Letter to the Shareholders

LAKEWOOD, CO / ACCESS Newswire / May 15, 2026 / Kultura Brands, Inc. (OTCID:LTNC) (“Kultura Brands,” “Kultura,” or the “Company”), formerly known as Labor Smart INC., a publicly traded consumer products and lifestyle platform focused on scaling culture-driven beverage brands.

Dear Shareholders,

The first quarter of 2026 represented an important and encouraging step forward for LTNC, doing business as Kultura Brands. While we are still in the early stages of building the company we believe LTNC can become, Q1 showed tangible progress across several of the most important areas of the business, including brand launches, distribution expansion, market activation, operational focus, capital structure improvement, and the continued development of Adios, Thirst Responder, and LOCK’DIN as key pillars of our 2026 growth strategy. Compared to Q4 2025, Q1 2026 reflected a company moving from initial launch activity into the much larger and more complex phase of execution. Q4 helped establish the foundation for our current brand platform, while Q1 began to demonstrate how much opportunity exists if we continue to execute with discipline, focus, and sufficient resources. We are not where we intend to be yet, but the direction of the business is clear, and the pieces are beginning to come together.

I also want shareholders to know that I am focused in a very serious way on share valuation, shareholder value, and the company’s capital structure. Building brands is only one part of the job. Cleaning up the balance sheet, addressing historical debts, managing dilution, improving the quality of our capital, and creating a structure that can support long-term value are equally important. I understand the frustration shareholders feel when the market does not reflect the opportunity we believe exists inside the company. That is not something I take lightly. The debts and obligations of the past have had to be dealt with properly, carefully, and in a way that protects the company’s ability to keep moving forward. There is no shortcut to that work. At the same time, we are trying to build several monster brand opportunities, and the bigger the opportunity, the larger the front-end cost. Product development, packaging, inventory, compliance, distribution, retail support, venue activations, marketing, brand refreshes, and working capital all require real investment before the full benefit can be seen. That tension is real, but so is the opportunity. I want to be clear: I will not rest until the capital structure is cleaned up and positioned in a way that gives LTNC the best possible chance to create lasting shareholder value. The next several quarters are important because they give us the time and ability to continue addressing these issues while also proving out the business model through actual brand execution. My goal is not simply to launch products. My goal is to build a company that the market can understand, trust, and properly value. There are examples in the beverage space of companies that endured long periods of market doubt while they were still proving distribution, brand identity, and consumer demand, only to see perception change quickly once execution became undeniable. Celsius is one example. The company went through difficult years, including the loss of major retail support and a Nasdaq delisting period, before rebuilding through channel focus, retail traction, and eventually a major PepsiCo distribution partnership that helped transform its market position. We are not Celsius, and we are not suggesting the same outcome, but the lesson is important: in consumer brands, perception can remain behind reality for a long time and then shift rapidly when distribution, demand, capital, and execution begin to align.

One of the most exciting developments has been the response to the Adios launch. The kickoff in Atlanta went much better than expected, creating momentum that has already begun opening doors in additional states. That early success is encouraging, but it also brings with it a significant operational and financial task. Expanding a beverage and spirits brand across multiple states requires inventory, compliance, distributor support, marketing, logistics, people, and capital. We are now in the middle of that process, and while it is demanding, it is also exactly the kind of challenge that comes with a brand showing real traction. Adios remains one of the company’s most visible and exciting opportunities. The brand has the potential to stand apart in the ready-to-drink category because it is not simply another beverage product. It is built around culture, lifestyle, live experiences, and consumer connection. Our goal is to make Adios a brand people remember, seek out, and associate with moments they enjoy. That takes time, money, patience, and execution, but the early indicators are encouraging. We are also excited about Thirst Responder and the broader hydration platform we are building. Hydration, functional beverages, wellness, and convenience remain strong consumer categories, and we believe Thirst Responder gives us another brand with the ability to connect with customers in a practical and repeatable way. As with Adios, the opportunity is real, but so is the work required to build the brand properly. LOCK’DIN is also going through a long-overdue facelift. That process is important, but it is not free. Updating a brand properly requires investment in formulation review, packaging, positioning, creative, messaging, sales materials, inventory planning, and market relaunch strategy. We believe the work being done now can give LOCK’DIN a stronger identity and a better chance to compete in the functional beverage space, but shareholders should understand that this kind of rebuild carries real front-end cost before the benefits are fully visible.

Looking ahead, 2026 is shaping up to be a very important year for the company. Tonight, the concert venue opportunity begins in New Mexico with Boots in the Park, kicking off the Adios sponsorship activations for the 2026 concert venue season. This is the type of real-world brand exposure we believe can help separate Adios from ordinary product launches. Concert venues, live events, sponsorships, and consumer-facing activations give us the chance to put the brand directly in front of consumers in environments where memories are being made. We believe this approach matters. Great brands are not built only on shelves or websites. They are built through experiences, repetition, awareness, and trust. The concert venue strategy gives Adios the opportunity to become part of the consumer experience, and that is a powerful place for a new brand to begin building loyalty.

At the same time, we want to be direct with shareholders. There are still many things we need to improve. We need to continue strengthening our financial reporting, improving operating systems, managing production timing, supporting distributors, raising and deploying capital responsibly, cleaning up historical obligations, and building the internal structure required to support multiple growing brands. We are optimistic, but we are not blind to the work ahead. The encouraging part is that we can point to tangible things that are working. Adios has launched. Atlanta exceeded expectations. Additional states are beginning to open. Thirst Responder is moving forward. LOCK’DIN is being refreshed. The 2026 concert activation strategy begins tonight in New Mexico. Distribution conversations are active. The company’s focus is sharper. The opportunity in front of us is becoming clearer. Q1 was not the finish line. It was another step in the buildout of a company that we believe has a much brighter future ahead. We are working through the difficult part now: turning ideas, partnerships, products, early traction, and capital structure improvements into a scalable operating business. That process takes time, capital, and discipline, but we believe the progress made during Q1 gives us reason to be optimistic about the balance of 2026. Thank you for your continued patience, support, and belief in LTNC. I understand that shareholders want results, and so do I. My commitment is to keep executing, keep improving, keep addressing the capital structure, and keep turning the opportunities in front of us into lasting value.

Sincerely, Brad Wyatt

About Kultura Brands, Inc.

Kultura Brands, Inc. (OTCID:LTNC) is a publicly traded consumer products and lifestyle company focused on developing and scaling innovative beverage, wellness, and culture-driven brands. The Company’s portfolio includes Adios Ready-To-Drink tequila cocktails, Thirst Responder hydrogen water, Lock’d In performance beverages, and additional emerging consumer brands positioned for national expansion across retail, hospitality, and experiential channels.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding the Company’s expected future performance, market expansion, product rollout, distribution growth, retail placement, consumer demand, marketing initiatives, and overall business strategy. Forward-looking statements are based on current expectations, estimates, projections, and assumptions that involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Words such as “expects,” “anticipates,” “plans,” “intends,” “believes,” “will,” “may,” “should,” “projects,” “continues,” and similar expressions are intended to identify such forward-looking statements. These risks and uncertainties include, but are not limited to, the Company’s ability to successfully execute its growth strategy; expand and maintain distribution relationships; achieve anticipated sales velocity and consumer adoption; manage supply chain and production requirements; secure sufficient working capital; comply with regulatory requirements; respond to competitive market conditions; and other risks described in the Company’s filings and disclosures available through the OTC Markets Group. Trading in the Company’s securities may be volatile and subject to market conditions beyond the Company’s control. References to trading activity should not be interpreted as indicative of future stock price performance or liquidity. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.

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

SOURCE: Kultura Brands, Inc.

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