Blue Biofuels Reports Significant Financial Improvements, Net Income Turnaround in Q3 2024

Blue Biofuels, Inc. reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company, which specializes in renewable energy and biofuels, showed a notable increase in total assets, rising to $1,489,063,000 from $1,030,219,000 at the end of 2023. This increase was primarily driven by a rise in cash and cash equivalents, which reached $149,366,000, up from $41,008,000 at the end of the previous fiscal year.

Total liabilities decreased to $4,001,000 from $4,591,301, largely due to a gain on the extinguishment of debt amounting to $2,417,502. The company’s stockholders’ deficit improved to $(2,511,937) from $(3,561,082), reflecting a positive shift in financial health.

Despite these improvements, Blue Biofuels did not generate any significant revenue during the quarter, consistent with previous periods. Operating expenses for the three months ended September 30, 2024, totaled $647,786, an increase from $512,834 in the same period of 2023. However, for the nine months ended September 30, 2024, total operating expenses decreased to $2,092,547 from $2,685,640 in 2023. General and administrative expenses rose slightly to $236,981 in Q3 2024 from $219,160 in Q3 2023, while research and development expenses increased to $410,805 from $293,674, attributed to higher equity-based compensation.

The company reported a net income of $1,866,081 for Q3 2024, a significant turnaround from a net loss of $(331,995) in Q3 2023. For the nine months ended September 30, 2024, net income was $370,386, compared to a net loss of $(2,550,283) in the same period of 2023. This improvement was supported by a reduction in net cash used in operating activities, which decreased to $(791,412) from $(1,494,478) year-over-year.

Strategically, Blue Biofuels has been active in securing funding, raising $930,000 through convertible notes in 2024, although this was a decrease from $1,675,022 in the prior year. The company also received a $1.15 million grant from the U.S. Department of Energy to support the commercialization of its patented Cellulose-to-Sugar (CTS) process.

In terms of operational developments, Blue Biofuels formed a joint venture with Vertimass in January 2024 to build an ethanol-to-Sustainable Aviation Fuel (SAF) facility in Florida, aiming for an initial production of 10 million gallons per year. The company continues to focus on its innovative technologies while navigating the challenges of the renewable energy market.