OZSC Revenue Plummets 80% Amid Mounting Losses, Going Concern Doubts

TL;DR

**OZSC is a burning dumpster fire, revenue is gone, and they're drowning in debt – avoid at all costs.**

AI Summary

OZOP ENERGY SOLUTIONS, INC. reported a net loss of $5,559,344 for the nine months ended September 30, 2025, an increase from a net loss of $4,808,669 in the prior year period. Revenue significantly decreased to $248,828 for the nine months ended September 30, 2025, down from $1,267,980 in the same period of 2024, representing an 80.4% decline. Gross profit also fell sharply to $78,617 from $278,025 year-over-year. The company's total assets declined from $1,754,165 as of December 31, 2024, to $808,124 as of September 30, 2025. Current liabilities increased to $36,844,296 from $33,185,481, driven by a rise in accounts payable and accrued expenses to $11,969,893 and convertible notes payable to $3,169,730. The company had a working capital deficit of $36,273,834 and was in default of $17,725,000 plus accrued interest on debt instruments, raising substantial doubt about its ability to continue as a going concern. Management plans to access public equities markets for funding, having secured an Equity Financing Agreement with GHS for up to $10,000,000.

Why It Matters

This filing reveals a company in severe financial distress, with an 80% revenue drop and increasing net losses, which directly impacts investor confidence and the company's ability to fund future operations. The substantial doubt about OZSC's going concern status, coupled with significant debt defaults, signals high risk for current and prospective investors. For employees and customers, this financial instability could lead to operational disruptions or a cessation of business. In the competitive energy solutions market, OZSC's struggles highlight the challenges smaller players face in scaling and maintaining financial viability against larger, more established competitors.

Risk Assessment

Risk Level: high — The company has an accumulated deficit of $230,427,985 and a working capital deficit of $36,273,834 as of September 30, 2025. Furthermore, OZSC is in default of $17,725,000 plus accrued interest on debt instruments due to non-payment upon maturity dates, indicating severe liquidity issues and a high risk of bankruptcy.

Analyst Insight

Investors should immediately divest any holdings in OZOP ENERGY SOLUTIONS, INC. given the severe financial deterioration, significant debt defaults, and explicit going concern doubt. The reliance on dilutive equity financing agreements with GHS offers little long-term stability and will likely further erode shareholder value.

Financial Highlights

debt To Equity

N/A

revenue

$248,828

operating Margin

N/A

total Assets

$808,124

total Debt

$36,951,103

net Income

-$5,559,344

eps

N/A

gross Margin

31.6%

cash Position

$341,164

revenue Growth

-80.4%

Revenue Breakdown

Key Numbers

• $248,828 — Revenue for nine months ended September 30, 2025 (Decreased 80.4% from $1,267,980 in 2024, indicating a significant decline in sales.)
• $5,559,344 — Net loss for nine months ended September 30, 2025 (Increased from $4,808,669 in 2024, showing worsening profitability.)
• $230,427,985 — Accumulated deficit as of September 30, 2025 (Indicates substantial historical losses and negative equity.)
• $36,273,834 — Working capital deficit as of September 30, 2025 (Highlights severe short-term liquidity problems.)
• $17,725,000 — Defaulted debt instruments (Company is in default on this amount, plus accrued interest, signaling high financial risk.)
• $808,124 — Total Assets as of September 30, 2025 (Decreased from $1,754,165 as of December 31, 2024, indicating asset base erosion.)
• $36,844,296 — Total Current Liabilities as of September 30, 2025 (Increased from $33,185,481 as of December 31, 2024, exacerbating liquidity concerns.)
• 12,694,325,835 — Shares of common stock outstanding as of November 19, 2025 (Significantly high share count, indicating potential for extreme dilution.)

Key Players & Entities

• OZOP ENERGY SOLUTIONS, INC. (company) — registrant
• GHS (company) — equity financing provider
• Power Conversion Technologies, Inc. (company) — acquired subsidiary
• Catherine Chis (person) — former CEO and sole shareholder of PCTI
• Brian Conway (person) — sole officer and director of Ozop Capital Partners, Inc.
• $230,427,985 (dollar_amount) — accumulated deficit as of September 30, 2025
• $36,273,834 (dollar_amount) — working capital deficit as of September 30, 2025
• $17,725,000 (dollar_amount) — amount of defaulted debt instruments
• $10,000,000 (dollar_amount) — maximum funding from GHS under Equity Financing Agreement
• September 30, 2025 (date) — end of reporting period

FAQ

Risk Factors

• Going Concern Uncertainty [high — financial]: The company has a substantial accumulated deficit of $230,427,985 and a working capital deficit of $36,273,834 as of September 30, 2025. Furthermore, the company is in default on $17,725,000 plus accrued interest on debt instruments, raising substantial doubt about its ability to continue as a going concern.
• Deteriorating Financial Performance [high — financial]: For the nine months ended September 30, 2025, the company reported a net loss of $5,559,344, an increase from $4,808,669 in the prior year period. Revenue plummeted by 80.4% to $248,828 from $1,267,980 year-over-year.
• Eroding Asset Base [high — financial]: Total assets have significantly decreased from $1,754,165 as of December 31, 2024, to $808,124 as of September 30, 2025, indicating a shrinking operational scale and asset value.
• Increasing Liabilities [high — financial]: Total current liabilities increased to $36,844,296 from $33,185,481, primarily driven by increases in accounts payable, accrued expenses, and convertible notes payable, further straining liquidity.
• Potential for Extreme Dilution [high — financial]: The company has 12,694,325,835 shares of common stock outstanding as of November 19, 2025. This extremely high share count suggests a significant risk of further dilution for existing shareholders, especially if new equity financing is pursued.
• Debt Default [high — financial]: The company is in default on $17,725,000 plus accrued interest on debt instruments. This default represents a critical financial distress signal and could lead to accelerated repayment demands or legal action.
• Derivative Liabilities [medium — financial]: Derivative liabilities have increased from $210,493 to $1,753,651. Changes in the fair value of these instruments can introduce volatility to the company's financial results.

Industry Context

The renewable energy sector is characterized by rapid technological advancements, evolving regulatory landscapes, and significant capital investment requirements. Companies in this space often face intense competition from established players and emerging innovators. Market trends include increasing demand for solar, energy storage, and electric vehicle infrastructure, but also sensitivity to government incentives and commodity prices.

Regulatory Implications

Companies in the energy sector are subject to various environmental, safety, and energy market regulations. Compliance with these regulations can be costly and complex. Changes in government policies, such as tax credits or emissions standards, can significantly impact profitability and operational viability.

What Investors Should Do

1. Monitor the company's ability to secure additional funding through its Equity Financing Agreement with GHS, as this is critical for survival.
2. Assess the terms and potential impact of the defaulted debt instruments and any related legal proceedings.
3. Evaluate the sustainability of the business model given the drastic revenue decline and increasing losses.
4. Consider the high risk of dilution due to the large number of outstanding shares and potential future equity issuances.

Key Dates

• 2025-09-30: Nine months ended September 30, 2025 — Period marked by a significant revenue decline of 80.4% and an increased net loss, highlighting severe financial distress.
• 2025-09-30: Balance Sheet Date — As of this date, total assets were $808,124, while total current liabilities were $36,844,296, resulting in a substantial working capital deficit of $36,273,834.
• 2024-12-31: Balance Sheet Date — Prior period balance sheet showing total assets of $1,754,165 and total current liabilities of $33,185,481.
• 2020-11-03: Company Name Change — The company officially changed its name to Ozop Energy Solutions, Inc., reflecting a shift in its operational focus.

Glossary

Accumulated deficit

The total net losses of a company since its inception that have not been offset by net income. (OZSC has a substantial accumulated deficit of $230,427,985, indicating a history of significant unprofitability.)

Working capital deficit

Occurs when a company's current liabilities exceed its current assets, indicating potential short-term liquidity issues. (OZSC has a working capital deficit of $36,273,834, signaling severe short-term financial distress.)

Going concern

An assumption that a company will continue to operate for the foreseeable future, typically at least 12 months. (The company's financial condition raises substantial doubt about its ability to continue as a going concern.)

Convertible notes payable

Debt instruments that can be converted into shares of the issuer's common stock. (An increase in convertible notes payable to $3,169,730 adds to the company's liabilities and potential future dilution.)

Derivative liabilities

Liabilities arising from financial contracts whose value is derived from an underlying asset, index, or rate. (The significant increase in derivative liabilities to $1,753,651 can introduce financial volatility.)

Gross profit

Revenue minus the cost of goods sold. (Gross profit fell sharply to $78,617 from $278,025, indicating a worsening ability to cover direct costs of revenue.)

Year-Over-Year Comparison

Compared to the prior year period, OZSC has experienced a dramatic downturn. Revenue for the nine months ended September 30, 2025, plummeted by 80.4% to $248,828 from $1,267,980. The net loss widened to $5,559,344 from $4,808,669, indicating deteriorating profitability. Total assets have shrunk significantly from $1,754,165 to $808,124, while current liabilities have increased, exacerbating the already severe working capital deficit and raising substantial going concern doubts.

Key Financial Figures

• $0.001 — Section 12(g) of the Act: Common Stock, $0.001 par value Indicate by check mark if t
• $10,000 — be made in an amount equaling less than $10,000 or greater than $750,000. Puts may be d
• $750,000 — aling less than $10,000 or greater than $750,000. Puts may be delivered by the Company t
• $10,000,000 — which GHS has purchased an aggregate of $10,000,000 worth of put shares. On July 30, 2024
• $1,000,000 — aling less than $10,000 or greater than $1,000,000. Puts may be delivered by the Company t
• $25,000 — xecution of Agreements. This equates to $25,000, and as of the filing date of this quar

Filing Documents

• form10-q.htm (10-Q) — 1649KB
• ex31-1.htm (EX-31.1) — 18KB
• ex31-2.htm (EX-31.2) — 18KB
• ex32-1.htm (EX-32.1) — 7KB
• 0001493152-25-024274.txt ( ) — 8042KB
• ozsc-20250930.xsd (EX-101.SCH) — 55KB
• ozsc-20250930_cal.xml (EX-101.CAL) — 63KB
• ozsc-20250930_def.xml (EX-101.DEF) — 307KB
• ozsc-20250930_lab.xml (EX-101.LAB) — 440KB
• ozsc-20250930_pre.xml (EX-101.PRE) — 391KB
• form10-q_htm.xml (XML) — 1247KB

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS Table of Contents Page Consolidated Balance Sheets as of September 30, 2025, and December 31, 2024 (Unaudited) F-1 Consolidated Statements of Operations for the three and nine months ended September 30, 2025, and 2024 (Unaudited) F-2 Consolidated Statements of Stockholders' Deficit for the three and nine months ended September 30, 2025, and 2024 (Unaudited) F-3 Consolidated Statements of Cash Flows for the nine months ended September 30, 2025, and 2024 (Unaudited) F-5

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) F-6 2 OZOP ENERGY SOLUTIONS, INC. CONSOLIDATED BALANCE SHEETS (Unaudited) September 30, December 31, 2025 2024 ASSETS Current Assets Cash $ 341,164 $ 797,139 Prepaid expenses 17,650 64,851 Accounts receivable 81,787 80,003 Inventory 129,861 10,673 Total Current Assets 570,462 952,666 Operating lease right-of-use asset, net 210,226 226,692 Property and equipment, net 14,028 561,399 Other assets 13,408 13,408 TOTAL ASSETS $ 808,124 $ 1,754,165 LIABILITIES AND STOCKHOLDERS' DEFICIT Liabilities Current Liabilities Accounts payable and accrued expenses $ 11,969,893 $ 10,947,676 Related party liabilities 43,000 60,000 Convertible notes payable, net of discounts 3,169,730 25,000 Current portion of notes payable, net of discounts 18,235,761 20,241,164 Derivative liabilities 1,753,651 210,493 Operating lease liability, current portion 112,130 163,727 Deferred liability 525,320 502,610 Liabilities of discontinued operations 1,034,811 1,034,811 Total Current Liabilities 36,844,296 33,185,481 Long Term Liabilities Operating lease liability, net of current portion 106,807 72,662 TOTAL LIABILITIES 36,951,103 33,258,143 COMMITMENTS AND CONTINGENCIES - - Stockholders' Deficit Preferred stock ( 10,000,000 shares authorized, par value $ 0.001 ) Series C Preferred Stock ( 50,000 shares authorized and 2,500 shares issued and outstanding, par value $ 0.001 ) 3 3 Series D Preferred Stock ( 4,570 shares authorized and 1,334 shares issued and outstanding, par value $ 0.001 ) 1 1 Series E Preferred Stock ( 3,000 shares authorized, - 0 - shares issued and outstanding, par value $ 0.001 ) - - Preferred Stock - - Common stock ( 25,990,000,000 shares authorized, par value $ 0.001 ; 11,446,345,735 and 7,086,021,742 shares issued and outstanding as of September 30, 2025, and December 31, 2024, respectively) 11

Business

Business Ozop Energy Solutions, Inc. (the" Company," "we," "us" or "our") was originally incorporated as Newmarkt Corp. on July 17, 2015, under the laws of the State of Nevada. On July 10, 2020, the Company entered into a Stock Purchase Agreement (the "SPA") with Power Conversion Technologies, Inc., a Pennsylvania corporation ("PCTI"), and Catherine Chis ("Chis"), PCTI's Chief Executive Officer ("CEO") and its sole shareholder. Under the terms of the SPA, the Company acquired one thousand ( 1,000 ) shares of PCTI, which represents all of the outstanding shares of PCTI, from Chis in exchange for the issuance of 47,500 shares of the Company's Series C Preferred Stock, 18,667 shares of the Company's Series D Preferred Stock, and 500 shares of the Company's Series E Preferred Stock to Chis. On October 29, 2020, the Company formed a new wholly owned subsidiary, Ozop Surgical Name Change Subsidiary, Inc., a Nevada corporation ("Merger Sub"). The Merger Sub was formed under the Nevada Revised Statutes for the sole purpose and effect of changing the Company's name to "Ozop Energy Solutions, Inc." That same day the Company entered into an Agreement and Plan of Merger (the "Merger Agreement") with the Merger Sub and filed Articles of Merger (the "Articles of Merger") with the Nevada Secretary of State, merging the Merger Sub into the Company, which were stamped effective as of November 3, 2020. As permitted by the Section 92.A.180 of the Nevada Revised Statutes, the sole purpose and effect of the filing of Articles of Merger was to change the name of the Company from Ozop Surgical Corp to "Ozop Energy Solutions, Inc." On December 11, 2020, the Company formed Ozop Energy Systems, Inc. ("OES"), a Nevada corporation and a wholly owned subsidiary of the Company. OES was formed to be a manufacturer and distributor of renewable energy products. On August 19, 2021, the Company formed Ozop Capital Partners, Inc. ("Ozop Capital"), a Delaware corporation and a wholly owned su

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