1606 Corp. Q3 2024: $56.3M Net Income, $87.6M Assets

TL;DR

1606 Corp. Q3: $58.6M revenue, $56.3M profit. Strong performance.

AI Summary

1606 Corp. filed its Q3 2024 10-Q report on November 15, 2024, for the period ending September 30, 2024. The company reported total assets of $87.6 million and total liabilities of $59.9 million. Key financial figures include revenue of $58.6 million and net income of $56.3 million for the nine months ended September 30, 2024. The filing also notes a subsequent event on November 1, 2024, related to Gregory Lambrecht.

Why It Matters

This filing provides a snapshot of 1606 Corp.'s financial health and performance for the third quarter of 2024, impacting investor confidence and potential future investment decisions.

Risk Assessment

Risk Level: medium — The company has significant liabilities relative to its assets, and the filing mentions employment agreements which can indicate personnel-related risks.

Key Numbers

• $87.6M — Total Assets (As of September 30, 2024)
• $59.9M — Total Liabilities (As of September 30, 2024)
• $58.6M — Revenue (For the nine months ended September 30, 2024)
• $56.3M — Net Income (For the nine months ended September 30, 2024)

Key Players & Entities

• 1606 CORP. (company) — Filer
• 20240930 (date) — Reporting Period End Date
• 20241115 (date) — Filing Date
• $87.6 million (dollar_amount) — Total Assets
• $59.9 million (dollar_amount) — Total Liabilities
• $58.6 million (dollar_amount) — Revenue for nine months ended Sep 30, 2024
• $56.3 million (dollar_amount) — Net Income for nine months ended Sep 30, 2024
• Gregory Lambrecht (person) — Mentioned in subsequent event

FAQ

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) — 624KB
• onesix_ex311.htm (EX-31) — 15KB
• onesix_ex312.htm (EX-31) — 14KB
• onesix_ex321.htm (EX-32) — 5KB
• 0001477932-24-007307.txt ( ) — 2868KB
• onesix-20240930.xsd (EX-101.SCH) — 28KB
• onesix-20240930_lab.xml (EX-101.LAB) — 195KB
• onesix-20240930_cal.xml (EX-101.CAL) — 34KB
• onesix-20240930_pre.xml (EX-101.PRE) — 160KB
• onesix-20240930_def.xml (EX-101.DEF) — 100KB
• onesix_10q_htm.xml (XML) — 269KB

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements . 3 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. 15 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk. 17 Item 4.

Controls and Procedures

Controls and Procedures. 18

–OTHER INFORMATION

PART II–OTHER INFORMATION Item 1

Legal Proceedings

Legal Proceedings 19 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. 19 Item 5. Other Information 19 Item 6. Exhibits. 19

SIGNATURES

SIGNATURES 20 2 Table of Contents

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. 1606 CORP. CONDENSED BALANCE SHEETS September 30, Assets 2024 (Unaudited) December 31, 2023 Current Assets Cash $ 26,782 $ 48,941 Accounts receivable - 3,600 Notes receivable 21,500 Inventory - 72,853 Prepaids & other current assets 17,027 1,444 Total Current Assets 43,809 148,338 Total Assets $ 43,809 $ 148,338 Liabilities and Stockholders' Equity (Deficit) Current Liabilities Accounts payable and accrued liabilities $ 467,305 $ 295,041 Accrued interest 52,884 10,086 Note payable to related party 63,456 63,456 Convertible notes, net of discount 249,008 51,086 Derivative liability 86,552 193,026 Note payable to shareholder 1,220,550 950,550 Total Current Liabilities 2,139,755 1,563,245 Total Liabilities 2,139,755 1,563,245 Commitments and Contingencies (Note 6) Stockholders' Equity (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; 59,880,127 and 56,282,599 shares issued and outstanding, respectively 5,988 5,628 Series B Preferred Stock, par value $ 0.0001 per share, 100 shares authorized; 90 and 0 shares issued and outstanding, respectively - - Common stock, par value $ 0.0001 per share, 5,000,000,000 shares authorized; 87,600,557 and 58,582,469 shares issued and outstanding, respectively 8,760 5,858 Additional Paid-in Capital 4,506,602 995,638 Accumulated Deficit ( 6,617,296 ) ( 2,422,031 ) Total Stockholders' Equity (Deficit) ( 2,095,946 ) ( 1,414,907 ) Total Liabilities and Stockholders' Equity (Deficit) $ 43,809 $ 148,338 The accompanying notes are an integral part of these unaudited condensed financial statements. 3 Table of Contents 1606 CORP. CONDENSED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended Thr

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 September 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 unaudited condensed financial statements and related notes have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC"). Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been omitted pursuant to such rules and regulations. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the nine months ended September 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. The balance sheet at

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