CYTTA Swings to Profit on Marketable Securities Gain, Cash Dwindles

TL;DR

**CYCA's 'profit' is a mirage from a stock gain; their core business is still bleeding cash and revenue is non-existent, making it a speculative gamble.**

AI Summary

CYTTA CORP. (CYCA) reported a net income of $3,368,421 for the nine months ended June 30, 2025, a significant turnaround from a net loss of $3,501,446 in the prior year period. This positive shift was primarily driven by a substantial unrealized gain of $5,919,760 on the fair value change of marketable securities, specifically Class A Common Shares of RMX Industries, Inc. However, the company experienced a net loss of $2,129,260 for the three months ended June 30, 2025, largely due to a $1,742,138 unrealized loss on these same marketable securities during that quarter. Revenue remained minimal at $2,914 for the nine months ended June 30, 2025, down from $3,243 in the comparable prior year period, indicating that core operations are not yet generating significant income. Operating expenses decreased to $1,564,431 for the nine months ended June 30, 2025, from $3,191,909 in the prior year, mainly due to a reduction in 'general and administrative - other' expenses. The company's cash balance decreased from $1,439,835 as of September 30, 2024, to $416,892 as of June 30, 2025, and it continues to operate with an accumulated deficit of $33,499,471, raising substantial doubt about its ability to continue as a going concern without further financing. Strategic developments include the formation of Cytta Labs Inc. on May 13, 2025, to focus on IP and equity ownership, and ongoing development of CyttaCOMMS 2.0 and CyttaCARES software platforms.

Why It Matters

For investors, CYTTA's swing to a nine-month net income of $3.37 million is misleading, as it's almost entirely due to a non-operating gain on marketable securities, not core business growth. The minimal revenue of $2,914 and significant accumulated deficit of $33.5 million highlight a lack of sustainable operational profitability, posing a high risk for equity holders. Employees and customers might face uncertainty given the 'going concern' warning, which could impact product development and support for CyttaCOMMS and CyttaCARES. In the competitive tech landscape, CYTTA's reliance on a single marketable security for profitability, rather than its proprietary software, suggests it's struggling to gain market traction against more established players.

Risk Assessment

Risk Level: high — CYTTA CORP. has an accumulated deficit of $33,499,471 as of June 30, 2025, and limited revenues of only $2,914 for the nine months ended June 30, 2025. The company's cash balance significantly decreased from $1,439,835 to $416,892 over the nine-month period, and it explicitly states 'these factors, among others, raise substantial doubt about the ability of the Company to continue as a going concern.'

Analyst Insight

Investors should exercise extreme caution and avoid CYCA given the severe going concern risk and lack of sustainable operational revenue. The reported net income is non-recurring and driven by a volatile asset, not core business strength. Wait for clear evidence of consistent, growing revenue from their software products before considering any investment.

Financial Highlights

debt To Equity

N/A

revenue

$2,914

operating Margin

N/A

total Assets

$5,453,578

total Debt

$1,408,886

net Income

$3,368,421

eps

N/A

gross Margin

N/A

cash Position

$416,892

revenue Growth

-10.14%

Key Numbers

• $3.37M — Net Income (for the nine months ended June 30, 2025, a swing from a $3.50M loss in the prior year, primarily due to marketable securities gain.)
• $5.92M — Unrealized Gain on Marketable Securities (for the nine months ended June 30, 2025, the primary driver of the reported net income.)
• $2.91K — Revenue (for the nine months ended June 30, 2025, indicating minimal operational income.)
• $33.50M — Accumulated Deficit (as of June 30, 2025, highlighting significant historical losses.)
• $416.89K — Cash Balance (as of June 30, 2025, a decrease from $1.44M as of September 30, 2024.)
• $1.41M — Net Cash Used in Operating Activities (for the nine months ended June 30, 2024, compared to $1.02M for the same period in 2025, showing continued cash burn.)
• 480,237,826 — Shares Outstanding (as of October 29, 2025, indicating a large share count.)
• $1.95 — Fair Value per Share of RMX Industries, Inc. (as of June 30, 2025, for the marketable securities held by Cytta Corp.)

Key Players & Entities

• CYTTA CORP. (company) — registrant
• RMX Industries, Inc. (company) — issuer of marketable securities
• Reticulate Micro, Inc. (company) — former name of RMX Industries, Inc. and compression licensee
• Cytta Labs Inc (company) — wholly owned subsidiary formed May 13, 2025
• SEC (regulator) — Securities and Exchange Commission
• $3,368,421 (dollar_amount) — net income for nine months ended June 30, 2025
• $5,919,760 (dollar_amount) — unrealized gain on fair value change of marketable securities for nine months ended June 30, 2025
• $2,129,260 (dollar_amount) — net loss for three months ended June 30, 2025
• $33,499,471 (dollar_amount) — accumulated deficit as of June 30, 2025
• $416,892 (dollar_amount) — cash balance as of June 30, 2025

FAQ

Risk Factors

• Going Concern Uncertainty [high — financial]: The company has an accumulated deficit of $33,499,471 as of June 30, 2025, and its cash balance decreased significantly from $1,439,835 to $416,892. This raises substantial doubt about its ability to continue as a going concern without further financing.
• Marketable Securities Volatility [high — market]: The company's net income for the nine months ended June 30, 2025, was heavily influenced by an unrealized gain of $5,919,760 on marketable securities. Conversely, a net loss of $2,129,260 was reported for the three months ended June 30, 2025, due to a $1,742,138 unrealized loss on these same securities, highlighting significant earnings volatility.
• Minimal Revenue Generation [high — operational]: Revenue for the nine months ended June 30, 2025, was only $2,914, a decrease from $3,243 in the prior year. This indicates that the company's core operations are not generating significant income, relying instead on investment gains.
• Product Development Delays and Market Adoption [medium — operational]: The MVP version of CyttaCOMMS was terminated, and the architecture is being redesigned for an enterprise sales program. The company is still working on the MMP version (CyttaCOMMS 2.0), indicating potential delays in market entry and adoption of its core software products.
• Decreasing Cash Reserves [medium — financial]: The company's cash balance has fallen from $1,439,835 as of September 30, 2024, to $416,892 as of June 30, 2025. This substantial decrease in liquidity requires careful management and potential future capital raises.
• Dependence on Related Parties [low — operational]: The company has significant related party liabilities ($432,371) and prepaid expenses ($245,763) as of June 30, 2025. While not inherently negative, it indicates a level of interconnectedness that could pose risks if not managed transparently.

Industry Context

Cytta Corp. operates in the disruptive technologies sector, focusing on imagineering and developing software solutions for incident management, intelligence, surveillance, and reconnaissance (ISR). The market for real-time video and audio integration, especially for emergency services and security, is competitive and driven by advancements in compression technology and low-bandwidth solutions. Companies in this space often rely on licensing intellectual property and developing scalable SaaS platforms.

Regulatory Implications

As a publicly traded company, Cytta Corp. is subject to SEC regulations and reporting requirements. The significant fluctuations in its financial performance due to marketable securities and the ongoing concerns about its going concern status necessitate clear and transparent disclosures to investors and regulators.

What Investors Should Do

1. Monitor the performance and valuation of marketable securities.
2. Evaluate the progress and market adoption of CyttaCOMMS 2.0 and CyttaCARES.
3. Assess the company's ability to secure future financing.
4. Understand the impact of related party transactions.

Key Dates

• 2025-06-30: Nine months ended June 30, 2025 financial reporting — Reported a significant net income turnaround driven by investment gains, but also showed a quarterly net loss due to security value fluctuations and minimal operational revenue.
• 2025-05-13: Formation of Cytta Labs Inc. — Indicates a strategic move to focus on intellectual property and equity ownership, potentially separating R&D or asset management functions.
• 2025-06-30: Marketable securities valued at fair value — Represents a significant asset ($4,747,302) that is highly volatile and impacts net income significantly.
• 2024-09-30: Previous fiscal year-end — Provided a baseline for comparison, showing a higher cash balance ($1,439,835) and a smaller accumulated deficit ($36,867,892).

Glossary

Accumulated deficit

The total net losses of a company since its inception that have not been offset by net income. (Indicates the company's historical unprofitability and significant cumulative losses, standing at $33,499,471 as of June 30, 2025.)

Marketable securities at fair value

Investments that are readily tradable in the open market and are reported on the balance sheet at their current market price. (A significant asset for Cytta Corp. ($4,747,302 as of June 30, 2025), whose valuation changes directly impact the company's net income and financial stability.)

Unrealized gain/loss

The increase or decrease in the value of an asset that has not yet been sold. It is recognized in net income but does not represent actual cash flow until the asset is sold. (Crucial for understanding Cytta Corp.'s reported net income, as a large unrealized gain drove positive results for the nine-month period, while an unrealized loss caused a quarterly loss.)

Going concern

The assumption that a company will continue to operate for the foreseeable future, typically at least the next 12 months. (The company's financial condition, including its low cash balance and accumulated deficit, raises substantial doubt about its ability to continue as a going concern.)

SaaS

Software as a Service. A software distribution model where a third-party provider hosts applications and makes them available to customers over the Internet. (CyttaCOMMS operates on a fully SaaS-based model, indicating its business strategy relies on recurring subscription revenue rather than hardware sales.)

Year-Over-Year Comparison

Compared to the prior year period, CYTTA CORP. has shown a dramatic swing in net income, moving from a loss of $3,501,446 to a gain of $3,368,421 for the nine months ended June 30, 2025. This turnaround is almost entirely attributable to a substantial unrealized gain on marketable securities, as core revenue remains minimal at $2,914, down from $3,243. Operating expenses have decreased significantly due to reduced 'general and administrative - other' costs. However, the company's cash position has deteriorated, and the accumulated deficit persists, reinforcing concerns about its long-term viability.

Key Financial Figures

• $0.001 — Section 12(g) of the Act: Common Stock, $0.001 par value Indicate by check mark whet
• $1.95 — ecurities at fair value of $ 4,747,302 ($1.95/share). The Company recorded $ 1,742,13
• $3.75 — Initial value of 2,664,609 RM shares at $3.75 per share 9,992,284 Settlement of co

Filing Documents

• cyca_10q.htm (10-Q) — 1150KB
• cyca_ex311.htm (EX-31.1) — 10KB
• cyca_ex312.htm (EX-31.2) — 10KB
• cyca_ex321.htm (EX-32.1) — 5KB
• 0001477932-25-007822.txt ( ) — 5681KB
• cyca-20250630.xsd (EX-101.SCH) — 63KB
• cyca-20250630_lab.xml (EX-101.LAB) — 325KB
• cyca-20250630_cal.xml (EX-101.CAL) — 42KB
• cyca-20250630_pre.xml (EX-101.PRE) — 300KB
• cyca-20250630_def.xml (EX-101.DEF) — 207KB
• cyca_10q_htm.xml (XML) — 905KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION ITEM 1

Financial Statements (Unaudited)

Financial Statements (Unaudited) Consolidated Balance Sheets as of June 30, 2025 (unaudited), and September 30, 2024 3 Consolidated Statements of Operations for the three and nine months ended June 30, 2025, and 2024 (Unaudited) 4 Consolidated Statements of Changes in Stockholders' Equity (Deficit) for the three and nine months ended June 30, 2025, and 2024 (Unaudited) 5 Consolidated Statements of Cash Flows for the nine months ended June 30, 2025, and 2024 (Unaudited) 7 Notes to Interim Unaudited Consolidated Financial Statements 8 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 25 ITEM 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 29 ITEM 4.

Controls and Procedures

Controls and Procedures 29

OTHER INFORMATION

PART II. OTHER INFORMATION ITEM 1.

Legal Proceedings

Legal Proceedings 30 ITEM 1A.

Risk Factors

Risk Factors 30 ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds 30 ITEM 3. Defaults Upon Senior Securities 30 ITEM 4. Mine Safety Disclosures 30 ITEM 5. Other Information 30 ITEM 6. Exhibits 31 2 Table of Contents CYTTA CORP CONSOLIDATED BALANCE SHEETS June 30, September 30, 2025 2024 ASSETS (unaudited) Current Assets Cash $ 416,892 $ 1,439,835 Prepaid expenses- related party 245,763 421,334 Prepaid expenses- other 12,616 122,712 Marketable securities at fair value 4,747,302 - Security deposits 6,500 - Total Current Assets 5,429,073 1,983,881 Prepaid expenses, non-current - 140,443 Property and equipment, net 24,505 50,867 TOTAL ASSETS $ 5,453,578 $ 2,175,191 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) Liabilities Current Liabilities Accounts payable and accrued expenses $ 637,138 $ 524,251 Related party liabilities 432,371 413,093 Dividend payable 33,427 33,427 Deferred revenue - 2,914 Convertible notes payable 305,950 1,438,950 Total Current Liabilities and Total Liabilities 1,408,886 2,412,635 COMMITMENTS AND CONTINGENCIES - - Stockholders' Equity (Deficit) Preferred stock par value $ 0.001 ; ( 100,000,000 shares authorized) Series A Preferred Stock par value $ 0.001 ; ( 10,000,000 shares authorized and - 0 - shares issued and outstanding) - - Series C Preferred Stock par value $ 0.001 ; ( 12,000,000 shares authorized and 600,000 shares issued and outstanding) 600 600 Series D Preferred Stock par value $ 0.001 ; ( 10,000,000 shares authorized and 50,000 shares issued and outstanding) 50 50 Series E Preferred Stock par value $ 0.001 ; ( 13,650,000 shares authorized and - 0 - issued and outstanding) - - Series F Preferred Stock par value $ 0.001 ; ( 59,270,000 shares authorized and - 0 - issued and outstanding) - - Common stock par value $ 0.001 ; ( 600,000,000 shares authorized and

Notes to Financial Statements

Notes to Financial Statements June 30, 2025 (Unaudited) NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS Cytta Corp., ("Cytta" or the "Company") was incorporated on May 30, 2006, under the laws of the State of Nevada. It is located in Las Vegas, Nevada. Cytta is in the business of imagineering, developing and securing disruptive technologies. The Company's proprietary CyttaCOMMS incident management software system offers real-time integration of video and audio streams, enabling improved collaboration and providing ongoing, relevant, actionable intelligence. Their innovative new product, CyttaCARES, is a game-changer in ensuring the safety and well-being of individuals in educational institutions and beyond. Cytta's CyttaCOMP ISTAR (Intelligence, Surveillance, Target Acquisition and Reconnaissance) technology delivers real-time compression of video streams with ultra-low latency, even in low bandwidth environments in conjunction with their compression Licensee Reticulate Micro, Inc. Cytta's proprietary SUPR Intelligence, Surveillance and Reconnaissance (ISR) technology designated CyttaCOMP, is now licensed to Reticulate Micro, Inc. CyttaCOMP, is at the core of our products and is the most potent software compression codec commercially available. CyttaCOMP is explicitly designed for realtime streaming of HD, 4K, and higher resolution video while requiring only limited bandwidth and minimal computational resources. Cytta's CyttaCOMMS (formerly IGAN TM Incident Command System (ICS) system) seamlessly streams and integrates all available video and audio sources during emergencies, enabling sharing of multiple video and audio inputs. The trial (MVP- Minimum Viable Product) version of the CyttaCOMMS product was introduced into the market in the last quarter of 2024. Based upon the information gathered the all of the MVP versions utilizations of the CyttaCOMMS were terminated and the server-side architecture redesigned for an enterprise level sales program wh

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