ZeroStack has informed the U.S. Securities and Exchange Commission (SEC) that it may lack sufficient cash to continue operating for another 12 months, as the value of its 0G token treasury has plummeted 91%.

In a regulatory filing submitted Friday, the Nasdaq-listed company disclosed substantial doubt about its ability to continue as a going concern. ZeroStack stated that it primarily depends on selling staking rewards to fund its operations.

$339.1 Million Accumulated Deficit

ZeroStack reported a net loss of $61.3 million for the first half of 2026, ending June 30. As of that date, the company held only $2.6 million in cash, had negative working capital of $0.6 million, and carried an accumulated deficit of $339.1 million.

The company was formerly known as Flora Growth, a cannabis-focused firm. It rebranded in September 2025 after securing $401 million in cash and tokens to shift its strategy toward a digital asset treasury built around 0G, the native token of the Zero Gravity protocol, a modular blockchain network focused on AI and decentralized data infrastructure. The pivot placed ZeroStack among a growing cohort of publicly traded companies that have adopted single-token crypto treasury strategies, but its decision to concentrate on a relatively new and thinly capitalized altcoin rather than an established asset like Bitcoin exposed it to far deeper volatility.

In April 2026, ZeroStack deepened its commitment to the 0G token treasury by announcing a $107 million financing transaction that would grant it 21% of the total 0G token supply.

As of June 30, ZeroStack reported holding 75,101,767 0G tokens acquired for $163.3 million. The fair value of those holdings had fallen to $15.1 million, representing a loss exceeding 90%.

Following the completion of the April financing deal, ZeroStack's 0G holdings grew by an additional 148.0 million tokens on July 20, bringing the total to approximately 223 million tokens.

Staking Rewards as Lifeline

ZeroStack told the SEC that "substantially" all of its 0G tokens have been staked. The company expects staking rewards to generate sufficient liquidity to cover operating costs, but it still could not conclude that this would be enough to sustain operations through the next year. This means the company's solvency hinges not only on 0G's market price but also on the protocol's ongoing staking issuance rates and the liquidity available to sell rewards without further depressing the token.

"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 filing stated.

0G Token Down Over 97%

The 0G token has fallen 97% from its September 2025 peak and more than 98% from its all-time high of $7.05. According to CoinGecko, the token was trading near $0.1383 at the time of writing, with a market capitalization of approximately $29.507 million. With ZeroStack holding roughly 223 million tokens against a total market capitalization of under $30 million, the company's position represents a significant share of the token's circulating supply, raising questions about its ability to liquidate holdings or staking rewards at scale without materially affecting the price.