Cyber App Solutions Corp. (CYRB) reported significant financial challenges in its latest 10-Q filing for the quarter ending September 30, 2024. The company, which focuses on the acquisition, exploration, development, and production of helium and beverage-grade carbon dioxide (CO2), experienced a complete halt in helium revenue, reporting $0 for the quarter compared to $121,958 in the same period last year. This decline is attributed to the idling of its helium processing plant due to mechanical issues and design limitations.
Total operating expenses for the third quarter increased to $1.7 million, up 32% from $1.3 million in the prior year. The net loss for the quarter surged to $13.1 million, a 224% increase from a loss of $4.0 million in Q3 2023. For the nine months ended September 30, 2024, the net loss reached $17.2 million, compared to $10.5 million for the same period in 2023, marking a 63% increase.
The company’s accumulated deficit has grown significantly, reaching $(61.4 million) as of September 30, 2024, compared to $(44.3 million) at the end of 2023. The total stockholders' deficit also increased to $(17.1 million) from $(9.9 million) at the end of the previous fiscal year. This deterioration in financial health is compounded by a working capital deficit of $23.2 million.
In terms of strategic developments, Cyber App Solutions issued Series A convertible preferred stock, raising $8 million, and modified notes payable, resulting in the issuance of 2.96 million shares valued at $9.2 million. The company is currently in default on its 2023 convertible notes, which total $16 million, and has entered into multiple forbearance agreements to manage its obligations, including cash payments and additional share issuances.
The company’s cash and cash equivalents improved to $1.8 million as of September 30, 2024, up from $1.2 million at the end of 2023. However, the company has no committed capital to address its liquidity needs, raising substantial doubt about its ability to continue as a going concern.
Overall, Cyber App Solutions Corp. is navigating a challenging financial landscape, with significant losses, operational setbacks, and ongoing liquidity concerns, while attempting to restructure its financial obligations and maintain its operational focus on helium and CO2 production.
About Cyber App Solutions Corp.
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