CTGL Narrows 9-Month Loss Amid Strategic Shift to Drones

TL;DR

**CTGL is still bleeding cash, but its strategic pivot to drones and extended credit line offer a glimmer of hope for a turnaround.**

AI Summary

CITRINE GLOBAL, CORP. (CTGL) reported a net loss of $1.327 million for the nine months ending September 30, 2025, a significant improvement from the $1.882 million net loss in the same period of 2024. For the three months ending September 30, 2025, the net loss was $386 thousand, slightly higher than the $380 thousand loss in Q3 2024. Operating loss decreased to $832 thousand for the nine-month period in 2025, down from $930 thousand in 2024, primarily due to reduced marketing, general, and administrative expenses. Total assets decreased from $1.620 million at December 31, 2024, to $1.345 million at September 30, 2025, while total liabilities increased from $4.315 million to $5.223 million. The company's strategic focus shifted to UAV and drone solutions, reflected by its name change to SkyTech Orion Global Corp. on June 26, 2025. Shareholder's deficit widened to $(3.878) million from $(2.695) million at year-end 2024, driven by the accumulated deficit of $(33.133) million. The company secured an extension of its credit facility with S.R. Accord Ltd. until March 31, 2027, for NIS 1,000,000 (approximately $280,000), providing crucial financial support.

Why It Matters

For investors, CTGL's narrowing net loss for the nine-month period, despite an increased Q3 loss, signals a potential positive trend in operational efficiency, especially with the strategic pivot to UAV and drone solutions. The extension of the S.R. Accord Ltd. credit facility until March 31, 2027, provides essential liquidity and reduces immediate going concern risks, which is critical for a company with a growing accumulated deficit. However, the increasing total liabilities and widening shareholder's deficit indicate ongoing financial strain. This competitive context in the rapidly evolving drone market means CTGL needs to demonstrate tangible progress in its new focus to attract and retain investor confidence, impacting future funding and market valuation.

Risk Assessment

Risk Level: high — The company reported a total stockholders' deficit of $(3.878) million as of September 30, 2025, worsening from $(2.695) million at December 31, 2024, indicating significant financial distress. Total liabilities increased to $5.223 million from $4.315 million, while total assets decreased to $1.345 million from $1.620 million, highlighting a deteriorating balance sheet and reliance on debt.

Analyst Insight

Investors should exercise extreme caution and monitor CTGL's progress in its new UAV and drone solutions segment closely. While the extended credit facility provides short-term relief, the widening deficit and increasing liabilities demand evidence of revenue generation and profitability from the new business focus before considering any investment.

Financial Highlights

total Assets

$1.345M

total Debt

$5.223M

net Income

-$1.327M

cash Position

$1

Key Numbers

• $1.327M — Net Loss (9 months) (Decreased from $1.882M in 2024, indicating improved financial performance.)
• $386K — Net Loss (3 months) (Slightly increased from $380K in Q3 2024, showing a quarterly dip.)
• $(3.878)M — Total Stockholders' Deficit (Widened from $(2.695)M at Dec 31, 2024, reflecting ongoing losses.)
• $5.223M — Total Liabilities (Increased from $4.315M at Dec 31, 2024, indicating higher debt burden.)
• $1.345M — Total Assets (Decreased from $1.620M at Dec 31, 2024, showing asset reduction.)
• $280K — Credit Facility Amount (Extended until March 31, 2027, providing crucial liquidity.)
• 1,234,185,009 — Common Stock Outstanding (Increased from 1,044,074,409 at Dec 31, 2024, indicating share dilution.)

Key Players & Entities

• CITRINE GLOBAL, CORP. (company) — registrant
• SkyTech Orion Global Corp. (company) — new DBA name
• S.R. Accord Ltd. (company) — lender providing credit facility
• Ora Elharar-Soffer (person) — Company's CEO and personal guarantor
• Lior Asher (person) — director of SkyTech Orion Ltd. and personal guarantor
• $1.327 million (dollar_amount) — net loss for nine months ending September 30, 2025
• $1.882 million (dollar_amount) — net loss for nine months ending September 30, 2024
• $386 thousand (dollar_amount) — net loss for three months ending September 30, 2025
• $380 thousand (dollar_amount) — net loss for three months ending September 30, 2024
• $280,000 (dollar_amount) — approximate value of extended credit facility

FAQ

Risk Factors

• Deteriorating Balance Sheet [high — financial]: Total assets decreased from $1.620 million at December 31, 2024, to $1.345 million at September 30, 2025. Concurrently, total liabilities increased from $4.315 million to $5.223 million. This trend has widened the total stockholders' deficit to $(3.878) million from $(2.695) million.
• Accumulated Deficit [high — financial]: The company has a substantial accumulated deficit of $(33.133) million as of September 30, 2025. This ongoing deficit indicates a history of net losses that have eroded equity and raises concerns about long-term financial viability.
• Increased Short-Term Borrowings [medium — financial]: Short-term loans have increased significantly from $181,000 at December 31, 2024, to $410,000 ($292,000 + $219,000) at September 30, 2025, including a new $219,000 short-term loan from a related party. This suggests increased reliance on short-term debt to manage operations.
• Reliance on Related Party Transactions [medium — financial]: The company has significant balances with related parties, including a $219,000 short-term loan, $321,000 in accounts payable, and $2,784,000 in accrued compensation. This concentration of related party obligations could pose risks if these relationships are not managed effectively.
• Share Dilution [medium — financial]: The number of common shares outstanding increased from 1,044,074,409 at December 31, 2024, to 1,234,185,009 at September 30, 2025. This represents a dilution of approximately 18.2% and could negatively impact existing shareholders' ownership percentage.
• Strategic Shift and Name Change [medium — operational]: The company's strategic focus has shifted to UAV and drone solutions, evidenced by its name change to SkyTech Orion Global Corp. on June 26, 2025. Executing this new strategy effectively and achieving market penetration in a competitive sector presents significant operational challenges.
• Net Loss Trend [medium — financial]: Despite an improvement in the nine-month net loss to $1.327 million in 2025 from $1.882 million in 2024, the company continues to incur losses. The net loss for Q3 2025 was $386 thousand, a slight increase from $380 thousand in Q3 2024, indicating persistent profitability challenges.

Industry Context

Citrine Global, Corp., now operating as SkyTech Orion Global Corp., is pivoting to the UAV and drone solutions market. This sector is characterized by rapid technological advancements, increasing competition from established aerospace companies and agile startups, and evolving regulatory frameworks. Growth is driven by applications in defense, logistics, agriculture, and surveillance, but requires significant R&D investment and market penetration strategies.

Regulatory Implications

The company's strategic shift to the drone industry may expose it to new regulatory landscapes, particularly concerning airspace management, data privacy, and national security. Compliance with evolving FAA regulations (or equivalent international bodies) and potential export controls will be critical for market access and operational continuity.

What Investors Should Do

1. Monitor the execution of the new UAV/drone strategy.
2. Analyze the trend of increasing liabilities and widening deficit.
3. Evaluate the impact of share dilution on ownership.
4. Assess the company's ability to manage related party transactions.

Key Dates

• 2025-06-26: Company name change to SkyTech Orion Global Corp. — Indicates a strategic shift towards UAV and drone solutions, signaling a new business direction.
• 2025-09-30: Nine months ended financial results reported — Shows a reduced net loss of $1.327 million compared to $1.882 million in the prior year, but also a widening stockholders' deficit and increased liabilities.
• 2025-09-30: Credit facility extended with S.R. Accord Ltd. — Provides crucial financial support of NIS 1,000,000 (approx. $280,000) until March 31, 2027, offering short-term liquidity.
• 2027-03-31: Credit facility maturity date — Marks the end of the extended credit facility, after which the company will need to secure further financing or repay the amount.

Glossary

Stockholders' Deficit

A situation where a company's total liabilities exceed its total assets, resulting in a negative equity value for shareholders. (CTGL has a significant and widening stockholders' deficit of $(3.878) million, indicating that the company owes more than it owns.)

Accumulated Deficit

The cumulative net losses of a company that have not been offset by net income or other gains since its inception. (CTGL's substantial accumulated deficit of $(33.133) million highlights a long history of unprofitability.)

Related Parties

Entities or individuals that have the ability to control or significantly influence the operating decisions of another entity. (CTGL has significant transactions and balances with related parties, including loans and accrued compensation, which require careful disclosure and management.)

Investments valued under the measurement alternative

Investments that are not publicly traded and do not have a readily determinable fair value, requiring specific accounting methods for valuation. (These investments represent a significant portion of CTGL's non-current assets, decreasing from $1,263,000 to $831,000, impacting the overall asset base.)

Common stock, par value $0.0001 per share

The basic form of ownership in a corporation, with a nominal value assigned to each share. (The number of outstanding shares has increased significantly, impacting ownership percentages and earnings per share calculations.)

Year-Over-Year Comparison

Compared to the prior year's nine-month period, Citrine Global, Corp. has reduced its net loss from $1.882 million to $1.327 million, primarily due to decreased marketing, general, and administrative expenses. However, this improvement is overshadowed by a deteriorating balance sheet, with total assets shrinking by $275,000 while total liabilities grew by $908,000, leading to a wider stockholders' deficit. The company has also experienced significant share dilution, with outstanding shares increasing by over 18%.

Key Financial Figures

• $0.01 — 90 ) * Represents an amount less than $0.01 per common stock. The accompanying no
• $1 thousand — 3,878 ) * Represents amount less than $1 thousand The accompanying notes are an integra

Filing Documents

• form10-q.htm (10-Q) — 772KB
• ex31-1.htm (EX-31.1) — 12KB
• ex31-2.htm (EX-31.2) — 12KB
• ex32-1.htm (EX-32.1) — 6KB
• ex32-2.htm (EX-32.2) — 6KB
• 0001493152-25-024241.txt ( ) — 3107KB
• ctgl-20250930.xsd (EX-101.SCH) — 21KB
• ctgl-20250930_cal.xml (EX-101.CAL) — 30KB
• ctgl-20250930_def.xml (EX-101.DEF) — 107KB
• ctgl-20250930_lab.xml (EX-101.LAB) — 197KB
• ctgl-20250930_pre.xml (EX-101.PRE) — 152KB
• form10-q_htm.xml (XML) — 368KB

– Unaudited Condensed Consolidated Financial Statements

Item 1 – Unaudited Condensed Consolidated Financial Statements 4 Condensed Consolidated Balance Sheets – September 30, 2025 (unaudited) and December 31, 2024 5 Condensed Consolidated Statements of Operations for the three and nine months ending September 30, 2025 and 2024 (unaudited) 6 Condensed Consolidated Statement of Changes in Stockholders' Equity (deficit) for the three and nine months ending September 30, 2025 and 2024 (unaudited) 7 Condensed Consolidated Statements of Cash Flows for the nine months ending September 30, 2025 and 2024 (unaudited) 9 Notes to Unaudited Condensed Consolidated Financial Statements 10

– 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 16

– Quantitative and Qualitative Disclosures About Market Risk

Item 3 – Quantitative and Qualitative Disclosures About Market Risk 26

– Controls and Procedures

Item 4 – Controls and Procedures 27

— OTHER INFORMATION

PART II — OTHER INFORMATION 28

– 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 28 Exhibit Index 28

SIGNATURES

SIGNATURES 29 2 CITRINE GLOBAL, CORP. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2025 3 CITRINE GLOBAL, CORP. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2025 U.S. DOLLARS IN THOUSANDS TABLE OF CONTENTS Page CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS: Condensed consolidated balance sheets as of September 30, 2025 (unaudited), and December 31, 2024 5 Condensed consolidated statements of operations and comprehensive loss for nine and three months ending September 30, 2025 and 2024 (unaudited) 6 Condensed consolidated statements of stockholders' deficit for the nine and three months period ending September 30, 2025 and 2024 (unaudited) 7 Condensed consolidated statements of cash flows for the nine months ending September 30, 2025 and 2024 (unaudited) 9 Notes to unaudited condensed consolidated financial statements 10 - 15 4 CITRINE GLOBAL, CORP. CONDENSED CONSOLIDATED BALANCE SHEETS (U.S. dollars in thousands, except share and per share data) September 30, 2025 December 31, 2024 (Unaudited) Assets Current Assets Cash and cash equivalents 7 1 Prepaid expenses 94 108 Other current assets 60 31 Total Current assets 161 140 Non-current assets Investments valued under the measurement alternative 831 1,263 Property and equipment, net 353 217 Total non-current assets 1,184 1,480 Total assets 1,345 1,620 Liabilities and Stockholders' Deficit Current liabilities Short term loans 292 181 Short term loan – related party 219 - Short term loan 219 - Accounts payable 19 22 Accounts payable – related parties 321 324 Accounts payable 321 324 Accrued compensation – related parties 2,784 2,465 Accrued expenses 877 612 Total current liabilities 4,512 3,604 Non-current liability Related parties 711 711 Total liabilities 5,223 4,315 Stockholders' Deficit Common stock, par value $ 0.0001 per share, 1,500,000,000 shares authorized at September 30, 2025 and December 31, 2024; 1,234,185,009 and 1,044,074,409 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively 123 104 Additional paid-in capital 28,988 27,053 Stock to be issued 72 1,836 Accumulated defici

View Full Filing

View this 10-Q filing on SEC EDGAR