Revenue and Profitability - Revenue for the three months ended September 30, 2025, increased by $539,799, or 147.93%, to $904,699 compared to $364,900 for the same period in 2024, primarily due to sales from a new customer, Kellermeyer Bergensons Services, LLC [154] - Gross profit rose by $350,971, or 189.20%, to $536,470 for the three months ended September 30, 2025, with gross profit margin increasing from 50.84% in 2024 to 59.3% in 2025 [156] Costs and Expenses - Cost of sales increased by $188,828, or 105.25%, to $368,229 for the three months ended September 30, 2025, with a decrease in cost of sales as a percentage of revenue from 49.16% in 2024 to 40.7% in 2025 [155] - General and administrative expenses surged by $7,708,919, or 841.39%, to $8,625,133 for the three months ended September 30, 2025, representing 953.37% of revenue compared to 251.09% in 2024 [157] - The increase in general and administrative expenses was primarily due to professional and consulting fees, stock compensation, and payroll related to increased headcount [157] - Advertising expenses increased by $25,319, or 54.79%, to $71,529 for the three months ended September 30, 2025, accounting for 7.91% of revenue compared to 12.66% in 2024 [158] - Depreciation and amortization expense increased by $36,826, or 92.47%, to $76,649 for the three months ended September 30, 2025, from $39,823 for the same period in 2024 [160] - The company incurred total other expense of $5,130,858 for the three months ended September 30, 2025, compared to $39,334 for the same period in 2024 [161] Net Loss - The net loss for the three months ended September 30, 2025, was $(13,367,699), compared to a net loss of $(856,082) for the same period in 2024, reflecting a significant increase in losses [153] - Net loss for the three months ended September 30, 2025, was $13,367,699, an increase of $12,511,617, or 1,461.50%, compared to a net loss of $856,082 for the same period in 2024 [162] Cash Flow and Financing - Cash and cash equivalents as of September 30, 2025, were $12,914,595, with cash used in operating activities amounting to $3,796,652 for the three months ended September 30, 2025 [163] - Net cash used in investing activities was $142,511,738 for the three months ended September 30, 2025, compared to $6,465 for the same period in 2024 [170] - Net cash provided by financing activities was $157,763,139 for the three months ended September 30, 2025, compared to $0 for the same period in 2024 [171] - The company raised approximately $164,257,145 from an offering of pre-funded warrants, with $148,650,530 paid in cash and $26,349,890 in cryptocurrency [173] Strategic Initiatives - The establishment of a digital asset treasury strategy focused on Dogecoin was adopted on September 5, 2025, creating two reportable segments: CleanCore and Treasury [148] - The Treasury segment includes unrealized gains or losses on digital assets and costs associated with digital asset holdings, reflecting the company's strategic shift towards cryptocurrency [148] - The company aims to expand its distributor network and improve production processes to enhance product effectiveness in various environments, including restaurants and airports [145] Going Concern - The company has indicated that currently available resources will not be sufficient to fund planned expenditures over the next 12 months, raising substantial doubt about its ability to continue as a going concern [164] - The company plans to raise additional capital through equity and/or debt financing to implement its business plan and generate sufficient revenue [165] - The company has no off-balance sheet arrangements that could affect its financial condition [178]
CleanCore Solutions, Inc.(ZONE) - 2026 Q1 - Quarterly Report