BioCrude's Losses Narrow, But Going Concern Doubts Persist Amid Zero Revenue

TL;DR

**BioCrude is a zombie company with no revenue, mounting debt, and a going concern warning; avoid at all costs.**

AI Summary

BioCrude Technologies USA, Inc. reported no revenue for the three and six months ended June 30, 2025, continuing its trend of no operating revenues since inception. The company posted a net loss of $47,041 for the three months ended June 30, 2025, an improvement from a net loss of $64,468 in the same period of 2024. For the six months ended June 30, 2025, the net loss was $105,687, significantly lower than the $188,004 loss in the prior year's comparable period. General and administrative expenses decreased to $99,223 for the six months ended June 30, 2025, from $186,206 in the same period of 2024. Total assets declined from $19,094 at December 31, 2024, to $11,659 at June 30, 2025, while total liabilities increased from $322,129 to $421,498 over the same period. The company's accumulated deficit reached $9,585,174, and it continues to rely on equity and/or debt financing, including significant related party advances, to fund operations, raising substantial doubt about its going concern ability.

Why It Matters

For investors, BioCrude Technologies' continued lack of revenue and mounting accumulated deficit of $9,585,174 signals extreme financial instability, making it a highly speculative investment. The reliance on related party debt and advances, totaling $192,201 in related party liabilities, suggests a lack of external funding confidence and potential conflicts of interest. Employees face significant job insecurity given the company's going concern risk and inability to generate operating cash flow. Customers and the broader market are unaffected as the company has yet to establish a viable business or generate any revenue in the competitive resource management sector, indicating it's far from being a market player.

Risk Assessment

Risk Level: high — The company has not generated operating revenues to date and has an accumulated deficit of $9,585,174, indicating severe financial distress. Total liabilities of $421,498 significantly outweigh total assets of $11,659, and management explicitly states "substantial doubt about the ability of the Company to continue operating as a going concern."

Analyst Insight

Investors should avoid BioCrude Technologies USA, Inc. given its complete lack of revenue, substantial accumulated deficit, and explicit going concern warning. The company's reliance on related party financing further highlights its inability to attract independent capital, making it an unviable investment.

Financial Highlights

debt To Equity

N/A

revenue

$0

operating Margin

N/A

total Assets

$11,659

total Debt

$156,968

net Income

-$105,687

eps

N/A

gross Margin

N/A

cash Position

$196

revenue Growth

N/A

Revenue Breakdown

Key Numbers

• $0 — Revenue (No operating revenue for the three and six months ended June 30, 2025, or since inception.)
• $105,687 — Net Loss (six months) (Net loss for the six months ended June 30, 2025, an improvement from $188,004 in 2024.)
• $9,585,174 — Accumulated Deficit (Total accumulated losses since inception as of June 30, 2025.)
• $11,659 — Total Assets (Total assets as of June 30, 2025, down from $19,094 at December 31, 2024.)
• $421,498 — Total Liabilities (Total liabilities as of June 30, 2025, up from $322,129 at December 31, 2024.)
• $196 — Cash (Cash balance as of June 30, 2025, up from $4 at December 31, 2024.)
• $192,201 — Related Party Accounts Payable (Accounts payable and accrued liabilities to related parties as of June 30, 2025.)
• 50,854,726 — Shares Outstanding (Common stock shares issued and outstanding as of June 30, 2025.)
• $99,223 — General and Administrative Expenses (six months) (Operating expenses for the six months ended June 30, 2025, down from $186,206 in 2024.)

Key Players & Entities

• BioCrude Technologies USA, Inc. (company) — registrant
• U.S. Securities and Exchange Commission (regulator) — filing oversight
• BioCrude Technologies (Hong Kong) Limited (company) — 100% owned subsidiary
• CEO (person) — received compensation and advanced funds to the company
• Nevada (location) — state of incorporation
• Hong Kong dollar (dollar_amount) — local currency of subsidiary
• United States dollar (dollar_amount) — company's functional currency

FAQ

Risk Factors

• Going Concern Uncertainty [high — financial]: The company has accumulated a deficit of $9,585,174 as of June 30, 2025, and has not generated operating revenues since inception. It relies on external financing, including related party advances, raising substantial doubt about its ability to continue as a going concern.
• Deteriorating Asset and Liability Position [high — financial]: Total assets decreased from $19,094 at December 31, 2024, to $11,659 at June 30, 2025. Concurrently, total liabilities increased from $322,129 to $421,498, widening the gap between assets and liabilities.
• Reliance on Related Party Financing [medium — financial]: The company's operations are significantly funded by related party advances, totaling $192,201 in accounts payable and accrued liabilities to related parties as of June 30, 2025. This dependence creates concentration risk.
• Lack of Revenue Generation [high — operational]: The company has consistently reported zero revenue since its inception. This fundamental lack of commercial traction poses a significant risk to its long-term viability and ability to achieve profitability.
• High Operating Expenses Relative to Assets [high — operational]: General and administrative expenses for the six months ended June 30, 2025, were $99,223, significantly exceeding the company's total assets of $11,659. This indicates a high burn rate relative to the company's asset base.

Industry Context

BioCrude Technologies USA, Inc. operates in the resource management and recycling services sector. This industry is generally characterized by the need for significant capital investment in infrastructure and technology, stringent environmental regulations, and competitive pricing pressures. Companies in this space often face challenges related to waste stream variability, commodity prices for recycled materials, and evolving waste management policies.

Regulatory Implications

As a company involved in resource management, BioCrude Technologies USA, Inc. is subject to various environmental, health, and safety regulations at federal, state, and local levels. Compliance with these regulations can be costly and complex, and failure to comply can result in fines, penalties, and operational disruptions.

What Investors Should Do

1. Monitor future financing rounds closely.
2. Evaluate the sustainability of expense reduction.
3. Assess the strategic plan for revenue generation.
4. Consider the implications of related party debt.

Key Dates

• 2025-06-30: End of Second Quarter 2025 — Reported $0 revenue, a net loss of $47,041 for the quarter, and total assets of $11,659, with liabilities at $421,498, highlighting continued operational and financial challenges.
• 2025-06-30: Accumulated Deficit Reaches $9,585,174 — Indicates the cumulative losses since inception, underscoring the company's long-term struggle to achieve profitability.
• 2025-06-30: Total Liabilities Increase to $421,498 — Represents a significant increase from $322,129 at year-end 2024, driven by rising accounts payable and debt, further straining the company's financial position.
• 2024-12-31: End of Fiscal Year 2024 — Total assets were $19,094 and total liabilities were $322,129, providing a baseline for the deteriorating financial condition observed in the subsequent period.

Glossary

Accumulated Deficit

The total cumulative net losses of a company since its inception, minus any accumulated profits. It represents a negative retained earnings balance. (Indicates the company's long-standing inability to generate profits, reaching $9,585,174 as of June 30, 2025.)

Going Concern

An accounting assumption that a company will continue to operate for the foreseeable future, able to meet its financial obligations. (The company's financial condition, including its lack of revenue and significant accumulated deficit, raises substantial doubt about its ability to continue as a going concern.)

Related Party Advances

Loans or financial support provided by individuals or entities that have a close relationship with the company, such as officers, directors, or major shareholders. (The company relies heavily on these advances, with $192,201 in related party accounts payable and accrued liabilities as of June 30, 2025, highlighting a dependence on internal funding.)

Operating Expenses

Costs incurred by a company in its normal course of business, excluding cost of goods sold. For BioCrude, this primarily includes general and administrative expenses. (General and administrative expenses were $99,223 for the six months ended June 30, 2025, a significant outflow given the company's lack of revenue.)

Year-Over-Year Comparison

Compared to the prior year's comparable period, BioCrude Technologies USA, Inc. has shown a reduction in its net loss for both the three-month period (from $64,468 to $47,041) and the six-month period (from $188,004 to $105,687). This improvement is largely driven by a significant decrease in general and administrative expenses, which fell from $186,206 to $99,223 for the six months. However, the company's financial position has weakened, with total assets declining from $19,094 to $11,659 and total liabilities increasing from $322,129 to $421,498, exacerbating concerns about its going concern status.

Key Financial Figures

• $30,811 — terest of $ 32,293 (December 31, 2024 - $30,811) outstanding. Included in the balance o
• $498 — the Company of $ 78,161 and was repaid $498 which resulted in an accounts payable a
• $8,726 — payments on the Company's behalf of CAD $8,726 and USD $10,200. 10 ITEM 2. MANAGEMEN
• $10,200 — Company's behalf of CAD $8,726 and USD $10,200. 10 ITEM 2. MANAGEMENT'S DISCUSSION A

Filing Documents

• e6757_10q.htm (10-Q) — 748KB
• e6757_ex31-1.htm (EX-31.1) — 8KB
• e6757_ex31-2.htm (EX-31.2) — 8KB
• e6757_ex32-1.htm (EX-32.1) — 4KB
• image_001.jpg (GRAPHIC) — 18KB
• image_002.jpg (GRAPHIC) — 8KB
• image_003.jpg (GRAPHIC) — 9KB
• image_004.jpg (GRAPHIC) — 38KB
• 0001731122-25-001111.txt ( ) — 3143KB
• cik1690384-20250630.xsd (EX-101.SCH) — 21KB
• cik1690384-20250630_cal.xml (EX-101.CAL) — 33KB
• cik1690384-20250630_def.xml (EX-101.DEF) — 48KB
• cik1690384-20250630_lab.xml (EX-101.LAB) — 214KB
• cik1690384-20250630_pre.xml (EX-101.PRE) — 165KB
• e6757_10q_htm.xml (XML) — 306KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION 1 Item 1.

Financial Statements- Unaudited

Financial Statements- Unaudited 1 Condensed Consolidated Balance Sheets 1 Condensed Consolidated Statements of Operations and Comprehensive Loss 2 Condensed Consolidated Statements of Changes in Stockholders' Deficit 3 Condensed Consolidated Statement of Cash Flows 4 Notes to Condensed Consolidated Financial Statements 5 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operation

Management's Discussion and Analysis of Financial Condition and Results of Operation 11 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 44 Item 4.

Controls and Procedures

Controls and Procedures 44

– OTHER INFORMATION

PART II – OTHER INFORMATION 45 Item 1.

Legal Proceedings

Legal Proceedings 45 Item 1A.

Risk Factors

Risk Factors 45 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 45 Item 3. Defaults Upon Senior Securities 45 Item 4. Submission of Matters to a Vote of Security Holders 45 Item 5. Other Information 45 Item 6. Exhibits 45

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

. FINANCIAL STATEMENTS - UNAUDITED

ITEM 1 . FINANCIAL STATEMENTS - UNAUDITED BIOCRUDE TECHNOLOGIES USA, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (EXPRESSED IN US DOLLARS) June 30, 2025 December 31, 2024 (Unaudited) ASSETS CURRENT ASSETS Cash $ 196 $ 4 Prepaid expenses — 5,200 TOTAL CURRENT ASSETS 196 5,204 Property, plant and equipment 11,463 13,890 TOTAL ASSETS $ 11,659 $ 19,094 LIABILITIES AND STOCKHOLDERS ' DEFICIT CURRENT LIABILITIES Accounts payable and accrued liabilities $ 72,329 $ 58,199 Accounts payable and accrued liabilities - related parties 192,201 113,426 Related Party Debt 20,880 19,867 Debt 136,088 130,637 TOTAL CURRENT LIABILITIES 421,498 322,129 TOTAL LIABILITIES 421,498 322,129 Commitments and contingencies — — STOCKHOLDERS' DEFICIT Common stock, $ 0.001 par value, 75,000,000 shares authorized, and 50,854,726 shares issued and outstanding at June 30, 2025, and December 31, 2024 50,855 50,855 Additional paid in capital 9,100,972 9,100,972 Accumulated other comprehensive income 27,127 28,627 Accumulated deficit ( 9,585,174 ) ( 9,479,487 ) TOTAL STOCKHOLDERS' DEFICIT ATTRIBUTALBLE TO EQUITY SHAREHOLDERS OF THE COMPANY ( 406,220 ) ( 299,033 ) NON-CONTROLLING INTEREST ( 3,619 ) ( 4,002 ) TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $ 11,659 $ 19,094 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 1 BIOCRUDE TECHNOLOGIES USA, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (EXPRESSED IN US DOLLARS) (UNAUDITED) For the three months ended For the six months ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 REVENUE $ — $ — $ — $ — OPERATING EXPENSES General and administrative 41,480 63,604 99,223 186,206 LOSS FROM OPERATIONS ( 41,480 ) ( 63,604 ) ( 99,223 ) ( 186,206 ) Interest

financial statements

financial statements 3 BIOCRUDE TECHNOLOGIES USA, INC. CONDENSED CONSOLIDATED (EXPRESSED IN US DOLLARS) (UNAUDITED) For the six months ended June 30, 2025 June 30, 2024 CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $ ( 105,687 ) $ ( 188,004 ) Adjustments to reconcile net loss to net cash used in operating activities Depreciation 2,427 2,233 Stock issued for services — 70,200 Unrealized foreign exchange loss (gain) 4,492 ( 3,213 ) Prepaid expenses 5,200 ( 35,194 ) Accounts payable and accruals 14,130 ( 13,287 ) Accounts payable and accrued liabilities - related party 20,744 — Accrued interest and interest expenses 754 1,538 Accrued interest - related party 101 260 Net cash used in operating activities ( 57,839 ) ( 165,467 ) CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property, plant and equipment — ( 1,239 ) Net cash used in investing activities — ( 1,239 ) CASH FLOWS FROM FINANCING ACTIVITIES: Overdraft advances — ( 6 ) Proceeds from related party advances 58,529 81,205 Repayments of related party advances ( 498 ) ( 36,401 ) Proceeds from related party debt — 7,858 Repayments of related party debt — ( 15,073 ) Proceeds from private placement(s) — 129,380 Net cash provided by financing activities 58,031 166,963 CHANGE IN CASH DURING THE PERIOD 192 257 CASH BEGINNING 4 — CASH ENDING $ 196 $ 257 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid for income taxes $ — $ — Interest paid $ — $ — Non-cash Investing & Financing Activities: Common Stock issued for subscription receivable $ — $ 97,380 See accompanying notes to unaudited condensed consolidated

financial statements

financial statements. 4 BIOCRUDE TECHNOLOGIES USA, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL (UNAUDITED) NOTE 1 – ORGANIZATION AND GOING CONCERN Nature of Operations Biocrude Technologies USA, Inc. (the "Company") was formed on August 4, 2015, under the laws of the State of Nevada, originally under the name of BioCrude Technologies, Inc. until it changed its name on November 8, 2016. The Company's principal business objective is to provide resource management expertise and services, catering to commercial, municipal, and industrial customers, primarily in the areas of solid waste management and recycling services. Interim Financial Statements The unaudited interim consolidated financial statements of the Company have been prepared in accordance with United States generally accepted accounting principles ("GAAP") for interim financial information and the rules and regulations of the Securities and Exchange Commission ("SEC"). They do not include all information and footnotes required by GAAP for complete financial statements. Except as disclosed herein, there have been no material changes in the information disclosed in the notes to the financial statements for the year ended December 31, 2024, included in the Company's 2024 annual report on Form 10-K, filed with the SEC. The unaudited interim consolidated financial statements should be read in conjunction with those financial statements included in Form 10-K. In the opinion of management, all adjustments considered necessary for fair presentation, consisting solely of normal recurring adjustments, have been made. Operating results for the six months ended June 30, 2025, are not necessarily indicative of the results that may be expected for the year ending December 31, 2025. Going Concern The Company's consolidated financial statements are prepared on a going concern basis in accordance with United States generally accepted accounting principles ("US GAAP") which contemplate the real

financial statements, entered into derivative instruments to offset the impact of foreign currency fluctuations

financial statements, entered into derivative instruments to offset the impact of foreign currency fluctuations. Cash and Cash Equivalents Cash and cash equivalents consist of cash balances and highly liquid instruments with an original maturity of six months or less. As of June 30, 2025 and December 31, 2024, the Company does no t have cash equivalents. Property, Plant and Equipment Property, plant, and equipment are recorded at cost and depreciated to its estimated residual values using the straight-line method over its estimated useful lives of 8 years. Property, plant, and equipment consisted of the following: 6 Schedule of property plant and equipment Server Web Design TOTAL COST Balance, December 31, 2024 $ 30,048 $ 7,326 $ 37,374 Additions — — — Balance, June 30, 2025 $ 30,048 $ 7,326 $ 37,374 ACCUMULATED DEPRECIATION Balance, December 31, 2024 $ 20,564 $ 2,920 $ 23,484 Depreciation Expense 987 227 1,214 Balance, March 31, 2025 21,551 3,147 24,698 Depreciation Expense 987 226 1,213 Balance, June 30, 2025 $ 22,538 $ 3,373 $ 25,911 PROPERTY, PLANT AND EQUIPMENT, NET Balance, December 31, 2024 $ 9,484 $ 4,406 $ 13,890 Balance, June 30, 2025 $ 7,510 $ 3,953 $ 11,463 Share-based Expense ASC 718, " Compensation – Stock Compensation ", prescribes accounting and reporting standards for all share-based payment transactions in which employee services are acquired. Transactions include incurring liabilities, or issuing or offering to issue shares, options, and other equity instruments such as employee stock ownership plans and stock appreciation rights. Share-based payments to employees, including grants of employee stock options, are recognized as compensation expense in the financial statements based on their fair values. That expense is recognized over the period during which an employee is required to provide services in exchange for the award, k

MANAGEMENT'S DISCUSSION AND

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward-Looking Statements

Forward-Looking Statements This Form 10-Q includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included or incorporated by reference in this Form 10-Q which address activities, events or developments which the Company expects or anticipates will or may occur in the future, including such things as future capital expenditures (including the amount and nature thereof); finding suitable merger or acquisition candidates; expansion and growth of the Company's business and operations; and other such matters are forward-looking statements. These statements are based on certain assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate under the circumstances. However, whether actual results or developments will conform with the Company's expectations and predictions is subject to a number of risks and uncertainties, including general economic, market and business conditions; the business opportunities (or lack thereof) that may be presented to and pursued by the Company; changes in laws or regulation; and other factors, most of which are beyond the control of the Company. These forward-looking statements can be identified by the use of predictive, future-tense or forward-looking terminology, such as "believes," "anticipates," "expects," "estimates," "plans," "may," "will," or similar terms. These statements appear in a number of places in this Filing and include statements regarding the intent, belief or current expectations of the Company, and its directors or its officers with respect to, among other things: (i) trends affecting the Company's financial condition or results of operations for its limited history; (ii) the Compa

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