CleanCore Solutions, Inc. 10-Q

ITEM 1. FINANCIAL STATEMENTS. CLEANCORE SOLUTIONS, INC. UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Page Condensed Consolidated Balance Sheets as of September 30, 2025 (Unaudited) and June 30, 2025 2 Condensed Consolidated Statements of Operations for the Three Months Ended September 30, 2025 and 2024 (Unaudited) 3 Condensed Consolidated Statements of Stockholders’ Equity for the Three Months Ended September 30, 2025 and 2024 (Unaudited) 4 Condensed Consolidated Statements of Cash Flows for the Three Months Ended September 30, 2025 and 2024 (Unaudited) 5 Notes to Condensed Consolidated Financial Statements (Unaudited) 6 1 CLEANCORE SOLUTIONS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS September 30, 2025 June 30, 2025 (Unaudited) (Audited) Assets Current assets: Cash and cash equivalents $ 12,914,595 $ 1,460,997 Accounts receivable, net 387,210 657,683 Inventory, net 1,414,109 1,347,693 Deferred offering costs - 124,062 Prepaid expenses and other current assets 2,626,768 227,564 Total current assets 17,342,682 3,817,999 Property and equipment, net 28,991 32,548 Right of use assets 360,433 394,415 Digital assets 163,852,717 - Intangibles, net 1,898,281 1,974,509 Goodwill 2,237,910 2,237,910 Other assets 9,440 9,440 Total assets $ 185,730,454 $ 8,466,821 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable and accrued expenses $ 1,199,285 $ 1,380,285 Deferred revenue 428,093 - Pre-funded warrant liability 11,195,000 - Lease liability – current 148,440 145,005 Note payable – current - 690,112 Note payable – related party - 415,241 Due to related parties 29,071 216,895 Total current liabilities 12,999,889 2,847,538 Lease liability – non-current 234,637 273,099 Note payable – non-current - 3,880,202 Total liabilities 13,234,526 7,000,839 Commitments and contingencies (Note 17) Stockholders’ Equity Class A Common Stock; $ 0.0001 par value, 50,000,000 shares authorized; 0 and 1,875,795 shares issued and outstanding as of September 30, 2025 and June 30, 2025, respectively - 188 Class B Common Stock; $ 0.0001 par value, 2,000,000,000 shares authorized; 186,598,270 and 9,961,227 shares issued and outstanding as of September 30, 2025 and June 30, 2025, respectively 18,660 996 Additional paid-in capital 199,873,732 15,490,763 Other comprehensive income 18,459 21,259 Accumulated deficit ( 27,414,923 ) ( 14,047,224 ) Total stockholders’ equity 172,495,928 1,465,982 Total liabilities and stockholders’ equity $ 185,730,454 $ 8,466,821 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 2 CLEANCORE SOLUTIONS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Three Months Ended September 30, 2025 2024 Revenue, net $ 904,699 $ 364,900 Cost of sales (exclusive of depreciation shown separately below) 368,229 179,401 Gross profit 536,470 185,499 Operating expenses: General and administrative expense 8,625,133 916,214 Advertising expense 71,529 46,210 Depreciation and amortization expense 76,649 39,823 Total operating expenses 8,773,311 1,002,247 Loss from operations ( 8,236,841 ) ( 816,748 ) Other income (expense) Interest expense, net ( 133,133 ) ( 39,334 ) Change in fair value of digital assets ( 4,997,173 ) - Foreign exchange loss ( 552 ) - Total other income (expense) ( 5,130,858 ) ( 39,334 ) Net loss $ ( 13,367,699 ) $ ( 856,082 ) Foreign currency translation adjustment ( 2,800 ) - Total comprehensive loss $ ( 13,370,499 ) ( 856,082 ) Net loss per share of Class A and Class B stock, basic and diluted $ ( 0.49 ) $ ( 0.10 ) Weighted average shares used in computing net loss per Class A share, basic and diluted - 270,000 Weighted average shares used in computing net loss per Class B share, basic and diluted 27,096,436 7,965,818 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 3 CLEANCORE SOLUTIONS, INC. CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED) Class A Common Stock Class B Common Stock Additional Paid in Accumulated Other Comprehensive Accumulated Total Stockholders’ Shares Amount Shares Amount Capital Income Deficit Equity Balance at June 30, 2025 1,875,795 $ 188 9,961,227 $ 996 $ 15,490,763 $ 21,259 $ ( 14,047,224 ) $ 1,465,982 Conversion of class A common stock into class B common stock ( 1,875,795 ) ( 188 ) 1,875,795 188 - - - - Issuance of class B common stock in at-the-market offering - - 6,533,723 653 21,356,909 - - 21,357,562 Issuance of class B common stock upon exercise of warrants - - 164,150,220 16,414 152,425,166 - - 152,441,580 Issuance of class B common stock upon settlement of debt - - 1,871,681 187 4,121,686 - - 4,121,873 Issuance of class B common stock under settlement agreement - - 375,000 38 1,661,212 - - 1,661,250 Issuance of class B common stock for services - - 400,000 40 416,864 - - 416,904 Issuance of class B common stock upon exercise of options – 2022 Equity Incentive Plan - - 90,172 9 ( 9 ) - - - Issuance of class B common stock upon vesting of restricted stock units – 2022 Equity Incentive Plan - - 125,452 13 92,282 - - 92,295 Issuance of restricted stock awards – 2022 Equity Incentive Plan - - 1,215,000 122 4,230,654 - - 4,230,776 Stock based compensation – 2022 Equity Incentive Plan - - - - 78,205 - - 78,205 Currency translation adjustment - - - - - ( 2,800 ) - ( 2,800 ) Net loss for the period - - - - - - ( 13,367,699 ) ( 13,367,699 ) Balance at September 30, 2025 - $ - 186,598,270 $ 18,660 $ 199,873,732 $ 18,459 $ ( 27,414,923 ) $ 172,495,928 For the Three Months Ended September 30, 2024 Class A Common Stock Class B Common Stock Additional Paid in Accumulated Total Stockholders’ Shares Amount Shares Amount Capital Deficit Equity Balance at June 30, 2024 270,000 $ 27 7,960,919 $ 796 $ 11,040,583 $ ( 7,304,949 ) $ 3,736,457 Issuance of class B common stock upon vesting of restricted stock units – 2022 Equity Incentive Plan - - 9,166 1 21,514 - 21,515 Stock based compensation – 2022 Equity Incentive Plan - - - - 160,885 - 160,885 Net loss for the period - - - - - ( 856,082 ) ( 856,082 ) Balance at September 30, 2024 270,000 $ 27 7,970,085 $ 797 $ 11,222,982 $ ( 8,161,031 ) $ 3,062,775 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 4 CLEANCORE SOLUTIONS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Three Months Ended September 30, 2025 2024 Cash flows from operating activities Net loss $ ( 13,367,699 ) $ ( 856,082 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 89,874 39,823 Change in fair value of digital assets 4,997,173 Accretion of note payable discount 20,000 - Non cash interest expense 176,176 56,331 Stock based compensation 1,167,775 182,400 Non-cash professional fees 4,894,750 - Non cash lease expense ( 1,045 ) ( 34 ) Provision for bad debt and write-off on uncollectable accounts 1,945 5,563 Foreign exchange (gain)/loss 552 - Changes in operating assets and liabilities: Accounts receivable 267,977 ( 30,403 ) Inventory ( 66,416 ) ( 46,921 ) Prepaid expenses ( 2,399,204 ) ( 142,084 ) Deferred revenue 428,093 ( 10,395 ) Due to related parties ( 187,825 ) ( 12,270 ) Accounts payable and accrued liabilities 181,222 14,308 Net cash used in operating activities ( 3,796,652 ) ( 799,764 ) Investing activities Purchase of property and equipment ( 11,738 ) ( 6,465 ) Purchase of digital assets ( 142,500,000 ) - Net cash used in investing activities ( 142,511,738 ) ( 6,465 ) Financing activities Proceeds from at-the-market offering 21,357,562 - Proceeds from private placement of pre-funded warrants, net 137,907,255 - Proceeds from exercise of warrants 370,288 - Payments of deferred offering costs ( 786,725 ) - Repayments of notes payable ( 660,000 ) - Repayments of loans due to related parties ( 425,241 ) - Net cash provided by financing activities 157,763,139 - Effect of exchange rate changes on cash and cash equivalents ( 1,151 ) - Net increase (decrease) in cash 11,453,598 ( 806,229 ) Cash and cash equivalents at beginning of period 1,460,997 2,016,611 Cash and cash equivalents at the end of period $ 12,914,595 $ 1,210,382 Supplementary cash flow disclosure Cash paid for interest $ 80,237 $ - Supplementary schedule of non-cash investing and financing activities Debt to equity conversion $ 3,930,314 $ - Digital assets received in connection with pre-funded warrants $ 26,349,890 $ - The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 5 CLEANCORE SOLUTIONS, INC. NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2025 AND 2024 1. Organization and Business CC Acquisition Corp. was incorporated in the State of Nevada on August 23, 2022 for the sole purpose of acquiring substantially all of the assets of CleanCore Solutions, LLC, TetraClean Systems, LLC, and Food Safety Technologies, LLC, pursuant to an asset purchase agreement entered into by CC Acquisition Corp. with these three entities and their owners on October 17, 2022. On November 21, 2022, CC Acquisition Corp. changed its name to CleanCore Solutions, Inc. (“CleanCore US”). Since CleanCore US acquired substantially all of the assets of each of CleanCore Solutions, LLC, TetraClean Systems, LLC, and Food Safety Technologies, LLC, the business of these three entities is now operated by CleanCore US. On January 29, 2025, CleanCore established CleanCore Global Limited (“CleanCore Global,” and together with CleanCore US, the “Company”) as a wholly owned subsidiary in Ireland. The Company specializes in the development and production of cleaning products that produce pure aqueous ozone products for professional, industrial, or home use. The Company has a patented nanobubble technology using aqueous ozone that it believes is highly effective in cleaning, sanitizing, and deodorizing surfaces and high-touch areas. The Company offers products and solutions that are marketed for janitorial and sanitation, ice machine cleaning, laundry, and industrial industries. Its products are used in many types of environments including retail establishments, distribution centers, factories, warehouses, restaurants, schools and universities, airports, healthcare, food service, and commercial buildings such as offices, malls, and stores. On September 5, 2025, the Company adopted a digital asset treasury strategy focused on Dogecoin. Pursuant to an asset management agreement that the Company entered into with Dogecoin Ventures, Inc. (the “Asset Manager”) and 21Shares US LLC (“21Shares”), on September 5, 2025 (the “Asset Management Agreement”), the Company established a multiyear advisory and asset-management program with the Asset Manager (which is a wholly-owned subsidiary of House of Doge Inc., the commercial arm of the Dogecoin Foundation) and 21Shares to manage the Company’s treasury assets, which include available cash or digital assets placed in the Company’s account to be utilized for such purpose (the “Treasury Account”), as well as all investments thereof, proceeds of, income on and additions or accretions to the same, including all assets which are or were in the Treasury Account, but which are deployed in decentralized finance or similar blockchain transactions from time to time in accordance with the investment strategy described in the Asset Management Agreement (the “Treasury Assets”). The headquarters, principal address and records of the Company are located at 5920 South 118th Circle, Suite 2, Omaha, Nebraska. Liquidity The Company has incurred losses and negative cash flows from operations. From October 17, 2022 (the date of the acquisition) through September 30, 2025, the Company has financed its operations primarily through investor funding. As of September 30, 2025, the Company had cash of $ 12,914,595 , a net loss of $ 13,367,699 for the three months ended September 30, 2025, and cash used in operating activities of $ 3,796,652 . In accordance with Accounting Standards Codification (“ASC”) Topic 205-40, Presentation of Financial Statements - Going Concern , management is required to perform a two-step analysis over the Company’s ability to continue as a going concern. Management must first evaluate whether there are conditions and events that raise substantial doubt about the Company’s ability to continue as a going concern for a period of 12 months from the date the financial statements are issued. If management concludes that substantial doubt is raised, management is also required to consider whether its plans alleviate that doubt. On September 5, 2025, the Company completed an offering of pre-funded warrants to purchase an aggregate of 175,000,420 shares of class B common stock for aggregate gross proceeds of $ 175,000,420 , of which $ 148,650,530 was paid in cash and $ 26,349,890 was paid in cryptocurrency. After deducting placement agent fees, reimbursed expenses, and other offering expenses from the total gross proceeds, including both cash and cryptocurrency gross proceeds, the Company received net proceeds of approximately $ 164,257,145 . Of this amount, approximately $ 1,075,000 was used to pay off outstanding indebtedness and $ 4,400,000 will be used for working capital and general corporate purposes, with the balance of the net proceeds being used to acquire Dogecoin. 6 CLEANCORE SOLUTIONS, INC. NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2025 AND 2024 On August 29, 2025, the Company entered into an amended and restated sales agreement (the “Sales Agreement”) with Maxim Group LLC and Curvature Securities LLC (the “Sales Agents”), which amends and restates that certain sales agreement, dated June 20, 2025, between the Company and Curvature Securities LLC in its entirety. Pursuant to the terms of the Sales Agreement, the Company may, from time to time, in transactions that are deemed to be “at the market offerings” as defined in Rule 415 under the Securities Act of 1933, as amended, issue and sell through or to the Sales Agents up to a maximum aggregate amount of $ 1,150,000,000 of shares of class B common stock. During the three months ended September 30, 2025, the Company issued an aggregate of 6,533,723 shares of class B common stock under the Sales Agreement for gross proceeds of $ 22,017,431 and net proceeds of approximately $ 21,357,562 . Despite these offerings, management believes that currently available resources will not be sufficient to fund the Company’s planned expenditures over the next 12 months. These factors, individually and collectively, indicate that a material uncertainty exists that raises substantial doubt about the Company’s ability to continue as a going concern for 12 months from the date of issuance of these financial statements as of and for the three months ended September 30, 2025. The Company will be dependent upon the raising of additional capital through equity and/or debt financing in order to implement its business plan and generate sufficient revenue in excess of costs. If the Company raises additional capital through the issuance of equity securities or securities convertible into equity, stockholders will experience dilution, and such securities may have rights, preferences or privileges senior to those of the holders of common stock. If the Company raises additional funds by issuing debt, the Company may be subject to limitations on its operations, through debt covenants or other restrictions. There is no assurance that the Company will be successful with future financing ventures, and the inability to secure such financing may have a material adverse effect on the Company’s financial condition. These financial statements do not include any adjustments to the amounts and classifications of assets and liabilities that might be necessary should the Company be unable to continue as a going concern. The accompanying financial statements have been prepared on a going concern basis under which the Company is expected to be able to realize its assets and satisfy its liabilities in the normal course of business. 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements as of and for the three months ended September 30, 2025 and 2024 have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial information, and include the accounts of the Company and its wholly owned subsidiary. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. The unaudited interim consolidated financial statements are condensed and should be read in conjunction with the Company’s latest annual audited 2025 condensed consolidated financial statements, which are included in the Company’s Annual Report on Form 10-K filed with the SEC on August 22, 2025 (the “Form 10-K”). The results of operations for interim periods are not necessarily indicative of results to be expected for the fiscal year ending June 30, 2026 or for any other future annual or interim period. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Although management believes these estimates and assumptions are adequate, actual results could differ from the estimates and assumptions used. The fiscal 2025 year-end balance sheet data was derived from audited financial statements, and certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to SEC rules or regulations; however, the Company believes the disclosures made are adequate to make the information presented not misleading. A complete listing of the Company’s significant accounting policies is discussed in Note 2 – Summary of Significant Accounting Policies in the Notes to Financial Statements included in the Form 10-K. 7 CLEANCORE SOLUTIONS, INC. NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2025 AND 2024 Principles of Consolidation The condensed consolidated financial statements are presented in U.S. dollars and include the accounts of the Company and its wholly owned subsidiary. All intercompany balances and transactions have been eliminated in consolidation. Risks and Uncertainties The Company is subject to a number of risks similar to other early-stage companies including, but not limited to, profitability, the need for additional financing to achieve its business strategy, ability to obtain regulatory approval, significant competition, and dependence on key individuals. Cash and Cash Equivalents Cash consists of cash in readily available checking and money market accounts. Cash is recorded at cost, which approximates fair value. As of September 30, 2025 and June 30, 2025, cash balances were deposited at a major financial institution. Cash balances are subject to minimal credit risk as the balances are with high credit quality financial institutions (see also Concentration of Credit Risk below). The Company maintains restricted cash, which is to be used for the purchase of Dogecoin as part of its treasury strategy. Concentration of Credit Risk Financial instruments, which potentially subject the Company to significant concentration of credit risk, consist of cash for both the CleanCore and Treasury operating segments (see Note 16). The Company maintains deposits in federally insured financial institutions in excess of respective insured limits. The Company has not experienced any losses in such accounts and management believes that the Company is not exposed to significant credit risk due to the financial position of the depository institutions in which those deposits are held. Inventory Inventory consists of parts, work in progress and finished goods. The Company values parts and finished goods at the lower of the actual costs or net realizable value. The Company values work in progress at cost. The Company periodically reviews inventory for obsolete and potentially impaired items. As of September 30, 2025 and June 30, 2025, the Company maintained an allowance for slow-moving and inventory obsolescence of $ 301,315 and $ 37,420 , respectively. Digital Assets In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-08, Intangibles—Goodwill and Other—Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets (“ASU 2023-08”). ASU 2023-08 requires in-scope crypto assets (including the Company's dogecoin holdings) to be measured at fair value in the statement of financial position, with gains and losses from changes in the fair value of such crypto assets recognized in the statement of operations each reporting period. ASU 2023-08 also requires certain interim and annual disclosures for crypto assets within the scope of the standard. The Company adopted this guidance effective September 2025. The Company accounts for its digital assets, which are currently comprised solely of Dogecoin, as indefinite-lived intangible assets in accordance with ASC 350-60 (Intangibles – Goodwill and Other – Crypto Assets). The Company has ownership and control over its digital assets and uses a well-known crypto custodian to secure it. The Company’s digital assets are initially recorded at cost, with the cost basis determined using the weighted average cost (“WAC”) method. Upon disposal, the cost basis of the digital assets sold is determined using the WAC method. Digital assets are measured at fair value at each reporting period. The Company determines the fair value of Dogecoin in accordance with ASC 820 (Fair Value Measurement), based on the period-end quoted (unadjusted) prices in the Company’s principal market. Changes in fair value are recognized at each reporting date within the change in fair value of digital assets line item in the statement of operations. 8 CLEANCORE SOLUTIONS, INC. NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2025 AND 2024 The vast majority of the Company’s assets are concentrated in its Dogecoin holdings. Dogecoin is a digital asset, which is a novel asset class that is subject to significant legal, commercial, regulatory and technical uncertainty. Holding Dogecoin does not generate any cash flows and involves custodial fees and other costs. Additionally, the price of Dogecoin has historically experienced significant price volatility, and a significant decrease in the price of Dogecoin would adversely affect the Company’s financial condition and results of operations. The Company’s strategy of acquiring and holding Dogecoin also exposes it to counterparty risks with respect to the custody of its Dogecoin, cybersecurity risks, and other risks inherent to holding a digital asset. In particular, the Company is subject to the risk that, if its private keys with respect to its digital assets are lost or destroyed or other similar circumstances or events occur, the Company may lose some or all of its digital assets, which could materially adversely affect the Company’s financial condition and results of operations. Deferred Offering Costs In accordance with ASC 340-10-S99-1 and SEC Accounting Bulletin Topic 5A, specific incremental costs incurred by the Company directly attributable to a proposed offering of securities were deferred. As the pre-funded warrants offering closed on September 5, 2025, a total of $ 990,202 deferred costs were charged against the gross proceeds of the offering for the three months ended September 30, 2025. These offering costs included fees paid to underwriters, attorneys, accountants as well as printers and other third parties directly related to the offering. Costs such as management salaries or other general administrative expenses that are not incremental to the offering are not included in the deferred costs. Net Loss per Share of Common Stock Basic net loss per class A and class B common share is calculated by dividing the net loss distributed to class A and class B, respectively, by the weighted-average number of common shares of each respective class outstanding during the period, without consideration for potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of common shares and potentially dilutive securities outstanding for the period. For purposes of the diluted net loss per share calculation, stock options, warrants and convertible debt are considered to be potentially dilutive securities. As of September 30, 2025 and June 30, 2025, there were 31,315,088 and 1,729,477 , respectively, of potential common stock equivalents excluded from the diluted loss per share calculations as their effect is anti-dilutive. Because the Company has reported a net loss for the three months ended September 30, 2025 and 2024, diluted net loss per common share is the same as basic net loss per common share for such periods. Recent Accounting Standards In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The Company adopted this guidance effective September 2025. In December 2023, the FASB issued ASU No. 2023-08, Intangibles—Goodwill and Other—Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets (“ASU 2023-08”). ASU 2023-08 requires in-scope crypto assets (including the Company's dogecoin holdings) to be measured at fair value in the statement of financial position, with gains and losses from changes in the fair value of such crypto assets recognized in the statement of operations each reporting period. ASU 2023-08 also requires certain interim and annual disclosures for crypto assets within the scope of the standard. The Company adopted this guidance effective September 2025. Accounting Pronouncements Pending Adoption In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which requires greater disaggregation of income tax disclosures related to the income tax rate reconciliation and income taxes paid, and is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued. The amendments should be applied on a prospective basis although retrospective application is permitted. The Company is currently evaluating the effects of this pronouncement on its financial statements and disclosures. In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses , which requires public companies to disaggregate key expense categories such as inventory purchases, employee compensation and depreciation in their financial statements. Further, in January 2025, the FASB issued ASU 2025-01, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date , which clarifies the effective date of ASU 2024-03. The guidance is effective for all public entities with fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December15, 2027. Early adoption is permitted. The Company is evaluating the impact that adoption of this provision may have on its consolidated financial statements. In December 2024, the FASB issued ASU 2024-03, Debt—Debt with Conversion and Other Options (Subtopic 470- 20): Induced Conversions of Convertible Debt Instruments . The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2025 (and interim reporting periods within those annual reporting periods). Early adoption is permitted as of the beginning of a reporting period if the entity has also adopted ASU 2020-06 for that period. The Company is evaluating the impact that adoption of this provision may have on its consolidated financial statements. 9 CLEANCORE SOLUTIONS, INC. NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2025 AND 2024 3. Disaggregated Revenue The following table disaggregates revenue by product category for the following periods: Three Months Ended September 30, 2025 2024 Janitorial and Sanitation $ 837,982 $ 341,363 Ice System 999 2,140 Other 65,718 21,397 Total revenue $ 904,699 $ 364,900 The “Other” category of revenue consists primarily of sales of parts, accessories, shipping and handling, and equipment rental income. The following table disaggregates revenue by geographical region for the following periods: Three Months Ended September 30, 2025 2024 Domestic $ 720,640 $ 364,900 International 184,059 Total revenue $ 904,699 $ 364,900 4. Cash and Cash Equivalents Cash and cash equivalents consists of the following at: September 30, 2025 June 30, 2025 Checking and savings $ 224,753 $ 109,472 Money market 4,806,429 - Restricted cash 7,883,413 1,351,525 Total cash and cash equivalents $ 12,914,595 $ 1,460,997 5. Asset Acquisition On April 15, 2025, the Company completed its acquisition of specified assts of Sanzonate Europe Ltd. (“Sanzonate”). Sanzonate was a former customer of the Company that produces products similar to the Company’s products. The assets acquired included accounts receivable, inventory, and intangibles. The intangibles consisted of a license issued by the European Organization for Technical Assessment to sell ozone products in the European Union (“EOTA license”), Sanzonate’s trade name, and distribution agreements. The Company also retained one sales representative and one administrative resource. The Company entered into this transaction to expand its presence in the European Union. 10 CLEANCORE SOLUTIONS, INC. NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2025 AND 2024 The total cost of the assets consisted of the following: Consideration Total Asset Cost Cash $ 425,000 Promissory note 800,000 Warrant 181,475 Direct acquisition-related costs 156,792 Total $ 1,563,267 The promissory note is a 10 % subordinated note with a principal amount of $ 800,000 bearing interest at ten percent ( 10 %) per annum, payable quarterly, and was due and payable on April 15, 2027. The promissory note was issued at market and therefore, the carrying amount represents fair value. On August 26, 2025, all remaining principal and interest due under this note in the amount of $ 819,766 was converted into 415,584 shares of class B common stock. The warrant is for the purchase up to 425,000 shares of class B common stock at an exercise price of $ 1.25 per share. The Company obtained an external valuation of the warrant noting a fair value of $ 181,475 . In addition, the transaction includes contingent consideration in the form of an earnout of up to $ 1,250,000 to the extent that Net Sales (as defined in the asset purchase agreement) achieve certain milestones during the five-year period beginning on the closing date. The Company determined that reaching such milestones was not probable as of the acquisition date and therefore, the contingent consideration was not included in the total cost of the assets acquired. If the Company determines that earnout payments will be made, the additional cost will be allocated to the non-financial assets in the period the payments are determined to be probable. Management concluded that the transaction does not constitute a business combination and therefore will account for the transaction in accordance with ASC 805-50, Acquisition of Assets Rather than a Business . The total cost of the assets was allocated to the acquired assets in accordance with ASC 805-50, Acquisition of Assets Rather than a Business , as follows: Asset Allocated Cost Accounts receivable $ 272,658 Inventory 348,222 EOTA license 339,877 Trade name 324,428 Distribution agreements 278,082 Total $ 1,563,267 The accounts receivable were assessed for collectability and recorded at fair value as of the closing date. Similarly, inventory was reviewed for obsolescence and recorded at fair value as of the closing date. The EOTA license allows the Company to sell ozone products in the European Union (“EU”). The EOTA license will be amortized over an estimated useful life of five years . Sanzonate’s trade name will continue to be used, as necessary, when customers have preexisting relationship with Sanzonate. The trade name will be amortized over an estimated useful life of five years . Sanzonate’s distribution agreements are agreements with distributors in the EU that sell product to end users. The Company intends to utilize the existing distributors, but also expand on both distributors and non-distributor customers in the EU. The distribution agreements will be amortized over an estimated useful life of five years . The Company engaged a third-party valuation firm to determine the fair values of the intangible assets. The intangible assets were valued using a discounted cash flow method. Key inputs and assumptions include projected cash flows and the discount rate used to calculate the present value of such cash flows. In addition, all long-lived assets will be tested for impairment when events and circumstances indicate the assets might be impaired. 11 CLEANCORE SOLUTIONS, INC. NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2025 AND 2024 6. Accounts Receivable, Net Accounts receivable, net consists of the following at: September 30, 2025 June 30, 2025 Trade accounts receivable $ 511,153 $ 779,692 Allowance for doubtful accounts ( 123,943 ) ( 122,009 ) Total accounts receivable, net $ 387,210 $ 657,683 7. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consists of the following at: September 30, 2025 June 30, 2025 Prepaid inventory parts $ 71,587 $ 27,510 Prepaid insurance 904,891 46,141 Prepaid marketing 1,350,000 - Prepaid certification and fees 136,580 101,141 Prepaid professional fees 123,143 - Prepaid other 40,567 52,772 Total prepaid expenses and other current assets $ 2,626,768 $ 227,564 8. Inventory Inventory consists of the following at: September 30, 2025 June 30, 2025 Parts $ 938,521 $ 755,217 Finished goods 776,903 629,896 Inventory reserve ( 301,315 ) ( 37,420 ) Total inventory, net $ 1,414,109 $ 1,347,693 The Company values inventory at the balance sheet date using the weighted average method. The Company adjusted the inventory reserve to $ 301,315 as of September 30, 2025 from $ 37,420 as of June 30, 2025. 9. Digital Assets The Company’s digital asset holdings are comprised of the following at: September 30, 2025 June 30, 2025 Number of Dogecoin held 703,617,752 - Digital assets carrying fair value $ 163,852,717 $ - Digital assets cost basis $ 168,849,890 $ - Unrealized loss on digital assets $ 4,997,173 $ - The fair value per share used to compute the digital assets carrying fair value as of September 30, 2025 was $ 0.23 . 12 CLEANCORE SOLUTIONS, INC. NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2025 AND 2024 10. Intangible Assets Intangible assets consist of the following at: September 30, 2025 June 30, 2025 Technology $ 600,000 $ 600,000 Distribution agreements 586,831 586,831 Trademarks 904,428 904,428 License 339,576 339,576 Total 2,430,835 2,430,835 Less: accumulated amortization ( 532,554 ) ( 456,326 ) Total intangible assets, net $ 1,898,281 $ 1,974,509 The Company holds 15 patents, which are included in technology. These patents cover the functions of the Company’s products that allow its machines to produce the ozone in the form of nanobubbles. Amortization expense related to intangibles was $ 75,579 and $ 38,499 for the three months ended September 30, 2025 and 2024, respectively. 11. Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consist of the following at: September 30, 2025 June 30, 2025 Accounts payable $ 373,290 $ 909,294 Accrued interest 11,686 44,459 Accrued payroll and related expenses 81,852 111,437 Warranty reserve 70,677 69,734 Accrued legal 15,000 70,425 Executive compensation 253,333 - Digital asset management fees 286,809 - Consulting fees 83,333 - Contract termination - 100,000 Other accrued expenses 23,305 74,936 Total accounts payable and other accrued expenses $ 1,199,285 $ 1,380,285 12. Debt Promissory Notes On October 17, 2022, the Company issued a promissory note in the principal amount of $ 3,000,000 to Burlington Capital, LLC (“Burlington”), which bore interest at 7 % per annum and was to mature on October 17, 2023 . On September 13, 2023, the parties signed an extension agreement, pursuant to which the interest rate was increased to 10 % per annum and the maturity date was extended to the earlier of (a) the closing of a firm commitment initial public offering and concurrent listing on a national securities exchange or (b) December 17, 2023. On December 17, 2023, the parties signed a second extension agreement, pursuant to which the maturity date was extended to the earlier of (a) the closing of a firm commitment initial public offering and concurrent listing on a national securities exchange or (b) April 4, 2024. On April 30, 2024, the Company and Burlington entered into an extension agreement which extended the maturity date to May 9, 2024 . 13 CLEANCORE SOLUTIONS, INC. NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2025 AND 2024 On May 31, 2024, Burlington and Walker Water LLC (“WW”) entered into an allonge, assignment and agreement (the “Burlington Assignment Agreement”), pursuant to which Burlington agreed to transfer $ 633,840 of the note to WW. The Burlington Assignment Agreement also provided that the Company make a payment of $ 900,000 on May 31, 2024 to Burlington to reduce the principal amount of the note by $ 480,667 and pay the outstanding accrued interest of $ 419,333 in full. Also on May 31, 2024, the Company issued an amended and restated promissory note to Burlington (the “Burlington Note”). The Burlington Note had a new principal amount of $ 2,366,160 , accrued interest at 8.5 % per annum from October 17, 2022 (the date of the original note), and required quarterly payments in the amount of $ 100,000 over the course of the next two and a half years, with a final payment of $ 1,396,881 due on April 1, 2027 . Although the Company did not timely make certain payments as required under the Burlington Note, Burlington has agreed to waive any default caused by such lack of payment and has not accelerated payment under the Burlington Note. On June 30, 2025, the Company and Burlington entered into conversion agreements pursuant to which the quarterly payments of $ 100,000 that were due on each of January 1, 2025, April 1, 2025 and July 1, 2025 were converted into an aggregate of 133,500 shares of class B common stock. On August 27, 2025, the Company and Burlington entered into a conversion agreement pursuant to which all remaining principal and accrued interest due under the Burlington Note in the amount of $ 1,785,342 was converted into 1,000,000 shares of class B common stock. Pursuant to the Burlington Assignment Agreement, the Company also issued a promissory note to WW in the principal amount of $ 633,840 (the “WW Note”). The WW Note accrued interest at 8.5 % per annum from October 17, 2022 (the date of the original note), which shall increase to 10 % upon an event of default, and was due on December 31, 2024 . On December 24, 2024, the Company entered into a note assignment and cancellation agreement (the “WW Assignment Agreement”) with WW, Gary Hollst, the Company’s Chief Revenue Officer, and Gary Rohwer, a third party, pursuant to which WW assigned half of its right, title and interest in and to the WW Note to Garry Hollst and the remaining half to Gary Rohwer. Accordingly, the WW Note was cancelled and the Company issued a promissory note in the principal amount of $ 316,920 to Gary Hollst and a promissory note in the principal amount of $ 316,920 and accrued interest of $ 15,714 to Gary Rohwer (the “Rohwer Note”). The Rohwer Note was due and payable on December 31, 2024. On December 30, 2024, the Company repaid the Rohwer Note in full. Please see Note 13 for a description of the promissory note issued to Gary Hollst. On April 15, 2025, CleanCore Global issued a 10 % subordinated promissory note in the principal amount of $ 800,000 to Sanzonate. The note bore interest at a rate of 10 % per annum, payable quarterly, and was due and payable on April 15, 2027 . On August 26, 2025, the Company and Sanzonate entered into a conversion agreement pursuant to which all remaining principal and accrued interest due under this note in the amount of $ 819,766 was converted into 415,584 shares of class B common stock. On April 16, 2025, the Company entered into subscription agreements with several accredited investors for the purchase of (i) 12 % unsecured promissory notes in the aggregate principal amount of $ 1,010,000 and (ii) five-year warrants to purchase an aggregate of 134,666 shares of class B common stock at an exercise price of $ 1.06 per share for an aggregate purchase price of $ 1,010,000 . The notes bore interest at a rate of 12 % per annum, payable quarterly, and were due and payable on April 16, 2027 . On August 26, 2025, the Company and the holder of a 12 % unsecured promissory note in the principal amount of $ 350,000 entered into a conversion agreement pursuant to which all remaining principal and accrued interest due under this note in the amount of $ 405,417 was converted into 85,366 shares of class B common stock. On September 5, 2025, the outstanding principal balance of the remaining notes of $ 660,000 and accrued interest balance of $ 14,300 was paid in full. On June 6, 2025, the Company entered into a subscription agreement with an accredited investor for the purchase of (i) a 12 % unsecured promissory note in the principal amount of $ 500,000 and (ii) a five-year warrant to purchase 66,667 shares of class B common stock at an exercise price of $ 1.06 per share for a purchase price of $ 500,000 . The note bore interest at a rate of 12 % per annum, payable quarterly, and was due and payable on June 6, 2027 . On August 26, 2025, the Company and the holder entered into a conversion agreement pursuant to which all remaining principal and accrued interest due under this note in the amount of $ 579,167 was converted into 243,902 shares of class B common stock. 14 CLEANCORE SOLUTIONS, INC. NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2025 AND 2024 On June 30, 2025, the Company issued to an accredited investor (i) an original issue discount promissory note in the principal amount of $ 520,000 and (ii) a five-year warrant to purchase 25,000 shares of class B common stock at an exercise price of $ 2.00 per share for a purchase price of $ 500,000 . This note was due and payable on October 10, 2025 and accrued interest at a rate of 15 % per annum. On August 26, 2025, the Company and the holder entered into a conversion agreement pursuant to which all remaining principal and accrued interest due under this note in the total amount of $ 532,181 was converted into 126,829 shares of class B common stock. 13. Related Party Transactions As of September 30, 2025 and June 30, 2025, the Company had a short-term amount due to Clayton Adams, its Chief Executive Officer and founder, in the amount of $ 29,071 and $ 41,895 , respectively, for operational expenses paid by a credit card in his name. The Company has a verbal agreement with Mr. Adams to pay the credit card charges directly to the issuing financial institution as they become due and is current on these payments. On October 17, 2022, the Company entered into a consulting agreement with Birddog Capital, LLC (“Birddog”), a limited liability company owned by Clayton Adams, pursuant to which the Company engaged Birddog to provide management services to the Company. Pursuant to the consulting agreement, the Company agreed to pay Birddog a monthly fee of $ 6,000 commencing on October 17, 2022. The Company also agreed to reimburse Birddog for all pre-approved business expenses. The term of the consulting agreement was for one (1) year. On April 1, 2024, the Company entered into a new consulting agreement with Birddog which provides for a monthly fee of $ 22,000 . In addition, the Company agreed to pay Birddog $ 175,000 upon completion of the initial public offering and grant Birddog 500,000 restricted stock units, with 250,000 shares vesting immediately and 250,000 shares vesting eighteen months after issuance. The Company did not make such payment or issue such shares upon completion of the initial public offering. On June 11, 2025, the Company and Birddog entered into an amendment to the consulting agreement, pursuant to which the Company agreed to pay Birddog a monthly fee of $ 22,000 and deferred expenses of up to $ 25,000 . The Company also agreed to issue to Clayton Adams 500,000 restricted stock units, vesting immediately, and agreed to pay Birddog $ 175,000 no earlier than August 1, 2025 and no later than December 31, 2025. The Company paid the $ 175,000 in full during the three months ended September 30, 2025. On September 5, 2025, the Company entered into an Executive Employment Agreement with Clayton Adams, which immediately nullified the consulting agreement, which was set to expire on October 23, 2025 . On July 27, 2023, the Company agreed to purchase approximately $ 105,000 worth of inventory from Nebraska C. Ozone, LLC, a related party business owned by Lisa Roskens, a significant stockholder at such time and the principal officer of Burlington, due to an open purchase order that the Company’s predecessor had with an inventory vendor that was not included in the liabilities assumed from the predecessor per the terms of the acquisition purchase agreement. The inventory is to be purchased as needed, consistent with other inventory purchases. However, if the entire $ 105,000 amount is not purchased by March 31, 2024, the balance at that date begins accruing interest at a rate of seven percent ( 7 %) per annum until it is paid in full. As of September 30, 2025, the Company has purchased $ 12,578 of the inventory, with an outstanding payable balance of $ 105,000 , and has an accrued interest balance of $ 11,686 . On March 26, 2024, the Company entered into a loan agreement with Clayton Adams, pursuant to which the Company issued a revolving credit note to Mr. Adams in the principal amount of up to $ 500,000 . Pursuant to the loan agreement and note, Mr. Adams agreed to provide advances to the Company upon request during the period commencing on April 25, 2024 and continuing until the second anniversary of such date, or the maturity date. This note accrues simple interest on the outstanding principal amount at the rate of 8 % per annum, with all principal and interest due on the maturity date; provided that upon an event of default (as defined in the note), such rate shall increase to 13 %. The Company may prepay the note at any time without penalty or premium. The note is unsecured and contains customary events of default for a loan of this type. As of September 30, 2025, no advances have been made, and the principal amount of this note is $ 0 . On September 5, 2025, the Company entered into an option agreement with Clayton Adams, pursuant to which the Company granted Mr. Adams an irrevocable option to elect, in his sole discretion, at any time commencing on the date that is one hundred eighty (180) days after the closing of the offering that was completed on September 5, 2025, and ending on the third (3 rd ) anniversary of such date, to either (i) direct the Company to consummate a spin-off of the Company’s business and operations as conducted immediately prior to the closing of such offering, excluding any digital asset treasury business or other business lines commenced after such date, and including all assets, liabilities and employees primarily related thereto (the “ Legacy Business ”), or (ii) acquire, or cause one or more entities designated by Mr. Adams to acquire, the Legacy Business at a price proposed by Mr. Adams that he believes falls within a range that is considered fair, from a financial point of view, for the Legacy Business and that is confirmed as fair from a financial point of view by a fairness opinion (the “ Option Price ”). The Option Price will assume that the Legacy Business will have at least $ 500,000 in unrestricted cash and cash equivalents at the time of such spin-off or acquisition, and if the unrestricted cash and cash equivalents of the Legacy Business are less than such amount, the Option Price shall be reduced, dollar for dollar, by the amount of such shortfall. In accordance with ASC 718 ( Share-based Compensation ) and ASC 815 ( Derivatives and Hedging ), as the contingent arrangement has no economic value at grant or exercise, no accounting treatment is required by the Company as of September 30, 2025. 15 CLEANCORE SOLUTIONS, INC. NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2025 AND 2024 On December 24, 2024, the Company issued a promissory note in the principal amount of $ 316,920 to Gary Hollst, the Company’s Chief Revenue Officer. The note was originally due and payable on May 31, 2025 and did not accrue interest. On May 2, 2025, the note was amended and restated in its entirety and the Company issued to Mr. Hollst an amended and restated promissory note in the principal amount of $ 342,154.57 . The amended and restated promissory note was due and payable on May 31, 2026 and accrued interest at a rate of 8.5 % per annum. The amended and restated promissory note could be converted at the holder’s option at any time into shares of the Company’s class B common stock at a conversion price of $ 1.12 (subject to standard adjustments for stock splits, stock dividends, reclassifications and similar transactions). On June 2, 2025, all principal and interest due under the amended and restated promissory note in the amount of $ 344,625 was converted into 307,701 shares of the Company’s class B common stock. On December 24, 2024, the Company issued a 20 % original issue discount promissory note in the principal amount of $ 415,241 to Clayton Adams. On January 27, 2025, Mr. Adams entered into a note sale assignment and cancellation agreement with Travis Buchanan, the Company’s President, pursuant to which Mr. Adams sold and assigned $ 125,000 of the note to Mr. Buchanan for a purchase price of $ 100,000 . Following such assignment, the Company issued a 20 % original issue discount promissory note in the principal amount of $ 290,241.25 to Mr. Adams. This note accrued interest at a rate of 8 % per annum and was originally due and payable on June 30, 2025. On May 2, 2025, the parties entered into an amendment pursuant to which the maturity date was changed to require repayment with sixty (60) days of written demand from Mr. Adams. On September 5, 2025, the outstanding principal balance and accrued interest due in the amount of $ 304,295 was paid in full. Following the assignment described above, the Company issued a 20 % original issue discount promissory note in the principal amount of $ 125,000 to Mr. Buchanan. This note accrued interest at a rate of 8 % per annum and was originally due and payable on June 30, 2025. On May 2, 2025, the parties entered into an amendment pursuant to which the maturity date was changed to require repayment with sixty (60) days of written demand from Mr. Buchanan. On September 5, 2025, the outstanding principal balance of this note and accrued interest due in the amount of $ 131,053 was paid in full. ACME People Company, a company owned and controlled by Travis Buchanan, the Company’s President, participated in the private placement of promissory notes and warrants that was completed on April 16, 2025 (see Note 10) and was issued (i) a 12% unsecured promissory note in the principal amount of $ 10,000 and (ii) a five-year warrant to purchase 1,333 shares of class B common stock at an exercise price of $ 1.06 per share. On September 5, 2025, the outstanding principal balance of this note and accrued interest due in the amount of $ 10,217 was paid in full. In connection with the acquisition of the assets of Sanzonate, on April 15, 2025, CleanCore Global issued a 7 % unsecured promissory note in the principal amount of $ 475,000 to CleanCore US. The note bears interest at a rate of 7 % per annum commencing on April 15, 2027 with all principal and interest due and payable on April 15, 2030. The note may be prepaid at any time without premium or penalty, is unsecured, and contains customary events of default for a loan of this type. As of September 30, 2025, the outstanding principal balance of this note is $ 475,000 and it has an accrued interest balance of $ 16,032 . This loan and related interest is eliminated in consolidation. 14. Stockholders’ Equity On September 11, 2025, the Company filed an amendment to its articles of incorporation to increase the number of shares of class B common stock that the Company is authorized to issue to 2,000,000,000 shares. Accordingly, as of September 30, 2025, the Company’s authorized capital stock consists of 2,100,000,000 shares, consisting of (i) 2,050,000,000 shares of common stock, par value $ 0.0001 per share, of which 50,000,000 shares are designated class A common stock and 2,000,000,000 shares are designated as class B common stock; and (ii) 50,000,000 shares of “blank check” preferred stock, par value $ 0.0001 per share. See also Note 18 for an additional amendment. Common Stock For the Three Months Ended September 30, 2025 On August 20, 2025, the Company issued 375,000 shares of class B common stock pursuant to the terms of a settlement agreement with Boustead Securities, LLC. 16 CLEANCORE SOLUTIONS, INC. NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2025 AND 2024 On August 27, 2025, the Company issued 200,000 shares of class B common stock to a service provider in exchange for the cancellation of amounts owed for legal services in the amount of $ 416,904 . On August 29, 2025, the Company issued 90,172 shares of class B common stock upon a cashless exercise of stock options granted under the Company’s 2022 Equity Incentive Plan, as amended (the “2022 Plan”). On September 2, 2025, the Company issued 200,000 shares of class B common stock to a service provider in exchange for the cancellation of amounts owed for legal services in the amount of $ 250,000 . On September 5, 2025, all remaining 1,875,795 shares of class A common stock were converted into 1,875,795 shares of class B common stock. On September 23, 2025, the Company issued an aggregate of 163,805,420 shares of class B common stock upon the exercise of pre-funded warrants issued on September 5, 2025 (see Warrants below). During the three months ended September 30, 2025, the Company issued an aggregate of 44,114 shares of class B common stock upon the cashless exercise of other warrants. During the three months ended September 30, 2025, the Company issued an aggregate of 300,686 shares of class B common stock upon the exercise of warrants for proceeds of $ 370,288 . During the three months ended September 30, 2025, the Company issued an aggregate of 1,871,681 shares of class B common stock upon the settlement of debt in the amount of $ 4,089,692 (see also Notes 12 and 13). During the three months ended September 30, 2025, the Company issued an aggregate of 1,215,000 shares of class B common stock upon the grant of restricted stock awards under the Plan, as described in more detail below. During the three months ended September 30, 2025, the Company issued an aggregate of 125,452 shares of class B common stock upon the vesting of a restricted stock unit awards granted under the 2022 Plan. During the three months ended September 30, 2025, the Company issued an aggregate of 6,533,723 shares of class B common stock under the Sales Agreement for gross proceeds of $ 22,017,432 and net proceeds of approximately $ 21,357,562 . As of September 30, 2025, there were 0 shares of class A common stock and 186,598,270 shares of class B common stock issued and outstanding. For the Three Months Ended September 30, 2024 During the three months ended September 30, 2024, the Company issued an aggregate of 9,166 shares of class B common stock upon the vesting of restricted stock unit awards granted under the 2022 Plan. As of September 30, 2024, there were 270,000 shares of class A common stock and 7,970,085 shares of class B common stock issued and outstanding. Stock Options No options were issued during the three months ended September 30, 2025. During the three months ended September 30, 2025, a holder exercised a stock option issued under the 2022 Plan on a cashless basis for 90,172 shares of class B common stock, resulting in the forfeiture of 29,828 options. In addition, an aggregate of 138,750 options were forfeited following termination of service. 17 CLEANCORE SOLUTIONS, INC. NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2025 AND 2024 Warrants On September 5, 2025, the Company completed an offering of pre-funded warrants to purchase an aggregate of 175,000,420 shares of class B common stock for aggregate gross proceeds of $ 175,000,420 , of which $ 148,650,530 was paid in cash and $ 26,349,890 was paid in cryptocurrency. After deducting placement agent fees, reimbursed expenses, and other offering expenses from the total gross proceeds, including both cash and cryptocurrency gross proceeds, the Company received net proceeds of approximately $ 164,257,145 . The pre-funded warrants have a nominal exercise price of $ 0.0001 (subject to standard adjustments for stock splits, stock dividends, recapitalizations, mergers and similar transactions), include a cashless exercise provision, and may be exercised at any time until all of the pre-funded warrants are exercised in full. On September 23, 2025, 163,805,420 of the pre-funded warrants were exercised for 163,805,420 shares of class B common stock, and accordingly, the Company recorded a current liability of $ 11,125,000 for the remaining unexercised pre-funded warrants. In connection with this offering and as partial compensation for their services, on September 5, 2025, the Company issued a five-year warrant to purchase 3,150,008 shares of class B common stock to Maxim Group LLC and a five-year warrant to purchase 2,100,005 shares of class B common stock to Curvature Securities LLC and its affiliates. These warrants have an exercise price of $ 1.33 (subject to standard adjustments for stock splits, stock dividends, recapitalizations, mergers and similar transactions) and may be exercised on a cashless basis if there is no effective registration statement registering the shares underlying the warrants or the prospectus contained therein is not available for the resale of such shares by the holder. On September 5, 2025, the Company also issued to the Asset Manager (i) a five-year warrant to purchase 8,750,021 shares of class B common stock at an exercise price of $ 1.00 (subject to standard adjustments for stock splits, stock dividends, recapitalizations, mergers and similar transactions) and (ii) a five-year warrant to purchase 5,250,013 shares of class B common stock at an exercise price of $ 1.33 (subject to standard adjustments for stock splits, stock dividends, recapitalizations, mergers and similar transactions). These warrants may be exercised on a cashless basis if there is no effective registration statement registering the shares underlying the warrants or the prospectus contained therein is not available for the resale of such shares by the holder. All of the foregoing warrants contain a beneficial ownership limitation which provides that the Company will not effect any exercise, and a holder will not have the right to exercise, any portion of a warrant to the extent that, after giving effect to the exercise, such holder (together with such holder’s affiliates) would beneficially own in excess of 4.99 % (or, at the election of the holder, 9.99 %) of the number of shares of class B common stock outstanding immediately after giving effect to the issuance of shares issuable upon such exercise, which such percentage may be increased or decreased, but not in excess of 9.99 %, by the holder upon at least sixty-one ( 61 ) days’ prior notice to the Company. During the three months ended September 30, 2025, an aggregate of 300,686 previously issued warrants were exercised for proceeds of $ 370,288 . In addition, an aggregate of 44,114 warrants were exercised on a cashless basis, resulting in the forfeiture of 55,886 warrants. Restricted Stock Awards On July 1, 2025, the Company granted a restricted stock award under the 2022 Plan for 30,000 shares of class B common stock, which vested in full on the date of grant. On July 21, 2025, the Company granted a restricted stock award under the 2022 Plan for 250,000 shares of class B common stock, with half of the shares vesting on the date of grant and the remaining shares vesting quarterly for 5 quarters. On July 21, 2025, the Company granted a restricted stock unit award under the 2022 Plan for 100,000 shares of class B common stock, which vest based on certain revenue targets. On August 21, 2025, the Company granted a restricted stock award under the 2022 Plan for 725,000 shares of class B common stock, which vested in full on the date of grant. On September 5, 2025, the Company granted a restricted stock unit award under the 2022 Plan for 360,000 shares of class B common stock, which vest monthly over one year commencing on October 5, 2025. On September 5, 2025, the Company granted a restricted stock unit award under the 2022 Plan for 120,000 shares of class B common stock, which vest monthly over one year commencing on October 5, 2025. 18 CLEANCORE SOLUTIONS, INC. NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2025 AND 2024 On September 9, 2025, the Company granted a restricted stock award under the 2022 Plan for 15,000 shares of class B common stock, which vested in full on the date of grant. On September 9, 2025, the Company granted a restricted stock award under the 2022 Plan for 20,000 shares of class B common stock, which vested in full on the date of grant. On September 25, 2025, the Company granted a restricted stock award under the 2022 Plan for 175,000 shares of class B common stock, which vested in full on the date of grant. Stock-based Compensation Total stock compensation expense for the three months ended September 30, 2025 and 2024 was $ 1,167,775 and $ 182,400 , respectively. In addition, $ 45,640,112 of warrants issued to consultants was recorded as an offset to equity as of September 30, 2025. As of September 30, 2025, total unrecognized stock compensation expense was $ 2,758,642 with the weighted average period over which it is expected to be recognized of 1.21 years. 15. Net loss Per Share The following tables set forth the computation of basic and dilutive net loss per share of common stock: Three Months Ended September 30, 2025 2024 Basic and Diluted Net Loss Per Share Class A Class B Class A Class B Numerator Allocation of undistributed loss $ - $ ( 13,367,699 ) $ ( 28,065 ) $ ( 828,017 ) Denominator Weighted average number of shares used in per share computation - 27,096,436 270,000 7,965,818 Basic and diluted net loss per share $ - $ ( 0.49 ) $ ( 0.10 ) $ ( 0.10 ) 16. Segment Information Due to the establishment of the official Dogecoin treasury strategy on September 5, 2025 as part of the $ 175 million private placement offering (see Note 1), the Company now has two reportable operating segments: (i) the CleanCore Segment, which is engaged in the development and production of cleaning products and solutions that are marketed for professional, industrial, or home use; and (ii) the Treasury Segment, which executes the Company’s digital asset treasury strategy focused on Dogecoin and includes the Company’s Treasury Assets. The Treasury Segment also includes dedicated resources assigned to execute on the digital asset strategy, unrealized gain or loss on digital assets, and other third-party costs associated with the Company’s digital assets holdings, and income tax effects generated from the Company’s Dogecoin holdings to better align with their activities and utilization. The Company’s chief operating decision maker (“CODM”) is the Company’s Chief Executive Officer , who manages the Company as two discrete segments as well as on a consolidated basis. The CODM uses net income (loss) to assess the profitability of the CleanCore Segment by comparing actual to budgeted results on a quarterly basis. In doing so, he focuses on revenue, gross profit, and operating profit (loss) of the CleanCore Segment. The CODM, in conjunction with the Chief Investment Officer, assesses the Treasury Segment using the value of the Dogecoin and number of tokens held. Both segments allocate personnel and budget accordingly to maximize potential profitability. The CODM also uses net income (loss) to understand the impact from income taxes and financing costs for general tax and liquidity planning purposes. The following tables present for each Segment and on a consolidated basis, the Company’s revenues, gross profit and operating profit (loss) regularly provided to the CODM and reconciled to net income (loss) for each of the periods presented. Total segment assets provided to the CODM are also disclosed in the tables below for each period presented. 19 CLEANCORE SOLUTIONS, INC. NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2025 AND 2024 Three Months Ended September 30, 2025 CleanCore Treasury Consolidated Revenue $ 904,699 $ - $ 904,699 Gross Profit 536,470 - 536,470 Loss from Operations ( 3,335,707 ) ( 4,901,134 ) ( 8,236,841 ) Net Loss ( 8,370,526 ) ( 4,997,173 ) ( 13,367,699 ) Total Assets $ 13,994,324 $ 171,736,130 ) $ 185,730,454 17. Commitments and Contingencies Legal Proceedings From time to time, the Company may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. However, litigation is subject to inherent uncertainties and an adverse result in these or other matters may arise from time to time that may harm our business. The Company is currently not aware of any such legal proceedings or claims that it believes will have a material adverse effect on its business, financial condition or operating results. Retirement Plans The Company does not maintain a defined contribution plan or any other type of retirement plan for its employees. Leases The Company has a non-cancellable operating lease commitment for its office facility expiring in 2028. Rent expense totaled $ 40,416 and $ 40,416 for the three months ended September 30, 2025 and 2024, respectively. The following table discloses the lease cost, weighted average discount rate, and weighted average remaining lease term for operating leases as of September 30, 2025 and 2024: September 30, 2025 September 30, 2024 Operating lease cost $ 40,416 $ 40,416 Remaining lease term 2.4 years 3.4 years Discount rate 6.56 % 6.56 % The discount rate was determined using the Company’s external debt and was adjusted for collateralization, term and lease amount. The following table discloses the undiscounted cash flows on an annual basis and a reconciliation of the undiscounted cash flows of operating lease liabilities recognized in the balance sheet as of September 30, 2025: Year Ended June 30, 2026 (remainder) $ 125,765 2027 171,407 2028 116,160 2029 - 2030 - Total undiscounted cash flows 413,332 Less amount representing interest ( 30,255 ) Present value of lease liabilities 383,077 Less current portion ( 148,440 ) Noncurrent lease liabilities $ 234,637 20 CLEANCORE SOLUTIONS, INC. NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2025 AND 2024 Asset Management Agreement Pursuant to the terms of the Asset Management Agreement, the Company agreed to pay the Asset Manager and 21Shares a monthly fee in arrears computed at an annual rate as follows: (i) 2 % in the aggregate on amounts up to and including $ 1,000,000,000 in Treasury Account value, with 1.75 % paid to the Asset Manager and 0.25 % paid to 21Shares; (ii) 1.75 % in the aggregate on amounts above $ 1,000,000,000 up to and including $ 1,500,000,000 in Treasury Account value, with 1.5 % paid to the Asset Manager and 0.25 % paid to 21Shares; and (iii) 1.5 % in the aggregate on amounts above $ 1,500,000,000 in Treasury Account value, with 1.25 % paid to the Asset Manager and 0.25 % paid to 21Shares. Such payments may be made, in the sole discretion of the Asset Manager or 21Shares, in shares of class B common stock, cash, or Dogecoin and shall be pro-rated for partial periods. 18. Subsequent Events Charter Amendment On October 13, 2025, the Company filed Amended and Restated Articles of Incorporation which (i) removed the dual class structure of the Company’s common stock and (ii) increased the number of shares of common stock that the Company is authorized to issue to 6,942,000,000 shares. Accordingly, the Company is now authorized to issue 6,942,000,000 shares of common stock, $ 0.0001 par value per share, and 50,000,000 shares of preferred stock, $ 0.0001 par value per share. Plan Amendment On October 13, 2025, the 2022 Plan was amended to increase the share reserve to 25,000,000 shares of common stock. Stock Awards On October 13, 2025, the Company granted a restricted stock award to Marco Margiotta, the Company’s Chief Investment Officer, under the 2022 Plan for 4,000,000 shares of common stock, which vested in full on the date of grant. On October 13, 2025, the Company granted a restricted stock award to Clayton Adams, the Company’s Chief Executive Officer, under the 2022 Plan for 3,250,000 shares of common stock, which vested in full on the date of grant. On October 20, 2025, the Company granted restricted stock awards to two consultants for an aggregate of 300,000 shares of common stock, which vested in full on the date of grant. Stock Issuances On October 1, 2025, the Company issued an aggregate of 35,452 shares of class B common stock upon the vesting of restricted stock units granted under the 2022 Plan. On October 5, 2025, the Company issued an aggregate of 40,000 shares of class B common stock upon the vesting of restricted stock units granted under the 2022 Plan. On October 13, 2025, the Company issued 4,999,750 shares of common stock upon the cashless exercise of a pre-funded warrant issued on September 5, 2025. On November 5, 2025, the Company issued an aggregate of 40,000 shares of common stock upon the vesting of restricted stock units granted under the 2022 Plan. Subsequent to September 30, 2025, the Company issued an aggregate of 2,045,550 shares of common stock under the Sales Agreement for gross proceeds of $ 4,382,348 and net proceeds of approximately $ 4,250,878 . Digital Asset Activity During the period between October 1, 2025 and November 12, 2025, the Company purchased 29,443,153 units of Dogecoin for $ 6,106,986 . As of November 12, 2025, the Company’s Digital Asset fair value is $ 131,452,482 , representing an unrealized loss of $ 32,400,235 since September 30, 2025. 21