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.

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