Formation Minerals Reports $1.69 Million Net Loss for Nine Months Ended January 31, 2025

Formation Minerals, Inc. reported its financial results for the three and nine months ended January 31, 2025, revealing a net loss of $1.69 million for the nine-month period, a decrease from a loss of $2.14 million during the same period in the previous year. Revenue from mineral property and royalty interests totaled $188,615 for the nine months, down from $211,181 in the prior year. The company’s operating expenses increased significantly, totaling $2.24 million compared to $1.25 million in the previous year, primarily due to higher general and administrative costs and professional fees.

The company experienced notable changes in its financial position compared to the previous fiscal period. Total assets decreased to $371,630 from $548,564, largely due to a reduction in oil and natural gas properties, which fell from $394,736 to $186,747. Current liabilities surged to $4.35 million from $2.54 million, driven by increases in accounts payable and accrued liabilities, as well as convertible notes payable. The accumulated deficit also widened to $22.47 million from $20.26 million.

Strategically, Formation Minerals has been focusing on expanding its energy-related business following a merger with Verde Bio Holdings, Inc. completed on May 9, 2024. This merger has positioned the company to target oil and gas mineral interests and royalty interests. The company has also been winding down its previous operations related to exhaled breath technology, which it had pursued through its subsidiary, Sensabues AB. The transition to energy assets is expected to shape the company’s future growth trajectory.

Operationally, the company reported an increase in accounts receivable, which rose to $133,658 from $64,257, indicating a potential increase in sales or delayed payments from customers. The employee headcount remains stable, and the company continues to seek opportunities for geographic expansion in the energy sector. The company’s engagement metrics, such as customer counts and product adoption rates, were not disclosed in the filing.

Looking ahead, Formation Minerals has expressed a commitment to identifying future investment opportunities and securing necessary financing to support its operations. The company acknowledges substantial doubt regarding its ability to continue as a going concern, given its accumulated deficit and reliance on equity financing. Management is focused on generating profitable operations from its new business segment, which is expected to drive future growth and improve financial stability.