CBDS Cannabis Sativa, Inc. - 10-K

Item 1A. Risk Factors

The Company faces various risks including:

• dependence on telemedicine revenue

• regulatory changes affecting telemedicine or medical cannabis programs

• competition from larger telemedicine providers

• reliance on third-party physicians

• potential need for additional capital.

Regulation of Telemedicine and Physician Licensing May Affect Our Operations

The Company’s telemedicine services are subject to state laws and regulations governing the practice of medicine, telemedicine, and physician licensing. Physicians providing consultations through the PrestoDoctor platform must comply with applicable state medical licensing requirements and telemedicine regulations in the jurisdictions where patients are located. Changes in state laws, regulations, or enforcement policies related to telemedicine, medical cannabis evaluations, or physician licensing could affect the ability of physicians to provide services through the Company’s platform or increase compliance costs. Any such changes could have a material adverse effect on the Company’s business, financial condition, and results of operations.

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Overview

Dogecoin Cash Inc. operates primarily through its majority-owned subsidiary PrestoCorp, Inc., which conducts telemedicine services through the PrestoDoctor platform.

The Company generates substantially all of its revenue from telemedicine consultation services facilitated through the PrestoDoctor platform.

Digital Asset Initiatives

The Company maintains certain digital asset and blockchain-related initiatives through subsidiaries including DogeSPAC LLC, Meme Coins, Inc., and Dogecoin Treasury, Inc. These activities currently represent exploratory or strategic initiatives and do not constitute a significant source of the Company’s revenue or operating cash flows. The Company’s principal operating business remains the provision of telemedicine services through its majority-owned subsidiary PrestoCorp, Inc.

Results of Operations

Year Ended December 31, 2025 compared with the Year Ended December 31, 2024

Years Ended

December 31,

December 31,

Change

Change %

REVENUE

Cost of revenues

Cost of sales % of total sales

Gross profit

Gross profit % of sales

EXPENSES

Professional fees

Depreciation and amortization

Wages and salaries

Advertising

General and administrative

Total expenses

NET LOSS FROM CONTINUING OPERATIONS

Revenue for the fiscal year ended December 31, 2025 decreased 8% compared to the year ended December 31, 2024. Cost of revenues as a percentage of sales decreased 14% between the years. The reason for the decrease is there is a significant increase in competition for market share in the cannabis tele-medicine industry.

Total operating expenses decreased 14% in 2025 compared with 2024 which trended down as did revenue in the current year. Decreases in professional fees, depreciation and amortization, wages and salaries, and advertising expenses. Depreciation and amortization decreased due to patents becoming fully amortized. Advertising costs were reduced by taking a more focused approach to our target markets. PrestoDoctor salaries decreased with an effort to consolidate and reduce employees and officers reducing their salaries. Professional fees decreased due to a  decrease in legal and accounting. General and administrative expenses increased due to $75,055 in bad debts and an increase in web costs.

Revenue is derived primarily from telemedicine consultation services conducted through the PrestoDoctor platform.

Operating expenses consist primarily of:

• platform development

• physician network support

• professional fees

• marketing and administrative expenses.

Liquidity and Capital Resources

Cash used in operating activities was $39,583 in 2025 compared to $107,671 in 2024. In 2025, financing activities provided $34,202 compared to $60,092 in 2024. We ended 2025 with $29,553 in cash on hand.

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. We incurred net loss of $10,043,831 and $1,780,240 respectively, for the years ended December 31, 2025, and 2024 and had an accumulated deficit of $84,389,964 as of December 31, 2025. The Company may seek to raise money for working capital purposes through a public offering of its equity capital or through a private placement of equity capital or convertible debt. It will be important for the Company to be successful in its efforts to raise capital in this manner if it is going to be able to further its business plan in an aggressive manner. Raising capital in this manner will cause dilution to current shareholders.

The Company has historically funded operations through telemedicine revenues and financing transactions.

Future expansion of the Company’s operations may require additional capital.