{"url_path":"/sec/meha/10-q/2026/item-1","section_key":"item-1","section_title":"Item 1 Legal Proceedings.**","topic":"sec","document":{"doc_type":"10-Q","doc_date":"2026-05-15","source_url":"https://www.sec.gov/Archives/edgar/data/1837254/0001213900-26-057934-index.html","accession_number":"0001213900-26-057934","cik":"0001837254","ticker":"MEHA","issuer_name":"Functional Brands Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1837254/0001213900-26-057934-index.html","primary_entity_key":"0001837254","primary_entity_name":"Functional Brands Inc."},"word_count":488,"has_tables":true,"body_markdown":"** **\n\n**Item 1. Legal Proceedings.**\n\n \n\nFrom time to time, we may become involved in various\nlawsuits and legal proceedings which arise in the ordinary course of business. Litigation is subject to inherent uncertainties, and an\nadverse result in these or other matters may arise from time to time that may harm our business.\n\n \n\n*Trailer Park Boys*\n\n* *\n\nOn November 13, 2025, Trailer Park Boys Inc. (“TPB”)\ncommenced a civil claim against the Company and certain other defendants alleging breach of contract. On February 27, 2026, the Company\nfiled a Statement of Defense denying the allegations advanced by TPB. The Company has also filed a Statement of Counterclaim against TPB\nasserting claims for breach of contract and negligent misrepresentation in connection with the same agreement. The litigation is at an\nearly stage. The Company intends to vigorously defend the TPB claim and pursue its counterclaim.\n\n* *\n\n*True Health*\n\n* *\n\nOn May 25, 2021, True Health Medical Center, S.C.\n(“True Health”) amended an existing complaint against Kirkman Group, Inc. (“Kirkman”), James Hall and David Humphries\nto assert claims against HTO Nevada, Inc. and HTO Holdings, Inc. (collectively, HTO Nevada, Inc. and HTO Holdings, Inc. are referred to\nas the “HTO Parties”). Kirkman was the seller of certain assets to the HTO Parties and is a separate legal entity. Affiliates\nof the HTO Parties were first named in the lawsuit on September 23, 2020. The case is pending in the Circuit Court for the Eighteenth\nJudicial Circuit, DuPage County, Illinois. Kirkman had terminated a royalty agreement prior to selling its assets to the HTO Parties but\nthe royalty agreement has a provision that allows True Health to continue to receive royalties after the termination of the agreement.\nTrue Health claims that Kirkman underpaid the royalties due to True Health prior to the sale of assets to the HTO Parties. There is no\ndispute that Kirkman stopped paying royalties to True Health around the time it terminated the agreement and that the HTO Parties have\nnever paid royalties to True Health. True Health contends that as the purchaser of certain Kirkman assets, the HTO Parties should be bound\nby the terms of the royalty agreement. There is no certain amount at this time in connection with the alleged in the damages claim against\nthe HTO Parties. It is not possible to predict the outcome of this proceeding at this time. To date, the parties have engaged in some\ndiscovery including a limited number of depositions. True Health has filed a motion for summary judgment that addresses its claims against\nKirkman, but does not address any claim against the HTO Parties. Briefing is not yet complete on the summary judgment motion and a ruling\nis likely more than 60 days away. Regardless of how the court rules on summary judgment, there will be remaining claims in the case and\nit is likely that additional discovery will be conducted. No trial date has been scheduled at this time."}