ZONE · CleanCore Solutions, Inc.

On May 18, 2026, the Audit Committee of CleanCore Solutions, Inc., after discussions with management and consultation with its independent auditor TAAD, LLP, concluded that the company's previously issued unaudited condensed consolidated financial statements for the fiscal quarter ended March 31, 2026, filed on May 11, 2026, should no longer be relied upon. The determination was driven by the identification of an error related to the cancellation of an asset management agreement. The termination of this agreement resulted in a non-cash transfer of 70,000,000 Dogecoins that was not recorded in the company's accounting system and was not verified against an independent source during reconciliation. Consequently, the company's digital assets were overstated, while its net loss and general and administrative expenses were understated in the Q3 2026 10-Q. Management's evaluation of the error led to the conclusion that a material weakness existed in internal control over financial reporting as of March 31, 2026. Specifically, the Digital Asset Reconciliation Control failed because it reconciled against a static sub-ledger rather than verifying balances against independent source data from corporate wallets. To address this, management is implementing several remedial measures: updating the reconciliation control to require verification against actual custodial statements with time-stamped proof of wallet balances, amending the month-end close checklist to mandate formal sign-off on the disclosure of all asset-bearing contract terminations to the accounting department, and instituting a secondary review for any digital asset transfer exceeding $100,000 to ensure immediate derecognition in the general ledger. The company intends to file an amendment (Form 10-Q/A) to restate the impacted financial statements. This non-reliance event signals a significant breakdown in controls over a novel and volatile asset class, which may impact investor confidence and requires close monitoring of the effectiveness of the stated remediation plans.