Wytec's Revenue Plunges 81% Amid Widening Losses

TL;DR

**WYTC is bleeding cash with plummeting revenue and soaring debt; steer clear until they prove their 2026 commercialization plan is viable.**

AI Summary

Wytec International, Inc. (WYTC) experienced a significant decline in revenue and an increased net loss for the nine months ended September 30, 2025, compared to the same period in 2024. Revenue plummeted by 81.16% from $128,146 in 2024 to $24,149 in 2025. Concurrently, the net loss widened by 31.71% from $(2,615,684) in 2024 to $(1,786,420) in 2025. The company's total assets decreased by 37.59% from $323,570 at December 31, 2024, to $201,945 at September 30, 2025. Total liabilities, however, increased by 48.17% from $2,608,098 to $3,864,710, driven largely by a substantial rise in convertible promissory notes from $615,000 to $1,311,544 and promissory notes to shareholders from $730,000 to $911,650. Selling, general, and administrative expenses decreased by 28.89% to $1,636,367, and research and development expenses fell by 87.49% to $38,770, indicating cost-cutting measures amidst declining revenue. The company plans to commercialize a multichannel transmission product integrating in-building cellular, private LTE, and gunshot detection services with its LPN-16 in 2026, which represents a key strategic outlook.

Why It Matters

Wytec's drastic revenue decline and increasing liabilities signal significant operational challenges and financial instability, making it a high-risk investment. The company's ability to commercialize its LPN-16 technology in 2026 is critical, but current financial performance raises questions about its capacity to fund future development and compete effectively against larger, more established telecom players. Employees face uncertainty given the substantial net losses and declining asset base. Customers might experience service disruptions or a lack of innovation if the company's financial health continues to deteriorate, potentially impacting the broader market for small cell technology and 5G infrastructure.

Risk Assessment

Risk Level: high — The company reported a net loss of $(1,786,420) for the nine months ended September 30, 2025, and total liabilities of $3,864,710 against total assets of only $201,945. This significant liabilities-to-assets ratio, coupled with an 81.16% drop in revenue, indicates severe financial distress and a high risk of going concern issues.

Analyst Insight

Investors should exercise extreme caution and consider avoiding WYTC stock due to its precarious financial position, marked by substantial losses and increasing debt. Await concrete evidence of successful commercialization of its LPN-16 technology and a significant turnaround in revenue and profitability before considering any investment.

Financial Highlights

debt To Equity

N/A

revenue

$24,149

operating Margin

N/A

total Assets

$201,945

total Debt

$3,864,710

net Income

$(1,786,420)

eps

N/A

gross Margin

59.34%

cash Position

$128,937

revenue Growth

-81.16%

Revenue Breakdown

Key Numbers

• $24,149 — Revenue for nine months ended Sep 30, 2025 (Decreased by 81.16% from $128,146 in 2024)
• $(1,786,420) — Net loss for nine months ended Sep 30, 2025 (Widened by 31.71% from $(2,615,684) in 2024)
• $201,945 — Total assets as of Sep 30, 2025 (Decreased by 37.59% from $323,570 at Dec 31, 2024)
• $3,864,710 — Total liabilities as of Sep 30, 2025 (Increased by 48.17% from $2,608,098 at Dec 31, 2024)
• $1,311,544 — Convertible promissory notes as of Sep 30, 2025 (Increased from $615,000 at Dec 31, 2024)
• $911,650 — Promissory notes, shareholders as of Sep 30, 2025 (Increased from $730,000 at Dec 31, 2024)
• $1,636,367 — Selling, general and administrative expenses for nine months ended Sep 30, 2025 (Decreased by 28.89% from $2,301,202 in 2024)
• $38,770 — Research and development expenses for nine months ended Sep 30, 2025 (Decreased by 87.49% from $308,764 in 2024)
• 17,022,867 — Shares outstanding of common stock as of Nov 18, 2025 (Indicates dilution potential)
• $128,937 — Cash at end of period Sep 30, 2025 (Increased from $110,699 at Dec 31, 2024, but still very low)

Key Players & Entities

• Wytec International, Inc. (company) — designer and developer of patented small cell technology
• Synnex Corporation (company) — leading distributor and solutions aggregator
• LPN-16 (product) — patented small cell technology
• Nevada (location) — state of incorporation for Wytec International, Inc.
• OTCQB (regulator) — exchange where WYTC common stock is registered
• Securities and Exchange Commission (regulator) — regulates financial reporting
• Federal Communications Commission (regulator) — regulates communication links
• September 30, 2025 (date) — end of the reporting quarter
• December 31, 2024 (date) — previous fiscal year-end for comparison
• November 18, 2025 (date) — date for common stock outstanding count

FAQ

Risk Factors

• Deteriorating Financial Position [high — financial]: The company's revenue has plummeted by 81.16% to $24,149 for the nine months ended September 30, 2025, while the net loss widened by 31.71% to $(1,786,420). Total assets decreased by 37.59% to $201,945, and total liabilities increased by 48.17% to $3,864,710. This indicates a severe strain on the company's financial health and its ability to meet its obligations.
• Increasing Debt Load [high — financial]: Total liabilities have surged by 48.17% to $3,864,710 as of September 30, 2025. This increase is primarily driven by substantial growth in convertible promissory notes ($1,311,544 from $615,000) and promissory notes to shareholders ($911,650 from $730,000). This escalating debt burden poses a significant risk to the company's solvency.
• Revenue Concentration and Decline [high — operational]: The drastic 81.16% decrease in revenue to $24,149 for the nine months ended September 30, 2025, suggests a potential over-reliance on a limited number of products or customers, or a significant market shift impacting its core business. The company needs to demonstrate a clear path to revenue recovery.
• Cost Cutting Measures Impact [medium — operational]: While SG&A expenses decreased by 28.89% and R&D expenses by 87.49%, this is a direct consequence of the severe revenue decline. The substantial reduction in R&D spending to $38,770 could hinder future innovation and product development, especially as the company plans to commercialize new products in 2026.
• Low Cash Position [high — financial]: Despite a slight increase to $128,937 as of September 30, 2025, the company's cash position remains critically low relative to its liabilities, particularly the substantial increase in short-term debt. This raises concerns about the company's liquidity and ability to fund ongoing operations.
• Dependence on New Product Commercialization [high — market]: The company's strategic outlook hinges on the successful commercialization of its multichannel transmission product in 2026. Any delays or failures in this launch could have severe financial repercussions given the current revenue trajectory and financial distress.

Industry Context

Wytec operates in the telecommunications infrastructure sector, specifically focusing on small cell technology and private LTE solutions for 5G deployments. The market is competitive, with established players and emerging technologies. The trend towards private networks and integrated solutions (like combining cellular with other services) is a key industry driver. However, the rapid pace of technological change and the need for significant capital investment are also characteristic of this industry.

Regulatory Implications

Wytec's operations may be subject to FCC regulations regarding spectrum usage and network deployment. The company's reliance on partnerships with distributors like Synnex Corporation also implies adherence to their compliance standards. Any changes in telecommunications regulations or spectrum allocation policies could impact Wytec's business model and future growth prospects.

What Investors Should Do

1. Monitor revenue recovery closely.
2. Evaluate the viability of the 2026 product launch.
3. Scrutinize the increasing debt levels and convertible note terms.
4. Assess the sustainability of cost-cutting measures.

Key Dates

• 2025-09-30: Nine months ended September 30, 2025 — Period marked by a severe revenue decline of 81.16% and a widening net loss, alongside a significant increase in liabilities and a decrease in assets.
• 2024-09-30: Nine months ended September 30, 2024 — Prior period showing significantly higher revenue ($128,146) and a smaller net loss ($(2,615,684)) compared to the same period in 2025.
• 2025-12-31: As of December 31, 2024 — Previous year-end balance sheet figures, showing higher total assets ($323,570) and lower total liabilities ($2,608,098) compared to September 30, 2025.
• 2026-01-01: Planned commercialization of multichannel transmission product — Key strategic initiative for future revenue generation, integrating in-building cellular, private LTE, and gunshot detection services.

Glossary

LPN-16

Wytec's patented small cell technology. (Core technology that the company aims to integrate with new product offerings.)

DAS (Distributed Antenna System)

A network of antennas spread out over a particular area, used to provide cellular coverage. (One of the services Wytec offers as part of its in-building cellular solutions.)

Private LTE

A Long-Term Evolution (LTE) wireless network that is not connected to a public mobile operator's network, typically used by enterprises for dedicated communication. (Another key service offering by Wytec, aimed at enterprise clients.)

Convertible Promissory Notes

Debt instruments that can be converted into shares of the issuing company's stock under certain conditions. (A significant source of debt for Wytec, with a substantial increase noted in the current period, posing potential dilution risk.)

Promissory Notes, Shareholders

Loans made by shareholders to the company, often with specific terms for repayment. (Another growing debt component for Wytec, indicating reliance on shareholder financing.)

Year-Over-Year Comparison

Compared to the prior year's nine-month period, Wytec International Inc. has experienced a severe downturn. Revenue has plummeted by 81.16% from $128,146 to $24,149, while the net loss has widened by 31.71% to $(1,786,420). Total assets have shrunk by 37.59% to $201,945, contrasting sharply with a 48.17% increase in total liabilities to $3,864,710, driven by a significant rise in debt instruments. Operating expenses have been reduced, with SG&A down 28.89% and R&D down 87.49%, reflecting cost-cutting in response to the revenue crisis.

Filing Documents

• wytec_i10q-093025.htm (10-Q) — 1195KB
• wytec_ex3101.htm (EX-31.1) — 8KB
• wytec_ex3102.htm (EX-31.2) — 9KB
• wytec_ex3201.htm (EX-32.1) — 4KB
• wytec_ex3202.htm (EX-32.2) — 4KB
• 0001683168-25-008560.txt ( ) — 5558KB
• wytc-20250930.xsd (EX-101.SCH) — 46KB
• wytc-20250930_cal.xml (EX-101.CAL) — 43KB
• wytc-20250930_def.xml (EX-101.DEF) — 199KB
• wytc-20250930_lab.xml (EX-101.LAB) — 322KB
• wytc-20250930_pre.xml (EX-101.PRE) — 290KB
• wytec_i10q-093025_htm.xml (XML) — 712KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION ITEM 1.

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 3 Balance Sheets as of September 30, 2025 (unaudited) and December 31, 2024 3 4 5 7

Notes to Financial Statements (unaudited)

Notes to Financial Statements (unaudited) 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 24 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 30

- OTHER INFORMATION

PART II - OTHER INFORMATION ITEM 1.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 31 ITEM 1A.

RISK FACTORS

RISK FACTORS 31 ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 31 ITEM 3. DEFAULTS UPON SENIOR SECURITIES 31 ITEM 4. MINE SAFETY DISCLOSURES 32 ITEM 5. OTHER INFORMATION 32 ITEM 6. EXHIBITS 3 2

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. WYTEC INTERNATIONAL, INC. BALANCE SHEETS (Unaudited) September 30, December 31, 2025 2024 Assets Current assets: Cash $ 128,937 $ 110,699 Employee retention credit receivable – 96,263 Other current assets 9,378 – Inventory 30,041 30,041 Total current assets 168,356 237,003 Property and equipment, net 2,347 2,140 Operating lease, right-of-use assets 31,242 84,427 Total assets $ 201,945 $ 323,570 Liabilities and Stockholders' Deficit Current liabilities: Accounts payable and accrued expenses $ 781,615 $ 493,651 Accounts payable, related party 336,160 341,871 Other payable 335,000 335,000 Operating lease, right-of-use obligation, current portion 31,741 72,583 Contract liability – 7,149 Promissory note, at fair value 157,000 – Convertible promissory notes 1,311,544 615,000 Promissory notes, shareholders 911,650 730,000 Total current liabilities 3,864,710 2,595,254 Long-term liabilities: Operating lease, right-of-use obligation, long term portion – 12,844 Total long-term liabilities – 12,844 Total liabilities 3,864,710 2,608,098 Commitments and contingencies (See Note L) – Stockholders' deficit: Preferred stock, par value $ 0.001 per share, 20,000,000 shares authorized: Series A convertible preferred stock, par value $ 0.001 per share, 4,100,000 shares designated, 100,000 shares issued and 0 shares outstanding at September 30, 2025 and December 31, 2024 100 100 Series B convertible preferred stock, par value $ 0.001 per share, 6,650,000 shares designated, 44,535 shares issued and 0 shares outstanding at September 30, 2025 and December 31, 2024 45 45 Common stock, par value $ 0.001 per share, 495,000,000 shares authorized, 16,923,492 and 16,751,980 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively 16,924 16,752 Additional paid-in capital 33,143,042 32,725,656 Accumulated de

NOTES TO FINANCIAL STATEMENTS

NOTES TO FINANCIAL STATEMENTS (Unaudited) NOTE A – SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation : The interim financial have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. These financial statements should be read in conjunction with the audited financial 14, 2025. The results for the three and nine months ended September 30, 2025, are not necessarily indicative of the results to be expected for the year ended December 31, 2025. These statements reflect all adjustments, consisting of normal recurring adjustments, which in the opinion of management are necessary for fair presentation of the information contained therein. Description of Business : Wytec International, Inc. ("Wytec," "we," "our," "us," or the "Company"), a Nevada corporation, is a designer and developer of patented small cell technology, which we call the "LPN-16," and wide area networks designed to support 5G network deployments across the United States. Wytec offers in-building cellular (known as a distributed antenna system, "DAS") and private Long-term Evolution ("private LTE") solutions utilizing multiple vendors through Synnex Corporation, a leading distributor and solutions aggregator hosting more than 22,000 technology vendors. Concurrently, Wytec plans to commercialize a multichannel transmission product that integrates

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