HUMBL, Inc. reported significant changes in its financial performance and strategic direction in its recent 10-K filing for the fiscal year ending December 31, 2024. The company recorded a net loss of $14.4 million, a substantial increase from the restated net loss of $4.3 million in 2023. This increase in losses was attributed to higher settlement expenses and losses on the conversion of convertible notes. The company’s total revenues remained at zero for both years, reflecting its transition away from previous operations.
In December 2024, HUMBL entered into an Asset Purchase Agreement with WSCG, Inc., selling all its assets for $3.025 million, along with shares and membership units in WSCG. This transaction marked a pivotal shift in the company's operations, as it will now reflect its former operations as discontinued. Following this sale, HUMBL acquired a 99% stake in FinCapital, a Brazilian company with a single asset of 41,500 tons of magnesium silicate valued at $20 million. This acquisition is part of HUMBL's new strategy to operate as a holding company focusing on raw materials and mining interests, particularly in Brazil and Latin America.
Operationally, HUMBL's employee count has drastically reduced to just one full-time employee as of December 31, 2024, down from a larger workforce in previous years. The company has also seen a significant shift in its business model, moving away from Web 3 technologies to focus on mining and raw materials. The company’s cash position was notably low, with only $20,487 reported at year-end, and a working capital deficit of $23.7 million, raising concerns about its ability to continue as a going concern.
Looking ahead, HUMBL plans to leverage its new subsidiary, FinCapital, to explore opportunities in the magnesium silicate market, which is used in various industrial applications. The company aims to sell this asset and potentially acquire additional mining interests. However, the filing indicates that there is substantial doubt about HUMBL's ability to continue operations without additional funding, as it will need to raise significant capital to support its new business model and operational needs. The company’s future will depend heavily on its ability to execute this new strategy and manage its financial obligations effectively.
About HUMBL, INC.
About 10-K Filings
A 10-K form is a comprehensive annual report that public companies in the United States must file with the SEC, providing a detailed overview of the company's financial condition, performance, and business strategies.
Key points about the 10-K:
- Frequency: Filed annually, typically within 60 to 90 days after the end of the company's fiscal year.
-
Content: It includes:
- Detailed financial statements audited by an independent accounting firm
- Management's Discussion and Analysis (MD&A) of financial condition and results
- Description of the company's business, properties, and legal proceedings
- Risk factors and market risks
- Executive compensation and corporate governance information
- Importance: Considered the most comprehensive and important document a public company files with the SEC.
- Length: Often exceeds 100 pages due to its extensive and detailed nature.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.