1606 Corp. Reports Zero Revenue and Continued Net Loss in Q1 2025

1606 Corp. reported its financial results for the first quarter of 2025, revealing a significant decline in revenue and a continued net loss. The company generated no revenue for the three months ended March 31, 2025, compared to $7,195 in the same period of the previous year. The cost of goods sold was also zero for the current quarter, down from $7,313 in the prior year, resulting in a gross loss of $0, an improvement from a gross loss of $118 in Q1 2024. Operating expenses decreased to $174,232 from $397,921, primarily due to reduced professional fees, leading to a net loss of $208,339, down from $286,437 in the previous year.

The balance sheet as of March 31, 2025, shows total assets of $285, a significant decrease from $10,140 at the end of 2024. Current liabilities increased to $2,353,839 from $2,205,632, with notable increases in accounts payable and accrued liabilities. Stockholders' equity remains negative at $(2,353,554), reflecting an accumulated deficit of $(7,145,341). The company’s cash position also deteriorated, with cash at $285 compared to $2,078 at the end of the previous quarter.

Strategically, 1606 Corp. has focused on developing its AI chatbot technology for the CBD industry, with the launch of its ChatCBDW bot in late 2023. The company has partnered with Cool Blue Distribution to beta test the chatbot on their website, aiming to expand its market reach. Additionally, the company is pursuing a monthly recurring licensing fee model for its chatbot services, targeting CBD brands and retailers through various marketing channels. The company also announced plans to acquire a strategic stake in Adnexus, which specializes in AI innovations for drug discovery.

Operationally, 1606 Corp. has not reported any significant customer growth or engagement metrics, as the chatbot services are still in the early stages of deployment. The company’s employee headcount and geographic expansion details were not disclosed in the filing. The management has indicated that achieving profitable operations remains a challenge, and the company may need to raise approximately $1 million in capital to sustain operations over the next year. The outlook remains uncertain, with management emphasizing the need for increased revenue and effective cost management to ensure the company's viability.