Fri, Mar 14, 7:29 PM (43 days ago)
MMEX Resources Corporation (MMEX) reported a net loss of $531,555 for the quarter ended January 31, 2025, compared to a net loss of $418,668 for the same period in 2024. The company's total revenue remained at $0 for both periods. Operating expenses for the quarter increased to $343,265 from $328,926, primarily due to higher consulting fees. Project costs decreased to $0 from $5,890, reflecting timing differences in project expenditures. Depreciation and amortization expenses were $9,099 for both periods. Interest expense rose to $204,055 from $89,742, driven by new debt arrangements. The company reported a net gain on extinguishment of debt of $15,765 for the quarter, compared to $0 in the prior year. MMEX's cash flow from operations was negative, with a net cash used of $386,105 for the nine months ended January 31, 2025, primarily due to operating losses and increases in liabilities. Financing activities provided $385,207 in cash, mainly from new debt issuances. The company's working capital deficit widened to $6,155,764. MMEX faces significant uncertainties, including continuous operating losses, an accumulated deficit, and negative cash flows. The company's ability to continue as a going concern is contingent on securing additional financing. MMEX is involved in legal proceedings with Sabby Volatility Warrant Master Fund, Ltd., which has resulted in court orders and contempt proceedings. The company's internal controls over financial reporting were deemed effective as of January 31, 2025.