The restatement confirms the company is effectively insolvent with $1,763 cash against $8M in liabilities. Monitor for a potential bankruptcy filing, further dilutive financing, or OTC delisting. The CEO's super-voting preferred shares eliminate any activist or takeover path. Avoid the common stock.
Price Chart
Executive Summary
The Crypto Company filed a 10-K/A to restate its 2024 financials after its auditor determined it failed to record a $1,319,366 derivative liability on convertible debt. The restatement deepens the net loss to $7,963,077, and the company reports only $1,763 in cash, a working capital deficit of $8,005,134, and an accumulated deficit of $54,725,828. The auditor's going-concern opinion and the massive dilution (shares outstanding surged from 565.7M to 3.03B) underscore severe financial distress.
Key Facts
- Revenue declined 77% YoY to $44,814 (from $197,459 in 2023)
- Net loss of $7,963,077 for 2024, including a $1,319,366 derivative liability charge
- Cash and cash equivalents of only $1,763 as of December 31, 2024
- Working capital deficit of $8,005,134 and accumulated deficit of $54,725,828
- Auditor Beckles & Co. issued a going-concern opinion
- Common shares outstanding exploded from 565,709,873 to 3,032,746,878 — a 436% increase from debt conversions
- CEO Ron Levy received 10 shares of Series A Preferred stock with 9.5 billion votes, granting him voting control
- Total liabilities of $8,019,522 exceed total assets of $1,763
- Disclosure controls and internal control over financial reporting deemed ineffective
- Subsequent to year-end, the company raised ~$144,000 in additional debt, further deepening its obligations
Financial Impact
Restatement adds $1,319,366 derivative liability, increasing net loss by that amount. Revenue collapse and massive share dilution indicate near-zero equity value.
Risk Factors
- Going concern risk — auditor explicitly raised substantial doubt
- Liquidity crisis — only $1,763 cash to cover $3.5M in accounts payable and $2.8M in notes
- Massive dilution — shares outstanding increased 436% in 2024, with more likely from outstanding convertible notes
- Restatement may trigger securities litigation or SEC enforcement
- CEO holds super-voting control via Series A Preferred, entrenching management
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 10-K/A Filing (Primary) | 0001493152-26-029925 |
| Exhibit: ex31.htm | 0001493152-26-029925 |
| Exhibit: ex32.htm | 0001493152-26-029925 |
| Document: 0001493152-26-029925-index-headers.html | 0001493152-26-029925 |
| Document: 0001493152-26-029925-index.html | 0001493152-26-029925 |
| Document: 0001493152-26-029925.txt | 0001493152-26-029925 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 15, 2026 11d ago | 8-K | $0.001000 | awaiting T+60 | — | $0.000700 (+30.00%) |
Sep 30, 2026 26d ago | 8-K | $0.001000 | awaiting T+60 | — | $0.000700 (−30.00%) |
Sep 24, 2026 4w ago | 8-K | $0.001000 | awaiting T+60 | — | $0.000700 (+30.00%) |
Jun 24, 2026 17w ago | 10-K/A | $0.001000 $0.001000 | · 0.00% | ▲ +3.85% | $0.000700 (+30.00%) |
Jun 24, 2026 17w ago | 8-K | $0.001000 $0.001000 | · 0.00% | ▲ +3.85% | $0.000700 (+30.00%) |
Jun 11, 2026 19w ago | 8-K | $0.001000 $0.000900 | ▲ +10.00% | ▲ +13.53% | $0.000700 (+30.00%) |
May 15, 2026 23w ago | 8-K | $0.002000 $0.000800 | ▲ +60.00% | ▲ +64.85% | $0.000700 (+65.00%) |
Apr 28, 2026 25w ago | 8-K | $0.001000 $0.000900 | ▲ +10.00% | ▲ +14.11% | $0.000700 (+30.00%) |
Mar 5, 2026 33w ago | 8-K | $0.001000 $0.002000 | ▼ −100.00% | ▼ −87.22% | $0.000700 (+30.00%) |
US Market Status
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