10-Q: Dogecoin Cash Reports Q3 Loss Amid Crypto Impairment

Sentiment:

Quarterly Report 12 November 2025 11:18 AM

Dogecoin Cash, Inc. reported a significant net loss for the nine months ended September 30, 2025, primarily driven by a substantial impairment of its Dogecoin Cash tokens, despite some operational improvements.

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 net loss for the nine months ended September 30, 2025, was $7,581,141, significantly worse than the $854,454 loss in the prior year, primarily due to a $7,079,850 impairment expense on digital currency.Revenue for the nine months decreased by 13% to $567,501, indicating a decline in the core business performance over the longer term.The company's cash position of $29,978 is critically low and deemed insufficient to meet immediate operational needs, exacerbating going concern doubts.Disclosure controls and procedures were found to be ineffective due to material weaknesses, which is a serious governance concern.

Summary

Net loss for the nine months ended September 30, 2025, was $7,581,141, a substantial increase from $854,454 in the prior year, largely due to a $7,079,850 impairment expense on digital currency.
Revenue for the nine months decreased by 13% to $567,501, compared to $648,643 in the same period last year, attributed to increased competition in the cannabis telemedicine industry.
For the three months ended September 30, 2025, revenue saw a modest 1% increase to $190,564, driven by PrestoDoctor's state-market expansions and marketing efforts.
Operating expenses decreased by 17% for the nine months and 11% for the three months, reflecting cost-management efforts and lower staffing levels.
The company has an accumulated deficit of $84,305,776 as of September 30, 2025, and its ability to continue as a going concern is in substantial doubt.
Disclosure controls and procedures were deemed not effective due to material weaknesses stemming from the small size of the accounting staff.
Cash on hand at September 30, 2025, was $29,978, which is insufficient to meet immediate operational needs.

Sentiment

Score: 2

Explanation: The overall sentiment is highly negative due to a massive digital currency impairment loss, significant nine-month revenue decline, critical liquidity issues, substantial doubt about going concern, and ineffective internal controls. While there were some operational cost reductions and a slight revenue increase in the most recent quarter, these are overshadowed by the severe financial challenges and governance concerns.

Positives

Revenue for the three months ended September 30, 2025, increased by 1% to $190,564, primarily due to a modest uptick in patient certifications through PrestoDoctor, driven by state-market expansions and marketing initiatives.
Gross profit percentage improved to 64% for the nine months ended September 30, 2025, from 61% in the prior year, and to 64% from 63% for the three months.
Total operating expenses decreased by 17% for the nine months to $792,591 and by 11% for the three months to $269,118, indicating successful cost-management efforts.
Net loss from continuing operations decreased by 22% for the nine months to $(432,199) and by 19% for the three months to $(147,169), before the significant digital currency impairment.
Unrealized gain on investment in CBDG was $8,550 for the nine months ended September 30, 2025, compared to a loss of $15,000 in the prior year.

Negatives

Net loss for the nine months ended September 30, 2025, significantly widened to $7,581,141 from $854,454 in the prior year, primarily due to a $7,079,850 impairment expense on digital currency.
Revenue for the nine months ended September 30, 2025, decreased by 13% to $567,501, mainly due to increased competition for market share in the cannabis tele-medicine industry.
The company has an accumulated deficit of $84,305,776 as of September 30, 2025, which raises substantial doubt about its ability to continue as a going concern.
Cash on hand was $29,978 at September 30, 2025, which is insufficient to meet immediate operational needs.
Disclosure controls and procedures were deemed not effective as of September 30, 2025, due to material weaknesses related to the small size of the accounting staff.
An advance of $75,055 to MJ Harvest, Inc., a related party, was allowed for as uncollectible due to MJ Harvest's delisting from OTC markets and the abandonment of a merger.
The acquisition of 3,000,000,000 Dogecoin Cash tokens by subsidiary Meme Coins Inc. resulted in a $7,079,850 impairment expense due to market instability and volatility.

Risks

Substantial doubt about the company's ability to continue as a going concern due to an accumulated deficit of $84,305,776 and ongoing net losses.
Insufficient liquidity with only $29,978 cash on hand, which does not provide sufficient liquidity to meet the immediate needs of current operations.
Material weaknesses in disclosure controls and procedures due to the small size of the accounting staff, potentially preventing adequate controls such as segregation of duties.
Significant increase in competition for market share in the cannabis tele-medicine industry, leading to decreased demand for services.
High market instability, low trading volume, limited exchange availability, high price volatility, and minimal market depth for Dogecoin Cash tokens, making fair value recognition unreliable and leading to substantial impairment losses.
Potential for dilution to current shareholders if the company seeks to raise capital through a public offering of equity or a private placement of equity or convertible debt.
General economic and business conditions, industry trends, changes in demand for products and services, customer plans, pricing policies, unanticipated delays in development, changes in government regulations, availability of management and key personnel, availability and deployment of capital, and worldwide political stability and economic growth could materially affect actual results.

Future Outlook

The company's ability to continue as a going concern is dependent on generating profitable operations and/or obtaining necessary financing. Management expects to increase the number of employees as the company grows to implement adequate segregation of duties within the internal control framework. The company is actively seeking new business opportunities for acquisition and continually reviewing opportunities for product and brand development through its Wild Earth, Hi Brands, and KPAL subsidiaries.

Management Comments

The increase in revenues was primarily attributable to a modest uptick in patient certifications through PrestoDoctor, driven by recent state-market expansions, new referral arrangements with retailers, and enhanced marketing initiatives.
The decrease in revenues is primarily a result of the significant increase in competition for market share in the cannabis tele-medicine industry.
PrestoDoctor wages and salaries decreased approximately $66,000, or 23%, for the nine months ended September 30, 2025, primarily reflecting lower staffing levels and continued cost-management efforts.
Management of the Company believes that these material weaknesses (in disclosure controls) are due to the small size of the company's 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 company operates in the cannabis telemedicine industry through its PrestoCorp subsidiary, which is experiencing significant competition, leading to a 13% decline in nine-month revenues. This trend suggests a maturing or saturated market where market share is harder to gain. The company's substantial investment and subsequent impairment in Dogecoin Cash tokens highlight the extreme volatility and speculative nature of the digital currency market, a sector distinct from its core telemedicine business. The delisting of MJ Harvest, Inc., a related party, further underscores the challenges and risks within the broader cannabis-related investment landscape.

Comparison to Industry Standards

The 13% decline in nine-month revenue for PrestoDoctor, a cannabis telemedicine service, suggests underperformance compared to growth trends seen in some segments of the broader telemedicine market, which has generally expanded post-pandemic. Specific comparable companies or industry benchmarks are not provided in the filing to allow for a direct, detailed comparison.
The significant impairment of Dogecoin Cash tokens, valued at $7,079,850, reflects the extreme volatility and speculative nature inherent in many altcoin markets. This contrasts sharply with more established cryptocurrencies like Bitcoin or Ethereum, which, while volatile, often have greater liquidity and less severe impairment events for institutional holders. The company's valuation methodology, applying a 63.5% illiquidity discount, indicates a highly cautious approach to an asset with limited market depth and exchange availability, which is a common challenge for smaller, less liquid digital assets.

Corporate Governance

Change Type	Description	Effective Date	Impact Assessment
Disclosure Controls and Procedures Effectiveness	Disclosure controls and procedures were concluded to be not effective as of September 30, 2025, due to material weaknesses affecting them.	2025-09-30	Indicates a significant deficiency in the company's ability to ensure material information is recorded, processed, summarized, and reported accurately. This is attributed to the small size of the accounting staff, potentially preventing adequate segregation of duties. Management relies on direct oversight and external professionals to mitigate this, but it poses a risk to financial reporting reliability.

Related Party Transactions

Officers wages for the nine months ended September 30, 2025, were $35,395 (down from $72,587 in 2024).
Board of director fees for the nine months ended September 30, 2025, were $0 (down from $23,750 in 2024).
The company owed two directors $18,750 for directors fees, included in stock payable.
David Tobias (CEO & Director) was owed $609,375 for consulting services and $25,000 for directors fees, totaling $634,375 included in stock payable. He also loaned $24,932 to the company via a note payable and repaid $18,557 of short swing profit.
The Estate of Brad Herr (prior CFO) was owed $93,750 in consulting services and $6,250 in directors fees, totaling $100,000 included in stock payable.
Patrick Bilton (COO) was owed $253,125 in consulting services, included in stock payable.
Cathy Carroll (Director) has a consulting agreement for $12,500 quarterly, and her note payable increased by $37,500 for compensation, reaching $201,750. She also loaned $4,000 to the company.
Trevor Reed (Director) loaned $8,000 to the company via a note payable.
An advance of $75,055 to MJ Harvest, Inc. (a related party with common directors) was allowed for as uncollectible due to MJ Harvest's delisting and the abandonment of a merger.
An advance of $1,250 was made to a director for consulting services.

Stakeholder Impact

**Shareholders**: Face significant dilution risk from potential future capital raises. The substantial net loss and going concern doubt negatively impact shareholder value. The increase in common shares outstanding (160,109,031 from 143,903,923) indicates dilution has already occurred.
**Employees**: Lower staffing levels at PrestoDoctor reflect cost-management efforts, potentially impacting job security or workload. The small accounting staff is cited as a material weakness in internal controls.
**Customers (PrestoDoctor patients)**: Demand for services remained relatively consistent, with modest uptick due to state-market expansions and marketing, suggesting stable service availability.
**Creditors**: The going concern doubt and insufficient cash on hand raise concerns about the company's ability to meet its obligations, including notes payable to related parties and convertible notes.
**Management/Directors**: Significant amounts are owed to officers and directors in stock payable and notes payable, indicating their financial exposure and reliance on the company's future performance. The CEO and CFO are responsible for disclosure controls, which were found ineffective.

Next Steps

Generate profitable operations in the future to address going concern issues.
Obtain necessary financing through public offerings, private placements of equity, or convertible debt to meet obligations and fund business plans.
Increase the number of employees to implement adequate segregation of duties and strengthen internal control over financial reporting.
Continue efforts to collect the $75,055 advance from MJ Harvest, Inc.
Monitor market developments for Dogecoin Cash tokens and evaluate potential impairment or revaluation in future periods.
Actively seek new business opportunities for acquisition and review opportunities for product and brand development through Wild Earth, Hi Brands, and KPAL subsidiaries.
Evaluate whether to acquire a cyber liability insurance policy.

Key Dates

Date	Description
2004-11-01	Company incorporated as Ultra Sun Corp. under Nevada laws.
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, recording goodwill of $3,010,202.
2020-09-25	Company adopted the Cannabis Sativa 2020 Stock Plan.
2021-01-27	Authorized shares for 2020 Stock Plan increased to 2,000,000.
2021-12-31	Company received CBDG shares as consideration for sale of iBud and GKMP majority interest.
2022-04-12	PrestoCorp signed a two-year lease in New York.
2022-08-08	Company increased authorized common shares to 495,000,000 and 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 agreement with MJ Harvest, Inc. was withdrawn with the SEC.
2023-12-19	$11,500 of Carolyn Merrill's note payable 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 convertible note agreement with Carolyn Merrill for $75,000.
2024-01-29	$6,916 of Carolyn Merrill's note payable converted to 1,900,000 common shares.
2024-04-12	PrestoCorp signed a new 12-month lease for $1,575 per month.
2024-05-22	Company entered into a convertible note agreement with Quick Capital, LLC for $33,333.
2024-06-04	Due date for notes payable from Trevor Reed and Carolyn Merrill, with interest rate increasing to 12% per annum if unpaid.
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 payable converted to 3,500,000 common shares; 5,539 common shares issued for shorted conversion.
2024-11-13	Company changed its name to Dogecoin Cash, Inc. and completed the acquisition of DogeSPAC LLC, obtaining 600,000,000 Dogecoin Cash tokens.
2024-11-25	Record date for preferred stock dividend of 1 share preferred for every 1,000 common shares held.
2024-12-18	Quick Capital converted $23,024 of note payable plus interest and fees into 6,837,782 common shares.
2024-12-31	Due date for David Tobias's note payable and Cathy Carroll's note payable.
2025-04-30	Expiration date of PrestoCorp's current lease.
2025-05-21	Quick Capital converted $10,831 of note payable plus fees into 843,941 common shares.
2025-05-22	Company entered into an agreement with Bots, Inc. to purchase 420,000,000 Dogecoin Cash tokens.
2025-06-12	4,200,000 common shares issued to Bots, Inc. for Dogecoin Cash tokens.
2025-06-25	Meme Coins Inc. entered into a Digital Asset Purchase Agreement with Tipestry, Inc. to acquire 3,000,000,000 Dogecoin Cash tokens.
2025-08-19	Company entered into a convertible note agreement with Colonial Stock Transfer Company, Inc. for $15,843.
2025-09-30	End of the reporting period for this Form 10-Q.
2025-11-10	Date of Section 302 and 906 certifications by Principal Executive Officer and Principal Financial Officer.
2025-11-13	Date the Form 10-Q was signed.
2025-11-25	Earliest eligibility date for Series A Preferred Stock dividend, subject to Board declaration.
2034-10-25	Redemption option expiration date for Series A Preferred Stock.

Recommendation

strong sell

The filing presents a highly concerning financial picture. The massive $7.08 million impairment loss on digital currency, coupled with a 13% decline in nine-month revenue from core operations, indicates severe business challenges. The company explicitly states 'substantial doubt about its ability to continue as a going concern' and has critically low cash reserves of $29,978, which are 'insufficient to meet the immediate needs of our current operations.' Furthermore, the disclosure of 'material weaknesses' in internal controls and 'not effective' disclosure controls and procedures points to significant governance and financial reporting risks. While some operating expenses were reduced, these positives are completely overshadowed by the existential threats. Any potential capital raise would likely result in significant dilution for existing shareholders. Given the severe liquidity crisis, going concern warning, and operational and governance failures, a seasoned investor would view this as a strong sell, anticipating further downside risk and potential insolvency.

Keywords

Dogecoin Cash, DOGP, 10-Q, Quarterly Report, Financial Results, Cryptocurrency, Digital Currency, Token Impairment, Cannabis Telemedicine, PrestoDoctor, Going Concern, Internal Controls, SEC Filing, Financial Performance, Liquidity, Accumulated Deficit, Related Party Transactions

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