GivBux Net Loss Widens to $6.6M Amid Soaring Derivative Liabilities

Ticker: GBUX · Form: 10-Q · Filed: Aug 13, 2025 · CIK: 1169138

Sentiment: bearish

Topics: Going Concern, Net Loss, Derivative Liabilities, Accumulated Deficit, Liquidity Risk, Penny Stock, OTC Markets

TL;DR

**GBUX is a burning pile of cash with liabilities exploding; stay far away.**

AI Summary

GIVBUX, INC. (GBUX) reported a significant increase in net loss to $6,631,650 for the six months ended June 30, 2025, up from $2,795,192 in the prior year, primarily driven by a substantial increase in derivative liabilities. Revenue for the six-month period grew to $121,826 in 2025 from $72,399 in 2024, but cost of revenue also increased to $94,584 from zero. The company's total liabilities surged to $9,080,408 as of June 30, 2025, from $3,132,468 at December 31, 2024, largely due to a dramatic rise in derivative liabilities from $319,337 to $5,951,887. This led to a stockholders' deficit of $(8,939,703) and current liabilities exceeding current assets by $8,961,571. The company acknowledged substantial doubt about its ability to continue as a going concern, planning to raise additional operating funds through equity and/or debt offerings. Cash decreased slightly from $18,374 at the beginning of the period to $18,157 by June 30, 2025.

Why It Matters

GivBux's escalating net loss and massive increase in derivative liabilities signal severe financial distress, raising significant red flags for investors. The 'going concern' warning indicates a high risk of business failure, potentially wiping out shareholder value. For employees, this could mean job insecurity, while customers might face service disruptions. In a competitive market, GivBux's inability to generate sustainable revenue and manage its debt burden puts it at a distinct disadvantage against more financially stable rivals, making its long-term viability highly questionable.

Risk Assessment

Risk Level: high — The company explicitly states "substantial doubt about the ability of the Company to continue as a going concern" due to a net loss of $6,631,650 for the six months ended June 30, 2025, an accumulated deficit of $36,732,878, and current liabilities exceeding current assets by $8,961,571.

Analyst Insight

Investors should avoid GBUX given the explicit going concern warning, massive accumulated deficit, and exploding derivative liabilities. The company's current financial state suggests a high probability of further dilution or bankruptcy, making it an unsuitable investment.

Financial Highlights

debt To Equity
N/A
revenue
$121,826
operating Margin
-592.0%
total Assets
$140,705
total Debt
$9,080,408
net Income
$ -6,631,650
eps
$ -0.07
gross Margin
22.4%
cash Position
$18,157
revenue Growth
68.3%

Key Numbers

Key Players & Entities

FAQ

What is the primary reason for GivBux, Inc.'s increased net loss in the first half of 2025?

The primary reason for GivBux, Inc.'s increased net loss to $6,631,650 for the six months ended June 30, 2025, is a significant increase in the change in fair value of derivative liabilities, which amounted to $(5,552,522) compared to $(24,679) in the prior year.

Does GivBux, Inc. have enough cash to sustain its operations?

No, GivBux, Inc. has an extremely low cash balance of $18,157 as of June 30, 2025. This, combined with current liabilities exceeding current assets by $8,961,571, indicates insufficient liquidity to sustain operations.

What is the accumulated deficit for GivBux, Inc. as of June 30, 2025?

As of June 30, 2025, GivBux, Inc. has an accumulated deficit of $36,732,878, reflecting significant historical losses that have eroded shareholder equity.

What is the company's plan to address its 'going concern' issue?

Management intends to raise additional operating funds through equity and/or debt offerings to address the 'going concern' issue. However, the filing states there is no assurance of success in these endeavors.

How have GivBux, Inc.'s total liabilities changed from December 31, 2024, to June 30, 2025?

GivBux, Inc.'s total liabilities dramatically increased from $3,132,468 as of December 31, 2024, to $9,080,408 as of June 30, 2025, primarily due to the surge in derivative liabilities.

What is the significance of the derivative liabilities for GivBux, Inc.?

The derivative liabilities, which increased from $319,337 to $5,951,887, represent a significant financial risk for GivBux, Inc. Changes in their fair value directly impact the company's net loss and overall financial health, contributing heavily to the current liabilities.

What was GivBux, Inc.'s revenue for the six months ended June 30, 2025?

GivBux, Inc.'s revenue for the six months ended June 30, 2025, was $121,826, an increase from $72,399 for the same period in 2024.

Who are the key executives and directors of GivBux, Inc.?

The key executives and directors of GivBux, Inc. listed in the filing are Umesh Singh as CEO, Robert Thompson as Director, and Michael Arnkvarn as Director.

What was the basic and diluted loss per common share for GivBux, Inc. for the six months ended June 30, 2025?

The basic and diluted loss per common share for GivBux, Inc. for the six months ended June 30, 2025, was $(0.07), compared to $(0.03) for the same period in 2024.

What is the current status of GivBux, Inc.'s common stock listing?

GivBux, Inc.'s common shares are traded on the OTC Pink Sheet under the symbol GBUX.

Risk Factors

Industry Context

GIVBUX, INC. operates in a highly competitive and rapidly evolving technology sector, likely focused on digital services or platforms given its name. Companies in this space often rely on significant investment for growth and innovation, facing challenges in user acquisition, monetization, and technological disruption. The current market environment may favor established players with proven business models and strong financial backing, making it difficult for smaller, less capitalized companies like GIVBUX to gain traction.

Regulatory Implications

As a publicly traded company, GIVBUX is subject to SEC regulations and reporting requirements. The company's financial distress and going concern issues necessitate clear and transparent disclosures to investors, as demonstrated in this 10-Q. Failure to meet reporting obligations or misleading statements could lead to regulatory scrutiny and penalties.

What Investors Should Do

  1. Monitor future financing activities closely.
  2. Analyze the drivers of derivative liability changes.
  3. Evaluate the sustainability of revenue growth against cost increases.

Key Dates

Glossary

Derivative Liabilities
Obligations arising from financial contracts whose value is derived from an underlying asset, index, or rate. Changes in their fair value can significantly impact a company's financial results. (A primary driver of GIVBUX's increased total liabilities and net loss, with a substantial increase from $319,337 to $5,951,887.)
Accumulated Deficit
The cumulative net losses of a company since its inception, less any net profits. A large or growing accumulated deficit indicates a history of unprofitability. (GIVBUX has a significant accumulated deficit of $36,732,878 as of June 30, 2025, highlighting its long-term unprofitability.)
Going Concern
An accounting assumption that a company will continue to operate for the foreseeable future. If there is substantial doubt about this, it must be disclosed. (GIVBUX explicitly states substantial doubt about its ability to continue as a going concern, a critical warning for investors.)
Stockholders' Deficit
Occurs when a company's total liabilities exceed its total assets, resulting in a negative equity position for shareholders. (GIVBUX has a stockholders' deficit of $(8,939,703) as of June 30, 2025, indicating that liabilities outweigh assets.)
Cost of Revenue
The direct costs attributable to the production or purchase of the goods or services sold by a company. (The appearance of $94,584 in cost of revenue for the six months ended June 30, 2025, compared to zero in the prior year, is a notable change impacting gross profit.)

Year-Over-Year Comparison

Compared to the prior year's six-month period, GIVBUX, INC. has seen its net loss more than double, reaching $6,631,650 due to a substantial increase in derivative liabilities. Revenue has grown to $121,826 from $72,399, but this is offset by the introduction of cost of revenue. Total liabilities have surged, primarily driven by derivative liabilities, leading to a significantly larger stockholders' deficit and a confirmed going concern warning. Cash reserves remain critically low, showing minimal change from $18,374 to $18,157.

Filing Stats: 4,596 words · 18 min read · ~15 pages · Grade level 17.3 · Accepted 2025-08-13 06:12:18

Filing Documents

From the Filing

UNITED SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended 6/30/ 2025 or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________to _______________ Commission File Number: 000-52142 GivBux Inc Nevada 84-1609495 (I.R.S. Employer Identification No.) 2751 W Coast Hwy Suite 200 Newport Beach CA 92663 (Zip Code) (1) 844 - 448-2899 Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which registered Common Shares GBUX OTC Pink Sheet SEC 1296 (02-23) Potential persons who are to respond to the collection of information contained in this Form are not required to respond unless the Form displays a currently valid OMB control number. Umesh Singh CEO Robert Thompson Director Michael Arnkvarn Director Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act. Large accelerated filer Accelerated filer Non-accelerated filer Smaller reporting company Emerging growth company If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS: Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes No As of June 30, 2025, 94,851,733 shares of common stock. PART I—FINANCIAL INFORMATION Item 1. Financial Statements GivBux, Inc Consolidated Balance sheets (Unaudited) June 30, December 31, 2025 2024 Assets Current assets Cash $ 18,157 $ 18,374 Prepaid expenses 45,500 4,583 Other receivable 180 180 Deferred offering costs 55,000 - Total current assets 118,837 23,137 Property and equipment, net 21,868 - Total Assets $ 140,705 $ 23,137 Liabilities and Stockholders' Deficit Current Liabilities Accounts payable $ 252,487 $ 188,862 Accrued liabilities 724,024 759,789 Advances for convertible note to be issued 15,000 - Due to related party 3,275 3,275 Notes payable - related parties 897,789 955,165 Loans payable, net discount of $ 0 525,150 526,150 Convertible notes, net discount of $ 605,514 and $ 126,839 710,796 379,890 Derivative liabilities 5,951,887 319,337 Total Current Liabilities 9,080,408 3,132,468 Total Liabilities 9,080,408 3,132,468 Stockholders' Deficit Preferred stock: 10,000,000 authorized; $ 0.001 par value 0 shares issued and outstanding - - Common stock: 100,000,000 authorized; $ 0.001 par value 94,851,733 and 94,572,767 shares issued and outstanding, respectively 94,852 94,573 Additional paid in capital 27,628,323 3,679,454 Common stock to be issued, 46,667 shares 70,000 70,000 Accumulated deficit ( 36,732,878 ) ( 6,953,358 ) Total Stockholders' Deficit ( 8,939,703 ) ( 3,109,331 ) Total Liabilities and Stockholders' Deficit $ 140,705 $ 23,137 See accompanying notes to unaudited consolidated financial statements. 2 of 25 GivBux, Inc Consolidated (Unaudited) - 2025 2024 2025 2024 Three Months Ended Six Months Ended June 30, June 30, 2025 2024 2025 2024 Revenue $ 55,803 $ 25,030 $ 121,826 $ 72,399 Cost of revenue 39,434 - 94,584 - Gross profit 16,369 25,030 27,242 72,399 Operating expenses General and administrative 303,115 255,785 482,641 363,130 Sales an

View Full Filing

View this 10-Q filing on SEC EDGAR

View on Read The Filing