ZONEHIGH SIGNALFINANCIAL10-K

CleanCore Solutions shows deteriorating financial health with substantially higher liabilities, declining equity, and meaningfully worse operating cash flow burn despite revenue growth.

The company's balance sheet has weakened considerably as total liabilities nearly doubled while stockholders' equity fell by over 60%, indicating potential financial stress or dilutive financing. The establishment of an Irish subsidiary suggests international expansion plans, but this comes amid concerning cash burn trends that could pressure liquidity.

Comparing 2025-08-22 vs 2024-09-20View on EDGAR →
FINANCIAL ANALYSIS

While CleanCore achieved solid 29% revenue growth to $2.1M with corresponding gross profit expansion, the financial foundation deteriorated markedly. Total liabilities nearly doubled to $7.0M while stockholders' equity declined significantly to just $1.5M, and operating cash flow burn worsened substantially to -$2.3M. The company's cash position declined modestly to $1.5M, creating potential liquidity concerns given the increased cash burn rate and higher liability burden.

FINANCIAL STATEMENT CHANGES
Current Liabilities
Balance Sheet
+89.1%
$1.5M→$2.8M

Current liabilities surged 89.1% — significant near-term obligations; verify ability to meet short-term debt.

Total Liabilities
Balance Sheet
+86.9%
$3.7M→$7.0M

Liabilities grew 86.9% — significant increase in debt or obligations, assess impact on financial flexibility.

Stockholders Equity
Balance Sheet
-60.8%
$3.7M→$1.5M

Equity declined sharply — large losses, buybacks, or write-downs reducing book value significantly.

Operating Cash Flow
Cash Flow
-51%
-$1.5M→-$2.3M

Operating cash flow fell 51% — earnings quality concerns; investigate working capital changes and non-cash items.

Accounts Receivable
Balance Sheet
+40.7%
$467K→$658K

Receivables surged 40.7% — revenue recognized but not yet collected; watch for collection issues or channel stuffing.

Revenue
P&L
+29.2%
$1.6M→$2.1M

Revenue growing 29.2% — solid top-line momentum, watch margins for quality of growth.

Cash & Equivalents
Balance Sheet
-27.6%
$2.0M→$1.5M

Cash decreased 27.6% — monitor burn rate and upcoming capital needs.

Gross Profit
P&L
+24%
$796K→$986K

Gross profit expanding — improving pricing power or product mix shift toward higher-margin offerings.

Current Assets
Balance Sheet
+18.9%
$3.2M→$3.8M

Current assets grew 18.9% — improving short-term liquidity or inventory/receivables build.

Total Assets
Balance Sheet
+13.2%
$7.5M→$8.5M

Asset base grew 13.2% — expansion through organic growth, acquisitions, or capital deployment.

LANGUAGE CHANGES
NEW — 2025-08-22
PRIOR — 2024-09-20
ADDED
Shares held by each executive officer and director and by each person who owns 10% or more of the outstanding shares of class B common stock have been excluded from the calculation in that such persons may be deemed to be affiliates of the registrant.
As of August 21, 2025, there were a total of 11,175,846 shares of the registrant s class B common stock issued and outstanding.
Securities and Exchange Commission within 120 days after the end of the fiscal year to which this report relates.
38 i INTRODUCTORY NOTES Use of Terms Except as otherwise indicated by the context and for the purposes of this report only, references in this report to we, us, our and our company refer to CleanCore Solutions, Inc., a Nevada corporation, and its wholly owned subsidiary CleanCore Global Limited, an Irish company, or CleanCore Global.
Further, a smaller size of nanobubbles is also more effective as they have a higher density of ozone and are able to provide a more thorough surface coverage, which destroys a higher number of contaminants.
On January 29, 2025, we established CleanCore Global as a wholly owned subsidiary in Ireland in anticipation of the acquisition described below.
As additional consideration, we issued to Sanzonate Global Inc.
a five-year warrant to purchase 425,000 shares of our class B common stock at an exercise price of $1.25 per share.
Sanzonate is also entitled to receive the following payments (which we refer to as the Earn-Out Payments) to the extent that Net Sales (as defined in the asset purchase agreement) achieve the following milestones during the five-year period beginning on the closing date and ending on the fifth anniversary of the closing date.
If Net Sales are at least (i) 2,000,000, CleanCore Global shall pay $200,000 to Sanzonate; (ii) 4,000,000, CleanCore Global shall pay an additional $200,000 to Sanzonate; (iii) 6,000,000, CleanCore Global shall pay an additional $200,000 to Sanzonate; (iv) 8,000,000, CleanCore Global shall pay an additional $200,000 to Sanzonate; (v) 10,000,000, CleanCore Global shall pay an additional $200,000 to Sanzonate; and (vi) 12,000,000, CleanCore Global shall pay an additional $250,000 to Sanzonate.
REMOVED
As of such date, there were 3,105,940 shares of class B common stock issued and outstanding, of which 2,545,824 shares were held by affiliates.
Executive officers, directors and by each person who owns 10% or more of the outstanding class B common stock may be deemed to be affiliates of the registrant.
As of September 19, 2024, there were a total of 7,965,919 shares of the registrant s class B common stock issued and outstanding.
49 i INTRODUCTORY NOTES Use of Terms Except as otherwise indicated by the context and for the purposes of this report only, references in this report to we, us, our and our company refer to CleanCore Solutions, Inc., a Nevada corporation; provided that all discussions in this report regarding our business and operations prior to the acquisition described under Item 1 Business Our Corporate History and Structure below refer to the business and operations of our predecessor companies described below.
Further, a smaller size of nanobubbles is also more effective as it has a higher density of ozone and is able to provide a more thorough surface coverage, which destroys a higher number of contaminants.
Industry Our market encompasses the global household cleaning market, the global food service market, the global commercial and residential laundry market, and the global health care market.
According to Report Linker, the global service cleaning market is expected to reach $92.69 billion by 2027, rising at a 7.80% CAGR during the forecast period.
The global household cleaners market size was valued at $33.8 billion in 2021 and is expected to expand at a CAGR of 4.9% from 2022 to 2028.
We believe this can be credited to the increasing awareness regarding hygiene among consumers.
The constant developments in the household cleaner sector are also likely to boost industry demand.
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