Tue, May 14, 3:18 PM (254 days ago)
The Coretec Group Inc., in its Q1 2024 10-Q report, highlighted its ongoing financial and operational challenges, with a focus on its developmental projects such as the Endurion battery and Cyclohexasilane (CHS) technologies. The company reported no revenue for the quarter, consistent with the same period in 2023. Research and development expenses slightly increased to $122,454 from $111,902 year-over-year, reflecting heightened activity in product development and testing. General and administrative expenses also saw a marginal rise to $358,095 from $347,194, attributed mainly to increased legal and insurance costs. The company experienced a net loss of $524,220, a slight increase from the previous year's $507,384, primarily due to higher operating expenses and a decrease in other income. Interest expenses decreased to $44,518 due to changes in debt terms with Diversified Alpha Fund (DAF). The company's cash position weakened, closing the quarter with $115,073 compared to $523,988 at the end of December 2023. Significantly, Coretec entered a Share Exchange Agreement with Core Optics, LLC, which could potentially reshape its financial and operational trajectory. This agreement involves issuing 10 million shares of Series C Convertible Preferred Stock and over 705 million shares of common stock, which could lead to approximately 80% ownership by Core Optics' member post-transaction. Coretec's financial statements reflect substantial doubt about its ability to continue as a going concern, acknowledging insufficient revenue and capital to meet its obligations beyond a year. The company emphasized its efforts to secure additional capital or revenue to sustain operations and continue developing its technologies.