ZeroStack tells SEC it may not survive another year of operation

ZeroStack fears it may not have enough cash to operate for another year, as its 0G token treasury sinks 91%.

The Nasdaq-listed company told the U.S. Securities and Exchange Commission (SEC) Friday that there is substantial doubt about its ability to keep operating as a going concern for the next 12 months.

In the filing, ZeroStack said the company primarily relies on selling staking rewards to fund operations.

ZeroStack reports a $339.1 million deficit

The firm incurred a net loss of $61.3 million in the first half of 2026, ending June 30th. At the time, it only had cash of $2.6 million, negative working capital of $0.6 million, and an accumulated deficit of $339.1 million, the document shows.

ZeroStack previously operated as a Cannabis firm called Flora Growth. It rebranded in September 2025 after securing $401 million in cash and tokens to pivot toward a digital asset treasury for 0G, the native token of Zero Gravity.

The company doubled down on the 0G token treasury in April 2026, announcing a $107 million financing transaction that would give it 21% of the total 0G token supply, Cryptopolitan reported.

On June 30th, ZeroStack declared it owned 75,101,767 0G tokens, which were bought for $163.3 million. The fair value of the holdings was reported at $15.1 million, which translated to over 90% loss.

Upon completion of the April deal, ZeroStack’s 0G holdings increased by an additional 148.0 million tokens on July 20th, bringing the total to approximately 223 million.

ZeroStack told the SEC that “substantially” all of its 0G tokens have been staked. It expects the rewards to provide sufficient liquidity to cover its operating costs, but still cannot conclude on the company’s ability to continue operating in the next year.

“Although management has implemented the plans described above, it cannot conclude that such plans are probable of effectively mitigating the conditions and events that raise substantial doubt,” the document reads.

0G down over 97%

Zero Gravity’s 0G token is down 97% from its high in September 2025, and over 98% from its all-time high of $7.05.

At the time of writing, the token trades around $0.1383, with a $29.507 market cap, according to CoinGecko.

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