NEXT-ChemX Restates Q2, Faces Mounting Losses Amid Auditor Fallout

Ticker: CHMX · Form: 10-Q/A · Filed: Sep 16, 2025 · CIK: 1657045

Sentiment: bearish

Topics: Restatement, Going Concern, Lithium Extraction, Intangible Assets, Auditor Issues, Operating Losses, Capital Raise

Related Tickers: CHMX

TL;DR

**CHMX is a speculative bet, bleeding cash and facing a going concern warning, with its future hinging on a delayed pilot plant and elusive financing.**

AI Summary

NEXT-ChemX Corporation (CHMX) filed a restated 10-Q/A for the quarter ended June 30, 2024, primarily due to issues with its former auditor, BF Borgers CPA PC, and subsequent review by new auditors, Fruci & Associates II PLLC. The restatement included a significant adjustment of $533,038 to the indefinite intangible asset (iTDE Technology), reclassifying it to have a finite useful life and charging $224,673 in amortization. Additionally, the balance sheet was readjusted to include $308,365 of retained earnings, and the issuance of 20,000 Series A Preferred Stock was restated as unpaid. The company reported a net loss of $939,787 for the six months ended June 30, 2024, an increase from a $855,696 loss in the prior year period. Cash used in operating activities significantly increased to $861,765 for the six months ended June 30, 2024, compared to $169,669 in the same period of 2023. CHMX continues to operate with a working capital deficit and an accumulated deficit of $7,451,897 as of June 30, 2024, raising substantial doubt about its ability to continue as a going concern without additional financing. The company is focused on completing two pilot plant systems in India, with the first expected by Q3 2025, to commercialize its iTDE Technology for lithium extraction.

Why It Matters

This restated 10-Q/A reveals significant financial instability and operational challenges for NEXT-ChemX, stemming from auditor issues and a substantial accumulated deficit of $7,451,897. For investors, the increased net loss to $939,787 and the substantial doubt about going concern signal high risk and a critical need for new capital, estimated at $3 million. Employees and contractors have faced payment delays, indicating potential operational strain. The delay in pilot plant completion to Q3 2025 pushes back potential revenue generation, impacting customer confidence and competitive positioning in the lithium extraction market, where rivals are actively deploying technologies.

Risk Assessment

Risk Level: high — The company has an accumulated deficit of $7,451,897 as of June 30, 2024, and a net loss of $939,787 for the six months ended June 30, 2024. Cash used in operating activities was $861,765, and management explicitly states there is 'substantial doubt regarding the Company's ability to continue as a going concern,' citing a need to raise an estimated $3 million.

Analyst Insight

Investors should exercise extreme caution and consider avoiding CHMX given the significant going concern risk, increasing losses, and reliance on future financing. Existing shareholders should monitor progress on pilot plant completion and capital raises closely, as dilution is highly probable.

Financial Highlights

debt To Equity
N/A
revenue
$ -
operating Margin
N/A
total Assets
$ 3,243,904
total Debt
$ 5,271,201
net Income
$ -939,787
eps
N/A
gross Margin
N/A
cash Position
$ 693
revenue Growth
N/A

Key Numbers

Key Players & Entities

FAQ

Why did NEXT-ChemX Corporation file a 10-Q/A restatement?

NEXT-ChemX Corporation filed a 10-Q/A restatement because its former auditors, BF Borgers CPA PC, were denied the privilege of practicing before the SEC. This required new auditors, Fruci & Associates II PLLC, to review two years of quarterly financial statements and reaudit two years of annual statements, leading to necessary modifications.

What were the main financial adjustments in NEXT-ChemX's restated 10-Q/A?

The main financial adjustments included reevaluating the iTDE Technology intangible asset to have a finite useful life, resulting in a $533,038 adjustment and a $224,673 amortization charge. Additionally, the balance sheet was readjusted to include $308,365 of retained earnings, and the issuance of 20,000 Series A Preferred Stock was restated as unpaid.

What is NEXT-ChemX's net loss for the six months ended June 30, 2024?

NEXT-ChemX Corporation reported a net loss of $939,787 for the six months ended June 30, 2024. This represents an increase from the net loss of $855,696 reported for the same period in 2023.

Does NEXT-ChemX Corporation have sufficient cash to continue operations?

No, NEXT-ChemX Corporation has an accumulated deficit of $7,451,897 as of June 30, 2024, and used $861,765 in cash from operating activities during the first six months of 2024. Management explicitly states there is 'substantial doubt regarding the Company's ability to continue as a going concern' and estimates a need to raise $3 million.

What is the status of NEXT-ChemX's pilot plant development?

NEXT-ChemX is managing the construction of two pilot plant systems in India for its iTDE Technology. The first, smaller flexible system is expected to be completed during the third quarter of 2025, with large container-sized brine samples expected for testing around October 2024.

What is the primary business focus of NEXT-ChemX Corporation?

Since April 2021, NEXT-ChemX Corporation's primary business focus is the commercialization of its novel Ion-Targeting Continuous-Flow Direct Extraction Technology (iTDE Technology). This technology aims to extract lithium from natural brines and geothermal sources, as well as other metals and for water treatment.

How much capital does NEXT-ChemX estimate it needs to raise?

NEXT-ChemX Corporation estimates it will need to raise approximately $3 million to manage the ongoing development of its technology to the point where it can effectively market it, provided existing shareholder debt is converted into equity as planned.

What risks does NEXT-ChemX highlight regarding its future operations?

NEXT-ChemX highlights risks including international, national, and local economic conditions, the ability to sustain growth, integrate acquisitions, comply with regulations, adverse publicity, competition, and difficulty forecasting operating results. The company also faces significant risk from its inability to raise necessary financing and general business uncertainties.

What was the change in cash for NEXT-ChemX during the first six months of 2024?

NEXT-ChemX Corporation experienced a net decrease in cash of $1,765 during the six months ended June 30, 2024, resulting in a cash balance of $693 at the end of the period. This compares to a net increase of $29,324 and a cash balance of $57,679 for the same period in 2023.

What is the significance of the loan provided by NEXT-ChemX to a third-party company?

NEXT-ChemX provided additional disclosure regarding a loan to a third-party company on April 4, 2024. While the borrower was independent at the time of execution, it had previously been owned and managed by a former officer and senior employee of NEXT-ChemX, raising potential related-party concerns.

Risk Factors

Industry Context

NEXT-ChemX operates in the specialized chemical technology sector, focusing on lithium extraction. This industry is highly competitive and driven by the global demand for electric vehicles and energy storage solutions. Key trends include advancements in extraction efficiency, environmental sustainability, and securing reliable supply chains for critical minerals.

Regulatory Implications

The restatement of financial statements due to auditor issues highlights potential compliance and internal control weaknesses. Companies in the mining and chemical sectors are also subject to environmental regulations and permitting processes, which can impact project timelines and operational costs.

What Investors Should Do

  1. Monitor the progress and success of the pilot plant systems in India, as this is critical for future revenue generation.
  2. Assess the company's ability to secure additional financing to address its going concern issues and fund ongoing operations.
  3. Evaluate the impact of the intangible asset revaluation and amortization on future profitability and asset values.
  4. Understand the reasons behind the significant increase in operating cash burn and the company's plans to manage it.

Key Dates

Glossary

iTDE Technology
A proprietary technology developed by NEXT-ChemX Corporation, likely related to chemical processes, specifically for lithium extraction. (It is the company's core asset, whose valuation and commercialization are central to its future prospects.)
Indefinite Intangible Asset
An intangible asset that is not expected to be consumed over a period of time, and therefore is not amortized but tested for impairment. (The company reclassified its iTDE Technology from an indefinite life to a finite life, leading to amortization charges.)
Amortization
The systematic allocation of the cost of an intangible asset over its useful life. (A new amortization charge of $224,673 was recognized due to the reclassification of the iTDE Technology.)
Retained Earnings
The cumulative amount of net income that a company has retained over its life, after paying dividends. (A $308,365 adjustment to retained earnings was made as part of the balance sheet readjustment.)
Working Capital Deficit
A situation where a company's current liabilities exceed its current assets. (NEXT-ChemX operates with a working capital deficit, indicating short-term liquidity challenges.)
Accumulated Deficit
The total cumulative net losses of a company since its inception. (The company has a substantial accumulated deficit of $7,451,897, reflecting its history of losses.)
Going Concern
The assumption that a company will continue to operate for the foreseeable future. (The company's financial condition raises substantial doubt about its ability to continue as a going concern.)

Year-Over-Year Comparison

Compared to the prior year period, NEXT-ChemX has seen a significant increase in its net loss for the six months ended June 30, 2024, to $939,787 from $855,696. Operating expenses, particularly cash used in operations, have surged dramatically to $861,765 from $169,669. The company's cash position has dwindled to $693 from $2,458 at year-end 2023, while total liabilities have grown. New risks related to auditor issues and intangible asset revaluation have emerged.

Filing Stats: 4,535 words · 18 min read · ~15 pages · Grade level 18 · Accepted 2025-09-16 16:30:47

Key Financial Figures

Filing Documents

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements F-2 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 3 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 5 Item 4.

Controls and Procedures

Controls and Procedures 6

– OTHER INFORMATION

PART II – OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 7 Item 1A.

Risk Factors

Risk Factors 7 Item 2. Unregistered Sale of Equity Securities and Use of Proceeds 7 Item 3. Defaults Upon Senior Securities 7 Item 4. Mine Safety Disclosures 7 Item 5. Other Information 7 Item 6. Exhibits 8

Signatures

Signatures 9 Caution Regarding Forward-Looking Information This Quarterly Report on Form 10-Q/A, including, without limitation, statements containing the words "believes", "anticipates", "expects" and words of similar import, constitute forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following: international, national and local general economic and market conditions: demographic changes; the ability of the Company to sustain, manage or forecast its growth; the ability of the Company to successfully make and integrate acquisitions; existing government regulations and changes in, or the failure to comply with, government regulations; adverse publicity; competition; fluctuations and difficulty in forecasting operating results; changes in business strategy or development plans; business disruptions; the ability to attract and retain qualified personnel; and other factors referenced in this and previous filings. Given these uncertainties, readers of this Form 10-Q/A and investors are cautioned not to place undue reliance on such forward-looking statements. The Company disclaims any obligation to update any such factors or to publicly announce the result of any revisions to any of the forward-looking statements contained herein to reflect future events or developments. 2 NEXT-CHEMX CORPORATION INTERIM

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS Table of Contents Page Condensed Balance Sheets as of June 30, 2024 (restated) and December 31, 2023 (audited) F-2 Condensed F-3 Condensed 2023 (unaudited) F-4 Condensed F-5 Notes to Unaudited Condensed Financial Statements F-6 F-1 PART I FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS NEXT-ChemX Corporation Condensed Balance Sheets June 30, December 31, 2024 (restated) 2023 (audited) ASSETS Current Assets: Cash $ 693 $ 2,458 Financial Assets 85,560 64,944 Prepaid expense and other current assets 530,622 72,925 Total Current Assets 616,875 140,327 Property and equipment, net 9,953 12,621 Intangible asset, net 2,617,076 2,691,967 Total Non-current Assets 2,627,029 2,704,588 Total Assets $ 3,243,904 $ 2,844,915 LIABILITIES AND STOCKHOLDERS' DEFICIT Current Liabilities: Accounts payable and accrued liabilities $ 2,823,772 $ 2,443,207 Other Current Liabilities 511,980 511,980 Loan payable 845,000 945,000 Due to related party 76,445 32,238 Other Current Liabilities 76,445 32,238 Total Current Liabilities 4,257,197 3,932,425 Non-Current Liabilities: Notes payable 1,014,004 - Total Non-Current Liabilities 1,014,004 - Total Liabilities $ 5,271,201 $ 3,932,425 Commitments and Contingencies - - Stockholders' Equity (Deficit): Preferred stock, $ 0.001 par value, 5,000,000 shares authorized; 20,000 Series to be issued as of June 30, 2024 20 - Preferred stocks subscription receivables ( 20 ) Common stock, $ 0.001 par value, 100,000,000 shares authorized, 28,546,834 issued and outstanding as of June 30, 202

Financial Statements

Financial Statements The accompanying unaudited condensed interim financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information, and in accordance with the rules and regulations of the United States Securities and Exchange Commission with respect to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited interim financial statements furnished reflect all adjustments (consisting of normal recurring adjustments) that are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. Interim results are not necessarily indicative of the results for the full year. These unaudited interim financial statements should be viewed in conjunction with the audited

financial statements of the Company for the year ended December 31, 2023

financial statements of the Company for the year ended December 31, 2023. F-7 The

financial statements are presented in United States dollars

financial statements are presented in United States dollars. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Evaluation of Long-Lived Intangible Asset s The Company acquired its principal intellectual property asset in the second quarter of 2021. The value of the asset was initially derived from the underlying arms' length transaction in which the company owning the technology transferred the technology to the Company in exchange for a specific number of shares of Common Stock of the Company. The value of the shares was derived from the fact that such shares were bought and sold in an arms' length transaction that occurred simultaneously. The technology composed initially of patents and patent applications as well as certain knowhow was initially amortized by the Company. However, during fiscal year 2021, due to the nature of the technology behind the asset and its application across multiple disciplines and businesses, Management considered the asset to be greater than the individual patents and possible patent applications. Certain technological ideas give rise to many various applications (stem technologies'). For this reason, on September 30, 2021, the asset as a stem technology was reclassified as an intangible asset of indefinite life. The value taken was that of its book value at the third quarter end 2021 following initial amortization. Intangible assets of indefinite life are not amortized but instead tested for impairment at least annually or more frequently if events and circumstances indicate that the asset might be impaired. The Comp

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