Revenue and Profitability - Revenue increased by $467,861, or 29.15%, to $2,072,834 for the year ended June 30, 2025, compared to $1,604,973 for the year ended June 30, 2024[200]. - Gross profit increased by $190,653, or 23.96%, to $986,465 for the year ended June 30, 2025, but gross profit as a percentage of revenue decreased from 49.58% to 47.59%[202]. - Revenue recognition occurs at the time of shipment, with minimal customer growth and volume-based incentives for the years ended June 30, 2025 and 2024[219]. Costs and Expenses - Cost of sales rose by $277,208, or 34.26%, to $1,086,369 for the year ended June 30, 2025, with the cost of sales as a percentage of revenue increasing from 50.42% to 52.41%[201]. - General and administrative expenses surged by $4,609,819, or 186.52%, to $7,081,299 for the year ended June 30, 2025, with expenses as a percentage of revenue increasing from 153.99% to 341.62%[203]. Net Loss and Cash Flow - Net loss for the year ended June 30, 2025, was $6,742,275, an increase of $4,460,533, or 195.49%, compared to a net loss of $2,281,742 for the year ended June 30, 2024[207]. - Cash and cash equivalents as of June 30, 2025, were $1,460,997, down from $2,016,611 at the beginning of the year[213]. - Net cash used in operating activities was $2,337,659 for the year ended June 30, 2025, compared to $1,547,880 for the year ended June 30, 2024[213]. - Net cash used in investing activities was $614,181 for the year ended June 30, 2025, significantly higher than $10,438 for the year ended June 30, 2024[214]. - Net cash provided by financing activities was $2,374,967 for the year ended June 30, 2025, compared to $3,181,735 for the year ended June 30, 2024[215]. Going Concern and Impairment - The company has raised substantial doubt about its ability to continue as a going concern for 12 months from the balance sheet date as of June 30, 2025[209]. - An impairment loss of $261,250 was recognized on the customer relationship intangible asset during the year ended June 30, 2025[222]. - No impairment loss was recognized for goodwill during the year ended June 30, 2025, following the annual evaluation[223]. Asset Valuation and Compensation - The estimated useful life of acquired technology is 15 years, while distribution agreements and licenses have an estimated useful life of 5 years[221]. - Stock-based compensation expense is recognized based on the fair value of awards granted, with a straight-line recognition over the vesting period[225].
CleanCore Solutions, Inc.(ZONE) - 2025 Q4 - Annual Report