GBT Technologies Inc. Reports $215,554 Net Loss and Faces Financial Challenges in Latest 10-Q

GBT Technologies Inc. reported significant financial challenges in its latest 10-Q filing for the quarter ending June 30, 2025. The company recorded a net loss of $215,554 for the three months ended June 30, 2025, a stark contrast to a net income of $1,046,496 during the same period in 2024. For the six months ending June 30, 2025, the net loss deepened to $317,954 compared to a net income of $8,206,384 in the prior year. The decline in profitability is attributed to a substantial decrease in other income, primarily due to the reduction of derivative liabilities as all converted note payables were amended to fixed conversion features in late 2024.

Operating expenses also saw a notable reduction, with total operating expenses for the three months ending June 30, 2025, amounting to $114,010, down 27% from $176,078 in the same quarter of 2024. For the six-month period, operating expenses decreased by 67% to $117,171 from $353,704 in the previous year. This reduction reflects the company's limited cash flow and operational constraints. Despite these cuts, the company continues to face a working capital deficit of $10,241,537 as of June 30, 2025, compared to $9,940,379 at the end of 2024.

In terms of strategic developments, GBT Technologies has been active in pursuing joint ventures and acquisitions. Notably, on July 14, 2025, the company completed a merger with VisionWave Technologies, converting its holdings into shares of VisionWave Holdings, Inc., which is publicly traded on NASDAQ. This merger is expected to enhance GBT's market position and operational capabilities. Additionally, the company has entered into a joint venture agreement with Magic Internacional Argentina FC, S.L. to commercialize a vital device developed by its subsidiary, GBT Tokenize Corp.

The company’s operational metrics indicate a significant increase in its common stock outstanding, which rose to 18,492,870,775 shares as of June 30, 2025, from 16,813,229,180 shares at the end of 2024. This increase is primarily due to the conversion of convertible notes into equity. However, GBT Technologies continues to grapple with an accumulated deficit of $295,594,221, raising concerns about its ability to sustain operations without additional capital. Management has indicated plans to seek further financing through private placements of debt and equity securities to address these challenges.

Looking ahead, GBT Technologies faces substantial uncertainty regarding its ability to continue as a going concern. The company’s management has acknowledged the need for additional capital to support its operations and growth initiatives. The outlook remains cautious, with the potential for continued losses unless the company can successfully implement its business strategies and secure necessary funding.