Energy & Water Development Corp. Reports Net Loss, Low Cash Reserves, and Strategic Developments

Energy & Water Development Corp. reported its financial results for the three and nine months ended September 30, 2024, revealing significant challenges and strategic developments. The company did not recognize any revenue during this period, continuing a trend of no revenue generation from its sustainable water and energy solutions since inception in 2012.

For the nine months ended September 30, 2024, the company incurred a net loss of $2,700,175, an increase of $305,045 compared to a net loss of $2,395,130 for the same period in 2023. The loss before taxes for the same period was $(2,700,175), compared to $(2,394,648) in the previous year. In the third quarter alone, the net loss was $(840,674), down from $(1,065,589) in Q3 2023, indicating some improvement in quarterly performance.

Total general and administrative expenses decreased significantly, amounting to $1,666,697 for the nine months ended September 30, 2024, compared to $1,860,784 in the same period of 2023. This reduction was primarily due to lower professional fees and payroll expenses. However, other expenses increased to $1,033,478, driven by higher interest expenses and changes in the fair value of derivatives.

As of September 30, 2024, total assets decreased to $1,237,125 from $1,424,800 at the end of 2023, while total liabilities rose sharply to $2,991,605, up from $2,147,984. This resulted in a worsening total stockholders’ deficit of $(1,754,480) compared to $(723,184) at the end of the previous fiscal year. The company reported a working capital deficit of $2,058,231.

Cash flow from operating activities showed improvement, with a cash outflow of $880,529 for the nine months ended September 30, 2024, compared to $1,553,442 in the same period of 2023. However, cash at the end of the period was critically low at $4,575, down from $115,831 a year earlier.

Strategically, the company is focusing on expanding its sales operations in agricultural, industrial, and community development markets. Management is also working on concluding sales in Germany and other regions to increase revenue. Plans include raising additional funds through equity securities and customer deposits, as well as implementing cost reduction strategies by centralizing operations. The company has also engaged in remedial actions to address identified weaknesses in its internal controls over financial reporting, including hiring a new Chief Financial Officer and consulting with accounting specialists.