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1606 Corp Com (CBDW+42.86%) has submitted its 10-K filing for the fiscal year ended December 31, 2024.
The filing details the company's transition from selling CBD products to developing AI chatbots for the CBD industry and public companies. The company has partnered with ARXT Labs to create a proprietary chatbot and has signed a distribution contract with Cool Blue Distribution.
1606 Corp reported net revenue of $7,195 for the year ended December 31, 2024, compared to $1,603 in the previous year. The company will no longer sell CBD products.
Operating expenses increased to $4,138,157 from $1,620,580, primarily due to stock-based compensation of approximately $3 million during the year.
The company reported a net loss of $4,514,971 for the year, up from $1,580,733 in the previous year. This increase is attributed to higher operating expenses.
The company has yet to achieve profitable operations and may need to raise capital to sustain operations. This raises substantial doubt about its ability to continue as a going concern.
1606 Corp's financing activities provided cash of $844,123 during the year, including proceeds from the sale of common stock and convertible notes.
The company issued 54,129,476 shares of common stock during the year, including shares for cash, services, and note conversions.
1606 Corp has identified material weaknesses in its internal control over financial reporting, including a lack of a functioning audit committee and inadequate segregation of duties.
The company continues to focus on developing its AI chatbot technology and expanding its market presence in the CBD industry.
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 annual 10-K report dated March 31, 2025. To report an error, please email earnings@qz.com.