10-Q/A: Dogecoin Cash Files Amended 10-Q to Include Omitted XBRL Data, Reports Q1 2025 Results

Dogecoin Cash, Inc. files an amendment to its Q1 2025 report to include previously omitted XBRL data, while also reporting a decrease in revenue and a net loss for the quarter.

Summary

• Dogecoin Cash, Inc. filed an amendment to its Form 10-Q for the quarter ended March 31, 2025, solely to include the Interactive Data Files (XBRL exhibits) that were initially omitted.
• The original filing was submitted on May 20, 2025, and no other changes have been made to the original report.
• The company's revenue for the three months ended March 31, 2025, was $184,473, an 18% decrease compared to $225,131 for the same period in 2024.
• The decrease in revenue is attributed to increased competition in the cannabis tele-medicine industry.
• The company reported a net loss of $107,364 for the three months ended March 31, 2025, compared to a net loss of $222,568 for the same period in 2024.
• As of March 31, 2025, the company had $39,513 in cash on hand and an accumulated deficit of $83,920,681.
• The company's CEO and CFO concluded that the company's disclosure controls and procedures were not effective due to material weaknesses related to the small size of the accounting staff.
• The company is evaluating whether to acquire cyber liability insurance to mitigate the financial impact of a cybersecurity breach.
• The company may seek to raise money for working capital purposes through a public offering of its equity capital or through a private placement of equity capital or convertible debt.

Sentiment

Score: 4

Explanation: The sentiment is neutral to slightly negative. While the net loss improved, the revenue decline and identified material weaknesses in internal controls raise concerns. The potential capital raise also suggests financial strain.

Positives

• Net loss decreased from $222,568 in Q1 2024 to $107,364 in Q1 2025, indicating improved financial performance.
• Cost of revenues as a percentage of sales decreased 32% between the periods.
• Total operating expenses decreased in March 31, 2025 compared with 2024 which trended down as did revenue in the current period.
• Cash provided by operating activities was $4,129 in the three months ended March 31, 2025.

Negatives

• Revenue decreased by 18% to $184,473 for the three months ended March 31, 2025, compared to $225,131 in 2024.
• The company reported a net loss of $107,364 for the three months ended March 31, 2025.
• The company has an accumulated deficit of $83,920,681 as of March 31, 2025.
• Disclosure controls and procedures were deemed ineffective due to material weaknesses related to the small accounting staff.
• The amount of cash on hand the Company has does not provide sufficient liquidity to meet the immediate needs of our current operations.

Risks

• Increased competition in the cannabis tele-medicine industry is negatively impacting revenue.
• The company's small accounting staff poses a risk to internal control over financial reporting.
• The company's ability to continue as a going concern is dependent on its ability to generate profitable operations and/or obtain necessary financing.
• Raising capital may cause dilution to current shareholders.
• The market for Dogecoin Cash tokens is unstable and lacks sufficient liquidity to justify fair value recognition.

Future Outlook

The Company may seek to raise money for working capital purposes through a public offering of its equity capital or through a private placement of equity capital or convertible debt. It will be important for the Company to be successful in its efforts to raise capital in this manner if it is going to be able to further its business plan in an aggressive manner. Raising capital in this manner will cause dilution to current shareholders.

Management Comments

• Management of the Company believes that these material weaknesses are due to the small size of the companys accounting staff.
• To mitigate the current limited resources and limited employees, we rely heavily on direct management oversight of transactions, along with the use of external legal and accounting professionals.
• As the Company grows, management expects to increase the number of employees, which will enable us to implement adequate segregation of duties within the internal control framework.

Industry Context

The report indicates increased competition in the cannabis telemedicine industry, which is impacting Dogecoin Cash's revenue. This suggests a maturing market with more players vying for market share. Companies in this sector may need to focus on differentiation, marketing, and customer acquisition to maintain or grow revenue.

Comparison to Industry Standards

• Without specific financial benchmarks for cannabis telemedicine companies of similar size, it's difficult to provide a precise comparison.
• However, the reported revenue decline and net loss suggest that Dogecoin Cash is underperforming compared to industry leaders or companies with more established market positions.
• Companies like Teladoc Health, while operating in a broader telemedicine market, can serve as a benchmark for operational efficiency and revenue generation, though their business models differ significantly.
• Comparing Dogecoin Cash's financial metrics to those of publicly traded cannabis companies could provide a broader context, but the telemedicine aspect makes a direct comparison challenging.

Related Party Transactions

• Consulting expense to David Tobias, the Companys chief executive officer and director, for each of the three months ended March 31, 2025 and 2024 was $46,875.
• Consulting expense to Patrick Bilton, the Companys chief operating officer for the three months ended March 31, 2025 and 2024 was $-0and $28,125, respectively.
• During the three months ended March 31, 2025, David Tobias, the Companys chief executive officer and director, loaned $450 to the Company for notes payable bearing interest at the rate of 5% per annum due on December 31, 2025.
• During the three months ended March 31, 2025 and 2024, the Company recorded interest expense related to notes payable to related parties at the rates between 5% and 8% per annum in the amounts of $2,774 and $911 respectively.

Stakeholder Impact

• Shareholders may experience dilution if the company raises capital through equity offerings.
• Employees may be affected by the company's efforts to improve internal controls and potentially increase the accounting staff.
• Customers may be impacted by the increased competition in the cannabis telemedicine industry, potentially leading to changes in service offerings or pricing.
• Creditors may be affected by the company's ability to generate profitable operations and repay its liabilities.

Next Steps

• Finalize the agreement with Bots, Inc. to purchase 420,000,000 DogeCoin Cash tokens.
• Complete the transaction with Tipestry, Inc. to acquire an additional 1,000,000,000 DogeCoin Cash tokens.
• Finalize details of the agreement with Tipestry, Inc.
• The company is going to continue in its efforts to try to collect on the advance to MJ Harvest.

Key Dates

Keywords

Dogecoin Cash, financial results, 10-Q/A, XBRL, cannabis, telemedicine, revenue, net loss, liquidity, internal controls, cybersecurity, capital raise, DogeCoin Cash tokens