BioCrude's Losses Mount, Assets Shrink Amidst Zero Revenue

TL;DR

**BioCrude is a cash-burning shell with no revenue and mounting debt; avoid at all costs.**

AI Summary

BioCrude Technologies USA, Inc. reported no revenue for the three and nine months ended September 30, 2025, consistent with the prior year. The company incurred a net loss of $38,864 for the three months ended September 30, 2025, compared to a net loss of $28,831 for the same period in 2024. For the nine months ended September 30, 2025, the net loss was $144,551, a 33.3% improvement from the $216,835 net loss in the prior year. General and administrative expenses decreased significantly by 35.5% to $137,228 for the nine months ended September 30, 2025, from $212,867 in 2024. Total assets decreased to $10,359 as of September 30, 2025, from $19,094 at December 31, 2024, primarily due to a reduction in property, plant and equipment and prepaid expenses. The company's total current liabilities increased to $458,755 from $322,129, driven by a substantial rise in accounts payable and accrued liabilities, including related parties. The accumulated deficit grew to $9,624,038, and the company continues to operate on a going concern basis, relying on related party financing and future capital raises.

Why It Matters

BioCrude Technologies USA, Inc.'s continued inability to generate revenue and its growing accumulated deficit of $9,624,038 raise significant red flags for investors, indicating a lack of viable business operations. The reliance on related party financing, with the CEO advancing $83,438 and his brother-in-law advancing $917 during the nine months ended September 30, 2025, suggests a precarious financial structure. This situation puts employees at risk due to the company's uncertain future and offers no value to customers as no services are being provided. In a competitive resource management sector, BioCrude's current state makes it an irrelevant player, highlighting the challenges for micro-cap companies without a clear path to profitability.

Risk Assessment

Risk Level: high — The company has not generated operating revenues to date and has accumulated losses of $9,624,038 since inception, indicating a fundamental lack of a sustainable business model. Total current liabilities of $458,755 significantly outweigh total assets of $10,359, and the company 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, increasing liabilities, and explicit going concern warning. The company's reliance on related party financing is not a sustainable long-term strategy, and there is no clear path to profitability or value creation.

Financial Highlights

debt To Equity

N/A

revenue

$0

operating Margin

N/A

total Assets

$10,359

total Debt

$155,860

net Income

-$144,551

eps

$0.00

gross Margin

N/A

cash Position

$109

revenue Growth

0.0%

Revenue Breakdown

Key Numbers

• $0 — Revenue (For the nine months ended September 30, 2025, and 2024, indicating no operational income.)
• $144,551 — Net Loss (For the nine months ended September 30, 2025, a 33.3% improvement from $216,835 in 2024.)
• $9,624,038 — Accumulated Deficit (Since inception, highlighting significant historical losses.)
• $10,359 — Total Assets (As of September 30, 2025, a decrease from $19,094 at December 31, 2024.)
• $458,755 — Total Current Liabilities (As of September 30, 2025, an increase from $322,129 at December 31, 2024.)
• 50,854,726 — Shares of Common Stock Outstanding (As of September 30, 2025, and December 31, 2024.)
• $83,438 — Advances from CEO (During the nine months ended September 30, 2025, demonstrating reliance on related party financing.)

Key Players & Entities

• BioCrude Technologies USA, Inc. (company) — Registrant
• SEC (regulator) — Securities and Exchange Commission
• CEO (person) — Chief Executive Officer of BioCrude Technologies USA, Inc.
• Biocrude Technologies (Hong Kong) Limited (company) — 100% owned subsidiary
• FASB (regulator) — Financial Accounting Standards Board
• Nevada (location) — State of incorporation
• Montreal (location) — Principal executive offices

FAQ

Risk Factors

• Going Concern and Reliance on Related Party Financing [high — financial]: The company has an accumulated deficit of $9,624,038 and relies on related party financing, such as $83,438 in advances from the CEO during the nine months ended September 30, 2025. This dependence creates financial risk if such financing is not sustained.
• Decreasing Asset Base [medium — financial]: Total assets decreased to $10,359 as of September 30, 2025, from $19,094 at December 31, 2024. This reduction, primarily in property, plant and equipment and prepaid expenses, indicates a shrinking operational footprint.
• Increasing Current Liabilities [medium — financial]: Total current liabilities increased to $458,755 from $322,129, driven by a substantial rise in accounts payable and accrued liabilities, including those from related parties. This could strain short-term liquidity.
• Lack of Revenue Generation [high — operational]: The company reported no revenue for the three and nine months ended September 30, 2025, and 2024. This persistent lack of income generation poses a fundamental business risk.
• Significant Net Losses [high — operational]: For the nine months ended September 30, 2025, the company incurred a net loss of $144,551, despite a 33.3% improvement from the prior year's loss of $216,835. Continued losses erode equity.
• Decreasing General and Administrative Expenses [low — operational]: While a positive sign for cost control, the significant decrease in G&A expenses by 35.5% to $137,228 for the nine months ended September 30, 2025, from $212,867 in 2024, could also reflect reduced operational activity or investment.

Industry Context

BioCrude Technologies USA, Inc. operates in a sector focused on resource management and potentially bio-based products, though its current financial statements show no revenue. This industry often faces challenges related to technological development, scaling operations, and market adoption of new processes. Competition can be intense from established players and emerging technologies.

Regulatory Implications

As a company with no revenue and significant accumulated deficits, BioCrude Technologies USA, Inc. may face increased scrutiny from regulatory bodies regarding its financial reporting and operational viability. Compliance with environmental and industry-specific regulations would be critical if operations were to commence.

What Investors Should Do

1. Monitor related party financing and future capital raises.
2. Scrutinize any future revenue generation and operational progress.
3. Assess the sustainability of cost reductions.

Key Dates

• 2025-09-30: End of Q3 2025 reporting period — Company reported $0 revenue, a net loss of $38,864 for the quarter, and total assets of $10,359, with current liabilities at $458,755.
• 2024-12-31: End of Fiscal Year 2024 — Company had total assets of $19,094 and total current liabilities of $322,129.
• 2024-09-30: End of Q3 2024 reporting period — Company reported $0 revenue and a net loss of $28,831 for the quarter.

Glossary

Accumulated Deficit

The total net losses of a company since its inception that have not been offset by profits. (Indicates the company has a significant history of losses, currently standing at $9,624,038.)

Going Concern

An assumption that a company will continue to operate for the foreseeable future, without the intention or need for liquidation. (The company's financial condition necessitates this assumption, relying on external financing.)

Related Parties

Entities or individuals that have the ability to control or significantly influence the financial or operating decisions of another entity. (The company relies on financing from related parties, including $234,254 in accounts payable and $83,438 in advances from the CEO.)

Current Liabilities

Obligations that are expected to be settled within one year or the operating cycle, whichever is longer. (These have increased significantly to $458,755, driven by accounts payable and accrued liabilities.)

Property, Plant and Equipment

Tangible assets held by a company for use in the production or supply of goods or services, for rental to others, or for administrative purposes. (The net value of these assets has decreased to $10,250 from $13,890.)

Comprehensive Loss

The change in equity of a business during a period from transactions and other events and circumstances from nonowner sources. (The company reported a total comprehensive loss of $145,361 for the nine months ended September 30, 2025.)

Year-Over-Year Comparison

Compared to the prior year's nine-month period, BioCrude Technologies USA, Inc. has reduced its net loss by 33.3% to $144,551, largely due to a significant 35.5% decrease in general and administrative expenses. However, total assets have declined, while current liabilities have substantially increased, indicating a worsening short-term financial position despite improved loss metrics.

Key Financial Figures

• $9,624,038 — s to date and has accumulated losses of $9,624,038 since inception. The Company has funded
• $1,280 — d the Company $ 83,438 , and was repaid $1,280 which resulted in an accounts payable a
• $5,702 — payments on the Company's behalf of CAD $5,702 and USD $3,200. In addition, a related
• $3,200 — Company's behalf of CAD $5,702 and USD $3,200. In addition, a related party advanced
• $4,500 — related party advanced the Company CAD $4,500 and was repaid CAD $140. 9 ITEM 2. M
• $140 — e Company CAD $4,500 and was repaid CAD $140. 9 ITEM 2. MANAGEMENT'S DISCUSSION A

Filing Documents

• e7019_10q.htm (10-Q) — 697KB
• e7019_ex31-1.htm (EX-31.1) — 8KB
• e7019_ex31-2.htm (EX-31.2) — 8KB
• e7019_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
• 0001731122-25-001509.txt ( ) — 3212KB
• cik1690384-20250930.xsd (EX-101.SCH) — 22KB
• cik1690384-20250930_cal.xml (EX-101.CAL) — 33KB
• cik1690384-20250930_def.xml (EX-101.DEF) — 50KB
• cik1690384-20250930_lab.xml (EX-101.LAB) — 215KB
• cik1690384-20250930_pre.xml (EX-101.PRE) — 167KB
• e7019_10q_htm.xml (XML) — 343KB

– 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 10 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 41 Item 4.

Controls and Procedures

Controls and Procedures 41

– OTHER INFORMATION

PART II – OTHER INFORMATION 42 Item 1.

Legal Proceedings

Legal Proceedings 42 Item 1A.

Risk Factors

Risk Factors 42 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 42 Item 3. Defaults Upon Senior Securities 42 Item 4. Submission of Matters to a Vote of Security Holders 42 Item 5. Other Information 42 Item 6. Exhibits 43

– 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) September 30, 2025 December 31, 2024 (Unaudited) ASSETS CURRENT ASSETS Cash $ 109 $ 4 Prepaid expenses — 5,200 TOTAL CURRENT ASSETS 109 5,204 Property, plant and equipment 10,250 13,890 TOTAL ASSETS $ 10,359 $ 19,094 LIABILITIES AND STOCKHOLDERS' DEFICIT CURRENT LIABILITIES Accounts payable and accrued liabilities $ 68,641 $ 58,199 Accounts payable and accrued liabilities - related parties 234,254 113,426 Related Party Debt 20,645 19,867 Debt 135,215 130,637 TOTAL CURRENT LIABILITIES 458,755 322,129 TOTAL LIABILITIES 458,755 322,129 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 September 30, 2025, and December 31, 2024 50,855 50,855 Additional paid in capital 9,100,972 9,100,972 Accumulated other comprehensive income 27,460 28,627 Accumulated deficit ( 9,624,038 ) ( 9,479,487 ) TOTAL STOCKHOLDERS' DEFICIT ATTRIBUTALBLE TO EQUITY SHAREHOLDERS OF THE COMPANY ( 444,751 ) ( 299,033 ) NON-CONTROLLING INTEREST ( 3,645 ) ( 4,002 ) TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $ 10,359 $ 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 nine months ended September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 REVENUE $ — $ — $ — $ — OPERATING EXPENSES General and administrative 38,005 26,661 137,228 212,867 LOSS FROM OPERATIONS ( 38,005 ) ( 26,661 ) ( 137,228 ) ( 212,867 ) Interest expense ( 859 ) ( 2,170 ) ( 7,323 ) ( 3,968

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 nine months or less. As of September 30, 2025, and December 31, 2024, the Company does no t have cash equivalents. 6 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: Schedule of property plant and equipment Server Web Design TOTAL COST Balance, December 31, 2024 $ 30,048 $ 7,326 $ 37,374 Additions — — — Balance, September 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 Depreciation Expense 987 226 1,213 Balance, September 30, 2025 $ 23,525 $ 3,599 $ 27,124 PROPERTY, PLANT AND EQUIPMENT, NET Balance, December 31, 2024 $ 9,484 $ 4,406 $ 13,890 Balance, September 30, 2025 $ 6,523 $ 3,727 $ 10,250 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

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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