Wytec International Reports 82% Revenue Decline and $571K Net Loss in Q1 2025

Wytec International, Inc. reported a significant decline in financial performance for the first quarter of 2025, with revenues totaling $2,607, a decrease of 82% from $14,598 in the same period of 2024. The company attributed this drop primarily to reduced revenue from its in-building cellular systems. Despite the decrease in revenue, Wytec managed to reduce its cost of sales to zero from $263 year-over-year, resulting in a gross profit of $2,607 compared to $14,335 in the previous year. The net loss for the quarter was $571,318, a notable improvement from the net loss of $1,370,357 reported in the first quarter of 2024.

In terms of operational efficiency, Wytec's general and administrative expenses decreased by 60% to $533,948, down from $1,327,216 in the prior year. This reduction was largely due to a significant decrease in stock-based compensation, which fell by $795,485, alongside lower professional and consulting fees. However, there were increases in payroll, marketing, and insurance expenses, which partially offset the overall reduction in costs.

The company’s balance sheet showed total assets of $438,333 as of March 31, 2025, up from $323,570 at the end of 2024, primarily due to an increase in cash reserves, which rose to $336,736 from $110,699. However, total liabilities also increased significantly to $3,149,121 from $2,608,098, driven by a rise in accounts payable and accrued expenses. Wytec's accumulated deficit reached $35,352,899, raising concerns about its ability to continue as a going concern, as it lacks sufficient cash resources to meet its operating commitments for the next twelve months.

Strategically, Wytec is focusing on expanding its product offerings and market presence. The company is developing a multichannel transmission product that integrates in-building cellular, private LTE, and gunshot detection services, expected to launch in the third quarter of 2025. Additionally, Wytec has entered into agreements with Trabus Technologies and Lemko Corporation to enhance its technology and develop new solutions. The company is also pursuing patent protection for its innovations, including a smart-sensor technology aimed at improving public safety.

Looking ahead, Wytec anticipates needing approximately $4.5 million in capital to fund its operations over the next year. The company plans to address its cash requirements through a combination of sales-generated income, private placements of capital stock, and potential debt financing. However, management has cautioned that there is no assurance of success in these efforts, and the company may continue to face challenges in achieving profitability and maintaining operations.