CleanCore Solutions, Inc. (ZONE) Reports Second Quarter FY 2025 Financial Results and Provides Business Update

Core Insights - CleanCore Solutions, Inc. reported a revenue of approximately $257,000 for the three months ended December 31, 2024, showing a slight decrease from approximately $258,000 in the same period of 2023 [4] - The company experienced a significant increase in general and administrative expenses, rising to approximately $911,000 for the three months ended December 31, 2024, compared to approximately $320,000 for the same period in 2023 [4] - The net loss for the quarter was approximately $1.0 million, compared to a net loss of approximately $345,000 in the prior year [4] Business Highlights - CleanCore is witnessing strong market adoption, particularly in the education and aviation sectors, as organizations seek cost-effective alternatives to traditional cleaning products [3] - The company has transitioned to a direct sales recurring revenue model, which has led to higher sales costs and a temporary revenue dip, but revenue for the six months ended December 31, 2024, grew by 6.5% [3] - Major partnerships have been established with an international hotel chain, US-based fitness centers, Montessori schools in Minnesota, and a major New York airport, indicating the company's ability to serve diverse industries [3] Market Positioning - The recent EPA ban on two carcinogenic chemicals is expected to drive significant market demand for CleanCore's products, which comply with new regulations [3] - The company is well-positioned to assist businesses in transitioning to safer, chemical-free alternatives, aligning with the growing demand for sustainable solutions [3] - CleanCore is expanding its international partnerships with Fortune 500 clients and has commenced a worldwide rollout with a leading enterprise software company [7] Financial Strategy - The company is undertaking product reengineering initiatives to lower the cost of goods sold, ensuring long-term financial efficiency [7] - CleanCore aims to create sustainable and predictable revenue growth through its new sales model and increased market traction [3]