HNO International Reports Revenue Growth to $65,561 but Faces Significant Net Loss

HNO International, Inc. reported a total revenue of $65,561 for the fiscal year ending October 31, 2025, a significant increase from $4,241 in the previous year. The company attributed this growth to its role in facilitating the delivery of hydrogen equipment and related integration support, recognizing revenue on a net basis as it acted as an agent in these transactions. Despite the increase in revenue, HNO International incurred a net loss of $6,615,496, compared to a loss of $3,338,590 in the prior year, primarily due to increased operating expenses, including a substantial rise in stock-based compensation.

The company's operating expenses rose to $6,527,243 in 2025 from $3,317,069 in 2024, largely driven by stock-based compensation expenses that increased from $1,192,356 to $5,333,937. General and administrative expenses also saw a notable increase, reflecting management's efforts to expand operations and product offerings. The company’s cash balance decreased to $9,525 from $20,255, indicating ongoing challenges in generating sufficient cash flow from operations to support its activities.

HNO International is actively pursuing strategic developments to enhance its market position, including the launch of innovative products such as the Compact Hydrogen Refueling Station and the Scalable Hydrogen Energy Platform. The company is also in the process of developing a hydrogen production facility in Katy, Texas, which is expected to commence operations in early 2026, potentially generating revenues of approximately $2,555,000 over the next year. However, the company has acknowledged the need for additional funding to support its operations and growth initiatives, raising concerns about its ability to continue as a going concern.

As of October 31, 2025, HNO International had two full-time employees and operated from a 5,000 square foot facility in Murrieta, California. The company has also entered into a lease for a larger facility in Katy, Texas, which is contingent upon the completion of construction. The company’s accumulated deficit reached $52,050,190, highlighting the financial challenges it faces as it seeks to expand its operations in the competitive green hydrogen market.

Looking ahead, HNO International recognizes the potential for growth in the hydrogen market, driven by increasing government support and advancements in hydrogen technology. However, the company remains cautious about its financial outlook, emphasizing the need for effective capital management and the successful execution of its strategic initiatives to achieve profitability in the future.