Cyber Enviro-Tech Reports Mixed Financial Results, Increased Liabilities, and Plans for Capital Raising and Spin-Off

Cyber Enviro-Tech, Inc. (CETI), a publicly held company focused on water purification solutions for the oil and gas sector, reported significant financial changes in its 10-Q filing for the period ending June 30, 2024. The company’s total assets decreased to $5.67 million from $5.87 million at the end of 2023, while total current assets fell sharply from $1.03 million to $499,469. Cash and cash equivalents also saw a notable decline, dropping from $239,417 to $98,134.

Total liabilities increased to $4.36 million, up from $3.90 million, with current liabilities rising from $814,490 to $1.30 million. The accumulated deficit widened to $(8.80 million) from $(6.78 million), reflecting ongoing financial challenges. Total stockholders’ equity decreased to $1.31 million from $1.97 million.

For the three months ending June 30, 2024, CETI reported operating expenses of $631,013, a 27% decrease from $865,755 in the same period of 2023. The operating loss from continuing operations improved slightly to $(631,013) from $(865,755) year-over-year. However, total other expenses increased significantly to $(251,042) from $(69,577), contributing to a net loss from discontinued operations of $(900,350), which was an improvement from $(947,978) in the prior year.

For the six-month period, total operating expenses rose to $1.66 million, up 27% from $1.31 million in 2023. The net loss from continuing operations for this period was $(1.99 million), compared to $(1.42 million) in 2023, indicating a 40% increase in losses. The net loss from discontinued operations also increased to $(2.02 million) from $(1.45 million).

CETI's financial strategy includes reliance on convertible debentures, which increased to $2.76 million from $1.47 million year-over-year. The company has also been active in raising capital, with plans to finance operations through increased revenue and private placements. Notably, the company is in the process of spinning off its Alvey oil field operations into a new entity, Phoenix Well Development, Inc., expected in Q2 2024.

Management has identified material weaknesses in internal controls and is working on remediation plans. The company’s ability to achieve commercial success remains contingent on access to capital and effective management of its operational costs.