# Dogecoin Cash, Inc.: Form 10-Q for the period ended Mar 31, 2020

- Company: [Dogecoin Cash, Inc.](/companies/dogp.md) (CIK 1360442)
- Form: 10-Q
- Filed: 2020-06-29
- Accepted by EDGAR: Jun 29, 2020, 09:50 ET
- Period: 2020-03-31
- Accession: 0001445866-20-000913
- Inline XBRL: yes
- Main document: https://www.sec.gov/Archives/edgar/data/1360442/000144586620000913/cbds_10q.htm
- All documents and exhibits: https://www.sec.gov/Archives/edgar/data/1360442/000144586620000913/

## Figures reported in this filing

Standardized XBRL line items for the period ended 2020-03-31.

| Line item | Period | Value | XBRL concept |
| --- | --- | ---: | --- |
| Revenue | 3 months, 2020-01-01 to 2020-03-31 | $493.1k | us-gaap:Revenues |
| Cost of revenue | 3 months, 2020-01-01 to 2020-03-31 | $187.3k | us-gaap:CostOfRevenue |
| Gross profit | 3 months, 2020-01-01 to 2020-03-31 | $305.8k | us-gaap:GrossProfit |
| Operating income | 3 months, 2020-01-01 to 2020-03-31 | −$672.8k | us-gaap:OperatingIncomeLoss |
| Interest expense | 3 months, 2020-01-01 to 2020-03-31 | $13.6k | us-gaap:InterestExpense |
| Income tax | 3 months, 2020-01-01 to 2020-03-31 | $0 | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months, 2020-01-01 to 2020-03-31 | −$616.4k | us-gaap:NetIncomeLoss |
| Diluted EPS | 3 months, 2020-01-01 to 2020-03-31 | −$0.03 | us-gaap:EarningsPerShareBasicAndDiluted |
| Operating cash flow | 3 months, 2020-01-01 to 2020-03-31 | −$94.6k | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Capital expenditure | 3 months, 2020-01-01 to 2020-03-31 | $11.9k | us-gaap:PaymentsToAcquirePropertyPlantAndEquipment |
| Cash and equivalents | at 2020-03-31 | $345.1k | us-gaap:CashAndCashEquivalentsAtCarryingValue |
| Current assets | at 2020-03-31 | $424.4k | us-gaap:AssetsCurrent |
| Total assets | at 2020-03-31 | $3.2m | us-gaap:Assets |
| Current liabilities | at 2020-03-31 | $1.3m | us-gaap:LiabilitiesCurrent |
| Total liabilities | at 2020-03-31 | $1.3m | us-gaap:Liabilities |
| Shareholders' equity | at 2020-03-31 | $727.5k | us-gaap:StockholdersEquity |

## Management's discussion and analysis

As filed, 8,560 characters.

*Certain statements in this Report constitute “forward-looking statements.” Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Factors that might cause such a difference include, among others, uncertainties relating to general economic and business conditions; industry trends; changes in demand for our products and services; uncertainties relating to customer plans and commitments and the timing of orders received from customers; announcements or changes in our pricing policies or that of our competitors; unanticipated delays in the development, market acceptance or installation of our products and services; changes in government regulations; availability of management and other key personnel; availability, terms and deployment of capital; relationships with third-party equipment suppliers; and worldwide political stability and economic growth. The words “believe,” “expect,” “anticipate,” “intend” and “plan” and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made.*

### Results of Operations

#### Three Months Ended March 31, 2020, compared with the Three Months Ended March 31, 2019

|  | Three Months Ended A March 31, 2019 | B March 31, 2020 | B-A Change | Change % |
| --- | ---: | ---: | ---: | ---: |
| REVENUE | $100,282 | $493,140 | $392,858 | 392% |
| Cost of Sales | 45,609 | 187,335 | 141,726 | 311% |
| Cost of sales % of total sales | 45% | 38% | -7% |  |
| Gross Profit | 54,673 | 305,805 | 251,132 | 459% |
| Gross profit % of sales | 55% | 62% | 7% |  |
| OPERATING EXPENSES |  |  |  |  |
| Professional fees | 254,088 | 279,086 | 24,998 | 10% |
| Depreciation and amortization | 140,518 | 51,635 | (88,883) | -63% |
| Wages and salaries | 32,634 | 184,909 | 152,275 | 467% |
| Advertising | 33,153 | 87,088 | 53,935 | 163% |
| General and administrative | 332,095 | 375,862 | 43,767 | 13% |
| Total operating expenses | 792,488 | 978,580 | 186,092 | 23% |
| NET LOSS FROM OPERATIONS | (737,815) | (672,775) | 65,040 | -9% |

Revenue for the three-month periods ended March 31, 2020 and 2019 was $493,140 and $100,282, respectively. Cost of revenues for the three-month periods ended March 31, 2020 and 2019 was $187,335 and $45,609, respectively. Gross profit for the three-month periods ended March 31, 2020 and 2019 was $305,805 and $54,673, respectively. The fluctuation in these numbers is primarily the result of significant increases in patient visits due to expanded market coverage and the generally increasing acceptance of telehealth platforms in the age of the Covid-19 pandemic.

Revenues from our PrestoCorp subsidiary grew 392% in the three months ended March 31, 2020 compared to the three months ended March 31, 2019. This large increase in revenue is the result of expanded market area, increased advertising which drove and in increase in patient visits to our online platform, and a general increase in consumer awareness of the PrestoDoctor brand. The Company now operates in the states of California, Nevada, New York, Oklahoma, Missouri, and Pennsylvania. The Company is currently exploring expansion opportunities in four additional states, including Illinois, Ohio, Virginia, and Massachusetts.

Net operating loss for the three-month period ended March 31, 2020 was $672,775 compared to net loss of $737,815 for the three-month period ended March 31, 2019. The decrease in net operating loss resulted primarily from an increase in revenue from PrestoCorp and a corresponding 7% improvement in the gross profit as a percent of sales.

Total operating expenses were $978,580 for the three-month period ended March 31, 2020 and $737,815 for the three-month period ended March 31, 2019. The increase in total operating costs was largely attributable to increases in activity brought on by the significant increase in revenue and patient load. The Company also significantly reduced its depreciation and amortization expense as a result of impairment of amortizable intangible assets taken in the year ended December 31, 2019. Management expects that operating costs will continue to increase as revenues rise, but the increases in operating costs are expected to rise at a slower rate than revenue due to expected efficiencies of scale.

### Liquidity and Capital Resources

Net cash used in operating activities for the three-month period ended March 31, 2020, was $94,609. During the same period, our cash increased by $9,024. The Company generated $65,500 in the quarter from advances from related parties, and applied a $50,000 advance balance as partial consideration for the acquisition of assets by GK Manufacturing and Packaging, Inc., a newly formed contract manufacturing entity that is owned 51% be the Company. We also reported $592,075 during the period from issuance of common and preferred stock as compensation for services performed by officers, directors, and contractors. On March 31, 2020, our cash position was approximately $345,000, primarily derived from our PrestoCorp operations. We have funding obligations totaling approximately $310,000 for GK Manufacturing in the coming months. Given expected operations in our second quarter, we expect that additional funds will be required. Management is currently evaluating several fund-raising alternatives including private placement of equity securities, a secondary public offering, and various debt instruments. In addition, key members of management have indicated a willingness to provide additional operating capital from time to time. Based on all of these considerations, we believe we will have sufficient capital to operate the business for the next twelve months.

The accompanying condensed 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 a net loss of $616,407 and $722,759, respectively, for the three-month periods ended March 31, 2020, and 2019, and had an accumulated deficit of $75,471,544 as of March 31, 2020. These factors raise substantial doubt about the Company’s ability to continue as a going concern. 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.

### COVID-19

In March 2020, COVID-19 was declared a pandemic by the World Health Organization and the Centers for Disease Control and Prevention. Its rapid spread around the world and throughout the United States prompted many countries, including the United States, to institute restrictions on travel, public gatherings and certain business operations. These restrictions significantly disrupted economic activity in the United States and Worldwide. To date, the disruption did not materially impact the Company’s financial statements. However, if the severity of the economic disruptions increase as the duration of the COVID-19 pandemic continues, the negative financial impact due to reduced demand could be significantly greater in future periods than in the first quarter.

The effects of the continued outbreak of COVID-19 and related government responses could also include extended disruptions to supply chains and capital markets, reduced labor availability and a prolonged reduction in economic activity. These effects could have a variety of adverse impacts to the Company, including our ability to operate our facilities. To date, there have been no material adverse impacts to the Registrants’ operations due to COVID-19.

In addition, the economic disruptions caused by COVID-19 could also adversely impact the impairment risks for certain long-lived assets, equity method investments and goodwill. Management evaluated these impairment considerations and determined that no such impairments occurred through the date of this report.

### Off Balance Sheet Arrangements

None

## Controls and procedures

As filed, 1,824 characters.

### Disclosure Controls and Procedures

### Conclusions of Management Regarding Effectiveness of Disclosure Controls and Procedures

At the end of the period covered by this Quarterly Report on Form 10-Q, an evaluation was carried out under the supervision and with the participation of the Company’s management, including the Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), of the effectiveness of the design and operations of the Company’s disclosure controls and procedures (as defined in Rule 13a – 15(e) and Rule 15d – 15(e) under the Exchange Act). Based on that evaluation, the CEO and the CFO have concluded that as of the end of the period covered by this report, the Company’s disclosure controls and procedures were not effective as it was determined that there were material weaknesses affecting our disclosure controls and procedures.

Management of the Company believes that these material weaknesses are due to the small size of the company’s accounting staff. The small size of the Company’s accounting staff may prevent adequate controls in the future, such as segregation of duties, due to the cost/benefit of remediation. To mitigate the current limited resources and limited employees, we rely heavily on direct management oversight of transactions, along with the use of external legal and accounting professionals. As the Company grows, management expects to increase the number of employees, which will enable us to implement adequate segregation of duties within the internal control framework.

### Changes in Internal Control over Financial Reporting

There was no change in our internal control over financial reporting during the quarter ended March 31, 2020 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

## Risk factors

As filed, 1,496 characters.

Not required. However, the Company filed an 8-K on May 14, 2020 to take advantage of an extension of time to file its quarterly report on Form 10-Q for the quarter ended March 31, 2020 due to the COVID-19 pandemic. As a condition of the extension of time to file the annual report, the Company agreed to include the following Risk Factor in this Report.

***The occurrence of the COVID-19 pandemic may negatively affect our operations depending on the severity and longevity of the pandemic.***

The COVID-19 pandemic is currently impacting countries, communities, supply chains, and markets. The global financial markets have also been severely impacted. The response to the pandemic has so far been focused on social distancing, travel bans, and quarantines in an effort to slow the spread of the disease. This may limit or restrict access to customers, facilities, inventory supplies, personnel, and advisors. Government agencies and regulatory bodies are also impacted. All of these impacts are being felt by the Company now and they may have a significant and lasting effect on our businesses and on our efforts to expand our business through acquisitions and similar transactions. The impacts may also affect our ability to comply with regulatory requirements, including making timely filings with the Securities and Exchange Commission. Depending on the longevity and severity of the COVID-19 pandemic, our business, customers, and shareholders may experience significant negative impacts.

Filed Jun 29, 2020.
Source: SEC EDGAR, the filing index for accession 0001445866-20-000913. Last ingested by Listed: Nov 3, 2026, 21:17 ET. No prices; not investment advice.