# EDGAR Filing Document

**Accession Number:** 0001688126
**File Stem:** 0001641172-25-020738
**Filing Date:** 2025-7
**Character Count:** 18936
**Document Hash:** d55eab48348b791d16360d33a9cc6e82
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001641172-25-020738.hdr.sgml**: 20250922

**ACCESSION NUMBER**: 0001641172-25-020738

**CONFORMED SUBMISSION TYPE**: CORRESP

**PUBLIC DOCUMENT COUNT**: 1

**FILED AS OF DATE**: 20250723

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Crypto Co
- **CENTRAL INDEX KEY:** 0001688126
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-COMPUTER PROCESSING & DATA PREPARATION [7374]
- **ORGANIZATION NAME:** 06 Technology
- **EIN:** 464212405
- **STATE OF INCORPORATION:** NV
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** CORRESP

**BUSINESS ADDRESS:**
- **STREET 1:** 23823 MALIBU ROAD
- **STREET 2:** SUITE 50477
- **CITY:** MALIBU
- **STATE:** CA
- **ZIP:** 90265
- **BUSINESS PHONE:** (424) 228-9955

**MAIL ADDRESS:**
- **STREET 1:** 23823 MALIBU ROAD
- **STREET 2:** SUITE 50477
- **CITY:** MALIBU
- **STATE:** CA
- **ZIP:** 90265

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** CROE, INC.
- **DATE OF NAME CHANGE:** 20161020

<u>VIA EDGAR</u>

July 23, 2025

Division of Corporation Finance

U.S. Securities and Exchange Commission

100 F Street, N.E.

Washington, D.C. 20549

Attention: Kathleen Collins

---

| | |
|:---|:---|
| **Re:** | **The Crypto Company** |
|  | **Item 4.02 Form 8-K filed June 9, 2025** |
|  | **File No. 000-55726** |

---

Dear Ms. Collins:

We are responding to the comments of the staff (the "Staff") of the Securities and Exchange Commission (the "Commission") contained in its letter dated July 9, 2025 (the "Comment Letter") addressed to The Crypto Company (the "Company"), relating to the Company's Current Report on Form 8-K filed on June 9, 2025 (the "8-K").

In this response letter, we have recited the comments from the Staff in italicized, bold type and have followed the comments with the Company's response.

&nbsp;&nbsp;&nbsp;&nbsp;***1.***  ***You state in your response to prior comment 1 that the fiscal 2023 restatement errors "related solely to errors that were identified in connection with the preparation of the fourth quarter and year-end financial statements." While we note that you identified the errors during the fourth quarter closing process, it remains unclear why certain of the errors would not have impacted the other quarters in fiscal 2023 had they been identified during such quarters. For example, you recorded an error related to interest expense on convertible notes when there were convertible notes and other notes payable outstanding at each quarter-end during fiscal 2023. You also reclassified revenue to deferred revenue during the fourth quarter, however, it is unclear why that adjustment did not impact revenue earned in the prior quarters. Please provide us with a detailed explanation of each error included in the fiscal 2023 restatement and explain why such errors only impacted the fourth quarter financial statements.*** 

The Company respectfully acknowledges the Staff's comment and advises that it intends to file Amendment No. 2 to its Annual Report on Form 10-K for the fiscal year ended December 31, 2023 ("Amendment No. 2") in response to the Staff's comment as soon as practicable following submission of this response. The filing is currently pending final auditor review and approval, and the Company anticipates submitting Amendment No. 2 promptly upon completion of that process.

Amendment No. 2 supplements and clarifies the disclosures previously included in Amendment No. 1, specifically expanding the discussion in Footnote 3 to the financial statements to (i) provide additional detail regarding the nature of each restatement adjustment and (ii) delineate whether such adjustments impacted previously filed quarterly financial statements for fiscal year 2023.

As described in the revised Footnote 3 included in Amendment No. 2, the only restatement adjustments that impacted prior interim periods were those related to revenue recognition. These adjustments were identified during the Company's fourth quarter closing process and subsequent year-end audit review. Specifically, the Company determined that certain revenue recognized in prior quarters lacked adequate contemporaneous documentation to support recognition in those periods under ASC 606. These adjustments are now quantified in the revised Footnote 3 disclosure.

All other adjustments, including those related to interest expense on convertible notes and other notes payable, were previously included in Amendment No. 1 to the Company's Form 10-K for the fiscal year ended December 31, 2023.

For the Staff's convenience, the updated Footnote 3 from Amendment No. 2, as currently provided to the Company's auditors and subject to their final review, is reproduced in full below. While immaterial revisions may be made prior to filing in connection with final auditor feedback and approval, the Company presently anticipates that Footnote 3 will appear substantially as set forth below:

**NOTE 3 – RESTATEMENT**

**ANNUAL IMPACT**

The following presents a reconciliation of the Balance Sheets, Statements of Operations, and Statements of Cash Flows from the prior period as previously reported to the restated amounts:

**THE CRYPTO COMPANY**

**CONSOLIDATED BALANCE SHEETS**

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** |
|  | **As<br> Reported** | **Restatement<br> Adjustments** | **As<br> Restated** |
| **ASSETS** |  |  |  |
| CURRENT ASSETS |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $72970 | $- | $72970 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses (b) | 30317 | (30317) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 103287 | (30317) | 72970 |
| &nbsp;&nbsp;&nbsp;Fixed assets: |  |  |  |
| &nbsp;&nbsp;&nbsp;Goodwill (a) | 740469 | (740469) |  |
| &nbsp;&nbsp;&nbsp;Intangible assets (a) | 530837 | (530837) | - |
| TOTAL ASSETS | $1374593 | $(1301623) | $72970 |
| **LIABILITIES AND STOCKHOLDERS' DEFICIT** |  |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses (b) | $2678883 | $343982 | $3022865 |
| &nbsp;&nbsp;&nbsp;Other liabilities (c) |  | 207938 | 207938 |
| &nbsp;&nbsp;&nbsp;Notes payable, net (b) | 2506443 | 491828 | 2968271 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 5185326 | 1013748 | 6199074 |
| Convertible debt | 125000 |  | 125000 |
| Notes payable - other | 13333 | - | 13333 |
| TOTAL LIABILITIES | 5323659 | 1013748 | 6337407 |
| STOCKHOLDERS' DEFICIT |  |  |  |
| &nbsp;&nbsp;&nbsp;Common stock, $0.001 par value; 2,000,000,000 shares authorized, 565,709,873 and 23,950,380 shares issued and outstanding, respectively | 565320 | 390 | 565710 |
| &nbsp;&nbsp;&nbsp;Additional paid-in-capital | 39932216 | 389 | 39932605 |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (44446602) | (2316150) | (46762752) |
| TOTAL STOCKHOLDERS' DEFICIT | (3949066) | (2315371) | (6264437) |
| TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $1374593 | $(1301623) | $72970 |

---

**THE CRYPTO COMPANY**

**CONSOLIDATED STATEMENTS OF OPERATIONS**

---

| | | | |
|:---|:---|:---|:---|
|  | **For the year ended December 31, 2023** | **For the year ended December 31, 2023** | **For the year ended December 31, 2023** |
|  | **As<br> Reported** | **Restatement<br> Adjustments** | **As<br> Restated** |
| Revenue: |  |  |  |
| &nbsp;&nbsp;&nbsp;Services (c) | $405397 | $(207938) | $197459 |
| &nbsp;&nbsp;&nbsp;Cost of services | 313756 | - | 313756 |
| &nbsp;&nbsp;&nbsp;Gross margin | 91641 | (207938) | (116297) |
| Operating expenses: |  |  |  |
| &nbsp;&nbsp;&nbsp;General and administrative expenses (b) | 1238275 | 310002 | 1548277 |
| &nbsp;&nbsp;&nbsp;Amortization | 43332 |  | 43332 |
| &nbsp;&nbsp;&nbsp;Impairment of goodwill and intangible assets (a) |  | 1271306 | 1271306 |
| &nbsp;&nbsp;&nbsp;Share-based compensation - employee | 6761 |  | 6761 |
| &nbsp;&nbsp;&nbsp;Share-based compensation - non-employee | 1148719 | - | 1148719 |
| &nbsp;&nbsp;&nbsp;Total Operating Expenses | 2437087 | 1581308 | 4018395 |
| Operating loss | (2345446) | (1789246) | (4134692) |
| &nbsp;&nbsp;&nbsp;Other income | 28375 |  | 28375 |
| &nbsp;&nbsp;&nbsp;Loss on sale of equipment | (31000) |  | (31000) |
| &nbsp;&nbsp;&nbsp;Interest expense (b) | (2567096) | (526903) | (3093999) |
| Loss before provision for income taxes | (4915167) | (2316150) | (7231317) |
| Provision for income taxes | - |  | - |
| Net (loss) | (4915167) | (2316150) | (7231317) |
| &nbsp;&nbsp;&nbsp;Net (loss) per share | $(0.04) | $(0.02) | $(0.05) |
| &nbsp;&nbsp;&nbsp;Weighted average common shares outstanding – basic and diluted | 134932832 | 134932832 | 134932832 |

---

**THE CRYPTO COMPANY**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

---

| | | | |
|:---|:---|:---|:---|
|  | **For the Year Ended** | **For the Year Ended** | **For the Year Ended** |
|  | **December 31, 2023** | | **December 31, 2023** |
|  | **As Reported** | **Restatement**<br>**Adjustments** | **As Restated** |
| **Cash flows from operating activities:** |  |  |  |
| Net income (loss) | $(4915167) | $(2316150) | $(7231317) |
| Adjustments to reconcile net loss to net cash used in operations: |  |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 43332 |  | 43332 |
| &nbsp;&nbsp;&nbsp;Share-based compensation | 1155480 |  | 1155480 |
| &nbsp;&nbsp;&nbsp;Debt discount for warrants | 2041490 |  | 2041490 |
| &nbsp;&nbsp;&nbsp;Impairment of goodwill |  | 1271306 | 1271306 |
| &nbsp;&nbsp;&nbsp;Loss on disposal of equipment | 31000 |  | 31000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses | 51000 | 30317 | 81317 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other liabilities |  | 207938 | 207938 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | 413335 | 343982 | 757317 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by/used in operating activities | (1179530) | (462606) | (1642136) |
| **Cash flows from financing activities:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Payment of notes payable | (227251) |  | (227251) |
| &nbsp;&nbsp;&nbsp;Proceeds from issuance of notes payable | 1344145 | 462606 | 1806751 |
| &nbsp;&nbsp;&nbsp;Proceeds from common stock issuance | 25000 | - | 25000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by financing activities | 1141894 | 462606 | 1604500 |
| Net (decrease) increase in cash and cash equivalents | (37636) |  | (37636) |
| Cash and cash equivalents at the beginning of the period | 110606 | - | 110606 |
| Cash and cash equivalents at the end of the period | $72970 | - | $72970 |

---

Notes:

With the exception of item (c) described below all of the line items in the annual restatement above, were determined to only impact the Company's fourth quarter ended December 31, 2023 and had no impact on the financial statements for Company's first three quarters.

&nbsp;&nbsp;&nbsp;&nbsp;(a) Based
 on an annual review performed on December 31, 2023, the Company determined that its goodwill and intangible assets had been fully
 impaired and recorded an impairment charge amounting to $1,271,306.

(b) At
 year end December 31, 2023, the Company recorded the following charges and adjustments to the financial statement above. These entries
 only impacted the Company's fourth quarter and had no impact on prior quarters:

-$526,903 was recorded as default interest due to a notification by lender to the Company in Q4 of 2023

-$310,000 in accrued salary, board fees and accrued expenses which should have been recorded relating the Company's Q4 activity, was not recorded

-$30,317 in prepaid expenses was reclassified against accrued expenses in Q4

&nbsp;&nbsp;&nbsp;&nbsp;(c) Represents
 quarterly reduction of revenue which has been reclassified as an accrued liability due to the lack of documentation to support revenue
 recognition under the guidelines of ASC 606. The reduction in quarterly revenue amounted to $127,784 for the period ended March 31,
 2023, $77,965 for the quarter ended June 30, 2023, and $2,189 for the quarter ended September 30, 2023. These adjustments amounted
 to $207,938. The quarterly restatement on the Company's balance sheet and statements of operations of these revenue adjustments,
 which had no impact on cash flows, are reflected below.

**QUARTERLY RESTATEMENT IMPACT**

**BALANCE SHEETS**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **March 31,**<br>**2023**<br>**As Filed** |<br>**Adjustments** | **March 31,**<br>**2023**<br>**Restated** | **June 30,**<br>**2023**<br>**As Filed** |<br>**Adjustments** | **June 30,**<br>**2023**<br>**Restated** | **September**<br>**2023**<br>**As Filed** |<br>**Adjustments** | **September**<br>**2023**<br>**Restated** |
| **ASSETS** |  |  |  |  |  |  |  |  |  |
| Current assets: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $16677 |  | $16677 | $17682 |  | $17682 | $20435 |  | $20435 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses | 57717 |  | 57717 | 19117 |  | 19117 | 3750 |  | 3750 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 74394 |  | 74394 | 36799 |  | 36799 | 24185 |  | 24185 |
| Goodwill | 740469 |  | 740469 | 740469 |  | 740469 | 740469 |  | 740469 |
| Intangible assets | 563336 |  | 563336 | 552503 |  | 552503 | 541670 |  | 541670 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $1378199 | - | $1378199 | $1329771 | - | $1329771 | $1306324 | - | $1306324 |
| **LIABILITIES AND STOCKHOLDERS' DEFICIT** |  |  |  |  |  |  |  |  |  |
| Current liabilities: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | $2457771 |  | $2457771 | $2589752 |  | $2589752 | $2632066 |  | $2632066 |
| &nbsp;&nbsp;&nbsp;Other liabilities |  | 127784 | 127784 |  | 205749 | 205749 |  | 207938 | 207938 |
| &nbsp;&nbsp;&nbsp;Deferred revenue | 60000 |  | 60000 |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Notes, payable, net | 2361218 |  | 2361218 | 2408045 |  | 2408045 | 2440845 |  | 2440845 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 4878989 | 127784 | 5006773 | 4997797 | 205749 | 5203546 | 5072911 | 207938 | 5280849 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Convertible debt | 125000 |  | 125000 | 125000 |  |  | 125000 |  | 125000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notes payable other | 13864 |  | 13864 | 13687 |  | 13687 | 13510 |  | 13510 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 5017853 | 127784 | 5145637 | 5136484 | 205749 | 5342233 | 5211421 | 207938 | 5419359 |
| Stockholders' Deficit: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Common stock | 25741 |  | 25741 | 53821 |  | 53821 | 208688 |  | 208688 |
| &nbsp;&nbsp;&nbsp;Additional paid in capital | 38637372 |  | 38637372 | 39238579 |  | 39238579 | 39340646 |  | 39340646 |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (42302767) | (127784) | (42430551) | (43099113) | (205749) | (43304862) | (43454431) | (207938) | (43662369) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' deficit | (3639654) | (127784) | (3767438) | (3806713) | (205749) | (4012462) | (3905097) | (207938) | (4113035) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and deficit | $1378199 | - | $1378199 | $1329771 | - | $1329771 | $1306324 | - | $1306324 |

---

**STATEMENTS OF OPERATIONS**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three<br> months ended**<br>**<br> March 31,**<br>**2023**<br>**As filed** |<br><br>**Adjustments** | **Three<br> months ended**<br>**<br> March 31,**<br>**2023**<br>**As restated** | **Three<br> months ended** <br>**<br> June 30,**<br>**2023**<br>**As filed** |<br><br>**Adjustments** | **Three**<br> **months ended**<br>**<br> June 30,**<br>**2023**<br>**As restated** | **Three<br> months ended**<br>**September 30,**<br>**2023**<br>**As filed** |<br><br>**Adjustments** | **Three<br> months ended**<br>**September 30,**<br>**2023**<br>**As restated** |
| Services | $156893 | (127784) | $29109 | $106610 | (77965) | $28645 | $124195 | (2189) | $122006 |
| Cost of services | 97868 |  | 97868 | 117314 |  | 117314 | 14900 |  | 14900 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross profit | 59025 | (127784) | (68759) | (10705) | (77965) | (88670) | 109295 | (2189) | 107106 |
| Operating expenses: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;General and administrative expenses | 431049 |  | 431049 | 320500 |  | 320500 | 244183 |  | 244183 |
| &nbsp;&nbsp;&nbsp;Amortization | 10833 |  | 10833 | 10833 |  | 10833 | 10833 |  | 10833 |
| &nbsp;&nbsp;&nbsp;Stock based compensation | 386560 | - | 386560 | 119919 | - | 119919 | 113818 |  | 113818 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 828442 | - | 828442 | 451252 | - | 451252 | 368834 | - | 368834 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss from operations | (769417) | (127784) | (897201) | (461957) | (77965) | (539922) | (259539) | (2189) | (261728) |
| Other income (expense) |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Other income |  |  |  | 25775 |  | 25775 |  |  |  |
| &nbsp;&nbsp;&nbsp;Loss on the sale of equipment | (31000) |  | (31000) |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest (expense) | (1970913) |  | (1970913) | (346402) |  | (346402) | (99306) |  | (99306) |
| Loss before provision of income taxes | (2771331) | (127784) | (2899115) | (782584) | (77965) | (860549) | (358845) | (2189) | (361034) |
| Provision for income taxes (benefit) | - |  |  | - |  |  | - |  |  |
| Net loss | $(2771331) | (127784) | $(2899115) | $(782584) | (77965) | $(860549) | $(358845) | (2189) | $(361034) |
| Net loss per share | $(0.11) |  | $(0.12) | $(0.02) |  | $(0.02) | $(0.00) |  | $(0.00) |
| Weighted average shares basic and diluted | 25097908 |  | 25097908 | 35731866 |  | 35731866 | 110774232 |  | 110774232 |

---

We hope this clarifies the scope and timing of the restatement adjustments and addresses the Staff's concerns.

\*\*\*

In connection with the above-referenced filings by the Company, the Company acknowledges that: (1) it is responsible for the adequacy and accuracy of the disclosure in the 8-K; (2) Staff comments or changes to disclosures in response to Staff comments in the 8-K reviewed by the Staff do not foreclose the Commission from taking any action with respect to the 8-K and (3) it may not assert Staff comments as a defense in any proceeding initiated by the Commission or any person under the federal securities laws of the United States.

We believe that we have adequately responded to the Staff's comments. Please direct any questions or comments regarding this letter or the Comment Letter to Alan A. Lanis, Jr., Esq. at Baker Hostetler LLP, at (310) 442-8828. Thank you.

Sincerely,

---

| |
|:---|
| The Crypto Company |
| */s/ Ron Levy* |
| Chief Executive Officer |

---