Company: CBLO
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001882781-25-000034
Chunk: 418

Company: C2 Blockchain, Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1A
Chunk 418
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 otherwise
constrained, the Company may be unable to convert its digital assets into cash on favorable terms or at all, which could materially impair
its ability to fund operations or meet obligations.

We
may face risks related to our reliance on equity sales and related-party financing.

Historical
financing has included the sale of equity and loans from related parties. Future reliance on equity issuances or related-party funding
could present conflicts of interest and create uncertainty regarding the availability or terms of such support.

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Table
of Contents

We
have negative stockholders’ equity, which may limit our ability to continue operations or obtain financing.

As
of June 30, 2025, the Company had a negative stockholders’ equity of $8,449. This deficit may limit our ability to obtain financing,
cover obligations, or continue operations. There can be no assurance that we will be able to raise sufficient capital to sustain operations.

Realized
and unrealized losses on cryptocurrency investments may materially affect our financial statements.

For the year
ended June 30, 2025, the Company recorded an impairment expense of approximately $(12,668) related to its ADA holdings (a cryptocurrency)
and reported a realized loss of $2 under the line item “Gain (loss) on sale of cryptocurrency.” Subsequent to June 30, 2025,
the Company fully divested its ADA holdings, which resulted in a realized loss approximately equal to the previously recorded impairment
amount, though the final figure has not been audited or reviewed and may differ. Future realized or unrealized losses, including those
related to DOG Coins or other cryptocurrencies, may be significant and could adversely affect the Company’s equity and results
of operations.

We
may be unable to manage growth or scale operations effectively.

Rapid
accumulation of cryptocurrency assets without corresponding operational infrastructure may strain management, internal controls, and
oversight. Failure to manage growth could adversely affect our business, financial condition, and results of operations.

Valuation
of cryptocurrency holdings involves significant judgments and estimates.

The
fair value of digital assets is subject to significant assumptions, and changes in valuation could materially affect reported results
and stockholders’ equity.

Our
future revenue and/or success depends on our business plan and the value of cryptocurrency.

The
Company’s future performance relies on the development and commercialization of the Bitcoin mining facility and the AI-powered
crypto chatbot, neither of which has generated revenue and may never be carried out. The Company also holds or