Company: CBLO
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001882781-25-000042
Chunk: 15

Company: C2 Blockchain, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 15
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 such statements.

Business
Overview

The Company is a development-stage blockchain infrastructure
business focused on cryptocurrency mining, digital asset treasury management, and related technology initiatives. While material corporate
activities have commenced, the Company remains in the early stages of development and has not yet secured a physical location for mining
operations or commenced active mining.

To date, the
Company’s activities have primarily involved organizational development, financing efforts, limited product development, and the
acquisition and management of digital assets. During the three months ended September 30, 2025, the Company acquired additional Dog Coin
(DOG) tokens as part of its digital asset treasury strategy.

The Company
has also initiated efforts to create an application related to cryptocurrency mining analytics and decentralized AI. Development of a
previously initiated AI-powered crypto chatbot has been paused as resources are being allocated to other business expenditures.

For a detailed
discussion of the Company’s business, plans, and related information, please refer to Item 1 “Business” of the Company’s
Annual Report on Form 10-K filed with the Securities and Exchange Commission on September 29, 2025.

Revenues

For
the three months ended September 30, 2025, the Company generated $44 in revenue from staking rewards, which constituted all of its revenue
for the period. The Company generated no revenue for three months ended September 30, 2024. Staking rewards are earnings received for
participating in a network’s validation process by locking certain cryptocurrencies to help secure the blockchain and process transactions.

Operating
Expenses

Operating expenses for the three months ended September 30, 2025 were $302,933, all of which were general and administrative (“G&A”)
expenses. These G&A expenses consisted of officer compensation, professional fees, and day-to-day operating costs. Operating expenses
for the three months ended September 30, 2024 were also entirely G&A expenses and totaled $7,784. The increase in operating expenses
for the current period reflects the Company’s increased level of operations.

Other
Income (Loss)

Other
losses for the three months ended September 30, 2025, consisted of an interest expense of $642,120, a loss on change in fair market value
of derivative liability of $933,879, and a loss on the change in fair value of cryptocurrency of $491,092. No comparable activity occurred
during the three months ended September 30, 2024.

Net
Loss