Basanite's Revenue Plummets 68%, Net Loss Widens Amid Going Concern Doubts

TL;DR

**BASA is burning cash with no revenue, and its 'green' rebar dream is looking like a nightmare; stay far away.**

AI Summary

Basanite, Inc. (BASA) reported a significant decline in revenue and an increased net loss for the nine months ended September 30, 2025. Revenue plummeted to $67,459, a 67.7% decrease from $209,176 in the same period of 2024. The net loss widened to $1,373,529, up from $1,085,131 in the prior year, representing a 26.6% increase. The company's gross profit turned negative, reporting a loss of $80,726 compared to a profit of $143,597 in 2024. Operating expenses rose to $863,542 from $508,206, primarily due to increased general and administrative expenses. BASA continues to face substantial doubt about its ability to continue as a going concern, with an accumulated deficit of $59.2 million and a working capital deficiency of $9.9 million as of September 30, 2025. Cash and cash equivalents dropped to $0 from $82,222 at December 31, 2024, and the company used $587,310 in operating activities during the nine-month period. The company plans to restart manufacturing in 2026 and is actively seeking a new manufacturing facility after vacating its Pompano Beach lease in December 2022.

Why It Matters

Basanite's dire financial state, marked by near-zero cash and a widening net loss, signals extreme risk for investors. The company's inability to generate meaningful revenue from its 'green' construction products, BasaFlex, BasaMix, and BasaMesh, despite market interest, raises serious questions about its competitive viability against established steel reinforcement alternatives. Employees face job insecurity given the company's reliance on external financing and its stated intention to reduce operating activities if funding isn't secured. Customers might face supply chain disruptions if manufacturing restarts are delayed or fail. The broader market for sustainable construction materials could see a setback if innovative companies like Basanite struggle to scale.

Risk Assessment

Risk Level: high — Basanite faces a high risk level due to its 'going concern' doubt, an accumulated deficit of $59.2 million, and a working capital deficiency of $9.9 million as of September 30, 2025. The company's cash and cash equivalents are $0, and it experienced a 67.7% revenue decline to $67,459 for the nine months ended September 30, 2025, compared to the prior year.

Analyst Insight

Investors should avoid Basanite (BASA) given its severe liquidity issues, negative gross profit, and substantial doubt about its ability to continue as a going concern. The company's reliance on related-party financing and lack of a manufacturing facility indicate a highly speculative and unstable investment.

Financial Highlights

debt To Equity

N/A

revenue

$67,459

operating Margin

N/A

total Assets

$125,239

total Debt

$10,080,382

net Income

$(1,373,529)

eps

$0.00

gross Margin

-119.7%

cash Position

$0

revenue Growth

-67.7%

Key Numbers

• $67,459 — Revenue (for nine months ended Sept 30, 2025, down 67.7% from $209,176 in 2024)
• $(1,373,529) — Net Loss (for nine months ended Sept 30, 2025, up 26.6% from $(1,085,131) in 2024)
• $(80,726) — Gross Profit (for nine months ended Sept 30, 2025, a significant decline from $143,597 in 2024)
• $0 — Cash and Cash Equivalents (as of September 30, 2025, down from $82,222 at December 31, 2024)
• $59.2 million — Accumulated Deficit (as of September 30, 2025)
• $9.9 million — Working Capital Deficiency (as of September 30, 2025)
• $587,310 — Cash Used in Operating Activities (for nine months ended Sept 30, 2025)
• 267,560,840 — Common Stock Shares Outstanding (as of November 25, 2025)
• $2,683,000 — Notes Payable - Related Party (as of September 30, 2025, up from $2,178,000 at December 31, 2024)
• 20% — Interest Rate (on promissory notes issued to board members in 2025)

Key Players & Entities

• BASANITE, INC. (company) — registrant
• Basanite Industries, LLC (company) — wholly owned subsidiary
• Basalt America, LLC (company) — wholly owned subsidiary, currently inactive
• Pompano Beach, Florida (location) — former manufacturing facility location
• Branford, Connecticut (location) — current storage space location
• Federal Deposit Insurance Company (regulator) — insures cash deposits
• FASB Accounting Standards Codification Topic 718 (regulator) — governs stock-based compensation
• SEC (regulator) — filing oversight
• Nevada (location) — state of incorporation

FAQ

Risk Factors

• Going Concern Uncertainty [high — financial]: The company faces substantial doubt about its ability to continue as a going concern, evidenced by a working capital deficiency of $9.9 million and an accumulated deficit of $59.2 million as of September 30, 2025. Cash and cash equivalents have fallen to $0 from $82,222 at the end of 2024, and operating activities consumed $587,310 in cash during the first nine months of 2025.
• Manufacturing Disruption and Restart [high — operational]: Basanite, Inc. vacated its Pompano Beach manufacturing facility in December 2022 and is actively seeking a new one. The company plans to restart manufacturing in 2026, indicating a significant operational gap and reliance on future facility acquisition and setup.
• Deteriorating Revenue and Profitability [high — financial]: Revenue for the nine months ended September 30, 2025, plummeted by 67.7% to $67,459 from $209,176 in the prior year. Gross profit turned negative, reporting a loss of $80,726 compared to a profit of $143,597 in 2024, signaling severe issues with cost of sales relative to revenue.
• Increasing Net Loss and Operating Expenses [medium — financial]: The net loss widened by 26.6% to $1,373,529 for the nine months ended September 30, 2025, from $1,085,131 in the same period of 2024. This is exacerbated by a significant increase in operating expenses, which rose to $863,542 from $508,206, primarily driven by higher general and administrative costs.
• Related Party Debt and Interest Costs [medium — financial]: The company has substantial related party debt, with 'Notes Payable - Related Party' increasing to $2,683,000 as of September 30, 2025. Promissory notes issued to board members in 2025 carry a high interest rate of 20%, contributing to significant interest expense of $700,404 for the nine-month period.

Industry Context

Basanite, Inc. operates in the advanced materials sector, potentially focusing on composite materials or specialized manufacturing. The industry often requires significant capital investment in R&D and manufacturing infrastructure. Companies in this space face competition from established players and emerging technologies, with success often depending on innovation, cost-efficiency, and securing reliable supply chains and production capabilities.

Regulatory Implications

The company's severe financial distress and going concern warning necessitate heightened scrutiny from regulators and investors. Failure to address liquidity issues and operational challenges could lead to delisting or further regulatory action. Compliance with financial reporting standards remains critical, especially concerning disclosures about financial health.

What Investors Should Do

1. Monitor closely for any updates on securing a new manufacturing facility and the timeline for restarting operations.
2. Evaluate the feasibility and terms of any proposed financing or strategic partnerships aimed at addressing the going concern issue.
3. Assess the company's ability to manage its high-interest related party debt and the impact on future profitability.

Key Dates

• 2022-12-31: Vacated Pompano Beach lease — Marks the beginning of the company's search for a new manufacturing facility, impacting operational continuity.
• 2025-09-30: End of Q3 2025 — Reporting period for the 10-Q, highlighting severe financial distress with $0 cash and significant working capital deficiency.
• 2025-11-25: Common Stock Shares Outstanding reported — Indicates the current share count of 267,560,840, relevant for per-share calculations and potential dilution.
• 2026-01-01: Planned restart of manufacturing — Future event critical for revenue generation and operational viability, but dependent on securing a new facility.

Glossary

Accumulated Deficit

The total net losses a company has incurred since its inception, minus any net profits. It represents a negative retained earnings balance. (Indicates a long-term history of unprofitability, with Basanite's deficit reaching $59.2 million.)

Working Capital Deficiency

Occurs when a company's current liabilities exceed its current assets, indicating a potential short-term liquidity problem. (Basanite has a $9.9 million working capital deficiency as of September 30, 2025, highlighting immediate liquidity concerns.)

Going Concern

An assumption that a business will continue to operate for the foreseeable future, typically at least 12 months. If there is substantial doubt, it must be disclosed. (The company's financial condition raises substantial doubt about its ability to continue as a going concern.)

Gross Profit

Revenue minus the cost of goods sold (COGS). It reflects the profitability of a company's core operations before accounting for operating expenses. (Basanite reported a negative gross profit of $(80,726) for the nine months ended September 30, 2025, indicating costs exceed revenue from sales.)

Related Party

A person or entity that has the ability to control or significantly influence the operating decisions of another entity. (The company has significant debt obligations to related parties, including board members, with high interest rates.)

Year-Over-Year Comparison

Basanite, Inc. has experienced a dramatic downturn in financial performance compared to the prior year. Revenue for the nine months ended September 30, 2025, has fallen by 67.7% to $67,459 from $209,176 in 2024. The company's profitability has severely deteriorated, with gross profit turning negative to a loss of $80,726 from a profit of $143,597. Operating expenses have surged by 62%, and the net loss has widened by 26.6%. Liquidity has evaporated, with cash and cash equivalents dropping from $82,222 to $0, and the working capital deficiency has grown significantly.

Key Financial Figures

• $0.001 — as of November 25, 2025 Common Stock, $0.001 par value per share 267,560,840 BAS
• $3,850 — . The Company's base rent obligation is $3,850 per month for the storage space, based
• $0.275 — rs of the Company's units at a price of $0.275 per unit, with each unit consisting of:
• $0.33 — of common stock at an exercise price of $0.33 per share and (iii) an additional five-
• $5,334,490 — roceeds to the Company of approximately $5,334,490. Costs of the offering in the amount of
• $611,603 — Costs of the offering in the amount of $611,603 were charged to additional paid in capi
• $386,759 — the Company also accrued the amount of $386,759 as liquidated damages due to the invest

Filing Documents

• basa_10q-093025.htm (10-Q) — 583KB
• ex31x1.htm (EX-31.1) — 8KB
• ex31x2.htm (EX-31.2) — 8KB
• ex32x1.htm (EX-32.1) — 5KB
• ex32x2.htm (EX-32.2) — 4KB
• 0001079973-25-001819.txt ( ) — 3171KB
• basa-20250930.xsd (EX-101.SCH) — 27KB
• basa-20250930_cal.xml (EX-101.CAL) — 34KB
• basa-20250930_def.xml (EX-101.DEF) — 80KB
• basa-20250930_lab.xml (EX-101.LAB) — 230KB
• basa-20250930_pre.xml (EX-101.PRE) — 193KB
• basa_10q-093025_htm.xml (XML) — 404KB

– FINANCIAL INFORMATION

PART I. – FINANCIAL INFORMATION Item 1. Condensed Consolidated Financial Statements Condensed Consolidated Balance Sheets as of September 30, 2025 (Unaudited) and December 31, 2024 1 Condensed Consolidated Statements of Operations (Unaudited) for the Three and Nine Months Ended September 30, 2025 and 2024 2 Condensed Consolidated Statements of Stockholder's (Deficit) Equity (Unaudited) for Three and Nine Months Ended September 30, 2025 and 2024 3 Condensed Consolidated Statements of Cash Flows (Unaudited) for the Three and Nine Months Ended September 30, 2025 and 2024 4 Notes to Condensed Consolidated Financial Statements (Unaudited) 5 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 15 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 19 Item 4.

Controls and Procedures

Controls and Procedures 19

– OTHER INFORMATION

PART II. – OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 20 Item 1A.

Risk Factors

Risk Factors 20 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 20 Item 3. Defaults Upon Senior Securities 20 Item 4. Mine Safety Disclosures 20 Item 5. Other Information 20 Item 6. Exhibits 20

– FINANCIAL INFORMATION

PART I. – FINANCIAL INFORMATION ITEM 1.

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS BASANITE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Unaudited) September 30, 2025 December 31, 2024 Assets Current assets Cash and cash equivalents $ — $ 82,222 Accounts receivable 43,349 50,759 Total current assets 43,349 132,981 Property and equipment, net 81,890 132,728 Total assets $ 125,239 $ 265,709 Liabilities and Shareholders' Deficit Current liabilities Accounts payable $ 1,687,615 $ 1,733,422 Accruals and other current liabilities 2,820,322 1,815,877 Note payable - related party 2,683,000 2,653,000 Convertible debt - related party 2,144,357 2,144,357 Shareholder loans 475,000 475,000 Bank indebtedness 88 — Short-term notes payable 270,000 270,000 Total current liabilities 10,080,382 9,091,656 Total liabilities 10,080,382 9,091,656 Commitments and Contingencies (Note 7) — Shareholders' Deficit Preferred stock, $ 0.001 par value. 5,000,000 authorized, no n-issued and outstanding — — Common stock, 1,000,000,000 shares authorized, $ 0.001 par value, 267,560,840 and 260,157,796 issued and outstanding at September 30, 2025 and December 31, 2024, respectively 267,561 260,157 Additional paid in capital 49,142,610 48,905,681 Accumulated deficit ( 59,365,314 ) ( 57,991,785 ) Total shareholders' deficit ( 9,955,143 ) ( 8,825,947 ) Total liabilities and shareholders' deficit $ 125,239 $ 265,709 The accompanying notes are an integral part of the condensed consolidated financial statements. 1 BASANITE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Three Months Ended September 30, 2025 Three Months Ended September 30, 2024 Nine Months Ended September 30, 2025 Nine Months Ended September 30, 2024 Revenues $ 1,513 $ 62,836 $ 67,459 $ 209,176 Cost of sales 109,878 31,126 148,185 65,579 Gross profit ( 108,365 ) 31,710 ( 80,726 ) 143,597 Opera

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View this 10-Q filing on SEC EDGAR