$ZONE

Zone Frontier Inc.

CIK:0001956741|SEC Filings

Consolidated Statements of Operations - USD ($)	12 Months Ended
Consolidated Statements of Operations - USD ($)	Jun. 30, 2026	Jun. 30, 2025
Revenue, net	$ 3,406,434	$ 2,072,834
Cost of sales (exclusive of depreciation shown separately below)	2,118,487	1,086,369
Gross profit	1,287,947	986,465
Operating expenses:
General and administrative	56,492,928	7,081,299
Advertising expense	276,231	92,598
Depreciation and amortization expense	259,598	198,909
Goodwill impairment	2,237,910
Total operating expenses	59,266,667	7,372,806
Loss from operations	(57,978,720)	(6,386,341)
Other income (expense)
Interest income (expense), net	140,365	(356,054)
Change in fair value of digital assets	(116,318,363)
Foreign exchange gain (loss)	(4,146)	120
Total other income (expense)	(116,182,144)	(355,934)
Net loss	(174,160,864)	(6,742,275)
Foreign currency translation adjustment	67,746	21,259
Total comprehensive loss	$ (174,093,118)	$ (6,721,016)
Class A
Other income (expense)
Net loss per share, basic (in Dollars per share)	$ (1.04)	$ (0.79)
Net loss per share, diluted (in Dollars per share)	$ (1.04)	$ (0.79)
Weighted average shares used in computing net loss per share, basic (in Shares)		228,891
Weighted average shares used in computing net loss per share, diluted (in Shares)		228,891
Common Stock (formerly class B)
Other income (expense)
Net loss per share, basic (in Dollars per share)	$ (1.04)	$ (0.79)
Net loss per share, diluted (in Dollars per share)	$ (1.04)	$ (0.79)
Weighted average shares used in computing net loss per share, basic (in Shares)	167,097,047	8,320,481
Weighted average shares used in computing net loss per share, diluted (in Shares)	167,097,047	8,320,481

Consolidated Statement of Cash Flows - USD ($)	12 Months Ended
Consolidated Statement of Cash Flows - USD ($)	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities
Net loss	$ (174,160,864)	$ (6,742,275)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	265,885	203,777
Accretion of note payable discount	20,000	83,048
Non-cash interest expense	151,216	344,886
Change in fair value of digital assets	116,318,363
Impairment of goodwill	2,237,910
Stock based compensation	9,227,013	3,203,230
Non-cash professional fees	26,482,428
Non-cash lease expense	(5,562)	(1,484)
Reversal of contingent liability		(111,987)
Modification of related party debt		18,022
Provision for bad debt and write-off on uncollectable accounts	22,520	221,241
Provision for inventory reserve and write-off	671,425
Impairment of intangibles	1,748,969	261,250
Foreign exchange (gain)/loss	4,146	(120)
Changes in operating assets and liabilities:
Accounts receivable	176,860	(138,859)
Inventory	(232,951)	(326,958)
Prepaid expenses	(678,746)	(172,198)
Deferred revenue		(10,395)
Due to related parties	(215,277)	216,896
Accounts payable and accrued liabilities	(190,725)	614,268
Net cash used in operating activities	(18,157,390)	(2,337,659)
Investing activities
Purchase of property and equipment	(37,555)	(32,389)
Purchase of digital assets	(148,605,650)
Sale of digital assets	18,368,360
Cash used in acquisition		(581,792)
Net cash used in investing activities	(130,274,845)	(614,181)
Financing activities
Proceeds from issuance of common stock (ATM), net of fees	27,270,510
Proceeds from related party loans		332,193
Proceeds from issuance of promissory notes and warrants		1,510,000
Proceeds from exercise of warrants	370,408	403,171
Proceeds from issuance of original issue discount notes		500,000
Proceeds from pre-funded warrants, net of fees	137,907,255
Funds provided for related party notes receivable	(1,000,000)
Payments for deferred offering costs	(1,078,967)	(53,477)
Payments on notes payable	(660,000)	(316,920)
Repayments of loans due to related parties	(425,241)
Net cash provided by financing activities	162,383,965	2,374,967
Effect of exchange rate changes on cash and cash equivalents	22,485	21,259
Net increase (decrease) in cash	13,974,216	(555,614)
Cash and cash equivalents at beginning of year	1,460,997	2,016,611
Cash and cash equivalents at the end of year	15,435,213	1,460,997
Supplementary cash flow disclosure
Interest paid	80,448	48,830
Unpaid deferred offering costs		70,585
Debt to equity conversion	3,920,314	644,625
Digital assets received in connection with pre-funded warrants	26,349,890
Issuance of debt in connection with acquisition		800,000
Issuance of warrants in connection with acquisition		181,475
Fair value of assets acquired		$ 1,563,267

Consolidated Balance Sheets - USD ($)	Jun. 30, 2026	Jun. 30, 2025
Current assets:
Cash and cash equivalents	$ 15,435,213	$ 1,460,997
Accounts receivable, net	458,303	657,683
Inventory, net	909,219	1,347,693
Deferred offering costs		124,062
Prepaid expenses and other current assets	906,310	227,564
Total current assets	18,709,045	3,817,999
Property and equipment, net	53,759	32,548
Right of use assets	254,972	394,415
Digital assets	33,480,376
Intangibles, net	0	1,974,509
Goodwill	0	2,237,910
Other assets	9,440	9,440
Total assets	52,507,592	8,466,821
Current liabilities:
Accounts payable and accrued expenses	720,067	1,380,285
Lease liability – current	159,126	145,005
Note payable – current		690,112
Total current liabilities	880,812	2,847,538
Lease liability – non-current	113,972	273,099
Note payable – non-current		3,880,202
Total liabilities	994,784	7,000,839
Commitments and contingencies (Note 20)
Stockholders’ Equity
Additional paid-in capital	239,630,545	15,490,763
Other comprehensive income	67,746	21,259
Accumulated deficit	(188,208,088)	(14,047,224)
Total stockholders’ equity	51,512,808	1,465,982
Total liabilities and stockholders’ equity	52,507,592	8,466,821
Related Party
Current assets:
Note receivable, related party	1,000,000
Current liabilities:
Note payable – related party		415,241
Due to related parties	1,619	216,895
Class A Common Stock
Stockholders’ Equity
Common stock value		188
Common Stock (formerly class B)
Stockholders’ Equity
Common stock value	$ 22,605	$ 996