World Health Energy Holdings Reports Decline in Revenues, Narrowing Losses and Strategic Expansions

World Health Energy Holdings, Inc. (WHEN) reported significant financial developments in its 10-Q filing for the nine months ended September 30, 2024. The company experienced a decline in revenues, reporting $123.2 million, down from $162.8 million in the same period of 2023. This decrease was attributed to the absence of one-time services that contributed $90,000 to the previous year's figures. Despite the revenue drop, WHEN's gross profit for the period was $36.6 million, a stark contrast to the previous year's gross profit of $162.8 million, indicating a shift in product sales dynamics.

The company reported an operating loss of $3.6 million, an improvement from the $5.6 million loss recorded in the prior year. Similarly, the net loss narrowed to $3.6 million from $5.5 million, with net loss attributable to stockholders also decreasing to $3.4 million from $5.5 million. This trend reflects a reduction in operational losses, although the company continues to face challenges in achieving profitability.

Total assets increased significantly to $16.2 million as of September 30, 2024, compared to $10.2 million at the end of 2023. This growth was driven by a rise in current assets, which reached $388.2 million, up from $250.9 million. Notably, the company reported an investment in a non-consolidated entity valued at $911.4 million, a new entry not present in the previous fiscal period.

Strategically, WHEN has been active in expanding its market presence. The company entered into a licensing agreement with Intent HQ Limited, issuing over 25 billion shares in exchange for a perpetual license to IHQ’s Edge SDK. This agreement aims to enhance WHEN's cybersecurity offerings and includes provisions for consulting services from IHQ. Additionally, the company acquired a 4% stake in Terra Zone, further diversifying its portfolio.

Cash and cash equivalents increased to $59.7 million from $46.4 million, although the company reported negative working capital of $728.1 million, worsening from $424.8 million in the previous year. Management anticipates that current funds will support operations through the end of 2024 but acknowledges reliance on ongoing investments from director George Baumeohl.

The company also reported a material weakness in its internal controls over financial reporting, attributed to insufficient accounting personnel and inadequate supervisory review. Management plans to engage third-party accounting services to address these deficiencies. Legal proceedings are ongoing, including a lawsuit against FSC Solutions, Inc. regarding a stock purchase agreement.