Fri, Sep 20, 11:48 AM (92 days ago)
CleanCore Solutions, Inc. reported a significant decline in revenue for the fiscal year ended June 30, 2024, with total revenue dropping 34.26% to $1,604,973 from $2,441,356 in the previous year. The decrease was primarily attributed to the loss of a major customer, which accounted for 80% of the revenue decline. Despite this, the company's gross profit increased by 8.98% to $795,812, reflecting a shift towards higher-margin direct sales rather than lower-margin distribution sales. Operating expenses decreased markedly by 56.22% to $2,471,480, largely due to reduced stock option expenses. However, the company still reported a net loss of $2,281,742, an improvement from the prior year's loss of $5,343,271. As of June 30, 2024, CleanCore held cash of $2,016,611, but management expressed concerns regarding the company's ability to sustain operations without additional capital, raising doubts about its going concern status. Strategically, CleanCore is focusing on expanding its distributor network and enhancing product effectiveness across various sectors, including hospitality and healthcare. The company also entered a sole distributorship agreement for several international markets, which may bolster future revenue streams. However, it faces risks related to customer concentration, supply chain dependencies, and the need for ongoing capital to support growth initiatives.