ZeroStack Corp.

What they do

ZeroStack operates two distinct businesses: it holds strategic positions in 0G Tokens, the native token of a layer-1 blockchain for decentralized AI, and it distributes pharmaceutical products through Phatebo GmbH, a German wholesale distributor with import/export capabilities. The company focuses on AI infrastructure through token ownership while maintaining a legacy pharmaceutical distribution network across Europe and other regions.

Revenue drivers

• Pharmaceutical distribution (Phatebo) — Wholesale distribution of drugs and medical products across 28 countries, primarily in Europe, with sales to Asia, Latin America, and North America.
• Cryptocurrency-related proceeds — Proceeds from private placements and token sales, including the use of 0G Tokens to purchase pre-funded warrants in the PIPE Offering.
• Legacy hemp and cannabis business — Partially divested in September 2025; contributes minimal revenue going forward.

Recent performance

For the fiscal year 2025, revenue was $35.7 million, with a net loss of $119.7 million and diluted EPS of -$43.49. Quarterly revenue rose to $13.7 million in the quarter ended June 30, 2026, from $7.3 million in the prior quarter. Cash and equivalents stood at $2.6 million as of June 30, 2026, with shareholder equity of $13.8 million. The company has accumulated deficits of $277.8 million as of December 31, 2025.

Strategy

ZeroStack has pivoted to a decentralized AI treasury strategy, owning 0G Tokens and other cryptocurrencies like Solana, Ethereum, Sui, and Ripple, funded by private placements. It is also expanding its pharmaceutical distribution through Phatebo, using the warehouse as a logistics hub for EU distribution. The company divested components of its hemp and cannabis business to focus on these higher-priority areas.

Risks

• Going concern and liquidity — Only $2.6M cash on hand and substantial losses raise doubt about the ability to continue operating without additional funding.
• Cryptocurrency volatility — The value of 0G Tokens and other digital assets held can fluctuate significantly, impacting financial results and solvency.
• Regulatory and legal classification — Cryptocurrencies may be classified as securities, and the company could be deemed an investment company under the 1940 Act, adding regulatory burdens.
• Operational integration — Acquisitions and diversification across AI and pharma may be difficult to integrate, diverting management attention and potentially leading to losses.

Outlook

Management expects continued investment in 0G Tokens and AI infrastructure, using proceeds from private placements. The company will also leverage Phatebo's distribution network for EU expansion. However, the limited cash reserves and recurring losses indicate a need for future capital raises to sustain operations.