Chilean Cobalt's Q3 Loss Widens to $2.9M Amid Asset Impairment

TL;DR

**COBA is burning cash with no revenue and a massive asset impairment, making it a highly speculative bet on future cobalt prices.**

AI Summary

Chilean Cobalt Corp. (COBA) reported a significant net loss of $2,932,125 for the nine-month period ended September 30, 2025, a substantial increase from the $666,278 net loss in the same period of 2024. This was primarily driven by a massive loss on asset impairment of $1,881,082 during the nine-month period of 2025, which was not present in 2024. The company's cash balance decreased from $331,309 at December 31, 2024, to $189,157 by September 30, 2025. Operating expenses surged, with general and administrative expenses rising to $1,015,239 for the nine months ended September 30, 2025, from $681,218 in the prior year, and cost of mineral exploration increasing to $48,238 from zero. COBA issued 1,683,365 shares of Series B Convertible Preferred Stock, raising $830,945 in financing activities, and issued 4,500,000 shares of common stock for an acquisition valued at $1,890,000. The company continues to generate no revenue and has an accumulated deficit of $36,314,937 as of September 30, 2025, raising substantial doubt about its ability to continue as a going concern.

Why It Matters

This filing reveals a company in a precarious financial state, with a significant net loss and dwindling cash reserves, posing a high risk for investors. The substantial asset impairment loss of $1.88 million suggests a re-evaluation of its mining concessions' value, which could impact future exploration and development plans. For employees, the 'going concern' warning signals potential job insecurity. Customers and the broader market for critical minerals like cobalt might see delays in new supply from COBA, potentially benefiting more financially stable competitors in the EV battery supply chain. The company's inability to generate revenue after years of operation highlights the inherent challenges and capital intensity of junior mining.

Risk Assessment

Risk Level: high — The company reported a net loss of $2,932,125 for the nine months ended September 30, 2025, and has an accumulated deficit of $36,314,937. Its cash balance of $189,157 as of September 30, 2025, is insufficient to cover operations for the next 12 months, leading to a 'substantial doubt about the Company's ability to continue as a going concern.'

Analyst Insight

Investors should exercise extreme caution and consider this a highly speculative investment. Given the 'going concern' warning and significant losses, new investors should avoid COBA, while existing shareholders should re-evaluate their position, potentially considering an exit if their risk tolerance is low.

Financial Highlights

debt To Equity

0.08

revenue

$0

operating Margin

N/A

total Assets

$337,454

total Debt

$24,242

net Income

-$2,932,125

eps

-$0.07

gross Margin

N/A

cash Position

$189,157

revenue Growth

0%

Revenue Breakdown

Key Numbers

• $2.93M — Net Loss (Increased from $0.67M in 2024 for the nine-month period, indicating worsening financial performance.)
• $1.88M — Loss on Asset Impairment (A new, significant loss in 2025, directly contributing to the increased net loss.)
• $189K — Cash Balance (Decreased from $331K at year-end 2024, indicating limited liquidity for future operations.)
• $36.31M — Accumulated Deficit (Reflects substantial historical losses and a lack of profitability since inception.)
• 0% — Revenue Growth (The company has generated no revenue for all periods presented, highlighting its pre-revenue stage.)
• 48,002,145 — Common Shares Outstanding (Increased from 43,502,145 at December 31, 2024, due to an acquisition, indicating dilution.)
• $830,945 — Proceeds from Series B Preferred Stock (Key financing activity for the nine-month period, providing capital amidst losses.)
• $1,890,000 — Common Stock Issued for Acquisition (Non-cash transaction for mining concessions, reflecting strategic asset expansion.)

Key Players & Entities

• Chilean Cobalt Corp. (company) — registrant of the 10-Q filing
• Baltum Minera SpA (company) — wholly-owned subsidiary of Chilean Cobalt Corp.
• Genlith, Inc. (company) — former Parent Company that distributed shares of Chilean Cobalt Corp.
• SEC (regulator) — Securities and Exchange Commission
• $2,932,125 (dollar_amount) — net loss for the nine-month period ended September 30, 2025
• $1,881,082 (dollar_amount) — loss on asset impairment for the nine-month period ended September 30, 2025
• $189,157 (dollar_amount) — cash balance as of September 30, 2025
• $36,314,937 (dollar_amount) — accumulated deficit as of September 30, 2025
• Nevada (location) — state of incorporation for Chilean Cobalt Corp.
• Chile (location) — location of Baltum Minera SpA's mining concessions

FAQ

Risk Factors

• Going Concern Uncertainty [high — financial]: The company reported a net loss of $2,932,125 for the nine months ended September 30, 2025, and its cash balance decreased to $189,157. With an accumulated deficit of $36,314,937, there is substantial doubt about its ability to continue as a going concern.
• Deteriorating Financial Performance [high — financial]: The net loss significantly increased from $666,278 in the nine-month period of 2024 to $2,932,125 in 2025. This deterioration was heavily influenced by a new $1,881,082 loss on asset impairment.
• Increasing Operating Expenses [medium — financial]: General and administrative expenses rose from $681,218 to $1,015,239 for the nine-month periods ended September 30, 2025 and 2024, respectively. Additionally, cost of mineral exploration incurred $48,238 in 2025, a new expense category.
• Dilution from Share Issuances [medium — financial]: The company issued 1,683,365 shares of Series B Convertible Preferred Stock and 4,500,000 shares of common stock for an acquisition. This increases the number of outstanding shares, potentially diluting existing shareholders.
• Lack of Revenue Generation [high — operational]: Chilean Cobalt Corp. continues to generate no revenue, highlighting its early-stage, pre-revenue status. This dependence on financing for operations poses a significant risk.
• Commodity Price Volatility [medium — market]: As a company focused on cobalt, its future success is highly dependent on the volatile prices of cobalt and other minerals. Fluctuations in commodity markets can significantly impact the company's ability to attract investment and achieve profitability.

Industry Context

The cobalt mining industry is characterized by high capital requirements, significant exploration risks, and volatile commodity prices. Companies in this sector often operate in pre-revenue stages for extended periods, relying heavily on external financing. The competitive landscape includes established global players and junior exploration companies, all vying for exploration rights and market share in a market driven by demand from battery manufacturing and other industrial applications.

Regulatory Implications

As a mining company, Chilean Cobalt Corp. is subject to stringent environmental, health, and safety regulations in its operating jurisdictions. Compliance with these regulations requires significant investment and can lead to operational delays or penalties if not met. Changes in mining laws, permitting processes, or environmental standards could impact the company's ability to develop its projects and operate profitably.

What Investors Should Do

1. Monitor cash burn rate closely: Given the declining cash balance and significant operating losses, investors should track the company's ability to manage its cash runway and secure future funding.
2. Evaluate asset impairment rationale: Understand the reasons behind the $1.88M asset impairment loss to assess the accuracy of previous asset valuations and future asset recoverability.
3. Assess progress on exploration and development: As a pre-revenue company, future value hinges on successful exploration and development of mineral assets. Investors should look for tangible progress and updated resource estimates.
4. Consider dilution impact: The issuance of preferred and common stock for financing and acquisitions increases share count. Investors should evaluate the potential dilution of their ownership stake.
5. Scrutinize going concern disclosures: The substantial doubt about the company's ability to continue as a going concern is a critical risk that warrants thorough investigation into the company's financial stability and future prospects.

Key Dates

• 2025-09-30: Nine-month period ended — Reported a net loss of $2,932,125 and a cash balance of $189,157, with substantial doubt about going concern.
• 2025-09-30: Series B Convertible Preferred Stock issuance — Raised $830,945 in financing activities.
• 2025-09-30: Common Stock issuance for acquisition — Issued 4,500,000 shares valued at $1,890,000 for mining concessions.
• 2024-12-31: Year-end — Cash balance was $331,309 and accumulated deficit was $33,382,812.

Glossary

Loss on asset impairment

A charge taken when the carrying value of an asset on the balance sheet is deemed to be higher than its recoverable amount, leading to a write-down. (A significant new expense of $1,881,082 in 2025, directly contributing to the increased net loss and indicating potential overvaluation of assets previously held.)

Accumulated deficit

The cumulative net losses of a company since its inception that have not been offset by profits or additional paid-in capital. (At $36,314,937 as of September 30, 2025, it highlights the company's long history of unprofitability and raises concerns about its long-term viability.)

Going concern

A business's ability to continue operating for the foreseeable future without the threat of liquidation. (The company's financial condition raises substantial doubt about its ability to continue as a going concern, a critical indicator for investors and creditors.)

Series B Convertible Preferred Stock

A class of preferred stock that can be converted into a predetermined number of common stock shares. (The issuance of this stock, raising $830,945, is a key financing activity that provides capital but also introduces potential future dilution.)

Cost of mineral exploration

Expenses incurred in the search for mineral deposits and in the process of evaluating the technical feasibility and commercial viability of a mineral deposit. (The incurrence of $48,238 in 2025, where previously there was none, signifies active exploration efforts, which are capital-intensive and carry inherent risks.)

Year-Over-Year Comparison

Compared to the nine-month period ended September 30, 2024, Chilean Cobalt Corp. has experienced a significant deterioration in financial performance. The net loss has widened from $666,278 to $2,932,125, largely due to a new $1,881,082 loss on asset impairment. Operating expenses, particularly general and administrative costs, have increased substantially. While the company has secured new financing through preferred stock issuance and expanded its asset base via a stock-for-asset acquisition, its cash position has declined, and the accumulated deficit has grown, reinforcing concerns about its going concern status.

Key Financial Figures

• $0.0001 — hares of the registrant's common stock, $0.0001 par value per share, outstanding as of
• $10.7 million — n down to $-0- value from approximately $10.7 million on the Company's facilities located in

Filing Documents

• chilean_i10q-093025.htm (10-Q) — 762KB
• chilean_ex3101.htm (EX-31.1) — 7KB
• chilean_ex3102.htm (EX-31.2) — 7KB
• chilean_ex3201.htm (EX-32.1) — 4KB
• 0001683168-25-008499.txt ( ) — 4170KB
• coba-20250930.xsd (EX-101.SCH) — 25KB
• coba-20250930_cal.xml (EX-101.CAL) — 33KB
• coba-20250930_def.xml (EX-101.DEF) — 111KB
• coba-20250930_lab.xml (EX-101.LAB) — 256KB
• coba-20250930_pre.xml (EX-101.PRE) — 212KB
• chilean_i10q-093025_htm.xml (XML) — 672KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements 1 Condensed Consolidated Balance Sheets 1 Unaudited Condensed Consolidated Statements of Operations 2 Unaudited Condensed Consolidated Statements of Changes in Stockholders' Equity 3 Unaudited Condensed Consolidated Statements of Cash Flows 4 Notes to Condensed Consolidated Financial Statements 5

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

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 19

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 27

Controls and Procedures

Item 4. Controls and Procedures 27

– OTHER INFORMATION

PART II – OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 28

Risk Factors

Item 1A. Risk Factors 28

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 28

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 28

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 28

Other Information

Item 5. Other Information 28

Exhibits

Item 6. Exhibits 29 Signature Page 30 i CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q and the documents incorporated herein by reference contain forward-looking statements. Such forward-looking statements are based on current expectations, estimates and projections about Chilean Cobalt Corp.'s industry, management beliefs, and assumptions made by management. Words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates," variations of such words and similar expressions are intended to identify such forward-looking statements. These to predict; therefore, actual results and outcomes may differ materially from what is expressed or forecasted in any such forward-looking is not possible to foresee or identify all factors that could have a material effect on the future financial performance of the Company. The forward-looking statements in this Quarterly Report on Form 10-Q are made on the basis of management's assumptions and analyses, as of the time the statements are made, in light of their experience and perception of historical conditions, expected future developments and other factors believed to be appropriate under the circumstances. Except as otherwise required by the federal securities laws, we disclaim any obligation or undertaking to publicly release any updates or revisions to any forward-looking statement contained in this Quarterly Report on Form 10-Q and the information incorporated by reference in this Quarterly Report on Form 10-Q to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any statement is based. ii

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS CHILEAN COBALT CORP. AND SUBSIDIARY CONDENSED CONSOLIDATED BALANCE SHEET September 30, December 31, 2025 2024 (Unaudited) Assets Current assets: Cash $ 189,157 $ 331,309 Subscriptions receivable – 73,431 Prepaid expenses 145,339 64,416 Total current assets 334,496 469,156 Property and equipment, net 2,958 2,958 Total assets $ 337,454 $ 472,114 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 12,039 $ 18,128 Accrued service expenses 12,203 16,441 Total current liabilities 24,242 34,569 Total liabilities 24,242 34,569 Commitments and contingencies – – Stockholders' Equity: Series A Convertible Preferred Stock, $ 0.0001 par value; 19,848,875 shares authorized and 0 and 0 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively – – Series B Convertible Preferred Stock, $ 0.0001 par value; 2,900,000 shares authorized and 2,407,785 and 724,420 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively 241 72 Common Stock, $ 0.0001 par value; 100,000,000 shares authorized and 48,002,145 and 43,502,145 issued and outstanding at September 30, 2025 and December 31, 2024, respectively 4,800 4,350 Additional paid-in capital 36,380,471 33,565,165 Accumulated other comprehensive income 242,637 250,770 Accumulated deficit ( 36,314,937 ) ( 33,382,812 ) Total stockholders' equity 313,212 437,545 Total liabilities and stockholders' equity $ 337,454 $ 472,114 The accompanying notes are an integral part of the unaudited condensed consolidated financial statements. 1 CHILEAN COBALT CORP. AND SUBSIDIARY UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATION AND COMPREHENSIVE LOSS Three-Months Ended Nine-Months Ended September 30, September 30, 2025 2024 2025 2024 Revenues $ – $ – $ – $ – Operating expenses: Cost of mineral exploration 28,440 –

View Full Filing

View this 10-Q filing on SEC EDGAR