10-Q: Dogecoin Cash Q1 2026: Revenue Up, Expenses Soar, Net Loss Widens

Dogecoin Cash, Inc. reported a 5% increase in revenue for Q1 2026, but a significant surge in operating expenses led to a wider net loss compared to the prior year.

Summary

• For the three months ended March 31, 2026, Dogecoin Cash, Inc. reported revenue of $192,898, a 5% increase from $184,473 in the same period of 2025.
• Cost of revenues decreased slightly by 1% to $66,719, leading to a gross profit of $126,179, an 8% increase.
• Total operating expenses increased significantly by 30% to $283,381 from $218,581 in Q1 2025.
• This increase in expenses was primarily driven by a 140% rise in professional fees and an 18% increase in general and administrative expenses.
• Wages and salaries decreased by 7%, and advertising expenses were reduced by 83%.
• The company incurred a net loss from continuing operations of $101,614 for the quarter, an improvement from a loss of $174,791 in Q1 2025, however, the total net loss for the period was $200,470 compared to $107,364 in the prior year.
• Cash used in operating activities was $13,443 for the quarter, and the company ended Q1 2026 with $19,510 in cash.
• The company acknowledges substantial doubt about its ability to continue as a going concern due to its accumulated deficit of $84,587,856 as of March 31, 2026.
• Management is evaluating options to raise capital through public or private offerings of equity or convertible debt, which would likely result in dilution to existing shareholders.
• Disclosure controls and procedures were found to be not effective due to material weaknesses stemming from the small size of the accounting staff.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this filing as negative due to the significant increase in net loss, soaring operating expenses, and the company's precarious cash position, which raises substantial doubt about its ability to continue as a going concern.

Positives

• Revenue increased by 5% to $192,898 in Q1 2026 compared to Q1 2025.
• Gross profit increased by 8% to $126,179.
• Cost of revenues as a percentage of sales decreased by 5%.
• Wages and salaries decreased by 7%.
• Advertising expenses were reduced by 83%.

Negatives

• Total operating expenses increased by 30% to $283,381.
• Professional fees increased by 140%.
• General and administrative expenses increased by 18%.
• The company incurred a net loss of $200,470 for the period, a significant increase from $107,364 in the prior year.
• Cash on hand at the end of the quarter was $19,510, which is insufficient to meet immediate operational needs.
• There are material weaknesses in disclosure controls and procedures due to the small accounting staff.
• Substantial doubt exists regarding the company's ability to continue as a going concern.

Risks

• Intensifying market competition in the cannabis telemedicine industry is compressing demand growth.
• The company may not be successful in raising necessary capital, which is critical for furthering its business plan.
• Raising capital through equity offerings will cause dilution to current shareholders.
• The small size of the accounting staff may prevent adequate future controls, such as segregation of duties, due to cost/benefit considerations.
• The company is evaluating whether to acquire a cyber liability insurance policy to mitigate financial impact of a cybersecurity breach.

Future Outlook

The company may seek to raise money for working capital through a public offering of equity or a private placement of equity or convertible debt. Success in raising capital is important for aggressive business plan advancement, but will cause dilution to current shareholders. The current cash on hand is insufficient for immediate operational needs.

Management Comments

• "We recognize the critical importance of developing, implementing, and maintaining robust cybersecurity measures to safeguard our information systems and protect the confidentiality, integrity, and availability of our data."
• "Our CEO is responsible for overseeing our business operations and is responsible for day-to-day assessment and confers weekly with subsidiary webmaster to understand any risks from cybersecurity threats."
• "Management of the Company believes that these material weaknesses are due to the small size of the companys accounting staff."
• "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."
• "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."

Industry Context

StockSavvy.ai notes that Dogecoin Cash, Inc. operates in the cannabis telemedicine sector, which is experiencing intense competition, impacting demand growth. The company's financial performance, particularly the widening net loss and insufficient cash reserves, highlights the challenges faced by smaller players in this evolving industry.

Corporate Governance

Legal Proceedings

• No material legal proceedings are currently outstanding.

Related Party Transactions

• Consulting expense to David Tobias (CEO and Director) was $46,875 for each of the three months ended March 31, 2026 and 2025.
• Amounts owed to David Tobias for consulting services and director fees totaled $728,125 at March 31, 2026.
• Amounts owed to the Estate of Brad Herr (prior CFO) for consulting services and director fees totaled $100,000 at March 31, 2026.
• Amounts owed to Mr. Bilton (COO) for consulting services were $253,125 at March 31, 2026.
• Ms. Carroll has a consulting agreement with the Company at $12,500 quarterly, which increases her note payable.
• David Tobias loaned money to the Company during the three months ended March 31, 2026 and 2025, bearing interest at 5% per annum.
• Ms. Carroll's note bears interest at 5% per annum.
• Interest expense related to notes payable to related parties was $3,828 for Q1 2026 and $2,774 for Q1 2025.
• The company had a balance due from MJ Harvest, Inc. of $75,055, which was allowed for in April 2025 due to the company's delisting and uncertainty of repayment.
• An advance of $1,250 was made to a director for consulting services.

Stakeholder Impact

• Shareholders: Potential dilution from future capital raises; current financial performance indicates significant risk.
• Employees: Potential impact from the small accounting staff and material weaknesses in controls.
• Creditors: The company's going concern status and insufficient cash may impact ability to meet obligations.

Next Steps

• Management will continue to monitor market developments and evaluate potential impairment or revaluation of digital assets.
• The company is evaluating whether to acquire a cyber liability insurance policy.
• Management expects to increase the number of employees as the company grows to implement adequate segregation of duties.
• The company will continue efforts to collect on the advance made to MJ Harvest.

Key Dates

Recommendation

The company exhibits significant financial distress, characterized by a widening net loss, escalating operating expenses, and a critical lack of liquidity, raising substantial doubt about its ability to continue as a going concern. The identified material weaknesses in internal controls further exacerbate the risk profile. While revenue shows a modest increase, it is overshadowed by the deteriorating financial condition and the high probability of shareholder dilution from necessary capital raises.

Keywords

Dogecoin Cash, Form 10-Q, Quarterly Report, Cannabis Telemedicine, Revenue Growth, Operating Expenses, Net Loss, Going Concern, Capital Raise, Disclosure Controls, Cybersecurity