Cyber Enviro-Tech Files 10-Q for Q2 2024

TL;DR

CETI filed its Q2 10-Q. Check financials.

AI Summary

Cyber Enviro-Tech, Inc. filed its 10-Q for the period ending June 30, 2024. The company, incorporated in Wyoming, operates in the miscellaneous electrical machinery sector. Their business address is located at 226 N. Cottonwood Dr., Gilbert, AZ 85234. The filing covers the second quarter of 2024.

Why It Matters

This filing provides investors with an update on Cyber Enviro-Tech's financial performance and operational status for the second quarter of 2024, crucial for understanding the company's trajectory.

Risk Assessment

Risk Level: medium — As a 10-Q filing, it contains detailed financial information that could reveal significant risks or opportunities, requiring careful analysis.

Key Numbers

• 20240630 — Reporting Period End Date (Indicates the end of the financial quarter being reported.)
• 20240905 — Filing Date (Shows when the 10-Q was officially submitted to the SEC.)

Key Players & Entities

• Cyber Enviro-Tech, Inc. (company) — Filer of the 10-Q
• 20240630 (date) — End of the reporting period
• 226 N. COTTONWOOD DR., GILBERT, AZ 85234 (address) — Company's business and mailing address
• 3690 (industry_code) — Standard Industrial Classification for the company

FAQ

Key Financial Figures

• $0.001 — the Act: None Common Stock, par value $0.001 per share (Title of Class) Indicate
• $40,000 — preferred stock to Global for $ 66,400 ($40,000 in cash and 15,000 shares of stock, pos

Filing Documents

• ceti_10q-063024.htm (10-Q) — 1100KB
• ex31x1.htm (EX-31.1) — 7KB
• ex31x2.htm (EX-31.2) — 7KB
• ex32x1.htm (EX-32.1) — 4KB
• 0001553350-24-000078.txt ( ) — 5956KB
• ceti-20240630.xsd (EX-101.SCH) — 52KB
• ceti-20240630_cal.xml (EX-101.CAL) — 58KB
• ceti-20240630_def.xml (EX-101.DEF) — 179KB
• ceti-20240630_lab.xml (EX-101.LAB) — 407KB
• ceti-20240630_pre.xml (EX-101.PRE) — 337KB
• ceti_10q-063024_htm.xml (XML) — 858KB

Financial Statements

Financial Statements 1 Balance Sheets at June 30, 2024, unaudited, and December 31, 2023 1 Unaudited 2 Unaudited 3 Unaudited 4 Notes to Unaudited Financial Statements 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 19 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 23 Item 4.

Controls and Procedures

Controls and Procedures 23 PART II. OTHER INFORMATION 24 Item 1.

Legal Proceedings

Legal Proceedings 24 Item 1A.

Risk Factors

Risk Factors 24 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 24 Item 3. Defaults Upon Senior Securities 28 Item 4. Mine Safety Disclosures 28 Item 5. Other Information 28 Item 6. Exhibits 28

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. CYBER ENVIRO-TECH, INC. BALANCE SHEETS June 30, 2024 (Unaudited) December 31,2023 (Audited) ASSETS Current Assets: Cash and cash equivalents $ 98,134 $ 239,417 Loan receivable 190,000 100,000 Prepaid expenses and other current assets 211,335 691,536 Total current assets 499,469 1,030,953 Property and equipment 679,595 438,558 Acquired intangible assets, net 1,013,801 1,070,226 Assets of discontinued operations, non-current 3,481,289 3,330,985 Total Assets $ 5,674,154 $ 5,870,722 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable $ 157,253 $ 20,144 Accounts payable – related parties 68,843 — Accrued interest 196,237 96,623 Note payables, current maturities 230,000 100,000 Convertible notes payable, net of discount of $ 143,180 and $ 137,096 at June 30, 2024 and December 31, 2023, respectively 180,470 32,154 Convertible notes payable – related parties 22,000 22,000 Liabilities of discontinued operations, current 386,743 462,578 Liabilities of discontinued operations, current – related parties 55,864 80,991 Total current liabilities 1,297,410 814,490 Note payable, related party, net of discount of $ 14,417 and $ 23,915 at June 30, 2024 and December 31, 2023, respectively 139,572 130,074 Convertible notes payable 2,607,000 2,641,000 Derivative liability 220,059 217,177 Liabilities of discontinued operations, non-current 97,463 97,463 Total Liabilities 4,361,505 3,900,204 Commitments and contingencies (Note 4) — — Stockholders' Equity: Series A Convertible Preferred Stock, par value $ 0.001 , 200,000 shares authorized; 16,671 shares issued and outstanding 17 17 Series B Convertible Preferred Stock, par value $ 0.001 , 85,000 shares authorized; 1 share issued and outstanding — — Series C Non-convertible, Preferred Stock, par value $ 0.001 , 50,000 shares authorized; 0.5 shares issued and outstanding

NOTES TO FINANCIAL STATEMENTS

NOTES TO FINANCIAL STATEMENTS NOTE 1 – ORGANIZATION AND DESCRIPTION OF

BUSINESS

BUSINESS Cyber Enviro-Tech, Inc. (the "Company") is a publicly held water science technology company that designs water purification solutions for commercial applications and industries with an initial emphasis on the oil & gas industry. The corporate headquarters are located in Scottsdale, Arizona. On September 3, 2020, Synergy Management Group, LLC ("Synergy") and Global Environmental Technologies, Inc. ("Global"), which was formed on April 20, 2020, entered into a securities purchase agreement, whereby Synergy sold its share of Special 2020 Series A preferred stock and its one-half share of Series C preferred stock to Global for $ 66,400 ($40,000 in cash and 15,000 shares of stock, post reverse split of one share for every 20 shares on April 30, 2021). The shares of stock were to be awarded contingent upon the effectiveness of a S-1 Registration which occurred in January 2023. These shares were issued in 2023. NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The Company's financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The financial statements and related disclosures as of June 30, 2024, are unaudited, pursuant to the rules and regulations of the United States Securities and Exchange Commission (" SEC "). Certain information and footnote disclosures normally included in financial statements prepared in accordance with US GAAP have been condensed or omitted pursuant to such rules and regulations. In our opinion, these unaudited financial statements include all adjustments (consisting only of normal recurring adjustments) necessary for the fair statement of the results for the interim periods. These unaudited financial 2022 included in our Annual Report on Form 10-K for the year ended December 31, 2

NOTES TO FINANCIAL STATEMENTS

NOTES TO FINANCIAL STATEMENTS Discontinued Operations A component of an entity that is disposed of by sale or abandonment is reported as discontinued operations if the transaction represents a strategic shift that will have a major effect on an entity's operations and financial results. The results of discontinued operations are aggregated and presented separately in the Statement of Operations. Assets and liabilities of the discontinued operations are aggregated and reported separately as assets and liabilities of discontinued operations in the Balance Sheet, including the comparative prior year period. The Company is in the processing of spinning off its oil field operations known as the Alvey oil field (Alvey). Alvey's cash flows are reflected as cash flows from discontinued operations within the Company's Statements of Cash Flows for each period presented. Amounts presented in discontinued operations have been derived from our financial statements and accounting records using the historical basis of assets, liabilities, and historical results of Alvey. The discontinued operations exclude general corporate allocations. Note Receivable CETI provided two Short-Term Capital Bridge Loan totaling $ 190,000 to Sedar Gurel, Founder and CEO of DELTA Cervresel Solusyonlari ve Makinalar A.S. a Turkish Corporation ("DELTA"). The notes are currently due and had been accruing simple interest at 6 % per annum. Impairment of Long-Lived Assets In accordance with authoritative guidance on accounting for the impairment or disposal of long-lived assets, as set forth in Topic 360 of the Accounting Standards Codification ("ASC"), the Company assesses the recoverability of the carrying value of its non-oil and gas long-lived assets when events occur that indicate an impairment in value may exist. An impairment loss is indicated if the sum of the expected undiscounted future net cash flows is less than the carrying amount of the assets. If this occurs, an impairment loss is

NOTES TO FINANCIAL STATEMENTS

NOTES TO FINANCIAL STATEMENTS Stock-based Compensation The Company applies the fair value method of Financial Accounting Standards Board ("FASB") ASC 718, "Share Based Payment", in accounting for its stock-based compensation. This standard states that compensation cost is measured at the grant date based on the fair value of the award and is recognized over the service period, which is usually the vesting period. The Company values stock-based compensation at the market price for the Company's common stock and other pertinent factors at the grant date. During the three and six months ended June 30, 2024 and 2023, the Company recorded $ 279,577 and $ 625,254 and $ 559,153 and $ 876,063 , respectively, i n stock-based compensation expense. In addition, the Company recorded prepaid stock compensation of $ 14,368 and $ 496,022 at June 30, 2024 and December 31, 2023, respectively. Fair Value of Financial Instruments The Company adopted ASC 820, " Fair Value Measurements ." ASC 820 clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: Level 1: Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. Level 2: Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 3: Pricing inputs that are generally unobservable inputs and not corroborated by market data. The carrying amount of the Company's financial assets and liabilities, such as cash, prepaid expenses and accrued expenses approximate their fair value because of the short maturity of those instruments. The Company's notes payable approximates the fair value of such instruments as the notes bear interest rates that are consistent with current market rates. The Company evaluates convertible instruments, options,

NOTES TO FINANCIAL STATEMENTS

NOTES TO FINANCIAL STATEMENTS The Company has adopted ASC 740, " Accounting for Income Taxes ," which requires an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed annually from differences between the financial statement and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Net income (loss) per common share Under the provisions of ASC 260, " Earnings per Share ", basic loss per common share is computed by dividing net loss available to common shareholders by the weighted average number of shares of common stock outstanding for the periods presented. Diluted net loss per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that would then share in the income of the Company, subject to anti-dilution limitations. The following potential common shares were excluded from the calculation of diluted net income (loss) per share available to common stockholders because their effect would have been antidilutive: Schedule of diluted net income (loss) per share available to common stockholders Six months ended June, 2024 2023 Warrants 3,750,000 — Stock options 1,000,000 200,000 Convertible notes payable 22,944,477 17,138,953 Preferred stock 50,012,000 3 Total 77,706,477 17,338,956 Concentration of credit risks The Company maintains accounts with financial institutions. All cash in checking accounts is non-interest bearing and is fully secured by the Federal Deposit Insurance Corporation (FDIC). At times, cash balan

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