Mon, Jun 30, 8:01 PM (14 days ago)
**Summary of NEXT-ChemX Corporation (CHMX) Q1 2024 Financial Health and Performance** **Financial Health:** - **Revenue:** No revenue reported for Q1 2024. - **Profit Margins:** Negative, with a net loss of $556,408 (000s) for Q1 2024, compared to a loss of $457,973 (000s) in Q1 2023. - **Cash Flow:** Net cash used in operating activities was $292,688 (000s) for Q1 2024, compared to $310,145 (000s) in Q1 2023. - **Earnings Changes:** Loss per share remained at $0.02 for both Q1 2024 and Q1 2023. **Performance Metrics:** - **Operating Expenses:** Increased by $82,928 (000s) in Q1 2024 compared to Q1 2023, primarily due to changes in workforce and increased use of consultants. - **Interest Expense:** Increased from $21,320 (000s) in Q1 2023 to $36,827 (000s) in Q1 2024. - **Amortization Expense:** Increased by $37,446 (000s) due to the reclassification of the company's principal asset as a finite intangible asset. **Trends and Uncertainties:** - The company is focused on completing its pilot plants to demonstrate the commercial viability of its iTDE Technology. - The company has faced challenges in raising capital and has relied on advances from related parties and deferred payments to employees and consultants. - The company has significant liabilities, including accounts payable and accrued liabilities of $2,632,132 (000s) as of March 31, 2024. - The company has entered into debt extension agreements with seven directors, officers, and employees, which may result in significant dilution if converted into equity. **Future Operations Impact:** - The company plans to open new corporate offices and commence the organization of its initial production facility in the next six months. - The company anticipates needing approximately $3 million in additional capital during fiscal 2024 to manage its business needs. - The company's ability to continue as a going concern is dependent on generating profitable operations or obtaining necessary financing. **Amendment Details (10-Q/A):** - The amendment includes modifications resulting from the completion of the audit carried out by Fruci & Associates on the Company’s 2023 Annual Report filed on Form 10-K/A on April 28, 2025, as well as the review of the present restated Report. - Two important adjustments were made to the Company’s financial statements: 1) the reevaluation of the company's technology asset and the application of amortization, resulting in an adjustment of $495,592 (000s) to the asset value as of March 31, 2024, and 2) the readjustment of the balance sheet to include $308,365 (000s) of retained earnings. **Legal Proceedings:** - The company is involved in legal proceedings related to a wage claim and a turnover order, which may have implications for the company's operations and financial condition. **Risk Factors:** - The company faces risks related to its ability to raise capital, complete its pilot plants, and generate revenue from its iTDE Technology. - The company's financial statements do not include any adjustments relating to the recoverability and classification of recorded assets or the amounts and classifications of liabilities that might be necessary should the company be unable to continue as a going concern. **Conclusion:** NEXT-ChemX Corporation is in a challenging financial position, with significant losses and liabilities. The company's future operations and financial health depend on its ability to complete its pilot plants, demonstrate the commercial viability of its iTDE Technology, and secure additional financing. The company's management is focused on these goals, but there are substantial uncertainties and risks that could impact the company's ability to achieve them.