QIND Revenue Surges, But Net Loss Widens Amid Soaring Expenses

Ticker: QIND · Form: 10-Q · Filed: Aug 13, 2025 · CIK: 1393781

Sentiment: bearish

Topics: Industrial Sector, Oil & Gas, Financial Performance, Net Loss, Revenue Growth, Convertible Notes, Acquisition, Related Party Transactions, SEC Filing

Related Tickers: QIND, ASNS, HTOO

TL;DR

**QIND's revenue jump is overshadowed by a massive net loss and rising debt, making it a risky bet despite growth.**

AI Summary

Quality Industrial Corp. (QIND) reported a significant increase in revenue for the six months ended June 30, 2025, reaching $7,630,934, up from $3,317,206 in the prior year period. Despite this revenue growth, the company experienced a net loss attributable to QIND stockholders of $(1,602,091) for the six months ended June 30, 2025, a substantial decline from a net income of $304,257 in the same period of 2024. This loss was primarily driven by a sharp rise in general and administrative expenses to $2,635,307 from $783,552, and increased interest on convertible notes to $394,929 from $141,128. The company's total assets increased to $18,768,506 as of June 30, 2025, from $18,109,284 at December 31, 2024, largely due to a rise in accounts receivable to $3,829,823. Total liabilities also grew to $17,493,957 from $16,112,392, with a notable increase in related party payables to $1,060,684 from zero. Cash and cash equivalents saw a modest increase to $296,738 from $225,582. A key business change was the consolidation of Al Shola Al Modea Gas LLC (ASG) since its acquisition on March 27, 2024, while the agreement with Quality International Co Ltd FZC was terminated on April 1, 2024.

Why It Matters

QIND's substantial revenue growth, driven by the ASG acquisition, signals potential for market expansion in the industrial and oil & gas sectors. However, the widening net loss and increased liabilities, particularly related party payables, raise red flags for investors regarding profitability and financial stability. This performance could impact investor confidence, potentially affecting QIND's stock price and its ability to secure future financing. For employees, the strategic shifts and acquisitions could mean changes in operational focus. The competitive landscape in the industrial and oil & gas sectors remains intense, and QIND's ability to convert revenue into profit will be crucial for long-term viability.

Risk Assessment

Risk Level: high — The company reported a net loss attributable to QIND stockholders of $(1,602,091) for the six months ended June 30, 2025, a significant deterioration from a $304,257 net income in the prior year. This is coupled with a substantial increase in total liabilities to $17,493,957 from $16,112,392, and a negative retained earnings/accumulated deficit of $(18,828,640), indicating persistent unprofitability and a weak financial position.

Analyst Insight

Investors should exercise extreme caution and consider avoiding QIND given the significant net losses and increasing liabilities despite revenue growth. A deeper dive into the nature of the related party payables and the sustainability of the revenue growth post-ASG acquisition is warranted before any investment consideration.

Financial Highlights

debt To Equity
13.72
revenue
$7,630,934
operating Margin
-6.6%
total Assets
$18,768,506
total Debt
$17,493,957
net Income
$(1,602,091)
eps
N/A
gross Margin
29.8%
cash Position
$296,738
revenue Growth
130.0%

Key Numbers

Key Players & Entities

FAQ

What were Quality Industrial Corp.'s revenues for the six months ended June 30, 2025?

Quality Industrial Corp.'s revenues for the six months ended June 30, 2025, were $7,630,934, a significant increase from $3,317,206 reported for the same period in 2024.

Did Quality Industrial Corp. achieve a net profit or loss for the first half of 2025?

For the six months ended June 30, 2025, Quality Industrial Corp. reported a net loss attributable to QIND stockholders of $(1,602,091), a decline from a net income of $304,257 in the prior year period.

What contributed to the increase in Quality Industrial Corp.'s operating expenses?

Quality Industrial Corp.'s total operating expenses increased to $2,782,155 for the six months ended June 30, 2025, primarily due to a rise in general and administrative expenses to $2,635,307 from $783,552 in the same period of 2024.

What is the current status of Quality Industrial Corp.'s acquisition of Al Shola Al Modea Gas LLC (ASG)?

Al Shola Al Modea Gas LLC (ASG) has been consolidated into Quality Industrial Corp.'s financial statements since its acquisition on March 27, 2024, making it a part of QIND's operations.

What happened to Quality Industrial Corp.'s agreement with Quality International Co Ltd FZC?

The agreement with Quality International Co Ltd FZC was terminated by Quality International on April 1, 2024, after several failed negotiation efforts, and Quality International is no longer consolidated with QIND's financial statements.

How much cash and cash equivalents did Quality Industrial Corp. have as of June 30, 2025?

As of June 30, 2025, Quality Industrial Corp. had $296,738 in cash and cash equivalents, an increase from $225,582 at the beginning of the year on December 31, 2024.

What is the total amount of Quality Industrial Corp.'s liabilities as of June 30, 2025?

Quality Industrial Corp.'s total liabilities as of June 30, 2025, amounted to $17,493,957, an increase from $16,112,392 as of December 31, 2024.

Who is the current majority owner of Quality Industrial Corp.?

As of November 18, 2024, Fusion Fuel Green PLC became the majority owner of Quality Industrial Corp., acquiring approximately 67.36% of the voting stock.

What was the change in Quality Industrial Corp.'s retained earnings/accumulated deficit?

Quality Industrial Corp.'s retained earnings/accumulated deficit worsened to $(18,828,640) as of June 30, 2025, from $(17,226,549) as of December 31, 2024, indicating continued losses.

What is the significance of the increase in related party payables for Quality Industrial Corp.?

Related party payables for Quality Industrial Corp. increased significantly to $1,060,684 as of June 30, 2025, from zero as of December 31, 2024, which could indicate increased reliance on related parties for financing or operational support, potentially posing a risk to independent investors.

Risk Factors

Industry Context

Quality Industrial Corp. operates in an industrial sector that can be sensitive to economic cycles and global supply chain dynamics. The company's recent acquisition of ASG suggests a strategy of inorganic growth, potentially to expand market reach or product offerings. However, the increasing operational costs and net losses indicate challenges in integrating acquisitions and achieving profitability in a competitive landscape.

Regulatory Implications

As a publicly traded company, Quality Industrial Corp. is subject to SEC reporting requirements and accounting standards. The significant increase in related party payables and the substantial net loss may attract scrutiny from regulators and investors regarding financial transparency and operational efficiency.

What Investors Should Do

  1. Monitor G&A Expense Control
  2. Analyze Debt Structure and Interest Burden
  3. Evaluate Integration of ASG Acquisition
  4. Assess Cash Burn Rate

Key Dates

Glossary

Accumulated Deficit
The cumulative net losses of a company that have not been offset by net income or other gains. (Indicates the company has incurred more losses than profits over its history, impacting its equity position.)
Convertible Notes
Debt securities that can be converted into a predetermined amount of the issuer's equity. (The company has significant interest expense related to these notes, and their conversion could dilute existing shareholders.)
Noncontrolling Interest
The portion of equity in a subsidiary that is not attributable to the parent company. (Represents ownership in consolidated entities that does not belong to QIND's stockholders, impacting reported net income.)
Goodwill
An intangible asset that arises when a company acquires another company for a price greater than the fair value of its identifiable net assets. (A significant portion of QIND's non-current assets is goodwill, reflecting past acquisitions.)
Right-of-Use Assets
Assets that represent a lessee's right to use an underlying asset for the lease term, recognized under lease accounting standards. (These assets, along with related liabilities, reflect the company's leasing arrangements.)

Year-Over-Year Comparison

Compared to the prior year period, Quality Industrial Corp. has experienced a dramatic shift from profitability to a significant net loss, despite more than doubling its revenue from $3.32M to $7.63M for the six months ended June 30, 2025. This divergence is primarily due to a threefold increase in general and administrative expenses and a substantial rise in interest on convertible notes. Total assets have grown modestly, but liabilities have also increased, notably with the emergence of $1.06M in related party payables, while the accumulated deficit has widened.

Filing Stats: 4,445 words · 18 min read · ~15 pages · Grade level 15.6 · Accepted 2025-08-13 11:51:04

Filing Documents

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION Item 1:

Financial Statements

Financial Statements 1 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 2 Item 3:

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 6 Item 4:

Controls and Procedures

Controls and Procedures 6

– OTHER INFORMATION

PART II – OTHER INFORMATION Item 1:

Legal Proceedings

Legal Proceedings 7 Item 1A:

Risk Factors

Risk Factors 7 Item 2: Unregistered Sales of Equity Securities and Use of Proceeds 7 Item 3: Defaults Upon Senior Securities 7 Item 4: Mine Safety Disclosures 7 Item 5: Other Information 7 Item 6: Exhibits 7 i PART I - FINANCIAL INFORMATION Item 1. Financial Statements Our

financial statements included in this Form 10-Q are as follows

financial statements included in this Form 10-Q are as follows: F-1 Consolidated Balance Sheets as of June 30, 2025 (Unaudited) and December 31, 2024 (Audited); F-2 Consolidated Statements of Operations for the Three and Six months ended June 30, 2025, and 2024 (Unaudited); F-3 Consolidated Statement of Stockholders' Equity (Deficit) for the three months ended June 30, 2025, and 2024 (Unaudited); F-4 Consolidated Statements of Cash Flows for the Six months ended June 30, 2025, and 2024 (Unaudited); and F-5

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited). 1 QUALITY INDUSTRIAL CORP. CONSOLIDATED BALANCE SHEETS (UNAUDITED) June 30, 2025 December 31, 2024 Unaudited Audited ASSETS Current Assets Cash and Cash Equivalents $ 296,738 $ 225,582 Inventory 941,425 1,224,309 Accounts Receivable 3,829,823 3,205,961 Deposits, Prepayments & Advances 845,454 810,765 Other Current Assets 2,000,000 2,000,000 Total Current Assets 7,913,440 7,466,617 Non-Current Assets Property, Plant and Equipment 34,750 49,115 Right-of-Use assets 279,375 202,680 Related Party Receivables 2,129,841 1,979,772 Goodwill 8,411,100 8,411,100 Total Non-current Assets 10,855,066 10,642,667 Total Assets $ 18,768,506 $ 18,109,284 LIABILITIES AND STOCKHOLDERS' DEFICIT Current Liabilities Accounts Payable $ 1,424,754 $ 2,116,876 Related Party Payables 1,060,684 - Lease Operating Liabilities 118,652 80,950 Convertible Notes, net of discount 2,512,377 2,584,054 Other payables - current 6,589,854 5,777,920 Other Current Liabilities 2,150,360 803,812 Total Current Liabilities 13,856,681 11,363,612 Non-Current Liabilities Lease Operating Non-Current Portion 172,651 132,741 Other payables – long-term 3,464,625 4,616,039 Total Long-Term Liabilities 3,637,276 4,748,780 Total Liabilities 17,493,957 16,112,392 Stockholders' Equity Preferred stock; $ 0.001 par value; 1,000,000 shares authorized; 20,000 and 20,000 Series B shares issued and outstanding as of as of June 30, 2025, and December 31, 2024, respectively 20 20 Common stock; $ 0.001 par value; 200,000,000 shares authorized; 163,880,483 and 126,642,689 shares issued and outstanding as of June 30, 2025, and December 31, 2024, respectively 163,883 126,645 Additional paid-in capital 18,447,745 18,046,911 Retained Earnings/ accumulated Deficit ( 18,828,640 ) ( 17,226,549 ) Noncontrolling interest 1,491,541 1,049,865 Total st

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