CITR's Revenue Soars 162%, But Net Loss Widens to $22.8M Amid High Costs

TL;DR

**CITR is burning through cash faster than it can make it, making it a high-risk bet despite revenue growth.**

AI Summary

General Enterprise Ventures, Inc. (CITR) reported a significant increase in revenue for the six months ended June 30, 2025, reaching $1,657,020, up from $631,687 in the prior year, representing a 162% increase. Despite this revenue growth, the company's net loss widened dramatically to $22,807,423 for the six months ended June 30, 2025, compared to a net loss of $4,427,114 for the same period in 2024. This substantial increase in loss was primarily driven by soaring operating expenses, which rose from $4,175,637 to $8,133,115, and a massive increase in other expenses, including $8,679,189 in financing expense and a $3,777,767 change in fair value of derivative liability. The company's cash position improved to $2,327,087 as of June 30, 2025, from $775,133 at December 31, 2024, largely due to $3,645,234 in cash provided by financing activities. However, CITR continues to operate with a working capital deficiency of approximately $2.0 million and has incurred losses since inception, raising substantial doubt about its ability to continue as a going concern.

Why It Matters

For investors, CITR's substantial net loss of $22.8 million and working capital deficiency of $2.0 million signal significant financial instability, despite impressive revenue growth. The company's reliance on financing activities to sustain operations, including $3.9 million raised from preferred stock and convertible notes, indicates a precarious financial model. Employees face uncertainty given the 'going concern' warning, which could impact job security and future growth opportunities. Customers using the CitroTech product might question the long-term viability of their supplier, especially if the company struggles to secure further funding. In the competitive wildfire defense market, CITR's financial struggles could hinder its ability to innovate and scale, potentially ceding market share to more financially robust competitors.

Risk Assessment

Risk Level: high — The company reported a net loss of $22.8 million for the six months ended June 30, 2025, and has a working capital deficiency of approximately $2.0 million as of June 30, 2025. These conditions, coupled with accumulated losses since inception, raise 'substantial doubt about the Company's ability to continue as a going concern within one year.'

Analyst Insight

Investors should exercise extreme caution and consider avoiding CITR stock due to the severe 'going concern' risk and escalating losses. Monitor future financing efforts closely, as the company's survival hinges on successfully raising additional capital and completing a public offering, which is not assured.

Financial Highlights

debt To Equity

3.0

revenue

$1,657,020

operating Margin

-490.6%

total Assets

$8,689,242

total Debt

$6,498,649

net Income

-$22,807,423

eps

-$0.41

gross Margin

N/A

cash Position

$2,327,087

revenue Growth

+162%

Revenue Breakdown

Key Numbers

• $1,657,020 — Revenue for six months ended June 30, 2025 (Increased 162% from $631,687 in 2024)
• $22,807,423 — Net loss for six months ended June 30, 2025 (Widened significantly from $4,427,114 in 2024)
• $8,133,115 — Total operating expenses for six months ended June 30, 2025 (Increased from $4,175,637 in 2024)
• $8,679,189 — Financing expense for six months ended June 30, 2025 (Major contributor to increased net loss)
• $3,777,767 — Change in fair value of derivative liability for six months ended June 30, 2025 (Significant other expense)
• $2,327,087 — Cash as of June 30, 2025 (Increased from $775,133 at December 31, 2024)
• $2.0 million — Working capital deficiency as of June 30, 2025 (Indicates liquidity issues and going concern risk)
• $3.9 million — Net proceeds from financing activities for six months ended June 30, 2025 (Funds raised from Series C preferred stock and convertible notes)
• 66,550,981 — Shares of common stock outstanding as of August 12, 2025 (Increased from 36,841,581 at December 31, 2024)
• $0.41 — Net loss per common share for six months ended June 30, 2025 (Increased from $0.07 in 2024)

Key Players & Entities

• General Enterprise Ventures, Inc. (company) — registrant
• CITR (company) — ticker symbol
• GEVI Insurance Holdings Inc. (company) — wholly owned subsidiary
• MFB Insurance Company, Inc. (company) — wholly owned subsidiary of GEVI Insurance
• CitroTech (company) — primary product
• Wyoming (regulator) — state of redomiciliation
• SEC (regulator) — filing authority
• Bloomberg (company) — publisher

FAQ

Risk Factors

• Going Concern Uncertainty [high — financial]: The company has incurred significant losses since inception, with a net loss of $22.8 million for the six months ended June 30, 2025, and a working capital deficiency of $2.0 million. This raises substantial doubt about its ability to continue as a going concern.
• Dependence on Future Financing [high — financial]: The company's existing cash and expected income are insufficient to fund operations for the next twelve months. Management plans to raise additional capital through financings and a public offering, but success is not assured.
• Significant Financing and Derivative Expenses [high — financial]: The six months ended June 30, 2025, saw a substantial increase in financing expenses ($8,679,189) and a significant change in the fair value of derivative liability ($3,777,767), both contributing heavily to the widened net loss.
• Scaling Production and Distribution [medium — operational]: While revenue has grown significantly, the company must effectively scale its production and distribution capabilities to meet potential demand for its wildfire defense and lumber treatment products.
• Competition in Fire Retardant Market [medium — market]: The market for fire retardant solutions may include established players and emerging technologies, requiring continuous innovation and competitive pricing to maintain market share.
• Product Efficacy and Environmental Compliance [medium — regulatory]: Ensuring the long-term efficacy of CitroTech and compliance with evolving environmental regulations for its sustainable, food-grade ingredients will be critical for market acceptance and continued use.

Industry Context

General Enterprise Ventures operates in the wildfire defense and lumber treatment sector, offering sustainable, plant-derived products. The market includes homeowners, developers, and fire departments. The increasing frequency and severity of wildfires globally present a growing demand for such solutions, but also intensify competition and regulatory scrutiny.

Regulatory Implications

The company's use of food-grade, renewable ingredients suggests a focus on environmental compliance. However, ongoing product efficacy testing and adherence to evolving fire safety standards and chemical regulations are crucial for sustained market access and consumer trust.

What Investors Should Do

1. Monitor future financing activities closely.
2. Analyze the drivers of operating expense growth.
3. Evaluate the sustainability of revenue growth.
4. Assess the impact of financing and derivative liabilities.

Key Dates

• 2025-06-30: Six months ended June 30, 2025 financial reporting — Revealed significant revenue growth but a substantially widened net loss, highlighting increased operating and financing expenses.
• 2025-06-30: Cash position as of June 30, 2025 — Improved to $2,327,087 from $775,133 at year-end 2024, primarily due to financing activities.
• 2025-06-30: Working capital deficiency as of June 30, 2025 — Stood at approximately $2.0 million, indicating ongoing liquidity challenges.
• 2024-12-31: Cash position as of December 31, 2024 — Reported at $775,133, serving as the baseline for the subsequent increase.

Glossary

Going Concern

An accounting assumption that a business will continue to operate for the foreseeable future, without the intention or need for liquidation. (The company's financial condition raises substantial doubt about its ability to continue as a going concern, meaning its survival is uncertain.)

Working Capital Deficiency

Occurs when a company's current liabilities exceed its current assets, indicating potential short-term liquidity problems. (CITR has a $2.0 million working capital deficiency, signaling a need for immediate cash infusion to meet short-term obligations.)

Derivative Liability

A financial instrument whose value is derived from an underlying asset, which can create a liability for the company if its value changes unfavorably. (A significant $3,777,767 change in the fair value of derivative liability contributed to the company's net loss.)

Financing Expense

Costs incurred by a company in relation to borrowing money or issuing equity, such as interest, fees, and amortization of debt discounts. (The company reported a substantial $8,679,189 in financing expense, a major driver of its increased net loss.)

Series C Convertible Preferred Stock

A class of preferred stock that can be converted into a predetermined number of common stock shares. (The issuance of this stock was part of the financing activities that provided $3.9 million in net proceeds.)

Year-Over-Year Comparison

For the six months ended June 30, 2025, General Enterprise Ventures, Inc. (CITR) experienced a dramatic 162% surge in revenue to $1,657,020, a significant improvement from $631,687 in the prior year. However, this top-line growth was overshadowed by a widening net loss, which ballooned to $22,807,423 from $4,427,114, primarily due to a near doubling of operating expenses and substantial financing and derivative-related costs. The company's cash position improved, but a persistent working capital deficiency and accumulated losses continue to cast doubt on its ability to continue as a going concern.

Filing Documents

• gevi_10q.htm (10-Q) — 1403KB
• gevi_ex311.htm (EX-31.1) — 12KB
• gevi_ex312.htm (EX-31.2) — 12KB
• gevi_ex321.htm (EX-32.1) — 5KB
• 0001640334-25-001490.txt ( ) — 6845KB
• gevi-20250630.xsd (EX-101.SCH) — 78KB
• gevi-20250630_lab.xml (EX-101.LAB) — 375KB
• gevi-20250630_cal.xml (EX-101.CAL) — 57KB
• gevi-20250630_pre.xml (EX-101.PRE) — 318KB
• gevi-20250630_def.xml (EX-101.DEF) — 194KB
• gevi_10q_htm.xml (XML) — 1319KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements 3 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 26 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 36 Item 4.

Controls and Procedures

Controls and Procedures 37

- OTHER INFORMATION

PART II - OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 38 Item 1A.

Risk Factors

Risk Factors 38 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 38 Item 3. Defaults Upon Senior Securities 38 Item 4. Mine Safety Disclosures 38 Item 5. Other Information 38 Item 6. Exhibits 39

SIGNATURES

SIGNATURES 40 2 Table of Contents

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. GENERAL ENTERPRISE VENTURES, INC. UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS Page Consolidated Balance Sheets (unaudited) 4 Consolidated statements of Operations and Comprehensive Loss (unaudited) 5 Consolidated Statements of Changes in Stockholders' Equity (unaudited) 6 Consolidated Statements of Cash Flows (unaudited) 7 Consolidated Notes to Financial Statements (unaudited) 8 3 Table of contents General Enterprise Ventures, Inc. Consolidated Balance Sheets (Unaudited) June 30, December 31, 2025 2024 Assets Current Assets Cash $ 2,327,087 $ 775,133 Accounts receivable, net 653,995 317,455 Inventory 409,923 324,657 Prepaid expenses and other current assets 206,370 74,129 Deferred offering costs 185,327 126,104 Total Current Assets 3,782,702 1,617,478 Non-Current Assets Intangible assets, net 3,575,525 3,699,491 Operating lease right-of-use asset 828,513 49,347 Property and equipment, net 465,511 111,374 Security deposit 36,991 - Total Non-Current Assets 4,906,540 3,860,212 Total Assets $ 8,689,242 $ 5,477,690 Liabilities and Stockholders' Equity Current liabilities Accounts payable and accrued liabilities $ 532,985 $ 186,984 Deferred revenue 94,860 - Convertibles notes, net of discount 277,593 196,077 Convertibles notes, net of discount - related parties 932,002 576,693 Due to related parties 95,747 - Financing loan - 96,849 Derivative liability 3,733,000 1,055,233 Operating lease liability - current portion 138,810 50,047 Total Current Liabilities 5,804,997 2,161,883 Non-current Liability Operating lease liability 693,652 - Total Liabilities 6,498,649 2,161,883 Stockholders' Equity Preferred Stock, par value $ 0.0001 , authorized 30,000,000 shares: Series A Preferred Stock, par value $ 0.0001 , designated 10,000,000 shares, 10,000,000 shares issued and outstand

Business

Business Our product is CitroTech, which is utilized in wildfire defense and to treat lumber to inhibit fire. In addition, we are developing a coating to treat lumber during manufacture prior to distribution. Our product is sustainable, because it is made of food-grade ingredients derived from corn, fruits and other renewable sources. Our current customer base is mainly comprised of homeowners, developers and fire departments. Homeowners and developers use our product to proactively spray wood framing during construction to treat the property prior to the occurrence of fires. We install systems to deploy our product remotely to provide a buffer zone around properties to prevent combustion. Fire Departments use our product to proactively spray around controlled burns and areas that traditionally have active wildfire risk to prevent expansion of the burn area. Going Concern Our unaudited interim consolidated financial statements are prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. The Company has incurred losses since inception and has a net loss of approximately $ 22.8 million and revenue of $ 1.7 million for the six months ended June 30, 2025. The Company also has a working capital deficiency of approximately $ 2.0 million, as of June 30, 2025. These conditions raise substantial doubt about the Company's ability to continue as a going concern within one year after the date that the unaudited consolidated financial statements are issued. Management recognizes that the Company must obtain additional resources to successfully implement its business plans. During the six months ended June 30, 2025, the Company completed financings from the issuance of Series C preferred stock, and convertible notes, generating net proceeds of approximately $ 3.9 million. However, the Company's existing cash resources and income from operations, are not expected to p

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