This micro-cap OTC stock faces existential going-concern risk with only $3,199 in cash and negative working capital of $4.19M. The company relies entirely on related-party borrowings for survival. The deteriorating gross margin (61% vs 72% last year) and negative operating cash flow suggest the business model is not self-sustaining. Monitor for any equity or debt financing announcements, as the company will likely need to raise capital or restructure liabilities within the next 12 months to continue operations.
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Executive Summary
Cordyceps Sunshine Biotech Holdings Co., Ltd. filed its Form 20-F annual report for FY2025, reporting a net loss of $154,822 (improved from a $226,258 loss in FY2024) on essentially flat revenue of $1.245M (down 0.65% YoY). The auditor's report includes a going-concern qualification citing an accumulated deficit of $854,046, negative working capital of $4.19M, and reliance on related-party funding. The company also disclosed material weaknesses in internal controls over financial reporting and a change in auditor during the year.
Key Facts
- FY2025 total revenue was $1,245,348, down 0.65% from $1,253,484 in FY2024
- Net loss from continuing operations was $154,822, improved from a $226,258 loss in FY2024
- Gross profit margin declined to 61.09% from 72.32% in FY2024
- Accumulated deficit reached $854,046 as of December 31, 2025
- Working capital deficit of $4,194,320 as of December 31, 2025
- Cash and cash equivalents fell to $3,199 from $37,284 at year-end 2024
- Operating cash flow was negative $35,845 in FY2025 vs positive $312,006 in FY2024
- Auditor's report includes a going-concern qualification
- Material weaknesses in internal controls over financial reporting identified
- Auditor changed from KCCW Accountancy Corp. to YCM CPA INC. in November 2025
- Single supplier concentration risk: Supplier A accounted for 100% of purchases in FY2025, FY2024, and FY2023
- Customer concentration: Customer B (third party) accounted for 43.81% of FY2025 revenue
- Related-party sales to Gasar Biotechnology Co., Ltd. were $175,405 (14.08% of revenue)
- Company had negative shareholders' deficit of $534,551 as of December 31, 2025
Financial Impact
Revenue essentially flat (-0.65% YoY) while gross margin compressed from 72.32% to 61.09%. Net loss narrowed to $154,822 from $226,258, but operating cash flow turned negative. Cash reserves nearly depleted at $3,199.
Risk Factors
- Going-concern risk: accumulated deficit of $854,046 and only $3,199 in cash
- Dependence on related-party funding with no written agreements
- Single-supplier concentration (100% of purchases from one supplier)
- Customer concentration (43.81% of revenue from one third-party customer)
- Material weaknesses in internal controls over financial reporting
- Penny stock status with no active trading market for RAJAF shares
- Auditor change in November 2025 adds reporting risk
- Gross margin compression from 72% to 61% due to price reductions
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 8 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 20-F Filing (Primary) | 0001213900-26-057774 |
| Document: ea029048701ex12-1.htm | 0001213900-26-057774 |
| Document: ea029048701ex12-2.htm | 0001213900-26-057774 |
| Document: ea029048701ex13-1.htm | 0001213900-26-057774 |
| Document: ea029048701ex13-2.htm | 0001213900-26-057774 |
| Document: 0001213900-26-057774-index-headers.html | 0001213900-26-057774 |
| Document: 0001213900-26-057774-index.html | 0001213900-26-057774 |
| Document: 0001213900-26-057774.txt | 0001213900-26-057774 |
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Sep 2, 2026 7w ago | 6-K | $9.18 $9.18 | · 0.00% | ▼ −0.08% | $9.18 (−0.00%) |
Jul 27, 2026 13w ago | 6-K | $9.18 $9.18 | · 0.00% | ▼ −3.38% | $9.18 (+0.00%) |
Jun 25, 2026 17w ago | 6-K | $9.18 $9.18 | · 0.00% | ▼ −0.53% | $9.18 (+0.00%) |
May 15, 2026 23w ago | 20-F | $9.18 $9.18 | · 0.00% | ▲ +1.58% | $9.18 (−0.00%) |
US Market Status
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