HNO International, Inc. reported its financial results for the nine months ended July 31, 2024, revealing significant challenges in revenue generation and profitability. The company generated revenue of $4,241 during this period, a sharp decline from $13,000 in the same period of the previous year. The gross profit mirrored this trend, totaling $553 compared to $7,115 in the prior year.

Operating expenses surged to $1,569,846 for the nine months ended July 31, 2024, up from $950,532 in the same period in 2023. This increase was primarily driven by higher general and administrative costs, which rose to $1,440,197 from $927,082. Consequently, the net loss for the nine months was $(1,584,438), significantly higher than the $(962,028) loss reported in the previous year.

For the three months ended July 31, 2024, the company reported a net loss of $(496,621), compared to $(459,806) in the same quarter of 2023. Total operating expenses for this quarter were $490,250, slightly higher than $453,575 in the prior year. The company’s cash position deteriorated, with cash at the end of the period reported at $78,917, down from $235,159 at the end of October 2023.

Total liabilities increased dramatically to $2,399,206 as of July 31, 2024, compared to $1,434,835 at the end of the previous fiscal period. This contributed to a total stockholders’ deficit of $(984,711), up from $(92,201) in October 2023. The working capital deficit also widened to $1,649,621 from $553,284.

HNO International has been actively seeking additional funding to address its financial challenges, including related party advances totaling $800,585 and proceeds from the sale of common stock amounting to $706,429 during the nine months ended July 31, 2024. The company is exploring various financing options, including public or private financing and collaborative relationships.

Strategically, HNO International continues to focus on the development of green hydrogen-based clean energy technologies, with key products such as the Compact Hydrogen Refueling System (CHRS) and the Compact Hydrogen Production System (CHPS). The company has also entered into a Hydrogen Project Agreement to construct and operate a hydrogen electrolysis plant and refueling station in Katy, Texas, aimed at producing high-purity gaseous hydrogen for fuel cell electric trucks.

Despite these initiatives, substantial doubt exists regarding the company's ability to continue as a going concern for the next year, highlighting the urgency of securing additional capital and improving operational efficiencies.