CitroTech Reports 64% Revenue Decline in Q1 2026, Net Loss Improves

CitroTech Inc., formerly known as General Enterprise Ventures, Inc., reported a significant decline in financial performance for the first quarter of 2026, with revenues totaling $344,915, a decrease of 64% from $969,382 in the same period of 2025. The company attributed this drop primarily to the absence of major wildfire events that had previously driven sales, particularly the Pacific Palisades and Eaton Canyon fires in early 2025. Despite the revenue decline, the company managed to reduce its net loss to $6.2 million from $10.9 million year-over-year, reflecting a 43% improvement in loss figures.

Operating expenses for the quarter increased by 8% to $4.8 million, compared to $4.4 million in the prior year. The rise in expenses was largely due to a substantial increase in management compensation, which surged to $3.1 million from $673,000, as the company expanded its executive team. Conversely, costs associated with revenue generation decreased significantly, with the cost of revenue dropping to $225,577 from $617,260, primarily due to lower sales volume. The company also reported a notable reduction in professional fees, which fell to $704,352 from $2.7 million, reflecting a shift in operational focus.

CitroTech has been actively pursuing strategic developments, including a joint venture with Hexion Inc. to enhance its market presence in the fire retardant sector. This partnership aims to leverage Hexion's manufacturing capabilities to commercialize CitroTech's proprietary fire-inhibiting products. The company is also expanding its product offerings, including the CitroSafe Systems, which are designed for proactive wildfire defense. These systems utilize CitroTech's patented formulations and are currently in the proof-of-concept phase, targeting a growing insurance market in wildfire-prone areas.

As of March 31, 2026, CitroTech's total assets stood at $12.2 million, down from $14.2 million at the end of 2025. The company reported current liabilities of $2.9 million, an increase from $2.2 million, largely due to rising convertible notes payable to related parties. The company’s cash reserves decreased to $4.3 million from $6.3 million, raising concerns about its liquidity and ability to fund operations in the near term. Management has indicated that additional funding may be necessary to support commercial-scale production and working capital needs.

Looking ahead, CitroTech's management remains optimistic about the long-term growth potential of its fire safety products, driven by increasing demand for environmentally sustainable solutions in the face of rising wildfire risks. The company is focused on expanding its customer base and product lines while exploring various funding alternatives to ensure operational continuity. However, the ability to secure additional financing remains uncertain, contingent on market conditions and investor sentiment.