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Going Concern
 3 Months Ended
Jun. 30, 2026
Going Concern [Abstract]  
Going Concern

3. Going Concern

 

In accordance with ASC 205-40, Presentation of Financial Statements — Going Concern, the Company evaluates whether there are conditions or events that raise substantial doubt about its ability to continue as a going concern within one year after the date the financial statements are issued (or available to be issued). As part of this assessment, the Company considers both qualitative and quantitative factors including its current financial condition, available sources of liquidity, forecasted cash flow and its obligations due over the assessment period.

 

The Company remains in the early stages of executing its commercialization, payments, exchange-traded product support, licensing and strategic investment initiatives. For the three months ended June 30, 2026, the Company had net income of $3.98 million and used $1.6 million of cash in operating activities. At June 30, 2026, the Company had cash of $0.7 million, current assets of $3.5 million, current liabilities of $19.9 million, a working capital deficit of $16.4 million, short-term debt of $5.1 million, related party debt of $0.7 million and an accumulated deficit of $39.4 million. At March 31, 2026, the Company had cash of $2.8 million, a working capital deficit of $7.3 million, short-term debt of $9.3 million, related party debt of $0.06 million and an accumulated deficit of $43.4 million.

 

The Company’s ability to continue as a going concern is dependent on its ability to obtain additional working capital, satisfy debt and other obligations as they become due, manage the timing and amount of operating expenditures, monetize or otherwise realize value from certain investments and execute its commercial growth initiatives.

 

The Company has historically financed its activities through issuances of equity securities, short-term and convertible debt, related-party advances and strategic transactions. Certain financing arrangements are short term, secured, convertible, subject to market or registration conditions, or dependent on collateral values. In addition, the timing and amount of cash flows that may be generated from the Company’s investments and commercial initiatives are exposed to public-equity and digital-asset market volatility, counterparty performance, customer adoption, regulatory developments and execution risk. These conditions and events, considered in the aggregate, raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date these financial statements are issued.

 

The Company has developed and is implementing plans intended to improve liquidity and support the ongoing operations. These plans include the following:

 

● Capital market access and financing: The Company completed its reverse merger with Brag House Holdings, Inc. on June 30, 2026 and established a publicly traded parent-company structure. Management intends to use this platform to pursue public and private equity offerings, the Yorkville equity purchase facility and other debt or strategic financing arrangements. Availability under these arrangements is subject to applicable conditions, market prices, registration effectiveness, exchange rules, collateral requirements and investor demand and therefore is not equivalent to committed unrestricted cash.

 

● Debt and liquidity management: During the three months ended June 30, 2026, the Company received $3.5 million of short-term debt financing and repaid $1.4 million of short-term debt. Subsequent to June 30, 2026, the Company fully repaid the remaining Yorkville senior convertible promissory note and the Revere Securities margin loan. On July 28, 2026, the Company also obtained a $1.4 million unsecured subordinated short-term note and subsequently settled its principal through the transfer of CleanCore common shares. See Note 18 - Subsequent Events. These actions reduced certain near-term debt maturities, but do not provide committed financing for the full assessment period.

 

● Investment monetization and liquidity preservation: Management continues to evaluate selective monetization of marketable and other investments, including CleanCore related securities, subject to market prices, trading restrictions, collateral arrangements and the Company’s strategic objectives. Management also intends to defer or reduce discretionary expenditures and investment commitments when necessary and to continue periodic cash-flow forecasting and review of payroll, vendor obligations, debt service and other liquidity requirements.

 

● Revenue development: Management is pursuing recurring and diversified revenue sources through Dogecoin-related payment products, support services for exchange-traded products, licensing, brand and commercial partnerships, real-world-asset initiatives and other digital asset services. The timing and amount of future revenue and cash inflows depend on product development, customer adoption, partner performance, regulatory compliance and market conditions.

 

Management believes that these plans are designed to provide additional liquidity and support the continuation of the Company’s operations. However, the Company’s ability to obtain additional capital, monetize investments and achieve anticipated operating improvements is subject to conditions and uncertainties that are not entirely within its control. Accordingly, management concluded that its plans do not alleviate the substantial doubt about the Company’s ability to continue as a going concern within one year after the date these unaudited interim condensed consolidated financial statements are issued.

 

The accompanying unaudited interim condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the ordinary course of business. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.