RE: LETTER TO THE LTNC BOARD OF DIRECTORS & SHAREHOLDERS 3/30/2026

LAKEWOOD, CO / ACCESS Newswire / March 30, 2026 / Kultura Brands Inc., formerly known as Labor Smart Inc. (OTCID:LTNC)

Dear Shareholders,

As we close fiscal year 2025, we do so with a fundamentally different business than the one that existed just twelve months ago.

In 2024, the company generated $470,230 in total revenue and operated without meaningful scale, distribution, or infrastructure. In 2025, we generated $9,016,580 in revenue, representing more than 18 times year-over-year growth. More importantly than the percentage, we have crossed into a level of revenue that supports a real operating business with the ability to scale.

This growth was not the result of a single transaction or isolated event. It was driven by expanded distribution, increased product velocity, and the early stages of brand adoption across multiple markets. We have moved from concept to execution.

We understand that rapid growth invites scrutiny, and it should. What matters is whether that growth is supported by improving fundamentals. In 2025, those fundamentals improved materially.

Net loss was reduced from ($1,303,503) in 2024 to ($76,089) in 2025, an improvement of more than $1.2 million. More importantly, the Company delivered a profitable fourth quarter, generating $2,989,659 in revenue and $260,498 in net income. This was a meaningful shift and reflects operating progress as revenue scale began to exceed fixed costs.

Gross profit improved to $1,629,626 in 2025 compared to a negative position in the prior year. This change was driven by better pricing, improved cost control, and more efficient production. These are structural improvements that position the business for continued margin expansion.

Throughout the year, we focused on building a company that can sustain growth. Expenses were brought in line with revenue, operational controls were strengthened, and processes were put in place to support scale. At the same time, we took a hard look at our capital structure.

We recognize that dilution and the overall share structure have been areas of concern. As the Company worked to fund growth, execute operational changes, and address legacy obligations, the equity markets were utilized as a necessary source of capital. While this supported the repositioning of the business, it also created pressure on the capital structure.

In the latter part of 2025, we began taking steps to improve the capital structure through share retirement efforts and a more disciplined approach to capital management. This is an ongoing priority. As the business continues to scale and generate stronger operating results, our focus will increasingly shift toward addressing the supply side of the equity and creating a more balanced and sustainable structure over time.

2025 was about rebuilding, repositioning, and proving that this business can operate at a higher level. We are no longer operating as a single-product or single-channel company. Today, our platform includes Adios Spirits, Thirst Responder through our Cencora relationship, and Lock'din, giving us multiple paths to growth within the beverage and wellness categories.

As we move into 2026, we are entering the year with a multi-million-dollar revenue base, expanding distribution, and the new leadership team in place to support the next phase of growth, with only a few additional adjustments expected as we continue to scale. Our focus is straightforward: continue growing revenue, improve margins, and deliver consistent, repeatable performance.

Based on current momentum and expansion plans, the Company is targeting revenue in the range of $25 million to $35 million for fiscal year 2026. This outlook is driven by expansion into additional markets, increased retail presence, and continued focus on product velocity and repeat purchasing behavior.

We expect 2026 to be a year where revenue not only continues to grow, but begins to fully support operations and fuel expansion. As that happens, it will also allow us to place greater focus on improving the capital structure and addressing the supply side of shares in a meaningful way over time.

We are aware that there is a gap between operational progress and market perception. That gap is closed through execution, not words. Our objective is to continue delivering results that are visible, measurable, and repeatable.

This is not a finished story. It is a company that has gained momentum and is now entering the next phase of growth. We appreciate the shareholders who understand the process of building a company and who remain focused on performance and long-term value.

Sincerely,

Brad Wyatt
Chief Executive Officer

Investor Relations

Kultura Brands Inc.
225 Union Blvd. STE 350 Lakewood CO 80228
Email: ir@kulturabrands.com

SOURCE: Kultura Brands, Inc.