which can be found on the SEC's website at www.sec.gov. We caution readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

Investor Relations Contact:
Larry W 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		$	–

FAQ

What is the value of Alvotech's acquisition of Xbrane's R&D operations?

Alvotech is acquiring Xbrane's R&D operations for approximately SEK 275 million (USD 27 million), paid through SEK 102.2 million in cash and SEK 172.8 million in debt assumption.

What assets is Alvotech (ALVO) acquiring from Xbrane?

Alvotech is acquiring Xbrane's R&D operations based at Campus Solna, Karolinska Institute, and the biosimilar candidate XB003, which references Cimzia® (certolizumab pegol).

When is the Alvotech-Xbrane acquisition expected to close?

The acquisition is expected to close in April 2025, subject to approvals from relevant authorities and Xbrane's shareholders.

How much has Alvotech invested in biosimilars R&D and manufacturing since 2013?

Since 2013, Alvotech has invested approximately $1.9 billion in its purpose-built biosimilars R&D and manufacturing platform.

What are Alvotech's plans for Swedish market presence?

Alvotech plans to establish operations in Sweden through this acquisition and intends to explore listing Swedish Depository Receipts (SDR) on Nasdaq Stockholm in the future.