$ZSTK

ZeroStack Corp.

CIK:0001790169|SEC Filings

Unaudited Condensed Interim Consolidated Statements of Loss and Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenues
Pharmaceutical revenue	$ 12,640	$ 9,709	$ 17,143	$ 16,575
Digital asset revenue	1,018	0	3,789	0
Total revenue	13,658	9,709	20,932	16,575
Cost of sales	12,040	9,090	16,168	15,421
Gross profit	1,618	619	4,764	1,154
Operating expenses
Loss (gain) from changes in fair value of digital assets	21,764	(131)	82,506	(131)
Salaries and consulting fees	1,051	848	2,016	1,553
Professional fees	1,022	632	1,675	1,166
Share based compensation	1,605	172	4,376	344
Asset impairment	0	0	0	46
Other expenses, net	410	613	1,078	1,310
Total operating expenses	25,852	2,134	91,651	4,288
Operating loss	(24,234)	(1,515)	(86,887)	(3,134)
Interest expense	(89)	(80)	(155)	(103)
Foreign exchange (loss) gain	(34)	48	(57)	49
Gain on disposal of Insolvent Entities	0	0	0	1,119
Changes in financial instruments fair value	0	15	26,073	284
Net loss before income taxes and discontinued operations	(24,357)	(1,532)	(61,026)	(1,785)
Income tax expense	(258)	(7)	(249)	(95)
Net loss from continuing operations	(24,615)	(1,539)	(61,275)	(1,880)
Loss from discontinued operations, net of taxes	(0)	(873)	0	(1,290)
Net loss for the period	$ (24,615)	$ (2,412)	$ (61,275)	$ (3,170)
Basic loss per share from continuing operations	$ (2.47)	$ (2.72)	$ (6.15)	$ (3.55)
Diluted loss per share from continuing operations	(2.47)	(2.72)	(6.15)	(3.55)
Basic loss per share	(2.47)	(4.27)	(6.15)	(5.99)
Diluted loss per share	$ (2.47)	$ (4.27)	$ (6.15)	$ (5.99)
Weighted average number of common shares outstanding - basic	9,961	565	9,960	529
Weighted average number of common shares outstanding - diluted	9,961	565	9,960	529
Other comprehensive loss
Net loss for the period	$ (24,615)	$ (2,412)	$ (61,275)	$ (3,170)
Derecognition of equity related to Insolvent Entities, net of income taxes of $nil ($nil in 2025)	0	0	0	(595)
Gain on foreign currency translation, net of income taxes of $nil ($nil in 2025)	16	447	23	1,067
Comprehensive loss	$ (24,599)	$ (1,965)	$ (61,252)	$ (2,698)

Unaudited Condensed Interim Consolidated Statement of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net loss	$ (61,275)	$ (3,170)
Adjustments to net loss:
Depreciation and amortization	8	377
Share based compensation	4,376	344
Deferred ELOC costs	108	0
Inventory impairments through costs of sales	45	291
Asset impairments	0	46
Digital assets received as revenue	(3,789)	0
Changes in fair value of digital assets	82,506	(131)
Changes in financial instruments fair value	(22,999)	(320)
Realized gain on the settlement of convertible note	(3,074)	0
Bad debt expense	1	330
Loss on asset disposals	0	18
Gain on disposal of Insolvent Entities	0	(1,162)
Interest expense	155	147
Interest paid	(155)	(93)
Income tax	249	(10)
Net income (loss) to cash provided by (used in) operating activities	(3,844)	(3,333)
Net change in non-cash working capital:
Trade and other receivables	(129)	(2,380)
Inventory	248	846
Current digital assets	2,437	0
Prepaid expenses and other assets	(3,767)	(120)
Customer advances	4,141	0
Trade payables and accrued liabilities	(1,560)	(562)
Net cash used in operating activities	(2,474)	(5,549)
Cash flows from financing activities:
Equity instruments issued	115	1,158
Equity issue costs	0	(66)
Loan borrowings	2,481	2,766
Loan repayments	(2,752)	(2,346)
Net cash (used) provided by financing activities	(156)	1,512
Cash flows from investing activities:
Purchase of digital assets	0	(1,010)
Purchases of property, plant and equipment and intangible assets	0	(89)
Net cash on insolvency	0	(67)
Net cash on asset disposals	0	2
Cash acquired in business combination	0	461
Net cash used by investing activities	0	(703)
Effect of exchange rate changes on cash	(26)	194
Change in cash for the period	(2,656)	(4,546)
Cash and restricted cash at beginning of period	5,621	5,248
Cash included in assets held for sale	0	804
Cash and restricted cash at end of period	2,965	1,506
Supplemental disclosure of non-cash investing and financing activities
Digital assets used to settle convertible note	24,650	0
Digital assets used to settle vendor invoices	4	0
Debt issued for business combinations	0	2,135
Common shares issued for business combinations	0	813
Operating lease additions to right of use assets	$ 0	$ 325

Unaudited Condensed Interim Consolidated Statements of Financial Position - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current
Cash	$ 2,640	$ 5,596
Restricted cash	325	25
Trade and amounts receivable, net of $317 allowance ($327 at December 31, 2025)	927	799
Prepaid expenses and other current assets	3,982	323
Inventory	1,604	1,897
Current digital assets	1,070	76
Total current assets	10,548	8,716
Non-current
Property, plant and equipment	115	128
Operating lease right of use assets	321	386
Restricted digital assets	0	49,000
Digital assets	14,148	71,950
Other assets	55	55
Total assets	25,187	130,235
Current
Trade payables	2,183	2,328
Customer advances	4,141	0
Contingencies	1,271	1,167
Current portion of debt	2,379	2,722
Current portion of operating lease liability	116	163
Other accrued liabilities	1,017	2,248
Total current liabilities	11,107	8,628
Non-current
Long-term debt	34	50,767
Non-current operating lease liability	228	279
Deferred tax	0	9
Total liabilities	11,369	59,683
SHAREHOLDERS' EQUITY
Share capital, no par value, unlimited authorized, 2,430 issued and outstanding (1,046 at December 31, 2025)	0	0
Additional paid-in capital	352,678	348,160
Accumulated other comprehensive income	203	180
Deficit	(339,063)	(277,788)
Total shareholders' equity	13,818	70,552
Total liabilities and shareholders' equity	$ 25,187	$ 130,235