Deep Green's Q1 Loss Widens to $227K Amid Revenue Drop, Cash Drain

Deep Green Waste & Recycling, Inc. 10-Q Filing Summary
FieldDetail
CompanyDeep Green Waste & Recycling, Inc.
Form Type10-Q
Filed DateSep 22, 2025
Risk Levelhigh
Pages15
Reading Time18 min
Sentimentbearish

Sentiment: bearish

Topics: Waste Management, Recycling, Financial Distress, Liquidity Crisis, Net Loss, Revenue Decline, Penny Stock

TL;DR

**Deep Green is bleeding cash and revenue, making it a high-risk bet for any investor looking for stability or growth.**

AI Summary

Deep Green Waste & Recycling, Inc. reported a significant increase in net loss for the three months ended March 31, 2025, reaching $(227,857) compared to $(10,680) for the same period in 2024. Total revenues decreased by 28.47% from $342,325 in Q1 2024 to $244,925 in Q1 2025. The company's operating loss widened substantially to $(225,194) in Q1 2025 from $(57,423) in Q1 2024, primarily driven by increased operating expenses, which rose from $328,165 to $414,729. Key changes in operating expenses include a significant increase in professional and consulting fees from $11,069 to $25,541 and officers and directors' compensation from $41,500 to $64,900. The company's cash position deteriorated sharply, moving from $72,842 at December 31, 2024, to a bank overdraft of $(8,710) at March 31, 2025. Total current liabilities increased to $4,869,923 from $4,833,929, while total assets decreased from $936,467 to $776,857. The company issued 2,583,153 shares of common stock to satisfy notes payable, resulting in a loss on conversion of notes of $(27,309).

Why It Matters

Deep Green's deteriorating financial health, marked by a substantial net loss and declining revenue, signals significant operational challenges and raises red flags for investors. The company's negative cash balance and increasing liabilities suggest a precarious liquidity position, potentially impacting its ability to fund future operations or strategic acquisitions in the competitive waste and recycling sector. This performance could erode investor confidence and make it difficult to secure additional financing, especially given the competitive landscape with larger, more established players. Employees might face job insecurity, and customers could experience service disruptions if the financial strain continues.

Risk Assessment

Risk Level: high — The company reported a net loss of $(227,857) for Q1 2025, a significant increase from $(10,680) in Q1 2024. Cash declined from $72,842 to a bank overdraft of $(8,710) within three months, indicating severe liquidity issues. Total current liabilities of $4,869,923 far exceed total current assets of $106,086, highlighting a substantial working capital deficit.

Analyst Insight

Investors should avoid Deep Green Waste & Recycling, Inc. given its substantial net losses, declining revenue, and critical liquidity issues. The company's inability to generate positive cash flow from operations and its increasing debt burden suggest a high probability of further financial distress.

Financial Highlights

debt To Equity
N/A
revenue
$244,925
operating Margin
N/A
total Assets
$776,857
total Debt
N/A
net Income
$(227,857)
eps
N/A
gross Margin
N/A
cash Position
$(8,710)
revenue Growth
-28.47%

Executive Compensation

NameTitleTotal Compensation
N/AOfficers and Directors$64,900

Key Numbers

  • $(227,857) — Net Loss (Increased from $(10,680) in Q1 2024, indicating worsening financial performance.)
  • $244,925 — Total Revenues (Decreased by 28.47% from $342,325 in Q1 2024, showing a significant revenue decline.)
  • $(8,710) — Cash (Bank Overdraft) (Represents a sharp decline from $72,842 at December 31, 2024, highlighting severe liquidity issues.)
  • $4,869,923 — Total Current Liabilities (Increased from $4,833,929 at December 31, 2024, contributing to a growing working capital deficit.)
  • $106,086 — Total Current Assets (Decreased from $189,441 at December 31, 2024, further exacerbating liquidity concerns.)
  • $(225,194) — Operating Loss (Widened significantly from $(57,423) in Q1 2024, reflecting increased operating expenses.)
  • $414,729 — Total Operating Expenses (Increased from $328,165 in Q1 2024, contributing to the larger operating loss.)
  • 2,583,153 — Common Stock Issued (Issued in satisfaction of notes payable, indicating reliance on equity financing to manage debt.)
  • $(27,309) — Loss on Conversion of Notes Payable (Resulted from the issuance of common stock to satisfy debt, impacting net loss.)
  • $64,900 — Officers and Directors' Compensation (Increased from $41,500 in Q1 2024, despite declining revenues and increasing losses.)

Key Players & Entities

  • Deep Green Waste & Recycling, Inc. (company) — registrant
  • St. James Capital Management, LLC (company) — party in asset transfer agreement
  • Deep Green Waste and Recycling, LLC (company) — accounting acquiror in reverse merger
  • Compaction and Recycling Equipment, Inc. (company) — acquired subsidiary
  • Columbia Financial Services, Inc. (company) — acquired subsidiary
  • Mirabile Corporate Holdings, Inc. (company) — party in subsidiary transfer agreement
  • DG Research, Inc. (company) — wholly owned subsidiary and buyer in asset purchase agreement
  • Amwaste, Inc. (company) — seller in asset purchase agreement
  • Jeremy Lyell (person) — shareholder in securities purchase agreement
  • Lyell Environmental Services, Inc. (company) — acquired entity

FAQ

What were Deep Green Waste & Recycling's revenues for the quarter ended March 31, 2025?

Deep Green Waste & Recycling, Inc. reported total revenues of $244,925 for the three months ended March 31, 2025. This represents a decrease from $342,325 reported for the same period in 2024.

How did Deep Green Waste & Recycling's net loss change in Q1 2025 compared to Q1 2024?

Deep Green Waste & Recycling, Inc.'s net loss significantly widened to $(227,857) for the three months ended March 31, 2025, compared to a net loss of $(10,680) for the three months ended March 31, 2024.

What is Deep Green Waste & Recycling's current cash position as of March 31, 2025?

As of March 31, 2025, Deep Green Waste & Recycling, Inc. reported a bank overdraft of $(8,710), a substantial decline from the $72,842 cash balance at December 31, 2024.

What are the primary reasons for the increase in Deep Green Waste & Recycling's operating expenses?

Deep Green Waste & Recycling, Inc.'s total operating expenses increased to $414,729 in Q1 2025 from $328,165 in Q1 2024. This increase was partly due to higher professional and consulting fees, which rose from $11,069 to $25,541, and increased officers and directors' compensation from $41,500 to $64,900.

How many shares of common stock did Deep Green Waste & Recycling issue in Q1 2025?

Deep Green Waste & Recycling, Inc. issued 2,583,153 shares of common stock during the three months ended March 31, 2025, in satisfaction of notes payable.

What is Deep Green Waste & Recycling's total stockholders' deficit as of March 31, 2025?

As of March 31, 2025, Deep Green Waste & Recycling, Inc. reported a total stockholders' deficit of $(4,226,699), which worsened from $(4,044,760) at December 31, 2024.

What was the impact of derivative liability on Deep Green Waste & Recycling's Q1 2025 results?

Deep Green Waste & Recycling, Inc. recognized a derivative liability gain of $8,972 for the three months ended March 31, 2025, which partially offset other expenses.

Did Deep Green Waste & Recycling have any discontinued operations in Q1 2025?

No, Deep Green Waste & Recycling, Inc. reported no income or loss from discontinued operations for the three months ended March 31, 2025. In Q1 2024, discontinued operations of DG Research Inc. resulted in a loss of $(20,602).

What is the significance of the loss on conversion of notes payable for Deep Green Waste & Recycling?

Deep Green Waste & Recycling, Inc. incurred a loss on conversion of notes payable of $(27,309) in Q1 2025. This indicates that the value of the common stock issued to satisfy debt was higher than the carrying value of the debt, reflecting a cost associated with converting debt to equity.

What is Deep Green Waste & Recycling's strategy for growth?

Deep Green Waste & Recycling, Inc. is a publicly quoted company seeking to create value for its shareholders by acquiring other operating entities for growth in return for shares of its common stock, as stated in Note A – Organization.

Risk Factors

  • Deteriorating Liquidity Position [high — financial]: The company's cash position has sharply declined from $72,842 at December 31, 2024, to a bank overdraft of $(8,710) at March 31, 2025. This, coupled with an increase in total current liabilities to $4,869,923 and a decrease in total current assets to $106,086, indicates severe liquidity challenges.
  • Worsening Profitability [high — financial]: Net loss for Q1 2025 was $(227,857), a significant increase from $(10,680) in Q1 2024. The operating loss also widened substantially to $(225,194) from $(57,423), driven by a 24.5% increase in total operating expenses.
  • Declining Revenue [high — financial]: Total revenues decreased by 28.47% from $342,325 in Q1 2024 to $244,925 in Q1 2025. This significant drop in top-line performance exacerbates the company's financial difficulties.
  • Increased Operating Expenses [medium — financial]: Total operating expenses rose from $328,165 in Q1 2024 to $414,729 in Q1 2025. Notable increases include professional and consulting fees (up from $11,069 to $25,541) and officers' and directors' compensation (up from $41,500 to $64,900).
  • Reliance on Equity for Debt Settlement [medium — financial]: The company issued 2,583,153 shares of common stock to satisfy notes payable, resulting in a loss on conversion of $(27,309). This indicates a potential difficulty in managing debt obligations through traditional means.
  • Asset Depreciation [medium — financial]: Total assets decreased from $936,467 at December 31, 2024, to $776,857 at March 31, 2025, suggesting a potential impairment or disposal of assets.

Industry Context

The waste management and recycling industry is capital-intensive and subject to stringent environmental regulations. Companies in this sector often face challenges related to commodity prices for recyclables, fluctuating fuel costs, and the need for continuous investment in technology and infrastructure. Competition can be intense, with both large national players and smaller regional operators.

Regulatory Implications

Deep Green Waste & Recycling, Inc. operates in a highly regulated industry. Compliance with environmental, health, and safety regulations is critical and can involve significant costs. Changes in regulations, such as those related to waste disposal, recycling mandates, or emissions standards, could materially impact the company's operations and financial performance.

What Investors Should Do

  1. Monitor cash burn and liquidity closely.
  2. Scrutinize operating expense increases.
  3. Evaluate the sustainability of the business model.
  4. Assess the impact of equity dilution.

Key Dates

  • 2025-03-31: End of Q1 2025 — The company reported a significant increase in net loss and a sharp deterioration in its cash position, highlighting ongoing financial challenges.
  • 2024-12-31: End of Fiscal Year 2024 — The company had a cash balance of $72,842 and total assets of $936,467, providing a baseline for the subsequent deterioration.

Glossary

Bank Overdraft
A situation where a bank account holder withdraws more money than is available in their account, resulting in a negative balance. (Indicates a severe lack of liquidity, as the company has insufficient funds to meet its immediate obligations.)
Loss on Conversion of Notes Payable
A loss recognized when debt (notes payable) is converted into equity (common stock) at a value that is less than the carrying amount of the debt. (Shows that the company had to issue a significant amount of stock to settle debt, which resulted in a financial loss and diluted existing shareholders' equity.)
Interim Financial Information
Financial statements prepared for a period shorter than a full fiscal year, such as a quarter. (The 10-Q contains unaudited interim financial statements, which may not reflect all the details of annual financial statements.)

Year-Over-Year Comparison

Compared to the prior year's first quarter, Deep Green Waste & Recycling, Inc. has experienced a significant downturn. Total revenues have fallen by 28.47% from $342,325 to $244,925, while the net loss has ballooned from $(10,680) to $(227,857). Operating expenses have risen, contributing to a substantially wider operating loss. Most concerning is the dramatic deterioration of the company's cash position, moving from a positive balance to a bank overdraft, alongside an increase in current liabilities, signaling heightened financial distress.

Filing Stats: 4,532 words · 18 min read · ~15 pages · Grade level 16.8 · Accepted 2025-09-19 18:46:11

Filing Documents

Signatures

Signatures 43 2 USE OF MARKET AND INDUSTRY DATA This Quarterly Report on Form 10-Q includes market and industry data that we have obtained from third-party sources, including industry publications, as well as industry data prepared by our management on the basis of its knowledge of and experience in the industries in which we operate (including our management's estimates and assumptions relating to such industries based on that knowledge). Management has developed its knowledge of such industries through its experience and participation in these industries. While our management believes the third-party sources referred to in this Quarterly Report on Form 10-Q are reliable, neither we nor our management have independently verified any of the data from such sources referred to in this Quarterly Report on Form 10-Q or ascertained the underlying economic assumptions relied upon by such sources. Furthermore, internally prepared and third-party market prospective information, in particular, are estimates only and there will usually be differences between the prospective and actual results, because events and circumstances frequently do not occur as expected, and those differences may be material. Also, references in this Quarterly Report on Form 10-Q to any publications, reports, surveys or articles prepared by third parties should not be construed as depicting the complete findings of the entire publication, report, survey or article. The information in any such publication, report, survey or article is not incorporated by reference in this Quarterly Report on Form 10-Q. Solely for convenience, we refer to trademarks in this Quarterly Report on Form 10-Q without the or the or symbols, but such references are not intended to indicate that we will not assert, to the fullest extent under applicable law, our rights to our own trademarks. Other service marks, trademarks and trade names referred to in this Quarterly Report on Form 10-Q, if any, are the property of the

Financial Statements

Financial Statements The unaudited condensed financial statements of the Company for the three month periods ended March 31, 2025 and 2024 have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Regulation S-K. Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. However, such information reflects all adjustments (consisting solely of normal recurring adjustments), which are, in the opinion of management, necessary for the fair presentation of the financial position and the results of operations. Results shown for interim periods are not necessarily indicative of the results to be obtained for a full fiscal year. The balance sheet information as of December 31, 2024 was derived from the audited financial statements included in the Company's financial statements as of and for the year ended December 31, 2024 included in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission (the "SEC") on A

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