In This Story
CleanCore Solutions Inc. Class B (ZONE-1.10%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing includes financial statements for the quarter, showing a slight decrease in revenue to $257,269 from $258,406 in the same quarter the previous year. This decrease is attributed to additional discounts offered to large customers.
The cost of sales for the quarter was $195,258, representing 75.90% of revenue, compared to 50.98% in the same quarter of the previous year. This increase is due to a change in sales strategy involving demonstration equipment and inventory sold at cost.
The company reported a gross profit of $62,011 for the quarter, down from $126,669 in the previous year, with the decline attributed to increased costs.
General and administrative expenses increased to $911,173 from $320,322, primarily due to increased stock compensation, professional fees, and insurance costs.
Advertising expenses rose to $74,905 from $24,631, reflecting a significant increase in public relations activities.
Net loss for the quarter was $1,005,030, up from $344,799 in the previous year.
Cash used in operating activities was $1,662,330 for the six months ended December 31, 2024. The company had cash and cash equivalents of $560,489 as of December 31, 2024.
CleanCore acknowledges a material uncertainty about its ability to continue as a going concern for 12 months from the date of the financial statements, due to insufficient resources to fund planned expenditures.
The filing also details various financial agreements, including promissory notes and a revolving line of credit with Arbor Bank.
CleanCore does not anticipate cash dividend payments to common stockholders in the near future.
The company identified material weaknesses in its internal controls over financial reporting, including a lack of trained professionals with expertise in accounting and financial reporting.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the CleanCore Solutions Inc. Class B quarterly 10-Q report dated February 14, 2025. To report an error, please email earnings@qz.com.