WORLD HEALTH ENERGY Faces Going Concern Amid Rising Revenue, Geopolitical Risks

TL;DR

**WHEN is burning cash faster than it's growing revenue, and without immediate funding, this stock is a ticking time bomb heading for zero.**

AI Summary

WORLD HEALTH ENERGY HOLDINGS, INC. (WHEN) reported a net loss of $2,029,612 for the six months ended June 30, 2025, a decrease from the $2,549,765 net loss in the prior year period. Revenues significantly increased to $104,492 for the six months ended June 30, 2025, up from $51,923 in the same period of 2024, representing a 101.2% increase. Gross profit also saw substantial growth, reaching $92,681 compared to $17,375 in the prior year. However, the company continues to incur significant operating losses, with an operating loss of $1,453,244 for the six months ended June 30, 2025. Cash and cash equivalents declined sharply to $28,282 as of June 30, 2025, from $63,188 at December 31, 2024. The company used $631,240 in net cash from operating activities during the six months ended June 30, 2025, and has an accumulated deficit of $29,630,246. Management expects existing cash to fund operations only until the end of the third quarter of 2025, raising substantial doubt about its ability to continue as a going concern. Geopolitical risks, including the Israel-Hamas war and Operation "Nation Rises Like a Lion," temporarily shut down Israeli operations and pose ongoing threats to the company's business.

Why It Matters

For investors, WHEN's substantial doubt about its going concern status, with cash only until Q3 2025, is a critical red flag, indicating high risk of further dilution or cessation of operations. Employees, particularly those in Israel, face uncertainty due to ongoing military conflicts and potential call-ups, which could disrupt operations and job security. Customers of CrossMobile's telecom services in Europe might experience service disruptions if the company fails to secure additional funding. In a competitive cybersecurity and telecom market, WHEN's inability to generate consistent profits and reliance on external funding puts it at a severe disadvantage against better-capitalized rivals, making its long-term viability questionable.

Risk Assessment

Risk Level: high — The company explicitly states "substantial doubt regarding the Company's ability to continue as a going concern" and expects existing cash of $28,282 to fund operations only until the end of the third quarter of 2025. It incurred a net loss of $2,029,612 and used $631,240 in net cash from operating activities during the six months ended June 30, 2025, with an accumulated deficit of $29,630,246.

Analyst Insight

Investors should avoid WHEN due to its severe liquidity issues and explicit going concern warning. The company's reliance on future financing, coupled with geopolitical risks in Israel, makes it an extremely speculative investment with a high probability of significant capital loss.

Financial Highlights

revenue

$104,492

net Income

-$2,029,612

gross Margin

88.69%

cash Position

$28,282

revenue Growth

+101.2%

Key Numbers

• $2,029,612 — Net loss (for the six months ended June 30, 2025, an improvement from $2,549,765 in 2024)
• $104,492 — Revenues (for the six months ended June 30, 2025, a 101.2% increase from $51,923 in 2024)
• $28,282 — Cash and cash equivalents (as of June 30, 2025, down from $63,188 at December 31, 2024)
• $631,240 — Net cash used in operating activities (for the six months ended June 30, 2025)
• $29,630,246 — Accumulated deficit (as of June 30, 2025)
• 550,834,347,495 — Shares outstanding (as of August 14, 2025)
• $92,681 — Gross profit (for the six months ended June 30, 2025, up from $17,375 in 2024)
• $1,453,244 — Operating loss (for the six months ended June 30, 2025)
• $516,239 — Changes in fair value of commitment to issue shares (expense for the six months ended June 30, 2025)
• 100,736 — Loan received from related party (for the six months ended June 30, 2025)

Key Players & Entities

• WORLD HEALTH ENERGY HOLDINGS, INC. (company) — registrant
• RNA Ltd. (company) — wholly owned Israeli based subsidiary
• CrossMobile Sp z o.o. (company) — majority owned Polish based subsidiary
• Hamas (person) — terrorist organization
• Hezbollah (person) — terrorist organization based in Lebanon
• Iran (person) — country involved in regional conflict
• FINRA (regulator) — Financial Industry Regulatory Authority
• SG 77 Inc. (company) — Delaware corporation, wholly-owned subsidiary of UCG
• Assad regime (person) — former Syrian government
• Bloomberg (company) — publisher

FAQ

Risk Factors

• Geopolitical Instability Impacting Operations [high — operational]: Geopolitical events, including the Israel-Hamas war and Operation "Nation Rises Like a Lion," have caused temporary shutdowns of Israeli operations. These conflicts pose ongoing threats and potential disruptions to the company's business activities and supply chains.
• Going Concern Uncertainty [high — financial]: The company's cash and cash equivalents have declined to $28,282 as of June 30, 2025, and management expects existing cash to fund operations only until the end of Q3 2025. This raises substantial doubt about the company's ability to continue as a going concern.
• Significant Operating Losses [high — financial]: WHEN incurred an operating loss of $1,453,244 for the six months ended June 30, 2025, despite a significant increase in revenue. The company's accumulated deficit stands at $29,630,246 as of June 30, 2025, indicating a persistent inability to achieve profitability.
• Dependence on Related Party Financing [medium — financial]: The company received a loan of $100,736 from a related party for the six months ended June 30, 2025. Reliance on related party financing can introduce risks related to terms, availability, and potential conflicts of interest.
• Fair Value Adjustments on Share Commitments [medium — financial]: The company recognized an expense of $516,239 for changes in the fair value of commitments to issue shares for the six months ended June 30, 2025. This indicates potential dilution and volatility associated with equity-based compensation or agreements.

Industry Context

The energy sector is highly capital-intensive and subject to volatile commodity prices and geopolitical influences. Companies like WHEN operate in a landscape where technological innovation, regulatory changes, and global supply/demand dynamics significantly impact performance. The current geopolitical climate, as evidenced by conflicts in the Middle East, adds a layer of risk to operations and supply chains within the industry.

Regulatory Implications

Companies in the energy sector are subject to various environmental, safety, and financial regulations. WHEN's disclosure of geopolitical risks impacting operations suggests potential compliance challenges and the need for robust risk management frameworks. The going concern warning also implies increased scrutiny from regulatory bodies and investors regarding financial stability.

What Investors Should Do

1. Monitor cash burn rate and runway closely.
2. Evaluate the sustainability of revenue growth.
3. Assess the impact of geopolitical risks on future operations.
4. Investigate potential funding sources and dilution.

Key Dates

• 2025-06-30: End of Second Quarter 2025 — Reporting period for the 10-Q, showing a net loss of $2,029,612 and revenue of $104,492, with cash reserves dwindling to $28,282.
• 2025-09-30: Projected End of Operating Cash Runway — Management estimates current cash will only last until this date, highlighting severe going concern issues.

Glossary

Accumulated deficit

The total cumulative net losses of a company since its inception, minus any cumulative net income. It represents a negative balance in retained earnings. (Indicates the company has never been profitable on a cumulative basis, with a deficit of $29,630,246 as of June 30, 2025.)

Going concern

A business's ability to continue operating for the foreseeable future without the threat of liquidation. Auditors assess this based on the company's financial health and operational viability. (Management's statement raises substantial doubt about WHEN's ability to continue as a going concern due to insufficient cash.)

Operating loss

The loss a company incurs from its normal business operations before accounting for interest and taxes. (WHEN reported an operating loss of $1,453,244 for the six months ended June 30, 2025, showing core business activities are not generating profit.)

Gross profit

Revenue minus the cost of goods sold (COGS). It represents the profit a company makes after deducting the direct costs associated with producing its goods or services. (Gross profit increased significantly to $92,681 from $17,375, indicating improved efficiency in direct cost management relative to revenue.)

Changes in fair value of commitment to issue shares

An accounting adjustment reflecting the change in the estimated market value of shares that the company has committed to issue in the future, often related to compensation or acquisition agreements. (An expense of $516,239 was recognized, suggesting potential future dilution or increased cost of equity.)

Year-Over-Year Comparison

For the six months ended June 30, 2025, WORLD HEALTH ENERGY HOLDINGS, INC. (WHEN) reported a net loss of $2,029,612, an improvement from the $2,549,765 loss in the prior year period. Revenue more than doubled, increasing by 101.2% to $104,492 from $51,923. Gross profit also saw substantial growth, reaching $92,681 compared to $17,375. However, operating losses remain significant at $1,453,244, and cash reserves have fallen sharply to $28,282, raising serious going concern doubts. New risks related to geopolitical instability impacting operations have emerged.

Filing Documents

• form10-q.htm (10-Q) — 1083KB
• ex31-1.htm (EX-31.1) — 12KB
• ex32-1.htm (EX-32.1) — 6KB
• form10-q_001.jpg (GRAPHIC) — 10KB
• 0001641172-25-024096.txt ( ) — 4469KB
• when-20250630.xsd (EX-101.SCH) — 25KB
• when-20250630_cal.xml (EX-101.CAL) — 47KB
• when-20250630_def.xml (EX-101.DEF) — 110KB
• when-20250630_lab.xml (EX-101.LAB) — 284KB
• when-20250630_pre.xml (EX-101.PRE) — 219KB
• form10-q_htm.xml (XML) — 625KB

– Financial Statements – Unaudited

Item 1 – Financial Statements – Unaudited 1 Condensed Consolidated Balance Sheets – June 30, 2025 and December 31, 2024 2 Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2025 and 2024 3 Condensed Consolidated Statement of Changes in Stockholders' Deficit for the three and six months ended June 30, 2025 and 2024 4 Condensed Consolidated Statements of Cash Flows for the three and six months ended June 30, 2025 and 2024 6 Notes to Condensed Consolidated Financial Statements 7

– 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 14

– Quantitative and Qualitative Disclosures About Market Risk

Item 3 – Quantitative and Qualitative Disclosures About Market Risk 24

– Controls and Procedures

Item 4 – Controls and Procedures 24

– Legal Proceedings

Item 1 – Legal Proceedings 25

– Risk Factors

Item 1A – Risk Factors 25

– Unregistered Sales of Equity Securities and Use of Proceeds

Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds 25

– Defaults upon Senior Securities

Item 3 – Defaults upon Senior Securities 26

– Mine Safety Disclosures

Item 4 – Mine Safety Disclosures 26

– Other Information

Item 5 – Other Information 26

– Exhibits

Item 6 – Exhibits 26 Exhibit Index 26

SIGNATURES

SIGNATURES 27 i WORLD HEALTH ENERGY HOLDINGS, INC. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2025 (UNAUDITED) 1 WORLD HEALTH ENERGY HOLDINGS, INC. UNAUDITED CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS (U.S. dollars except share and per share data) June 30, 2025 December 31, 2024 Assets Current Assets Cash and cash equivalents 28,282 63,188 Accounts receivable, net of allowance for credit losses of $ 2,832 and $ 2,887 as of June 30, 2025 and December 31, 2024. Respectively 38,444 27,668 Inventory 9,730 17,605 Other current assets 204,285 188,071 Total Current assets 280,741 296,532 Non-current assets Operating lease right-of-use asset 52,405 94,471 Long term prepaid expenses 27,424 25,356 Property and equipment, net 36,815 43,146 Funds in respect of employee rights upon termination 37,889 53,840 Investment in non-consolidated entity (Note 3) 911,379 911,379 Intangible assets 14,693,958 14,693,958 Total non-current assets 15,759,870 15,822,150 Total assets 16,040,611 16,118,682 Liabilities and Stockholders' Deficit Current Liabilities Short term credit 337,871 397,567 Accounts payable 148,109 109,649 Short term operating lease liability 55,081 82,054 Other current liabilities 763,624 675,124 Total Current Liabilities 1,304,685 1,264,394 Non-current Liabilities Liability for employee rights upon retirement 261,085 218,130 Long term loan from parent company 2,717,040 2,646,135 Long term operating lease liability - 6,839 Fair value of commitment to issue shares (Note 3) 955,929 439,690 Deferred tax liability 872,456 872,456 Redeemable shares (Note 4) 5,000,000 - Total non-current liabilities 9,806,510 4,183,250 Total liabilities 11,111,195 5,447,644 Redeemable shares (Note 4) - 5,000,000 Stockholders' Deficit (Note 5) Series A preferred stock $ 0.0007 par value, 10,000,000 shares authorized, 5,000,000 sh

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View this 10-Q filing on SEC EDGAR