Waste Energy Narrows Losses, Boosts Revenue Amid Going Concern Doubts

TL;DR

**WAST is a high-risk bet, showing some revenue growth but still drowning in debt and facing a 'going concern' warning.**

AI Summary

WASTE ENERGY CORP. (WAST) reported a net profit of $577,000 for the three months ended September 30, 2025, a significant improvement from a net loss of $166,881 in the same period last year. For the nine months ended September 30, 2025, the company still posted a net loss of $985,026, though this is a substantial reduction from the $2,737,682 loss in the prior year. Total revenues for the nine months increased to $299,167, up from zero in the previous year, driven by $291,667 from consulting services and $7,500 from recyclable material intake. The company's accumulated deficit grew to $50,943,442 as of September 30, 2025, from $49,958,417 at December 31, 2024, and it continues to operate with negative working capital of $4,100,304. Key changes include a substantial gain on debt settlement of $1,360,767 for the nine months and a significant increase in derivative liability to $1,554,288 from $40,943. The company's cash and cash equivalents increased to $47,419 from $682 at December 31, 2024, but management still expresses substantial doubt about its ability to continue as a going concern.

Why It Matters

For investors, this filing reveals a company in a precarious financial state, despite a quarterly profit, with a substantial accumulated deficit and negative working capital. The shift towards renewable energy consulting and recyclable material intake offers new revenue streams, but the 'going concern' warning signals high risk. Employees face uncertainty regarding the company's long-term viability, while customers might benefit from new service offerings if the company stabilizes. In the broader market, WAST's struggles highlight the challenges smaller players face in the competitive waste-to-energy and consulting sectors, especially when burdened by legacy issues and significant liabilities.

Risk Assessment

Risk Level: high — The company explicitly states 'substantial doubt about the Company's ability to continue as a going concern' due to significant operating losses, an accumulated deficit of $50,943,442, and negative working capital of $4,100,304 as of September 30, 2025. Despite a quarterly profit, the overall financial health remains extremely fragile, evidenced by cash balances of only $47,419.

Analyst Insight

Investors should exercise extreme caution and consider this a highly speculative investment. Given the 'going concern' warning and substantial accumulated deficit, a deep dive into the company's financing plans and ability to secure additional capital is crucial before any investment. Avoid until clear evidence of sustainable profitability and improved financial stability emerges.

Financial Highlights

debt To Equity

N/A

revenue

$299,167

operating Margin

N/A

total Assets

$881,596

total Debt

N/A

net Income

$577,000

eps

$0.00

gross Margin

N/A

cash Position

$47,419

revenue Growth

N/A

Revenue Breakdown

Key Numbers

• $577,000 — Net profit for Q3 2025 (Significant improvement from a $166,881 loss in Q3 2024)
• $985,026 — Net loss for nine months ended Sept 30, 2025 (Reduced from $2,737,682 loss in prior year)
• $299,167 — Total revenues for nine months ended Sept 30, 2025 (Up from zero in the prior year, driven by consulting and recyclable material intake)
• $50,943,442 — Accumulated deficit as of Sept 30, 2025 (Increased from $49,958,417 at Dec 31, 2024)
• $4,100,304 — Negative working capital as of Sept 30, 2025 (Indicates severe liquidity issues)
• $47,419 — Cash and cash equivalents as of Sept 30, 2025 (Low cash balance despite increase from $682 at Dec 31, 2024)
• $1,360,767 — Gain on debt settlement for nine months ended Sept 30, 2025 (Contributed significantly to reducing net loss)
• $1,554,288 — Derivatives liability as of Sept 30, 2025 (Substantial increase from $40,943 at Dec 31, 2024)
• 138,036,826 — Common shares outstanding as of Nov 10, 2025 (Increased from 128,064,469 at Dec 31, 2024)

Key Players & Entities

• WASTE ENERGY CORP. (company) — registrant
• Energy Works, Inc. (company) — new Florida subsidiary incorporated May 13, 2024
• Motoclub LLC (company) — discontinued operation, majority-owned subsidiary
• EnderbyWorks, LLC (company) — discontinued operation, wholly owned subsidiary
• SEC (regulator) — filing oversight
• Nevada (regulator) — state of incorporation
• Fairfield, CA (person) — principal executive offices location

FAQ

Risk Factors

• Going Concern Uncertainty [high — financial]: Management expresses substantial doubt about the company's ability to continue as a going concern. This is underscored by a significant accumulated deficit of $50,943,442 as of September 30, 2025, and negative working capital of $4,100,304.
• Negative Working Capital [high — financial]: The company operates with negative working capital of $4,100,304 as of September 30, 2025. This indicates a shortfall in current assets to cover current liabilities, posing liquidity challenges.
• Low Cash Position [high — financial]: Despite an increase from $682 to $47,419, the cash and cash equivalents balance as of September 30, 2025, remains very low, highlighting ongoing cash flow concerns.
• Increasing Derivative Liability [medium — financial]: The derivative liability has surged to $1,554,288 as of September 30, 2025, from $40,943 at December 31, 2024. This substantial increase could indicate complex financial instruments or hedging activities with associated risks.
• Accumulated Deficit [high — financial]: The accumulated deficit has grown to $50,943,442 as of September 30, 2025, from $49,958,417 at December 31, 2024. This reflects a history of net losses and a significant erosion of equity.
• Dependence on Consulting Services [medium — operational]: The company's revenue for the nine months ended September 30, 2025, is heavily reliant on consulting services ($291,667). This concentration could pose a risk if demand for these services fluctuates.

Industry Context

The waste management and energy sectors are increasingly focused on sustainability and circular economy principles. Companies are exploring innovative solutions for waste-to-energy conversion and material recycling. Regulatory environments are evolving to encourage greener practices, which can present both opportunities and compliance challenges for businesses in this space.

Regulatory Implications

Companies operating in waste management and energy conversion are subject to stringent environmental regulations. Compliance with emissions standards, waste disposal laws, and energy production permits is crucial. Changes in these regulations, such as stricter carbon emission targets or new recycling mandates, could impact operational costs and business models.

What Investors Should Do

1. Monitor cash burn and liquidity closely.
2. Evaluate the sustainability of revenue growth.
3. Understand the nature of the derivative liability increase.
4. Assess the impact of the gain on debt settlement.

Key Dates

• 2025-09-30: Quarterly period ended September 30, 2025 — Reported a net profit of $577,000, a significant turnaround from the prior year's loss, and generated $299,167 in revenue.
• 2025-11-10: Common shares outstanding as of November 10, 2025 — 138,036,826 shares outstanding, an increase from the prior year, indicating potential dilution or capital raising activities.
• 2024-12-31: Year-end balance sheet — Provided the comparative figures for the current period, showing a lower cash balance ($682) and a smaller derivative liability ($40,943).

Glossary

Accumulated deficit

The total cumulative net losses of a company that have not been offset by net income. It represents a reduction in retained earnings. (Indicates the company's long-term profitability challenges, with a deficit of $50,943,442 as of September 30, 2025.)

Working capital

The difference between a company's current assets and current liabilities. Positive working capital indicates a company can meet its short-term obligations. (The company has negative working capital of $4,100,304, signaling potential liquidity issues.)

Gain on debt settlement

A profit realized when a company extinguishes its debt for less than its carrying amount. (A gain of $1,360,767 for the nine months significantly improved the net loss, but it's a non-recurring event.)

Derivative liability

An obligation arising from a financial derivative contract that has a negative fair value for the reporting entity. (The substantial increase to $1,554,288 from $40,943 suggests increased use of or changes in the value of derivative instruments.)

Going concern

The assumption that a company will continue to operate for the foreseeable future without the threat of liquidation. (Management's doubt about the company's ability to continue as a going concern is a critical risk factor.)

Year-Over-Year Comparison

Waste Energy Corp. has shown a significant improvement in its quarterly performance, moving from a net loss of $166,881 in Q3 2024 to a net profit of $577,000 in Q3 2025. For the nine-month period, the net loss has been substantially reduced from $2,737,682 to $985,026. Total revenues have emerged from zero to $299,167, driven by consulting and recyclable material intake. However, the company continues to grapple with severe liquidity issues, evidenced by negative working capital of $4,100,304 and a very low cash balance of $47,419, despite an increase from the prior year. The accumulated deficit has also grown, and management continues to express substantial doubt about the company's going concern status.

Filing Documents

• form10-q.htm (10-Q) — 1251KB
• ex31-1.htm (EX-31.1) — 19KB
• ex31-2.htm (EX-31.2) — 19KB
• ex32-1.htm (EX-32.1) — 6KB
• ex32-2.htm (EX-32.2) — 7KB
• 0001493152-25-022291.txt ( ) — 7527KB
• wast-20250930.xsd (EX-101.SCH) — 64KB
• wast-20250930_cal.xml (EX-101.CAL) — 58KB
• wast-20250930_def.xml (EX-101.DEF) — 224KB
• wast-20250930_lab.xml (EX-101.LAB) — 444KB
• wast-20250930_pre.xml (EX-101.PRE) — 334KB
• form10-q_htm.xml (XML) — 1319KB

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 September 30, 2025 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 000-55049 WASTE ENERGY CORP. (Exact name of registrant as specified in its charter) Nevada 27-3098487 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 3250 Oakland Hills Court , Fairfield , CA 94534 (Address of principal executive offices) (Zip Code) 424 . 570.9446 (Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act Title of Each Class Trading Symbol(s) Name of each exchange on which registered Nil N/A N/A 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 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 Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date: 138,036,826 shares of common stock issued and outstanding as at November 10, 2025. TABLE OF CONTENTS PART I 3 ITEM 1. FINANCIAL STATEMENTS 3 ITEM 2. MANGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 28 ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE OF MARKET RISK 32 ITEM 4. CONTROLS AND PROCEDURES 32 PART II 33 ITEM 1. LEGAL PROCEEDINGS 33 ITEM 1A. RISK FACTORS 33 ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AN USE OF PROCEEDS 33 ITEM 3. DEFAULTS UPON SENIOR SECURITIES 33 ITEM 4. MINE SAFETY DISCLOSURES 33 ITEM 5. OTHER INFORMATION 33 ITEM 6. EXHIBITS 34 2 PART I – FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS. Our unaudited condensed interim consolidated financial statements are stated in United States dollars and are prepared in accordance with United States generally accepted accounting principles. It is the opinion of management that the unaudited condensed interim consolidated financial statements for the quarter ended September 30, 2025 include all adjustments necessary in order to ensure that the unaudited condensed interim consolidated financial statements are not misleading. 3 Waste Energy Corp. Condensed Consolidated Balance Sheets September 30, 2025 December 31, 2024 (unaudited) (audited) Assets Current Assets Cash and cash equivalents $ 47,419 $ 682 Accounts receivable, net 42,500 35,000 Prepaid expenses 12,000 - Security deposit 12,000 - Interest receivable, net (see note 7) - - Notes receivable, net (see note 7) - - Total Current Assets 113,919 35,682 Non-current assets Right-of-use asset 299,629 - Capital advance 468,048 - Total non-current assets 767,677 - Total Assets $ 881,596 $ 35,682 Liabilities and Stockholders' Equity Current Liabilities Accounts payable and accrued expenses $ 530,513 $ 545,883 Accounts payable and accrued expenses, related party 787,135 1,065,380 Accounts payable and accrued expenses 787,135 1,065,380 Deferred revenue 208,333 77,700 Deposits payable 77,700 - Notes payable, net 345,604 183,056 Derivatives liability 1,554,288 40,943 Convertible notes payable – software acquisition - 854,250 Convertible notes payable – other 710,650 439,159 Convertible notes payable 710,650 439,159 Total Current Liabilities 4,214,223 3,206,371 N

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