SEC Filing●Major⚠ 8
CRCW: 10-Q · periodic report
The Crypto Company filed its 10-Q for the quarter ended June 30, 2026 with substantial doubt about its ability to continue as a going concern. The company held just $10,157 in cash against roughly $6.4 million in current liabilities, a $6,388,862 working capital deficit, and a $57.6 million accumulated deficit, and it is contractually required to fund $2.0 million into its Frame blockchain business that it cannot currently cover.
Six-month revenue fell to $5,512 from $7,086 a year earlier on weak demand for blockchain training, while the net loss narrowed to $884,719 from $1,619,708, aided by a $560,930 gain from extinguishing a derivative liability through note conversions and restructuring.
Management concluded disclosure controls were not effective as of June 30, 2026, and the company is still responding to SEC staff comments on its 2024 restatement, which added a $1,319,366 derivative liability. Multiple promissory notes are past due, including $188,552 to related-party Three Mile Creek Future LLC, $244,400 to CoinTracking GmbH, $38,772 to Averitt, and roughly $855,579 of EKSA, Practivist and Robert Nail notes that matured in August 2026.
Share count ballooned to 5,829,932,017 by August 18, 2026 from about 3.0 billion at the end of 2024 amid heavy issuance for services, debt conversions and PIPE subscriptions. A subsequent $150,000 investment by Red Neck Yacht Fund LP for 375 million shares (~6% of the company post-transaction) implies a total valuation of roughly $2.5 million.
SEC 10-Q•2mo ago
