1606 Corp. Reports Q2 2025 Financial Results with Reduced Net Loss and No Revenue

1606 Corp. has reported its financial results for the second quarter of 2025, revealing a net loss of $210,111, a decrease from a net loss of $339,192 in the same period last year. For the six months ending June 30, 2025, the company also reported a net loss of $418,450, down from $625,629 in the prior year. The company did not generate any revenue during the quarter, consistent with the previous year, while total operating expenses decreased significantly to $117,084 from $288,739, primarily due to reduced professional fees.

The company's balance sheet as of June 30, 2025, shows total assets of $26,764,000, a substantial increase from $10,140,000 at the end of 2024. Current liabilities rose to $2,569,614 from $2,205,632, driven by increases in accounts payable and accrued liabilities. The stockholders' deficit widened to $2,542,850 from $2,195,492, reflecting ongoing operational losses and the impact of convertible notes and derivative liabilities.

In terms of strategic developments, 1606 Corp. has made significant strides in its product offerings. The company launched its AI chatbot, ChatCBDW, designed for the CBD industry, in October 2023, and has since partnered with Cool Blue Distribution to beta test the product. The chatbot aims to enhance sales for CBD retailers by providing product recommendations and tracking user behavior. Additionally, the company is pursuing a monthly recurring licensing fee model for its chatbot services, targeting both CBD brands and public companies.

Operationally, 1606 Corp. has not reported any customer counts or user statistics for its chatbot services yet, as it is still in the early stages of deployment. The company is actively working to expand its market presence through online advertising and partnerships with independent sales organizations. As of June 30, 2025, the company had 164,261,130 shares of common stock outstanding, a significant increase from 112,711,945 shares at the end of 2024, indicating ongoing efforts to raise capital.

Looking ahead, 1606 Corp. acknowledges the challenges it faces in achieving profitable operations and sustaining its business. The company estimates a cash need of approximately $1,000,000 over the next 12 months to continue operations. Management plans to address this through increased revenue from its chatbot services and potential capital raises from investors. However, the company has expressed uncertainty regarding its ability to achieve profitability and continue growth, emphasizing the need for ongoing capital to support its operations.