OZSC net loss widens 59% to $2.5M as interest expense doubles; cash falls to $84K

Filed May 22, 2026 · Period ending March 31, 2026 · Compared to 10-Q May 20, 2025 · ~2 min read

Key Changes

• high

  Net loss increased 59% to $2.48 million despite 29% operating expense cut, driven by interest expense more than doubling to $1.79 million from debt-discount amortization on new convertible notes issued at distressed terms.

  MD&A: Interest Expense & Net Loss verify on EDGAR →
• high

  Cash balance fell to $83,779 at quarter-end from $266,431 at year-end; company states current cash is insufficient to satisfy obligations currently due and is exploring capital-raising options that may or may not materialize.

  MD&A: Liquidity & Going Concern verify on EDGAR →
• high

  Company eliminated most workforce: OES reduced from 2 to 1 employee, ARC eliminated all 3 employees, OED shifted to hourly contractors, and Ozop Capital terminated its sole employee mid-January. Salary expense fell 87% to $29,441.

  MD&A: Operating Expenses verify on EDGAR →