10-Q: Dogecoin Cash Reports 18% Revenue Decrease in Q1 2025 Amidst Increased Competition

Sentiment:

Quarterly Report 20 May 2025 5:27 PM

Dogecoin Cash, Inc. reports an 18% decrease in revenue for the quarter ended March 31, 2025, primarily due to increased competition in the cannabis telemedicine industry, alongside ongoing concerns about its ability to continue as a going concern.

Capital raiseThe 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.Raising capital in this manner will cause dilution to current shareholders.

Worse than expectedThe company's revenue decreased by 18% compared to the same period last year, indicating a worsening financial performance.The company has an accumulated deficit of $83,920,681, raising concerns about its ability to continue as a going concern.

Summary

Dogecoin Cash, Inc. reported an 18% decrease in revenue for the three months ended March 31, 2025, compared to the same period in 2024, with revenue falling from $225,131 to $184,473.
The company attributes this decline to increased competition in the cannabis telemedicine industry.
The cost of revenues as a percentage of sales decreased by 32% between the periods.
The net loss for the period was $101,614, a 42% improvement compared to the $174,791 loss in the same period last year.
Total operating expenses decreased by 27%, from $300,904 to $218,581.
The company ended the quarter with $39,513 in cash on hand.
The company has an accumulated deficit of $83,920,681 as of March 31, 2025, raising substantial doubt about its ability to continue as a going concern.
Management acknowledges material weaknesses in disclosure controls and procedures due to the small size of the accounting staff.
The company is evaluating acquiring cyber liability insurance.
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 company improved its net loss, the revenue decline and going concern warning are significant concerns. The identified material weaknesses in internal controls further contribute to the negative outlook.

Positives

Net loss improved by 42% compared to the same period last year.
Total operating expenses decreased by 27%.
Cost of revenues as a percentage of sales decreased by 32%.

Negatives

Revenue decreased by 18% compared to the same period last year.
The company has an accumulated deficit of $83,920,681.
Management identified material weaknesses in disclosure controls due to a 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 telemedicine industry is negatively impacting revenue.
The company's accumulated deficit raises substantial doubt about its ability to continue as a going concern.
Material weaknesses in disclosure controls and procedures exist due to the small size of the accounting staff.
The company may need to raise capital, which could dilute current shareholders.
The market for Dogecoin Cash tokens is unstable and lacks sufficient liquidity, making fair value measurement unreliable.
The company is unsure whether it will be able to collect on the $75,055 advanced to MJ Harvest, Inc.

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 decrease in revenue is primarily a result of the significant increase in competition for market share in the cannabis tele-medicine industry. This decrease in the demand for our service continued during the first quarter of 2025.

Comparison to Industry Standards

It's difficult to provide a precise comparison to industry standards without knowing the specific niche within cannabis telemedicine that Dogecoin Cash's PrestoCorp operates in.
However, generally, telemedicine companies are expected to demonstrate strong growth, especially in emerging markets like cannabis where access to traditional healthcare may be limited.
Companies like Teladoc Health and Amwell, while operating in broader telemedicine markets, serve as benchmarks for growth and operational efficiency.
Their scale allows for greater investment in technology and marketing, which may be a challenge for smaller players like Dogecoin Cash.
Given the reported revenue decrease and concerns about going concern, Dogecoin Cash appears to be underperforming compared to larger, more established telemedicine companies.

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.
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 Ms. Carrolls note was increased by her compensation of $12,500.

Stakeholder Impact

Shareholders may experience dilution if the company raises capital through equity offerings.
The company's ability to continue as a going concern impacts all stakeholders, including employees, customers, and suppliers.
The potential write-off of the advance to MJ Harvest impacts the company's financial position.

Next Steps

The company is considering issuing 4,200,000 common shares as compensation for an agreement with Bots, Inc.
The company is considering acquiring an additional 1,000,000,000 DogeCoin Cash tokens from Tipestry, Inc.
The Company is going to continue in its efforts to try to collect on the advance to MJ Harvest.

Key Dates

Date	Description
November 2004	Dogecoin Cash Inc. was incorporated as Ultra Sun Corp.
November 13, 2013	The company changed its name to Cannabis Sativa, Inc.
August 1, 2017	Goodwill in the amount of $3,010,202 was recorded as part of the acquisition of PrestoCorp.
September 25, 2020	The Company adopted the Cannabis Sativa 2020 Stock Plan.
January 27, 2021	The amount of shares authorized to be issued pursuant to the 2020 Stock Plan was increased to 2,000,000 shares.
August 8, 2022	The Company entered into a Merger Agreement with MJ Harvest, Inc.
August 8, 2022	The Company increased the number of authorized common shares the Company is authorized to issue to 495,000,000.
April 12, 2022	PrestoCorp signed a lease in New York with Spaces for a two-year term at $2,590 per month expiring in April 2024.
January 1, 2023	The Company entered into an agreement with Carolyn Merrill whereby the Company issued a convertible note to Carolyn with a principal amount of $72,262.
August 2023	The merger with MJ Harvest was withdrawn with the SEC.
December 19, 2023	$11,500 of note payable was converted to 6,700,000 shares common stock.
January 1, 2024	The preferred shares of THC Pharmaceuticals Inc. (CBDG) were returned to CBDG.
January 15, 2024	The Company entered into an agreement with Carolyn Merrill whereby the Company issued a convertible note to Carolyn with a principal amount of $75,000.
January 29, 2024	$6,916 of note payable was converted to 1,900,000 shares common stock.
April 12, 2024	PrestoCorp signed a new lease for (12) twelve months at $1,575 per month starting on May 1, 2024 and expiring on April 30, 2025.
May 22, 2024	The Company entered into an agreement with Quick Capital, LLC whereby the Company issued a convertible note with a principal amount of $33,333.
August 5, 2024	The Company entered into an agreement with Colonial Stock Transfer Company, Inc., (CSTC) whereby the Company issued a convertible note to CSTC with a principal amount of $15,626.
October 1, 2024	$10,045 of note payable was converted to 3,500,000 shares common stock.
October 1, 2024	5,539 shares common stock which were issued that were shorted in the conversion on December 19, 2023.
November 13, 2024	The company changed its name to Dogecoin Cash, Inc.
November 13, 2024	The Company completed the acquisition of 100% of the membership interests of DogeSPAC LLC.
November 13, 2024	The Company designated 5,000,000 and issued 4,500,000 shares of Series A Preferred Stock.
November 25, 2024	The Company approved a preferred stock dividend of 1 share preferred for every 1,000 common shares held by shareholders of record.
December 18, 2024	Quick Capital converted $23,024 of note payable plus interest of $2,159 and $1,457 fees into 6,837,782 shares of common stock.
February 19, 2025	The Company has entered into an agreement with Bots, Inc. to purchase 420,000,000 DogeCoin Cash tokens.
February 20, 2025	The Companys Board of Directors approved the transaction with Bots, Inc.
April 2025	The Company became aware that MJ Harvest (a related party with common directors) was delisted from the OTC markets.
April 2025	The Company has allowed for the $75,055 it had advanced to MJ Harvest.
May 9, 2025	137,066 shares of preferred stock were issued pro rata to all shareholders holding shares on the record date.
May 20, 2025	Date of certifications by David Tobias, Principal Executive Officer and Principal Financial Officer.

Keywords

Dogecoin Cash, cannabis telemedicine, revenue decrease, net loss, going concern, financial results, Q1 2025, disclosure controls, material weaknesses, DOG tokens, PrestoCorp

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