Deep Green Waste & Recycling Reports Significant Revenue Decline and Increased Net Loss for Fiscal Year 2024

Deep Green Waste & Recycling, Inc. reported a significant decline in financial performance for the fiscal year ending December 31, 2024, with revenues dropping to $1.08 million from $2.68 million in the previous year. The company experienced a gross profit of $826,000, down from $2.05 million in 2023, reflecting a decrease of approximately 60%. Operating expenses also decreased to $1.79 million from $2.31 million, primarily due to reduced stock-based compensation. However, the company still reported an operating loss of $963,396, compared to a loss of $259,314 in the prior year. The net loss for the year was $1.39 million, a substantial increase from the $690,140 loss reported in 2023.

In terms of operational changes, Deep Green completed the sale of its subsidiary, Amwaste, in March 2024 for $185,000, which allowed the company to streamline its operations and improve cash flow. The sale included the transfer of business assets, contracts, and intellectual property related to its waste management business. Additionally, the company has been focusing on expanding its service offerings and exploring acquisition opportunities in the waste and recycling sector, aiming to enhance its market position.

The company’s financial health remains precarious, with current liabilities totaling $4.83 million against current assets of only $189,441, resulting in a negative working capital of $4.65 million. Accounts payable accounted for a significant portion of liabilities, amounting to $2.90 million. The company’s total liabilities reached $4.97 million, leading to a stockholders’ deficit of $4.04 million as of December 31, 2024. This financial strain has raised substantial doubt about the company’s ability to continue as a going concern, as highlighted by its independent auditors.

Looking ahead, Deep Green plans to secure additional funding to support its operations and growth initiatives, estimating a need for at least $500,000 over the next twelve months. The company is exploring various financing options, including equity and debt securities, to address its liquidity challenges. However, there is no assurance that sufficient funds will be generated from operations or that external financing will be available on favorable terms. The management has acknowledged the risks associated with its business model and the challenges in identifying profitable acquisition targets in a competitive market.