Company: CBLO
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001882781-25-000034
Chunk: 11

Company: C2 Blockchain, Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1
Chunk 11
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 assurance that any newly acquired digital assets will retain value, appreciate, or be marketable. Purchases of digital
assets that decline significantly in value or become worthless could materially and adversely affect the Company’s financial condition,
results of operations, and ability to achieve profitability.

Our
internal financial projections for cryptocurrency mining may prove inaccurate and we may not achieve break-even or profitability.

Our
estimates regarding the potential profitability of using ASIC S19 XP miners assume certain electricity costs, Bitcoin prices, and equipment
performance. These assumptions may prove inaccurate or may change materially over time. As a result, we may not achieve the projected
break-even period of 2.5 to 3 years, and our mining operations may not become profitable at all.

We
have incurred significant net losses and expect to continue incurring losses in the future.

For
the year ended June 30, 2025, the Company reported a net loss of $235,265, with operating expenses significantly exceeding revenues.
We may continue to incur substantial losses in the future as we pursue our business objectives, and there can be no assurance that we
will ever achieve profitability.

Our
mining operations, if developed, would be highly dependent on the availability and cost of electricity.

Cryptocurrency
mining is energy-intensive, and profitability depends on access to reliable and cost-effective electricity. Increases in electricity
rates, power shortages, or disruptions in energy supply could materially and adversely affect the economics of our planned operations.

Our
mining hardware, if acquired, may quickly become obsolete and lose value.

We
intend to use ASIC mining rigs, including the S19 XP model, which are subject to rapid technological change. More efficient machines
may be introduced by competitors, reducing the competitiveness of our equipment. We may be required to make significant additional investments
in new hardware to remain viable, and there is no assurance that such investments would be successful or available to us.

We
may never commercialize or generate revenues from our AI-powered crypto chatbot.

Although
we announced the beta launch of an AI-powered crypto chatbot in May 2025, development has since been paused, and the project has not
generated any revenues. We do not own patents, copyrights, or other intellectual property rights with respect to the chatbot. There is
no assurance that we will resume development, commercialize the chatbot, or derive any revenues from this initiative.

Our
reliance on DOG Coin as the sole digital asset in our treasury strategy exposes us to concentration and volatility