Fri, Nov 15, 7:48 PM (21 days ago)
For the quarter ending September 30, 2024, 1606 Corp. (ticker: not applicable) reported no revenue, a significant decline from $78 in Q3 2023. The net loss for the quarter was $3,569,636, compared to a loss of $566,308 in the previous year, primarily driven by increased operating expenses of $3,246,179, largely attributed to stock-based compensation. The company has shifted its focus away from selling CBD products, which contributed to a gross loss of $118 for the nine months ended September 30, 2024. Total current assets decreased to $43,809,000, while current liabilities surged to $2,139,755, leading to a significant stockholders' deficit of $2,095,946. The company has substantial liquidity concerns, needing approximately $1,000,000 to sustain operations over the next 12 months. Cash used in operating activities was $710,699, with financing activities providing $688,540, indicating reliance on external funding. Management acknowledges uncertainties regarding future profitability and plans to pursue additional equity financing. The outlook remains cautious as the company continues its transition into AI chatbot services for the CBD industry and public companies, amidst ongoing operational losses.