CBDS.Dogecoin Cash, INC
10-Q: Dogecoin Cash Q2 Loss Soars on Digital Asset Impairment
Sentiment:
Quarterly Report
Dogecoin Cash, Inc. reported a substantial increase in net loss for Q2 2025, primarily driven by a significant impairment of its Dogecoin Cash token investments, alongside declining revenue from its cannabis tele-medicine operations.
Capital raiseThe company may seek to raise money for working capital purposes through a public offering of its equity capital.The company may seek to raise money through a private placement of equity capital or convertible debt.Raising capital in this manner will cause dilution to current shareholders.
Worse than expectedNet loss for the period significantly worsened to $7,295,334 for Q2 2025, primarily due to a $7,079,850 impairment expense on digital currency, which was not present in the prior year.Revenue decreased by 18% for both the three and six months ended June 30, 2025, indicating a decline in core business performance.
Summary
- Dogecoin Cash, Inc. (DOGP) reported a net loss of $7,295,334 for the three months ended June 30, 2025, a significant increase from a net loss of $390,776 in the same period last year.
- The increased loss is primarily due to a $7,079,850 impairment expense on digital currency (Dogecoin Cash tokens) recognized in the second quarter of 2025.
- Revenue for the three months ended June 30, 2025, decreased by 18% to $192,464, down from $234,391 in the prior year, attributed to increased competition in the cannabis tele-medicine industry.
- For the six months ended June 30, 2025, the company's net loss was $7,402,698, compared to $613,344 for the same period in 2024.
- Operating expenses decreased by 12% for the quarter and 19% for the six months, driven by reductions in professional fees, wages and salaries, and advertising.
- Cash provided by operating activities improved significantly, reaching $5,208 for the six months ended June 30, 2025, compared to cash used of $125,161 in the prior year period.
- The company ended the second quarter of 2025 with $50,848 in cash on hand.
- An accumulated deficit of $84,132,677 as of June 30, 2025, raises substantial doubt about the company's ability to continue as a going concern.
- The company acquired 600,000,000 Dogecoin Cash tokens via DogeSPAC LLC in November 2024 and an additional 3,000,000,000 tokens via Meme Coins Inc. in June 2025.
- The company carries Dogecoin Cash tokens at historical cost due to market instability, but a fair value analysis for disclosure purposes indicated a significant illiquidity discount of 63.5%.
Sentiment
Score: 2
Explanation: The sentiment is overwhelmingly negative due to a massive digital currency impairment leading to a significant net loss, coupled with declining revenue from core operations and ongoing going concern doubts. While operating expenses decreased, the overall financial health and strategic direction into highly volatile assets present substantial risks and uncertainty.
Positives
- Net loss attributable to Cannabis Sativa, Inc. (the parent entity) improved to $(211,996) for the three months ended June 30, 2025, from $(375,830) in the prior year, and to $(316,105) for the six months, from $(591,049).
- Cash provided by operating activities was $5,208 for the six months ended June 30, 2025, a significant improvement from cash used of $125,161 in the comparable prior year period.
- Total operating expenses decreased by 12% for the quarter and 19% for the six months, indicating effective cost control in areas like professional fees, wages, and advertising.
Negatives
- Net loss for the period significantly worsened to $7,295,334 for Q2 2025 and $7,402,698 for the six months, primarily due to a $7,079,850 impairment expense on digital currency.
- Revenue decreased by 18% for both the three and six months ended June 30, 2025, due to increased competition in the cannabis tele-medicine industry.
- The company has an accumulated deficit of $84,132,677 as of June 30, 2025, raising substantial doubt about its ability to continue as a going concern.
- Current cash on hand of $50,848 is insufficient to meet the immediate needs of current operations.
- Material weaknesses were identified in disclosure controls and procedures due to the small size of the company's accounting staff.
Risks
- Substantial doubt exists about the company's ability to continue as a going concern due to accumulated deficits and net losses.
- Significant increase in competition for market share in the cannabis tele-medicine industry could further reduce demand for services and revenue.
- Inability to successfully raise additional capital through public offerings, private placements, or convertible debt could hinder business plan execution.
- Future capital raises will cause dilution to current shareholders.
- Material weaknesses in disclosure controls and procedures due to limited accounting staff may prevent adequate controls, such as segregation of duties.
- High price volatility, low trading volume, limited exchange availability, and minimal market depth for Dogecoin Cash tokens pose significant risks to the value of digital asset investments.
- The company's advance of $75,055 to MJ Harvest, Inc. has been allowed for as uncollectible due to MJ Harvest's delisting, indicating potential credit risk with related parties.
Future Outlook
The company is actively seeking new business opportunities for acquisition and continually reviewing opportunities for product and brand development through its subsidiaries. It intends to raise capital through a public offering of equity, private placement of equity, or convertible debt to aggressively further its business plan. Management expects to increase the number of employees as the company grows to implement adequate segregation of duties within the internal control framework.
Management Comments
- Management believes that the material weaknesses affecting disclosure controls and procedures are due to the small size of the company's accounting staff.
- To mitigate current limited resources and employees, management relies heavily on direct oversight of transactions, along with the use of external legal and accounting professionals.
- The CEO is responsible for overseeing business operations and day-to-day assessment of cybersecurity risks, conferring weekly with the subsidiary webmaster.
Industry Context
The company's primary operating subsidiary, PrestoCorp, operates in the cannabis tele-medicine industry, which is experiencing a significant increase in competition for market share. This competitive pressure has directly contributed to the company's revenue decline. Concurrently, Dogecoin Cash, Inc. is expanding its strategic initiatives into the digital asset sector through acquisitions of Dogecoin Cash tokens, reflecting a diversification effort into the volatile cryptocurrency market.
Comparison to Industry Standards
- The filing does not provide specific comparable companies, projects, or industry benchmarks to assess the results against global standards. However, the stated 'significant increase in competition for market share in the cannabis tele-medicine industry' suggests that the company's revenue decline is occurring within a challenging and competitive market landscape.
- The substantial impairment of digital currency assets highlights the inherent volatility and speculative nature of the cryptocurrency market, which is a common risk across the digital asset industry, though the magnitude of this impairment is significant for the company's financial position.
Corporate Governance
| Change Type | Description | Effective Date | Impact Assessment |
|---|---|---|---|
| Internal Control Weakness | Management concluded that disclosure controls and procedures were not effective due to material weaknesses, primarily attributed to the small size of the company's accounting staff. | 2025-06-30 | This may prevent adequate controls, such as segregation of duties, in the future. Management relies on direct oversight and external professionals to mitigate current limited resources. |
Legal Proceedings
- The company is not a party to any material legal proceedings, and no such legal proceedings have been threatened against it as of June 30, 2025.
Related Party Transactions
- The company owed two directors $18,750 for directors' fees included in stock payable as of June 30, 2025.
- David Tobias, CEO and director, is owed $540,625 in consulting services and directors' fees as of March 31, 2025, included in stock payable.
- The Estate of Brad Herr, prior CFO, is owed $100,000 in consulting services and directors' fees as of June 30, 2025, included in stock payable.
- Patrick Bilton, COO, is owed $253,125 in consulting services as of June 30, 2025, included in stock payable.
- Cathy Carroll, director, has a consulting agreement for $12,500 quarterly, which increases her note payable; the note balance was $189,250 at June 30, 2025.
- David Tobias loaned $10,706 to the company for notes payable during the six months ended June 30, 2025, due December 31, 2025, bearing 5% interest.
- Trevor Reed, a director, loaned $8,000 to the company for notes payable due June 4, 2025, bearing 10% interest (increasing to 12% if unpaid).
- Carolyn Merrill, a director, loaned $4,000 to the company for a note payable due June 4, 2025, bearing 10% interest (increasing to 12% if unpaid).
- Joe Ange III, a director, loaned $4,000 to the company for a note payable due June 4, 2025, bearing 10% interest (increasing to 12% if unpaid).
- The company has a balance due from MJ Harvest, Inc. of $75,054, which has been allowed for as uncollectible due to MJ Harvest's delisting from OTC markets.
- An advance of $1,250 to a director for upcoming consulting services is included in advances to related parties.
Stakeholder Impact
- Shareholders face significant dilution risk from potential future capital raises.
- Shareholders are impacted by the substantial net losses and accumulated deficit, which raise going concern doubts.
- Employees may be impacted by the small accounting staff leading to material weaknesses in internal controls, though management plans to increase staff as the company grows.
- Creditors holding related party notes payable are subject to the company's ability to raise capital and generate profitable operations to meet its obligations.
Next Steps
- Generate profitable operations in the future to address going concern issues.
- Obtain necessary financing to meet obligations and repay liabilities.
- Aggressively further the business plan through successful capital raises.
- Increase the number of employees to implement adequate segregation of duties within the internal control framework as the company grows.
- Continue efforts to collect the $75,055 advance from MJ Harvest, Inc., despite having allowed for it as uncollectible.
Key Dates
| Date | Description |
|---|---|
| 2004-11-01 | Company incorporated as Ultra Sun Corp. under the laws of Nevada. |
| 2009-01-28 | Company's Registration Statement on Form 10 filed. |
| 2013-11-13 | Company changed its name to Cannabis Sativa, Inc. |
| 2017-08-01 | Acquisition of PrestoCorp occurred. |
| 2020-09-25 | Company adopted the Cannabis Sativa 2020 Stock Plan. |
| 2021-01-27 | Cannabis Sativa 2020 Stock Plan authorized shares increased to 2,000,000. |
| 2021-12-31 | Date of sale for iBud and GKMP, for which CBDG shares were received. |
| 2022-04-12 | PrestoCorp signed a two-year lease in New York with Spaces. |
| 2022-08-08 | Company increased the number of authorized common shares to 495,000,000. |
| 2022-08-08 | Company entered into a Merger Agreement with MJ Harvest, Inc. |
| 2023-01-01 | Company entered into a convertible note agreement with Carolyn Merrill for $72,262. |
| 2023-08-01 | Merger with MJ Harvest, Inc. was withdrawn with the SEC. |
| 2023-12-19 | $11,500 of Carolyn Merrill's note converted to 6,700,000 common shares. |
| 2024-01-01 | Preferred shares of CBDG were returned to CBDG. |
| 2024-01-15 | Company entered into a new convertible note agreement with Carolyn Merrill for $75,000. |
| 2024-01-29 | $6,916 of Carolyn Merrill's note converted to 1,900,000 common shares. |
| 2024-04-12 | PrestoCorp signed a new 12-month lease. |
| 2024-05-01 | PrestoCorp's new lease began. |
| 2024-05-22 | Company entered into a convertible note agreement with Quick Capital, LLC for $33,333. |
| 2024-08-05 | Company entered into a convertible note agreement with Colonial Stock Transfer Company, Inc. for $15,626. |
| 2024-10-01 | $10,045 of Carolyn Merrill's note converted to 3,500,000 common shares. |
| 2024-10-01 | 5,539 common shares issued for shorted conversion on December 19, 2023. |
| 2024-11-13 | Company changed its name to Dogecoin Cash, Inc. |
| 2024-11-13 | Company completed the acquisition of 100% of DogeSPAC LLC. |
| 2024-11-13 | Company designated and issued 4,500,000 shares of Series A Preferred Stock. |
| 2024-11-25 | Record date for preferred stock dividend declared in 2024. |
| 2024-12-18 | Quick Capital converted $23,024 of note payable. |
| 2024-12-31 | Due date for David Tobias's $11,788 note and Cathy Carroll's $60,000 note. |
| 2025-02-19 | Company entered into an agreement with Bots, Inc. to purchase 420,000,000 DogeCoin Cash tokens. |
| 2025-04-01 | PrestoCorp's lease expired. |
| 2025-04-16 | Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed. |
| 2025-04-01 | MJ Harvest, Inc. delisted from the OTC markets. |
| 2025-05-21 | Quick Capital converted $10,831 of note payable. |
| 2025-05-22 | Transaction with Bots, Inc. for Dogecoin Cash tokens closed. |
| 2025-06-04 | Due date for Trevor Reed's $8,000 note, Carolyn Merrill's $4,000 note, and Joe Ange III's $4,000 note. |
| 2025-06-12 | Shares issued to Bots, Inc. for Dogecoin Cash tokens. |
| 2025-06-24 | Meme Coins Inc. acquisition of 3,000,000,000 DogeCoin Cash tokens from Tipestry, Inc. completed. |
| 2025-06-25 | Meme Coins Inc. entered into a definitive Digital Asset Purchase Agreement with Tipestry, Inc. |
| 2025-06-30 | End of the current reporting period for this Form 10-Q. |
| 2025-08-19 | Date of filing for this Quarterly Report on Form 10-Q. |
| 2025-12-31 | Due date for David Tobias's $10,706 note. |
| 2034-10-25 | Earliest redemption date for Series A Preferred Stock. |
Recommendation
strong sellThe company faces severe financial distress, evidenced by a massive $7 million digital currency impairment, an accumulated deficit exceeding $84 million, and explicit 'going concern' doubts. Revenue from its core cannabis tele-medicine business is declining due to competition. While operating expenses have been reduced, the overall financial position is precarious, and the company's reliance on future capital raises, which will dilute existing shareholders, is a major red flag. The speculative nature of its digital asset strategy, already resulting in significant losses, adds further risk. A seasoned investor would view this filing as indicative of a company in a highly unstable and risky financial state, warranting a strong sell recommendation.
Keywords
Dogecoin Cash, DOGP, SEC filing, 10-Q, cryptocurrency, digital assets, cannabis tele-medicine, financial results, impairment, going concern, capital raise, PrestoCorp, Meme Coins Inc., DogeSPAC LLC
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