10-Q - CleanCore Solutions, Inc. (0001956741) (Filer)
Wed, Nov 13, 1:51 PM (96 days ago)
For the quarter ended September 30, 2024, CleanCore Solutions, Inc. (ZONE) reported revenues of $364.9K, a 12% increase from the prior year, attributed to acquiring more customers. However, the cost of sales rose to $179.4K (49.16% of revenue), leading to a gross profit of $185.5K, down from 53.15% margin in Q3 2023. Operating expenses surged 80% to $916.2K, primarily due to increased stock-based compensation and consulting fees, resulting in a net loss of $856.1K, nearly double the prior year’s loss. Cash and equivalents fell to $1.21M, with significant cash used in operations ($799.8K). The company faces substantial uncertainty about its ability to continue as a going concern, relying on future capital raises. Total liabilities increased slightly to $3.76M, with a notable portion attributed to a promissory note. The company must navigate financial challenges while expanding its product offerings in a competitive market.