Revenue and Profitability - Revenue for the three months ended December 31, 2025, increased by $811,582, or 315.46%, to $1,068,851 from $257,269 in the same period of 2024, primarily due to sales from a new customer generating $508,992[156] - Gross profit rose by $665,389, or 1,073.02%, to $727,400 for the three months ended December 31, 2025, with gross profit margins of 68.05% and 24.10% for 2025 and 2024, respectively[158] - Revenue increased by $1,351,440, or 217.21%, to $1,973,608 for the six months ended December 31, 2025, from $622,168 for the same period in 2024, primarily due to sales from a new customer[165] - Gross profit increased by $1,016,083, or 410.52%, to $1,263,594 for the six months ended December 31, 2025, with gross profit as a percentage of revenue rising from 39.78% in 2024 to 64.02% in 2025[167] Expenses - Cost of sales increased by $146,193, or 74.87%, to $341,451 for the three months ended December 31, 2025, with a cost of sales percentage of 31.95% compared to 75.90% in 2024, reflecting improved efficiencies[157] - General and administrative expenses surged by $20,417,153, or 2,240.75%, to $21,328,326 for the three months ended December 31, 2025, representing 1,995.44% of revenue compared to 354.17% in 2024[159] - Advertising expenses decreased by $21,004, or 28.04%, to $53,901 for the three months ended December 31, 2025, accounting for 5.04% of revenue compared to 29.12% in 2024[160] - The increase in general and administrative expenses was primarily due to higher professional fees, stock compensation, and payroll related to increased headcount[159] - General and administrative expenses surged by $28,107,474, or 1,538.12%, to $29,934,861 for the six months ended December 31, 2025, representing 1,516.76% of revenue[168] Net Loss - The net loss for the three months ended December 31, 2025, was $(104,360,352), or (9,763.79)% of revenue, compared to a net loss of $(1,005,030) in 2024[156] - The net loss for the three months ended December 31, 2025, was $104,360,352, an increase of $103,355,322, or 10,283.80%, compared to a net loss of $1,005,030 for the same period in 2024[163] - The net loss for the six months ended December 31, 2025, was $117,728,051, an increase of $115,866,942, or 6,225.69%, compared to a net loss of $1,861,109 for the same period in 2024[173] Other Financial Information - Total other expense, net, was $83,642,464 for the three months ended December 31, 2025, compared to $41,035 for the same period in 2024, driven by a change in fair value of digital assets of $83,703,185[162] - Total other expense, net, was $88,794,765 for the six months ended December 31, 2025, compared to $41,035 for the same period in 2024, largely due to a change in fair value of digital assets[172] - Cash and cash equivalents as of December 31, 2025, were $7,403,390, with cash used in operating activities amounting to $7,167,396 for the six months ended December 31, 2025[174] Strategic Initiatives - The company adopted a digital asset treasury strategy focused on Dogecoin on September 5, 2025, establishing a multiyear advisory and asset-management program[148] - The company operates through two segments: CleanCore, focused on cleaning products, and Treasury, focused on digital asset management[149] - The company is expanding its distributor network and improving production processes to enhance product effectiveness in various environments[147] - A strategic advisor agreement was established with Dogecoin Ventures LLC, involving a monthly advisory fee of $83,333[187] Commitments and Liabilities - The company has non-cancellable operating lease commitments for its office facility expiring in 2028[188] - As of December 31, 2025, the company reported no long-term debt obligations or other long-term liabilities on its financial statements[189] - There are no off-balance sheet arrangements that could impact the company's financial condition or results of operations[190] Accounting Policies - Management's estimates and assumptions in financial statements are based on historical industry experience, which may differ from actual results[191] - Significant accounting policies that involve complex estimation are detailed in the company's Form 10-K and quarterly reports[192]
CleanCore Solutions, Inc.(ZONE) - 2026 Q2 - Quarterly Report