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1606 Corp (CBDW+15.15%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing no revenues, compared to $78 in the same quarter the previous year. The company has ceased selling CBD products.
Operating expenses for the quarter increased to $3,246,179 from $492,487 in the previous year, primarily due to stock-based compensation expenses.
The company reported a net loss of $3,569,636 for the quarter, compared to $566,308 in the previous year, with the increase attributed to higher operating expenses.
Cash used in operating activities was $710,699 for the nine months ended September 30, 2024, primarily due to a net loss of $4,195,265 and changes in operating assets and liabilities.
Cash provided by financing activities was $688,540, including proceeds from convertible notes and sales of common stock.
1606 Corp has expressed substantial doubt about its ability to continue as a going concern, citing the need for additional capital to sustain operations.
The company has developed an AI chatbot for the CBD industry and public companies, focusing on a monthly recurring licensing fee model.
The filing also details various financial instruments, including convertible notes and derivative liabilities, with a net gain on debt extinguishment of $102,579.
1606 Corp issued 29,018,088 shares of common stock during the nine months ended September 30, 2024, for various purposes including conversions and services.
The company identified material weaknesses in its internal controls over financial reporting, citing lack of a functioning audit committee and inadequate segregation of duties.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the 1606 Corp Com quarterly 10-Q report dated November 15, 2024. To report an error, please email earnings@qz.com.