Tron Inc. 10-Q

Period 2026-06-30 · filed 2026-08-11

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KPIsSections20

Income flow

Headline metrics
Revenue — GREEN$2.8M
Gross margin — GREEN22.1%
Net income — GREEN$24.5M
Net margin — GREEN889.7%
Operating margin — RED-41.1%
Red flags2 red1 orange
Liquidity2
RED
Negative operating cash flowoperating_cf_burn
The company is burning cash from operations — sustainability depends on financing.
RED
Cash conversion (CFO/Rev) -34.9%cash_conversion_weak
CFO/Revenue below 0 — operating model not generating cash despite revenue.
Dilution · capital1
ORANGE
SBC/Revenue 16.7%sbc_revenue_elevated
Stock-based compensation is 15–25% of revenue — elevated vs S&P median.
Income Statement
Income Statement
MetricValueFlag
EPS (diluted)$0.07GREEN
Gross Margin22.1%GREEN
Net Income$24.5MGREEN
Net Margin889.7%GREEN
Operating Margin-41.1%RED
Revenue$2.8MGREEN
Revenue (quarter)$1.6MGREEN
Balance Sheet
Balance Sheet
MetricValueFlag
Broad Liquidity$9.5MGREEN
Cash$9.5MGREEN
Current Ratio27.40GREEN
Total Assets$256.2MGREEN
Total Equity$252.8MGREEN
Cash Flow
Cash Flow
MetricValueFlag
Cash Conversion (CFO/Rev)-0.35GREEN
Free Cash Flow-$1.2MGREEN
Operating CF-$959,762GREEN
SBC % Revenue16.7%GREEN

Sections in this filing

MD&A

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations FORWARD LOOKING STATEMENTS This quarterly report contains forward-looking statements. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “potential” or “continue” or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward- looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results. Our unaudited financial statements are stated in United States Dollars (US$) and are prepared in accordance with United States Generally Accepted Accounting Principles. The following discussion should be read in conjunction with our financial statements and the related notes that appear elsewhere in this quarterly report. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed below and elsewhere in this quarterly report. In this quarterly report, unless otherwise specified, all dollar amounts are expressed in United States dollars and all references to “common shares” refer to the common shares in our capital stock. As used in this quarterly report and unless otherwise indicated, the terms “we”, “us”, “our”, and the “Company” mean Tron Inc. General Overview Tron Inc. (formerly SRM Entertainment, Inc.), is a publicly traded company pioneering blockchain-