0001213900-26-057681
SEC filingRevenue declined sharply as management deliberately reduced marketing spend, but net loss improved significantly due to a large insurance recovery.
Revenue for Q1 2026 was $222,683, a decrease of 48.1% compared to $429,340 in Q1 2025. The decline was primarily due to lower sales volume on the CWS Platform, as management deliberately reduced customer acquisition spending to focus on profitability with the existing customer base rather than pursuing top-line growth.
Gross profit was negative $22,236, compared to a positive $30,158 in the prior year, resulting in a gross margin of -10.0%. The deterioration was driven by a decline in service revenues and an increase in service cost of revenue, partially offset by an improvement in product gross loss. Additionally, a fixed-cost retainer that commenced in July 2025 contributed to the negative margin.