Z Squared (ZSQR) Q2 2026 earnings summary

Executive summary

• Completed a reverse acquisition Merger on April 24, 2026, shifting from biopharmaceuticals to crypto asset mining and digital infrastructure development.

• Operations now focus on Dogecoin and Litecoin mining using Scrypt-algorithm ASIC hardware across six facilities, with expansion plans into AI and high-density compute infrastructure.

• Legacy biopharma assets were spun out, except for GEAR Therapeutics, which remains a subsidiary.

Financial highlights

• For the three and six months ended June 30, 2026, revenue was $1,583,485, all from crypto mining (88% Dogecoin, 12% Litecoin).

• Cost of revenue was $3,349,432 (211% of revenue), including $2,191,923 in direct mining costs and $1,157,509 in depreciation.

• Net loss attributable to common stockholders was $13,722,495 for the quarter, with a net loss per share of $0.28.

• Cash at June 30, 2026 was $15,492,446, up from $1,402 at December 31, 2025, mainly due to $15.4 million raised via equity issuance.

Outlook and guidance

• Management believes current cash is sufficient for at least 12 months of planned operations.

• Expansion into AI and high-density compute infrastructure will require substantial additional capital, with no assurance of availability.

• No profitability guidance provided; future results depend on successful execution of expansion strategy and market conditions.