Blue Biofuels, Inc. Files Q3 2024 10-Q

TL;DR

BLUE files Q3 10-Q. Financials and ops update.

AI Summary

Blue Biofuels, Inc. filed its 10-Q for the period ending September 30, 2024. The company, formerly known as Alliance Bioenergy Plus, Inc., is incorporated in Nevada and operates in the industrial organic chemicals sector. Its principal executive offices are located in Palm Beach Gardens, Florida.

Why It Matters

This filing provides investors with an update on Blue Biofuels' financial performance and operational status for the third quarter of 2024.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing standard financial and operational information.

Key Numbers

• 2024-09-30 — Period End Date (Latest reported quarter)
• 2024-11-04 — Filing Date (Date the report was submitted)

Key Players & Entities

• BLUE BIOFUELS, INC. (company) — Filer
• 20240930 (date) — Period of Report
• 20241104 (date) — Filing Date
• ALLIANCE BIOENERGY PLUS, INC. (company) — Former Company Name
• 3710 BUCKEYE ST SUITE 120 PALM BEACH GARDENS, FL 33401 (location) — Business Address

FAQ

Key Financial Figures

• $0.001 B — ich registered Common Stock par value $0.001 BIOF OTCQB Check whether the issuer (
• $14,698,207 — tly completed second fiscal quarter was $14,698,207. State the number of shares outstandin
• $460,000 — Company, that had a combined balance of $460,000 as of December 31, 2023. These notes bo
• $0.13 — common stock at rates that ranged from $0.13 to $0.25 per share. A portion of the no
• $0.25 — tock at rates that ranged from $0.13 to $0.25 per share. A portion of the notes were
• $5.0 million — y completed a capital raise of at least $5.0 million. In the first half of 2024, the Compan
• $680,000 — 024, the Company borrowed an additional $680,000 from Mr. Kneppers. These notes were non
• $5 million — sts to the Nasdaq or NYSE; (2) receives $5 million in equity financing; or (3) begins gene
• $35,151 — rued interest on Mr. Kneppers notes was $35,151 at December 31, 2023. An additional $11
• $11,500 — 151 at December 31, 2023. An additional $11,500 was recognized during the three months
• $46,651 — rch 31, 2024 and the payable balance is $46,651 at September 30, 2024. In connection wi
• $15,000 — urke, with a total principal balance of $15,000 and $25,000, respectively, that are to
• $25,000 — total principal balance of $15,000 and $25,000, respectively, that are to be repaid wh
• $3 million — ceives an equity investment of at least $3 million. Otherwise, the notes accrue warrants,
• $150,000 — mund Burke, with a principal balance of $150,000, that is to be repaid when the Company

Filing Documents

• form10-q.htm (10-Q) — 721KB
• ex31-1.htm (EX-31.1) — 13KB
• ex31-2.htm (EX-31.2) — 13KB
• ex32-1.htm (EX-32.1) — 5KB
• ex32-2.htm (EX-32.2) — 5KB
• 0001493152-24-043492.txt ( ) — 3990KB
• biof-20240930.xsd (EX-101.SCH) — 37KB
• biof-20240930_cal.xml (EX-101.CAL) — 47KB
• biof-20240930_def.xml (EX-101.DEF) — 156KB
• biof-20240930_lab.xml (EX-101.LAB) — 283KB
• biof-20240930_pre.xml (EX-101.PRE) — 210KB
• form10-q_htm.xml (XML) — 564KB

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION ITEM 1. Condensed and Consolidated Financial Statements (unaudited) 4 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 16 ITEM 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 21 ITEM 4.

Controls and Procedures

Controls and Procedures 21

—OTHER INFORMATION

PART II—OTHER INFORMATION ITEM 1.

Legal Proceedings

Legal Proceedings 22 ITEM 1A.

Risk Factors

Risk Factors 22 ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds 22 ITEM 3. Defaults Upon Senior Securities 23 ITEM 4. Mine Safety Disclosures 23 ITEM 5. Other Information 23 ITEM 6. Exhibits 23

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION TABLE OF CONTENTS Index to Financial Statements Page Condensed Consolidated Balance Sheets as of September 30, 2024 (unaudited) and December 31, 2023 4 Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2024 and 2023 (unaudited) 5 Condensed Consolidated Statements of Stockholders' Deficit for the Nine Months Ended September 30, 2024 and 2023 (unaudited) 6 Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2024 and 2023 (unaudited) 7 Notes to Condensed Consolidated Financial Statements (unaudited) 8 3 Blue Biofuels, Inc.

Financial Statements

Financial Statements Period Ended September 30, 2024 UNAUDITED FINANCIAL STATEMENTS OF BLUE BIOFUELS, INC. Blue Biofuels, Inc. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) September 30, 2024 December 31, 2023 ASSETS Current Assets Cash and Cash Equivalents $ 149,366 $ 41,008 Prepaid Expenses 66,989 35,750 TOTAL CURRENT ASSETS 216,355 76,758 Other Assets Property and Equipment, net of accumulated depreciation and amortization of $ 332,224 and $ 243,089 at September 30, 2024 and December 31,2023, respectively 498,173 587,308 Security Deposits 30,276 30,276 Right of Use Assets, net of accumulated amortization 460,242 81,091 Patents and Trademarks 284,017 254,786 TOTAL OTHER ASSETS 1,272,708 953,461 TOTAL ASSETS $ 1,489,063 $ 1,030,219 LIABILITIES AND STOCKHOLDERS' DEFICIT Current Liabilities Accounts Payable $ 9,134 $ 22,798 Accounts Payable - Related Party 72,670 72,670 Accounts Payable 72,670 72,670 Deferred Wages and Directors Fees - Related Party 1,546,937 828,312 Right of Use Lease Liability - Current 69,958 85,983 Convertible Notes Payable — Other 75,000 - Convertible Notes Payable — Related Party - 350,000 Convertible Notes Payable - 350,000 Interest Payable - Related Party 185,703 143,406 TOTAL CURRENT LIABILITIES 1,959,402 1,503,169 Long Term Liabilities Right of Use Lease Liability - Long Term 390,968 - Notes Payable – Related Party 1,140,000 - Convertible Notes Payable — Related Party 190,000 300,000 Convertible Notes Payable — Other - 50,000 Convertible Notes Payable - 50,000 Legacy Notes Payable — Related Party 200,630 2,521,562 Legacy Notes Payable — Other 120,000 216,570 TOTAL LONG TERM LIABILITIES 2,041,598 3,088,132 TOTAL LIABILITIES 4,001,000 4,591,301 COMMITMENTS AND CONTINGENCIES (Note 8) - - STOCKHOLDERS' DEFICIT Preferred stock; $ 0.001 par value; 10,000,000 shares authorized; zero shares issued

Financial Statements are an integral part of these statements

Financial Statements are an integral part of these statements. 4 Blue Biofuels, Inc CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) 2024 2023 2024 2023 Three Months Ended Nine Months Ended September 30 September 30 2024 2023 2024 2023 Revenues $ - $ - $ - $ - Operating expense: General and administrative 236,981 219,160 781,718 943,953 Research and development 410,805 293,674 1,309,829 1,741,318 Loss on disposal of assets - - 1,000 369 Total operating expenses 647,786 512,834 2,092,547 2,685,640 Loss from operations: ( 647,786 ) ( 512,834 ) ( 2,092,547 ) ( 2,685,640 ) Other (income) expense: Grants income ( 100,000 ) ( 206,500 ) ( 100,000 ) ( 206,500 ) Gain on extinguishment of debt ( 2,417,502 ) - ( 2,417,502 ) - Interest expense - related party 3,429 23,218 52,244 63,712 Interest expense - other 206 2,443 2,325 7,431 Total other (income) expense ( 2,513,867 ) ( 180,839 ) ( 2,462,933 ) ( 135,357 ) Income (Loss) before provisions for income taxes 1,866,081 ( 331,995 ) 370,386 ( 2,550,283 ) Provisions for income taxes - - - Net Income (Loss): $ 1,866,081 $ ( 331,995 ) $ 370,386 $ ( 2,550,283 ) Net income (loss) per basic share $ 0.006 $ ( 0.001 ) $ 0.001 $ ( 0.008 ) Net income (loss) per share, fully diluted $ 0.006 $ ( 0.001 ) $ 0.001 $ ( 0.008 ) Weighted average common shares outstanding Basic 303,143,362 299,750,654 302,938,045 299,750,654 Diluted 316,851,770 299,750,654 317,159,087 299,750,654 The accompanying notes to the Condensed Consolidated

Financial Statements are an integral part of these statements

Financial Statements are an integral part of these statements. 5 Blue Biofuels, Inc. CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) (Unaudited) Shares Amount Capital Deficit (Deficit) Common Stock Additional Paid-in Accumulated Total Stockholder's Shares Amount Capital Deficit (Deficit) Balance as of December 31, 2022 289,941,623 $ 289,942 $ 50,134,727 $ ( 52,781,586 ) $ ( 2,356,917 ) Issuance of common stock for services 140,000 $ 140 $ 23,860 - $ 24,000 Issuance of common stock and warrants for cash through PPM 3,884,998 3,885 578,865 - 582,750 Warrants exercised 5,450,148 5,450 66,800 - 72,250 Vesting of 2,385,000 options under the employee, director plan - - 391,297 - 391,297 Vesting of options under the employee, director plan - - 391,297 - 391,297 Net Income (Loss) - - - $ ( 1,064,090 ) $ ( 1,064,090 ) Balance as of March 31, 2023 299,416,769 $ 299,417 $ 51,195,549 $ ( 53,845,676 ) $ ( 2,350,710 ) Issuance of common stock for services 34,194 34 5,266 - 5,300 Vesting of 2,000,000 options under the employee, director plan - - 245,732 - 245,732 Vesting of options under the employee, director plan - - 245,732 - 245,732 Issuance of common stock and warrants for cash through PPM 633,334 633 94,389 - 95,022 Issuance of 314,000 warrants for services - - 42,634 - 42,634 Issuance of warrants for services - - 42,634 - 42,634 Warrants exercised 500,000 500 24,500 - 25,000 Net Income (Loss) - - - ( 1,154,199 ) ( 1,154,199 ) Balance as of June 30, 2023 300,584,297 $ 300,584 $ 51,608,069 $ ( 54,999,875 ) $ ( 3,091,221 ) Issuance of 50,000 warrants for services - - 5,813 - 5,813 Issuance of warrants for services - - 5,813 - 5,813 Issuance of common stock and warrants for cash through PPM 2,166,666 2,167 322,833 - 325,000 Net Income (Loss) ( 331,995 ) ( 331,995 ) Balance as of September

Financial Statements are an integral part of these statements

Financial Statements are an integral part of these statements. 6 Blue Biofuels, Inc. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) September 30, 2024 September 30, 2023 For the Nine Months Ended September 30, 2024 September 30, 2023 Cash flows from operating activities Net income (loss) $ 370,386 $ ( 2,550,283 ) Reconciliation of net income (loss) to net cash used in operating activities Depreciation and amortization 89,135 89,526 Stock based compensation for services 443,811 714,774 Issuance of warrants for interest 9,947 - Gain on extinguishment of debt ( 2,417,502 ) - Loss on disposal of assets 1,000 369 Changes in operating assets and liabilities Prepaid expenses ( 31,239 ) 4,910 Grants receivable - ( 130,835 ) Interest payable - related party 42,297 43,986 Accounts payable and accrued liabilities ( 13,664 ) ( 36,436 ) Deferred wages and directors' fees — related party 718,625 366,986 Right of use lease ( 4,209 ) 2,525 Net cash used in operating activities ( 791,412 ) ( 1,494,478 ) Cash flows from investing activities Net purchase of property and equipment - ( 282,038 ) Patent and trademark costs ( 30,230 ) ( 25,744 ) Net cash used in investing activities ( 30,230 ) ( 307,782 ) Cash flows from financing activities Repayment of debt - ( 50,000 ) Proceeds from exercise of warrants and options - 97,250 Proceeds from the issuance of convertible notes - RP 680,000 625,000 Proceeds from the issuance of convertible notes - other 250,000 - Proceeds from issuance of common stock - 1,002,772 Net cash provided by financing activities 930,000 1,675,022 Net increase (decrease) in cash and cash equivalents 108,358 ( 127,238 ) Cash and cash equivalents at beginning of the period 41,008 211,901 Cash and cash equivalents at end of the period $ 149,366 $ 84,663 Non-cash Financing and Investing Activities Recognition of Operating lease lia

Financial Statements are an integral part of these statements

Financial Statements are an integral part of these statements. 7 Blue Biofuels, Inc. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 1 – ORGANIZATION Blue Biofuels, Inc., was incorporated in Nevada on March 28, 2012, as Alliance Media Group Holdings, Inc. Since December 2013, Blue Biofuels, Inc. (the "Company") has been a technology company focused on emerging technologies in renewable energy, biofuels, and lignin. NOTE 2 – GOING CONCERN The accompanying condensed consolidated financial as a going concern, which assumes the Company will realize its assets and discharge its liabilities in the normal course of business. The Company has not generated any significant revenue since inception and has incurred losses since inception. As of September 30, 2024, the Company has incurred accumulated losses of $ 55,466,394 . The Company expects to incur significant additional losses and liabilities in connection with its start-up and commercialization activities. These factors, among others, raise substantial doubt as to the Company's ability to continue as a going concern. The Company's ability to continue as a going concern is dependent upon its ability to obtain the necessary financing to meet its obligations and repay its liabilities when they become due and to generate sufficient revenues from its operations to pay its operating expenses. These financial statements do not include any adjustments related to the recoverability and classifications of recorded asset amounts, or amounts and classifications of liabilities that might result from this uncertainty. There are no assurances that the Company will continue as a going concern. Management believes that the Company's future success is dependent upon its ability to achieve profitable operations, generate cash from operating activities, and obtain addi

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