Deep Green Waste & Recycling Reports 28.5% Revenue Decline and Significant Net Loss in Q1 2025

Deep Green Waste & Recycling, Inc. reported a significant decline in financial performance for the first quarter of 2025, with revenues totaling $244,925, down from $342,325 in the same period last year, marking a decrease of approximately 28.5%. The company's gross profit also fell to $189,535 from $270,742, reflecting the impact of reduced activity in its asbestos-related operations. Operating expenses increased to $414,729, up from $328,165, primarily due to adjustments in bad debt reserves. Consequently, the company recorded a net loss of $227,857, compared to a loss of $10,680 in the prior year.

In terms of operational changes, Deep Green's total assets decreased to $776,857 as of March 31, 2025, down from $936,467 at the end of 2024. The company’s liabilities increased slightly to $5,003,556, resulting in a stockholders' deficit of $4,226,699. The increase in liabilities was driven by a rise in accounts payable, which stood at $2,912,133, including $487,615 in default judgments. The company continues to face challenges in managing its debts, with current liabilities significantly exceeding current assets, leading to negative working capital of $4,869,923.

Strategically, Deep Green is focusing on expanding its service offerings and exploring acquisition opportunities within the waste and recycling sector. The company aims to enhance its operational capabilities and establish partnerships to drive growth. However, it has acknowledged the need for additional funding, estimating a requirement of $500,000 over the next twelve months to support its operations and potential acquisitions. The company has indicated that it may pursue various financing options, including equity or debt securities, to meet its capital needs.

Looking ahead, Deep Green has expressed substantial doubt about its ability to continue as a going concern, primarily due to its history of net losses and negative cash flow. The company is actively seeking to secure additional funding sources and is exploring partnerships to stabilize its financial position. However, there is no assurance that it will be able to raise the necessary capital or generate sufficient revenues to sustain its operations, which could lead to significant operational constraints or a complete cessation of business activities.