1606 Corp.

What they do

1606 Corp. (CBDW) was incorporated in Nevada in February 2021 and spun off from Singlepoint Inc. in April 2021. The company initially sold hemp cigarettes (brands 'TRUZ' and 'Singlez'), a business it has discontinued. Since August 2023, it has developed AI chatbots, including 'chatCBDW by CBDW AI' for the CBD industry and 'IRChat' for public companies. As of the latest filings, management states it continues to maintain its AI chatbot technology but has shifted strategic focus toward acquiring and developing power infrastructure and energy assets to support data center and AI-related operations.

Revenue drivers

• AI chatbot licensing (chatCBDW and IRChat) — The company planned a monthly recurring licensing fee model for CBD brands/retailers and public companies, but reported zero revenue for fiscal 2025 and for each quarter in 2025.
• Legacy hemp product sales (discontinued) — Previously sold 'TRUZ' hemp cigarettes and 'Singlez' individually packeted versions; this business has been discontinued and contributed no revenue in 2025.

Recent performance

For fiscal 2025 (year ended December 31, 2025), the company reported revenue of $0.00, net loss of $1.3 million, and operating cash flow of -$460,779. This compares with fiscal 2024 revenue of $7,195, net loss of $4.5 million, and operating cash flow of -$890,986. Quarterly revenue was $0.00 for each quarter in 2025. As of June 30, 2026, total assets were $41,581, total liabilities $4.0 million, cash and equivalents $288, and shareholder equity was negative at -$3.9 million.

Strategy

Management states the company's strategic focus has shifted toward the acquisition and development of power infrastructure and energy assets to support data center and AI-related operations. In November 2025, the company signed a non-binding LOI with Sim Agro Inc., under which Sim Agro would acquire a controlling interest in the company, creating a public platform for power generation and data center infrastructure. On March 12, 2026, the company entered a Purchase and Sale Agreement to acquire approximately 132 acres in Angelina County, Texas, including a 55-megawatt power generation facility and a 50,000-square-foot warehouse, for a total purchase price of $11,168,864. The company deposited $250,000 in nonrefundable earnest money, funded by short-term notes from Greg Lambrecht and 1800 diagonal. As of the 10-K, the company had not secured the financing necessary to fund the cash portion of the purchase price, and no definitive agreement with Sim Agro had been executed.

Risks

• No revenue and ongoing losses — The company reported zero revenue in fiscal 2025 and in each quarter of 2025, with cumulative net losses exceeding $7 million since 2021.
• Negative equity and minimal liquidity — As of June 30, 2026, shareholder equity was -$3.9 million and cash was $288, against $4.0 million in total liabilities.
• Texas property acquisition financing risk — The company has not secured financing for the $7,000,000 cash portion of the Texas property purchase price and the closing is subject to customary conditions.
• Sim Agro transaction uncertainty — The non-binding LOI with Sim Agro has not resulted in a definitive agreement, and there is no assurance the transaction will be consummated.

Outlook

Management is focused on completing the acquisition of the Texas power generation facility and related assets, with closing scheduled for April 15, 2026, subject to conditions. The company also received a $6 million investment commitment letter from ENMAS EPC Power Projects Limited on December 3, 2025, to support strategic growth. Negotiations with Sim Agro remain ongoing, and management expects that, if completed, Sim Agro would oversee operations of the Texas facility. There is no forward-looking revenue guidance provided.