ZONE

CleanCore sells aqueous-ozone cleaning products and is growing the top line (+29% to $2.07M) at a healthy 47.6% gross margin, but that is the entire good-news story. Below the gross-profit line the business is deeply broken: G&A exploded to $7.08M (342% of revenue) from $2.47M, driving a -$6.39M operating loss and a -$6.74M net loss that nearly tripled year-over-year. Operating margin is -308% and ROE is -460% on a stockholders' equity base that collapsed 61% to just $1.47M. Against a -$14.0M accumulated deficit, this is a company that has never come close to covering its own cost structure.

The balance sheet is the disqualifier. Cash fell 28% to $1.46M while operating cash burn was -$2.34M — barely two quarters of runway at the current rate. Total liabilities jumped 87% to $7.00M, pushing liabilities/equity to 4.78x. The filing shows how management is plugging the hole: a June 2025 $500K promissory note plus warrants at $1.06, a June 2025 OID note with warrants at $2.00 and a punitive 200,000-share issuance on default, and conversion of Burlington quarterly payments into 133,500 shares. Shares outstanding already rose 40% in FY2025, and the note/warrant stack signals more dilution and refinancing risk ahead — existing holders at $0.73 are the exit liquidity.