Cyber Enviro-Tech Reports Mixed Financial Results, Operating Loss, and Growing Accumulated Deficit in Latest Quarter

Cyber Enviro-Tech, Inc. (CETI), a publicly held company specializing in water purification solutions for commercial applications, particularly in the oil and gas sector, reported significant financial developments in its 10-Q filing for the period ending September 30, 2024. The company’s total assets decreased to $5.77 million from $6.03 million as of December 31, 2023, primarily due to a reduction in cash and cash equivalents, which fell to $119,028 from $239,417.

For the three months ending September 30, 2024, CETI generated sales of $10,666, a notable increase from zero sales in the same period of the previous year. The gross margin for this quarter was $5,401. However, total operating expenses for the quarter were $673,472, leading to an operating loss from continuing operations of $(668,071), a slight improvement from $(735,404) in Q3 2023. The net loss for the quarter was $(831,889), compared to $(846,030) in the prior year.

For the nine months ending September 30, 2024, CETI reported total sales of $10,666, with a gross margin of $5,401. Operating expenses surged to $2.18 million, up 252% from $784,943 in the same period of 2023, largely due to increased testing and marketing costs. The operating loss from continuing operations for the nine months was $(2.17 million), compared to $(2.04 million) in 2023. The net loss for the nine months increased to $(2.70 million) from $(2.30 million) in the previous year.

CETI's financial position reflects a growing accumulated deficit, which rose to $(9.47 million) as of September 30, 2024, compared to $(6.78 million) at the end of 2023. Total current liabilities increased significantly to $1.21 million from $814,490, with accounts payable rising to $131,809 from $20,144. Despite these challenges, total stockholders’ equity improved to $2.74 million from $1.97 million.

Strategically, CETI is in the process of spinning off its Alvey oil field operations, which are currently reflected as discontinued operations. The company has also engaged in discussions to potentially spin off assets related to these operations, valued at approximately $3.50 million. Additionally, CETI has decided not to proceed with the acquisition of a saltwater disposal facility in Oklahoma.

The company continues to face substantial doubt regarding its ability to continue as a going concern, with management planning to finance operating costs through increased revenue and private placements. The independent auditor has expressed concerns about the company's financial viability, emphasizing the need for improved internal controls and financial reporting practices.