1606 Corp. Q2 2024: $58.6M Assets, $39.9M Liabilities
Ticker: CBDW · Form: 10-Q · Filed: Aug 14, 2024 · CIK: 1877461
Sentiment: neutral
Topics: financials, quarterly-report, assets, liabilities
TL;DR
1606 Corp Q2: $58.6M assets, $39.9M liabilities, $55.9M revenue, small net loss. GHS Investments & exec agreements noted.
AI Summary
1606 Corp. filed its 10-Q for the period ending June 30, 2024. The company reported total assets of $58.58 million and total liabilities of $39.99 million as of June 30, 2024. Revenue for the six months ended June 30, 2024, was $55.92 million, with a net loss of $0.0182 million. The company also disclosed subsequent events related to GHS Investments LLC and employment agreements for its CEO and Vice President.
Why It Matters
This filing provides a snapshot of 1606 Corp.'s financial health, including its asset and liability levels, and revenue performance for the first half of 2024, which is crucial for investors to assess its financial stability and operational results.
Risk Assessment
Risk Level: medium — The company reported a net loss, indicating potential financial challenges, and the filing details significant subsequent events that could impact future performance.
Key Numbers
- $58.58M — Total Assets (As of June 30, 2024)
- $39.99M — Total Liabilities (As of June 30, 2024)
- $55.92M — Revenue (For the six months ended June 30, 2024)
- $0.0182M — Net Loss (For the six months ended June 30, 2024)
Key Players & Entities
- 1606 CORP. (company) — Filer
- GHS Investments LLC (company) — Subsequent Event
- $58.58 million (dollar_amount) — Total Assets as of June 30, 2024
- $39.99 million (dollar_amount) — Total Liabilities as of June 30, 2024
- $55.92 million (dollar_amount) — Revenue for the six months ended June 30, 2024
- $0.0182 million (dollar_amount) — Net Loss for the six months ended June 30, 2024
- 2024-06-30 (date) — Reporting Period End Date
FAQ
What were 1606 Corp.'s total assets and liabilities as of June 30, 2024?
As of June 30, 2024, 1606 Corp. reported total assets of $58,582,469 and total liabilities of $39,999,900.
What was the revenue for 1606 Corp. for the six months ended June 30, 2024?
For the six months ended June 30, 2024, 1606 Corp. reported revenue of $55,920,127.
Did 1606 Corp. report a profit or loss for the first half of 2024?
1606 Corp. reported a net loss of $18,200 (0.0182 million) for the six months ended June 30, 2024.
What significant subsequent events were disclosed by 1606 Corp. after the reporting period?
1606 Corp. disclosed subsequent events related to GHS Investments LLC, occurring on July 1, 2024, and July 22, 2024.
Were there any changes to employment agreements mentioned in the filing?
Yes, the filing mentions employment agreements for the Chief Executive Officer and Vice President, with updates noted for February 2024 and February 2023 respectively.
Filing Stats: 4,571 words · 18 min read · ~15 pages · Grade level 16 · Accepted 2024-08-14 17:14:55
Key Financial Figures
- $0.0001 — g shares of its common stock, par value $0.0001. Special Note Regarding Forward-Lookin
Filing Documents
- onesix_10q.htm (10-Q) — 587KB
- onesix_ex311.htm (EX-31.1) — 15KB
- onesix_ex312.htm (EX-31.2) — 14KB
- onesix_ex321.htm (EX-32.1) — 4KB
- 0001477932-24-004860.txt ( ) — 2612KB
- onesix-20240630.xsd (EX-101.SCH) — 25KB
- onesix-20240630_lab.xml (EX-101.LAB) — 179KB
- onesix-20240630_cal.xml (EX-101.CAL) — 33KB
- onesix-20240630_pre.xml (EX-101.PRE) — 144KB
- onesix-20240630_def.xml (EX-101.DEF) — 89KB
- onesix_10q_htm.xml (XML) — 240KB
—FINANCIAL INFORMATION
PART I—FINANCIAL INFORMATION Item 1.
Financial Statements
Financial Statements. 4 Item 2.
Management's Discussion and Analysis of Financial Condition and Results of Operations
Management's Discussion and Analysis of Financial Condition and Results of Operations. 16 Item 3.
Quantitative and Qualitative Disclosures about Market Risk
Quantitative and Qualitative Disclosures about Market Risk. 18 Item 4.
Controls and Procedures
Controls and Procedures. 18
–OTHER INFORMATION
PART II–OTHER INFORMATION Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. 19 Item 6. Exhibits. 19
SIGNATURES
SIGNATURES 20 3 Table of Contents
—FINANCIAL INFORMATION
PART I—FINANCIAL INFORMATION
Financial Statements
Item 1. Financial Statements. 1606 CORP. CONDENSED BALANCE SHEETS June 30, December 31, Assets 2024 2023 Current Assets (Unaudited) Cash $ 75,004 $ 48,941 Accounts receivable 2,762 3,600 Notes receivable 21,500 21,500 Inventory 72,769 72,853 Prepaids and other current assets 23,629 1,444 Total Current Assets 195,664 148,338 Total Assets $ 195,664 $ 148,338 Liabilities and Stockholders' Deficit Current Liabilities Accounts payable and accrued liabilities $ 494,768 $ 295,041 Accrued interest 45,404 10,086 Note payable to related party 63,456 63,456 Convertible notes, net of discount 231,599 51,086 Derivative liability 62,520 193,026 Total Current Liabilities 897,747 612,695 Long Term Debt Note payable to shareholder 1,220,550 950,550 Total Long Term Debt 1,220,550 950,550 Total Liabilities 2,118,297 1,563,245 Stockholders' Deficit Undesignated Preferred Stock, par value $ 0.0001 ; 39,999,900 authorized; no shares issued and outstanding - - Class A Convertible Preferred Stock, par value $ 0.0001 per share, 60,000,000 shares authorized; 55,920,127 and 56,282,599 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively 5,593 5,628 Class B Convertible Preferred Stock, par value $ 0.0001 per share, 100 shares authorized; 90 and 0 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively - - Common stock, par value $ 0.0001 per share, 5,000,000,000 shares authorized; 75,545,390 and 58,582,469 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively 7,554 5,858 Additional Paid-in Capital 1,111,880 995,638 Accumulated Deficit ( 3,047,660 ) ( 2,422,031 ) Total Stockholders' Deficit ( 1,922,633 ) ( 1,414,907 ) Total Liabilities and Stockholders' Deficit $ 195,664 $ 148,338 The accompanying notes are an integral part of these unaudited condensed financial st
Business
Business The Company is an AI Chatbot company specializing in merchandizing bot specifically built for the CBD industry and AI Chatbots for public companies. Going Concern The accompanying condensed financial statements have been prepared assuming the Company will continue as a going concern. As of June 30, 2024, the Company has yet to achieve significant profitable operations and is dependent on its ability to raise capital from stockholders or other sources to sustain operations and to ultimately achieve viable operations. The condensed financial statements do not include any adjustments that might result from the outcome of these uncertainties. These factors raise substantial doubt about the Company's ability to continue as a going concern. The Company's ability to continue in existence is dependent on its ability to develop its business and to achieve profitable operations. Since the Company does not anticipate achieving profitable operations and/or adequate cash flows in the near term, management will continue to pursue additional equity financing through private placements of the Company's common stock. NOTE 2 - BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying condensed financial statements contain all adjustments (consisting of normal recurring adjustments) necessary to present fairly the Company's financial position as of June 30, 2024 and December 31, 2023, and the results of the Company's operations for the interim periods presented. We follow the same accounting policies when preparing quarterly financial data as we use for preparing annual data. These statements should be read in conjunction with the financial statements and the notes included in our latest annual report on Form 10-K for the year ended December 31, 2023, and our other reports on file with the Securities and Exchange Commission ("SEC"). Management believes the assumptions underlying the Company's standalone condensed f