Nasdaq-listed crypto treasury company ZeroStack warned that substantial doubt exists about its ability to continue operating over the next year, reversing its assessment from three months earlier.
In a Form 10-Q filed with the US Securities and Exchange Commission (SEC) on Friday, ZeroStack reported $2.6 million in cash, negative working capital of $600,000 and an accumulated deficit of $339.1 million as of June 30. The company also posted an $82.5 million fair value loss on digital assets and a net loss of $61.3 million for the first half of 2026.
ZeroStack said its 75.1 million Zero Gravity (0G) tokens had an aggregate cost of $163.3 million and a fair value of $15.2 million as of June 30, leaving the holdings valued about 91% below their recorded costs.
ZeroStack relies on staking rewards and token sales to fund operations, making its ability to raise cash dependent on 0G’s price and trading liquidity.
ZeroStack’s 0G strategy faces a liquidity test
ZeroStack reported $3.8 million in staking revenue during the first half of the year, earning about 6.6 million 0G tokens after validator commissions. It sold nearly 4.9 million tokens for $2.4 million to fund its operating expenses.
The company expects its cash and staking reward sales to cover forecast operating costs and said it could sell some of its treasury holdings if needed. However, management said it could not conclude that those plans would be enough to ease doubts about its ability to continue operating.
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The latest assessment reverses the company’s position in its previous two reports. In its first-quarter filing, ZeroStack said its cash and staking rewards would be sufficient to meet its working capital requirements and obligations for at least another year.
The company was previously the cannabis and CBD products firm Flora Growth. On Sept. 19, Flora announced $401 million in funding for a 0G treasury strategy, including $35 million in cash and equivalent commitments and more than $366 million in in-kind digital assets. The company subsequently rebranded as ZeroStack and retained its Nasdaq listing.
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