CleanCore Solutions, Inc. reported its financial results for the three months ended September 30, 2024, showing a revenue increase of 12.04% to $364,900, compared to $325,684 in the same period of 2023. The growth in revenue was primarily driven by a significant rise in the Janitorial and Sanitation segment, which generated $341,363, up from $287,295 in the prior year. Additionally, revenue from the Commercial and Residential Laundry segment increased to $4,764 from $1,400.

Despite the revenue growth, the company experienced a net loss of $(856,082) for the quarter, a substantial increase of 95.77% from the $(437,294) loss reported in the same quarter of the previous year. This increase in net loss was attributed to a significant rise in general and administrative expenses, which surged by 79.69% to $916,214, representing 251.09% of revenue, compared to 156.56% in the prior year. Advertising expenses also saw a dramatic increase, rising from $823 to $46,210.

The gross profit for the quarter was $185,499, reflecting a 7.16% increase from $173,109 in the previous year, but the gross profit margin decreased from 53.15% to 50.84%. The cost of sales increased by 17.58% to $179,401, leading to a rise in the cost of sales as a percentage of revenue from 46.85% to 49.16%.

As of September 30, 2024, CleanCore Solutions had total current assets of $2,619,204, down from $3,211,588 at the end of the previous quarter. Total assets also decreased to $6,823,706 from $7,481,251. The company’s cash and cash equivalents fell to $1,210,382 from $2,016,611, with a net decrease in cash of $806,229 for the quarter, compared to a decrease of $329,076 in the same period last year.

The company reported a significant increase in cash used in operating activities, which totaled $(799,764) for the quarter, compared to $(308,335) in the prior year. This was influenced by the net loss and an increase in non-cash stock-based compensation expense.

Management expressed substantial doubt about the company's ability to continue as a going concern for the next 12 months, highlighting a dependency on raising additional capital through equity or debt financing to implement its business plan. The company also noted material weaknesses in its internal controls, which it plans to address in the upcoming fiscal year.