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CleanCore Solutions, Inc. Provides Business Update for the Third Quarter of Fiscal 2024 and Appoints Clayton Adams as Chief Executive Officer and Chairman of the Board
Projects sales for Q4 2024 to increase more than 75% sequentially from Q3 2024, reflecting the prudent deployment of capital into sales and market initiatives following the IPO
Omaha, NE, June 13, 2024 (GLOBE NEWSWIRE) -- CleanCore Solutions, Inc. (NYSE American: ZONE) (“CleanCore” or the “Company”), developer of the patented aqueous ozone technology that works as an all-purpose cleaner, today provided a business update, and reported financial results for the third quarter ended March 31, 2024. Additionally, the Company announces the appointment of Clayton Adams as Chief Executive Officer and Chairman of the Board of Directors.
Clayton Adams, newly appointed Chief Executive Officer of CleanCore, commented, “We have made important advancements over the last few months including completing our initial public offering, expanding our customer relationships, and receiving additional Green Seal® certifications. We believe we are at a major inflection point for the Company and are well positioned to cost-effectively deploy the capital from our IPO to accelerate our growth in a very meaningful way. In fact, we are already witnessing the benefits of our sales and marketing initiatives. We currently are projecting sales for the fourth quarter of 2024 to increase more than 75% sequentially compared to the third quarter of 2024. We have also witnessed an improvement in our gross margins during the third quarter of 2024 as a result of refining our business strategy to move away from primarily a distributor sales model and adopting more of a direct sales model. This shift has had a significant impact on our sales pipeline. As a result, we expect to see continued improvement in our revenue, gross margins and overall profitability going forward.”
“In terms of new pilots and customers, we are seeing some of the world’s largest companies pilot CleanCore’s product offering, seeking solutions for cost savings and a reduction in chemical spend. What we didn’t expect was the rate at which we would be implementing these trials. We have entered into agreements with major international airports, as well as hospitality management groups, both of which are ideal verticals for the deployment of our products. These customers have completed successful pilots of our products and have begun installing additional units throughout their large facilities. Importantly, we have received very positive feedback regarding our products as they are effective cleaning solutions and enable customers to reduce cleaning material costs and labor time while eliminating the use the harmful chemicals contained in traditional cleaning solutions. We are already witnessing traction within the market and expect increased adoption moving forward.”
“Furthermore, the U.S. Environmental Protection Agency (EPA) recently implemented a new ban and restriction on the use of Per-and Polyfluorinated Substances (PFAS), also known as “forever chemicals.” Forever chemicals have posed a persistent threat to ecosystems and human health due to their non-biodegradable nature and widespread use in various industrial and consumer products. In contrast, our patented aqueous ozone technology is compliant with the EPA Organic Program and has been granted Generally-Recognized-as-Safe (GRAS) approval by the U.S. Food and Drug Administration. To our knowledge, we are the only cleaning solutions company that has received three Green Seal® certifications, which we believe provides additional credibility and validation for our products. Moreover, our products meet the highest performance standards while adhering to all regulations, allowing us to lead the way in promoting environmental stewardship within our industry.”
“Finally, I am honored to take the helm as Chairman and Chief Executive Officer of the Company. We appreciate the hard work of Doug Moore in supporting the Company through the IPO and our transition to a public company. Moving forward, we are laser-focused on accelerating our growth strategy and implementing initiatives that we believe will propel us to the forefront of the industry. In particular, I look forward to leveraging my deep industry experience and contacts, which have already begun to yield meaningful results in growing our sales pipeline. At the same time, we continue to carefully manage our expenses and have identified additional opportunities to lower our cost of goods, which should further enhance our gross margins. We have also built a highly scalable business and expect to benefit from improved operating efficiencies as we continue to grow. Overall, we are very proud of our progress within a short period of time since closing our IPO. We believe we are on a path of significant growth as we continue to secure new customers and adoption of our products increases. With our current cash position, we believe we are well-capitalized to aggressively penetrate the market while creating significant value for shareholders.”
Larry Goldman, Audit Committee Chair, stated, “This is a very exciting time for CleanCore following the IPO and appointment of Clayton as the new Chief Executive Officer. I believe CleanCore may now have the necessary foundation to execute its strategy to achieve its full potential. I expect that Clayton will implement strategic growth initiatives for CleanCore and we look forward to his contributions. He has also invested significant capital in CleanCore, illustrating his alignment with shareholders.”
Mr. Adams previously served as President and as a member of the board of directors of CleanCore since September 2022. Since January 2020, Mr. Adams has served as Principal at Bird Dog Capital LLC, where he leads various investments. Mr. Adams gained experience developing the growth of small companies as Chief Executive Officer of Carson Enterprises, Inc. from March 2009 to February 2019. At Carson Enterprises, Inc., Mr. Adams expanded the company and successfully sold the company in February 2019.
Financial Results
Revenue for the three months ended March 31, 2024, was $0.3 million compared to $0.6 million for the same period in 2023. This decrease was a result of receiving one six-figure order during the third quarter of 2023, which accounted for approximately 63% of revenue. The Company has refined its business strategy to focus on direct sales to customers, which is expected to assist in accelerating revenue growth, illustrated by securing a number of meaningful new customers during the third quarter of fiscal 2024 alone.
Cash and cash equivalents as of March 31, 2024, were $0.05 million. Subsequent to the end of the quarter, the Company completed its initial public offering and received net proceeds of approximately $3.76 million.
Net loss for the three months ended March 31, 2024, was $0.5 million compared to $0.3 million for the same period in 2023. This increase in net loss was primarily due to an increase in advertising expenses and general and administrative expenses as a result of the initial public offering.
About CleanCore Solutions
CleanCore Solutions, Inc. (NYSE American: ZONE) is dedicated to revolutionizing cleaning and disinfection practices by harnessing the power of its patented aqueous ozone technology. The Company’s mission is to empower its customers with cost-effective, sustainable solutions that surpass traditional cleaning methods. Through innovation and commitment to excellence, CleanCore strives to create a healthier, greener future for generations to come. For more information, please visit https://www.cleancoresol.com/.
Forward Looking Statements
This press release may contain information about our views of future expectations, plans and prospects that constitute forward-looking statements. All forward-looking statements are based on the management’s beliefs, assumptions, and expectations of CleanCore’s future economic performance, taking into account the information currently available to it. These statements are not statements of historical fact. Although CleanCore believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. CleanCore does not undertake any duty to update any statements contained herein (including any forward-looking statements), except as required by law. Forward-looking statements are subject to a number of factors, risks and uncertainties, some of which are not currently known to us, that may cause CleanCore’s actual results, performance or financial condition to be materially different from the expectations of future results, performance or financial position. Actual results may differ materially from the expectations discussed in forward-looking statements. Factors that could cause actual results to differ materially from expectations include general industry considerations, regulatory changes, changes in local or national economic conditions and other risks set forth in “Risk Factors” included in our filings with the SEC.
