Cyber Enviro-Tech, Inc 10-K for FY2023

Cyber Enviro-Tech, Inc. (CETI)

10-K 2024-03-28 For: 2023-12-31

Added on April 11, 2026

About this 10-K

Cyber Enviro-Tech, Inc filed this 10-K on March 28, 2024, covering the fiscal year ended December 31, 2023 (FY2023).

Headline figures

Fiscal year ended December 31, 2023, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $23.65K; down 72.3% from $85.36K a year earlier
Net loss: $4.34M; compared with net income of $1.48M a year earlier
Diluted EPS: -$0.04; compared with $0.01 a year earlier

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(Mark One)
☒		ANNUAL REPORT PURSUANT TO SECTION 13 OR SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2023
OR
☐		TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______________ to ______________.

Large accelerated filer ☐		Accelerated filer ☐
Non-accelerated filer ☐ (Do not check if smaller reporting company)		Smaller reporting company ☒
		Emerging growth company ☒

PART I	1
Item 1. Business.	2
Item 1A. Risk Factors.	2
Item 1B. Unresolved Staff Comments.	2
Item 2. Properties.	2
Item 3. Legal Proceedings.	2
Item 4. Mine Safety Disclosures.	2

PART II	3
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.	3
Item 6. Selected Financial Data.	5
Item 7. Management’s Discussion And Analysis Of Financial Condition And Results Of Operations	5
Item 7A. Quantitative and Qualitative Disclosures about Market Risk.	8
Item 8. Financial Statements and Supplementary Data.	F-1
Item 9. Changes In and Disagreements with Accountants on Accounting and Financial Disclosure.	9
Item 9A. Controls and Procedures.	9
Item 9B. Other Information.	9

PART III	10
Item 10. Directors, Executive Officers, and Corporate Governance.	10
Item 11. Executive Compensation.	13
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.	14
Item 13. Certain Relationships and Related Transactions, and Director Independence.	14
Item 14. Principal Accountant Fees and Services.	15
Item 15. Exhibits.	15
SIGNATURES	16

Fiscal Year Ended December 31, 2023	HIGH		LOW
Fourth Quarter	$	0.40	$	0.32
Third Quarter	$	0.60	$	0.24
Second Quarter	$	0.40	$	0.31
First Quarter	$	0.44	$	0.30

Fiscal Year Ended December 31, 2022		HIGH		LOW
Fourth Quarter	$	0.42	$	0.20
Third Quarter	$	0.60	$	0.20
Second Quarter	$	0.85	$	0.40
First Quarter	$	1.27	$	0.06

	2023			2022			$			%
Revenue:
Gross sales	$	23,649		$	85,356		$	(61,707	)		(72	%)
Cost of sales		(6,159	)		(21,904	)		15,745			(72	%)
Adjusted Gross Sales		17,490			63,452			(45,962	)		(72	%)

Operating Expenses:
Professional Fees		119,146			58,327			60,819			104	%
General and administrative		572,084			98,431			473,653			481	%
Consulting		3,265,062			388,402			2,876,660			741	%
Total operating expenses		3,956,292			545,160			3,411,132			626	%

Loss from operations		(3,938,802	)		(481,708	)		(3,457,094	)		718	%

Other Income (Expense):
Change in fair value of derivative		88,880			2,638,153			(2,549,273	)		(97	%)
Loss on issuance of derivative		(130,305	)		(149,010	)		18,705			(84	%)
Loss on sale or disposition of assets		(23,600	)		—			(23,600	)		(100	%)
Amortization of intangible assets		(58,275	)		—			(58,275	)		100	%
Gain on extinguishment of debt		49,248			627,591			(578,343	)		(92	%)
Change in fair value of contingent liability		450			(2,731	)		3,181			(116	%)
Interest income		906			—			906			100	%
Interest expense		(331,606	)		(1,152,933	)		821,327			(71	%)
Total Other Income (Expense)		(404,302	)		1,961,070			(2,365,372	)		(121	%)

Net Income (Loss)	$	(4,343,104	)	$	1,479,362		$	(5,822,466	)		(394	%)

Financial Statements		Page Number
Report of Independent Registered Public Accounting Firm (PCAOB ID 3289)		F-2
Consolidated Balance Sheets as of December 31, 2023 and 2022		F-3
Consolidated Statements of Operations for the years ended December 31, 2023 and 2022		F-4
Consolidated Statements of Shareholders' Equity for the years ended December 31, 2023 and 2022		F-5
Consolidated Statements of Cash Flows for the years ended December 31, 2023 and 2022		F-6
Notes to Consolidated Financial Statements		F-7


	December 31, 2023			December 31, 2022
ASSETS
Current Assets:
Cash and cash equivalents	$	239,417		$	297,349
Loan receivable		100,000			—
Prepaid expenses and other current assets		195,516			95,471
Total current assets		534,933			392,820

Property and equipment, net		3,707,005			2,429,035
Texas Railroad Commission Bond		62,537			50,000
Acquired intangible assets, net		1,070,226			—
Total Assets	$	5,374,701		$	2,871,855
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	220,214		$	149,835
Accrued interest		96,623			7,489
Contingent liability		—			5,700
Note payable – related party		—			15,000
Note payable, current maturities, net of discount of $0 and $19,887 at December 31, 2023 and 2022, respectively		443,500			237,613
Convertible notes payable, net of discount of $137,096 and $0 at December 31, 2023 and 2022, respectively		32,154			—
Convertible notes payable – related parties		22,000			25,000
Total current liabilities		814,491			440,637

Note payable, less current maturities, net of discount of $0 and $2,343 at December 31, 2023 and 2022, respectively		—			183,657
Note payable, related party, net of discount of $23,915 and $0 at December 31, 2023 and 2022, respectively		130,074			—
Convertible notes payable, net discount of $0 and $51,798 at December 31, 2023 and 2022, respectively		2,641,000			334,202
Estimated asset retirement obligation		97,463			—
Derivative liability		217,177			—
Total Liabilities		3,900,205			958,496

Commitments and contingencies (Note 4)		—			—

Stockholders’ Equity:
Series A Convertible Preferred Stock, par value $0.001, 200,000 shares authorized; 16,471 and 1 share issued and outstanding, respectively		17			—
Series B Convertible Preferred Stock, par value $0.001, 85,000 shares authorized; 1 share issued and outstanding		—			—
Series C Non-convertible, Preferred Stock, par value $0.001, 50,000 shares authorized; 0.5 shares issued and outstanding		—			—
Special 2020 Series A Preferred Stock, par value $0.0001, 1 share authorized; 1 share issued and outstanding		—			—
Common Stock, par value $0.001, 350,000,000 shares authorized; 77,467,573 and 115,914,283 shares issued and outstanding, respectively		77,468			115,915
Additional paid-in capital		7,801,868			4,368,442
Common stock to be issued		933,489			52,496
Unearned stock compensation		(496,022	)		(124,274	)
Treasury stock, at cost		(66,400	)		(66,400	)
Accumulated deficit		(6,775,924	)		(2,432,820	)
Total Stockholders’ Equity		1,474,496			1,913,359
Total Liabilities and Stockholders’ Equity	$	5,374,701		$	2,871,855


	2023			2022

Sales	$	23,649		$	85,356

Cost of sales		(6,159	)		(21,904	)

Gross margin		17,490			63,452

Operating Expenses:
Professional fees		119,146			58,327
General and administrative		572,084			98,431
Consulting		3,265,062			388,402
Total operating expenses		3,956,292			545,160

Loss from operations		(3,938,802	)		(481,708	)

Other Income (Expense):
Change in fair value of derivatives		88,880			2,638,153
Loss on issuance of derivatives		(130,305	)		(149,010	)=
Gain on extinguishment of debt		49,248			627,591
Change in fair value of contingent liability		450			(2,731	)
Loss on sale of asset		(23,600	)		—
Amortization of intangible assets		(58,275	)		—
Interest income		906			—
Interest expense		(331,606	)		(1,152,933	)
Total other income (expense)		(404,302	)		1,961,070

Net Income (Loss)	$	(4,343,104	)	$	1,479,362

Loss per share, basic		(0.04	)		0.01
Weighted average shares outstanding, basic and diluted	$	110,450,233		$	108,094,441


	Preferred				Common Stock						APIC		Treasury			CS to be Issued						Unearned Stock Comp			Accum Deficit			Total
Description	Shares		Amt		Shares			Amt								Shares			Amt

Balance, December 31, 2021		4	$	—		104,204,722		$	104,205		$	1,141,328	$	(66,400	)		839,233		$	154,164		$	—		$	(3,912,182	)	$	(2,578,885	)
Common stock issued from prior periods		—		—		839,233			839			153,325		—			(839,233	)		(154,164	)		—			—			—
Shares issued for cash		—		—		750,000			750			99,250		—			—			—			—			—			100,000
Shares issued for conversion of Advance on joint venture		—		—		3,000,000			3,000			230,983		—			—			—			—			—			233,983
Options granted for services				—					—			18,318		—			—			—			—			—			18,318
Shares issued for services		—		—		475,973			476			193,499		—			—			—			(124,274	)		—			69,701
Shares issued in connection with convertible notes payable		—		—		430,000			430			218,452		—			154,400			52,496			—			—			271,378
Shares issued for conversion of notes payable		—		—		6,214,355			6,214			2,313,287					—			—			—			—			2,319,501
Net Income		—		—		—			—			—		—			—			—			—			1,479,362			1,479,362
Balance, December 31, 2022		4		—		115,914,283			115,915			4,368,442		(66,400	)		154,400			52,496			(124,274	)		(2,432,820	)		1,913,359
Options granted for services		—		—		—			—			96,742		—			—			—			(68,780	)		—			27,962
Warrants granted in settlement of CS to be issued		—		—		—			—			1,050,374		—			(1,333,333	)		(560,000	)		(301,090	)		—			189,284
Warrants granted for services		—		—		—			—			111,806		—			—			—			—			—			111,806
Conversion of contingent liability		—		—		15,000			15			5,235		—			—			—			—			—			5,250
Shares issued for services		—		—		4,185,000			4,185			1,418,315		—			1,241,262			530,724			(1,878	)		—			1,951,346
Shares issued for interest		—		—		133,290			133			13,191		—			110,690			15,269			28,593			—			28,593
Shares issued for conversion of notes payable		—		—		500,000			500			49,500		—			—			—			50,000			—			50,000
Shares issued for conversion of convertible notes payable		—		—		2,720,000			2,720			269,280		—			8,000,000		$	895,000			1,167,000			—			1,167,000
Shares issued for conversion of notes payable - related party		—		—		3,000,000			3,000			—		—			—			—			3,000			—			3,000
Shares issued for purchase of intangible assets		—		—		1,000,000			1,000			369,000		—			—			—			370,000			—			370,000
Retired common shares		16,667		17		(50,000,000	)		(50,000	)		49,983		—			—			—			—			—			—
Net loss		—		—		—			—			—		—			—			—			—			(4,343,104	)		(4,343,104	)
Balance, December 31, 2023		16,671	$	17		77,467,573		$	77,468		$	7,801,868	$	(66,400	)		8,173,019		$	933,489		$	(496,022	)	$	(6,775,924	)	$	1,474,496


	2023			2022
Cash flow from operating activities:
Net Income (loss)	$	(4,343,104	)	$	1,479,362
Adjustments to reconcile net income (loss) to net cash from operating activities:
Change in fair value of derivatives		(88,880	)		(2,638,153	)
Loss on sale or retirement of property and equipment		23,600			—
Loss on issuance of derivatives		130,305			149,010
Gain on extinguishment of debt		(49,248	)		(627,591	)
Change in fair value of contingent liability		(450	)		2,731
Shares issued for services		1,951,346			122,197
Warrants issued for services		301,090			—
Options issued for services		27,962			18,318
Amortization of debt discount		161,932			1,060,198
Depreciation expense and amortization		112,980			43,929
Changes in operating assets and liabilities:
Prepaid expenses and other current assets		(100,045	)		(66,796	)
Accounts payable		70,379			144,312
Estimated asset retirement obligation		97,463			—
Accrued interest		117,727			41,114
Net cash from operating activities		(1,599,480	)		(271,369	)

Cash flows from investing activities:
Purchase or capitalization of property and equipment		(1,369,875	)		(1,394,561	)
Issuance of loan receivable		(100,000	)		—
Proceeds from sale of property and equipment		13,600			—
Net cash from investing activities		(1,456,275	)		(1,394,561	)

Cash flows from financing activities:
Repayment of notes payable - related parties		(25,000	)		—
Repayment of notes payable		(908,501	)		(31,500	)
Repayment of convertible notes payable		(380,250	)		—
Proceeds from convertible notes payable		3,971,500			1,461,000
Proceeds from notes payable		340,074			100,000
Proceeds from notes payable – related party		—			15,000
Proceeds from the sale of common stock		—			100,000
Net cash from financing activities		2,997,823			1,644,500

Net change in cash and cash equivalents		(57,932	)		(21,430	)
Cash and cash equivalents at beginning of year		297,349			318,779
Cash and cash equivalents at end of period	$	239,417		$	297,349

Cash and cash equivalents paid during the period for:
Interest	$	—		$	—
Income taxes	$	—		$	—

Supplemental Disclosure of Non-Cash Investing and Financing Activities
Shares issued for conversion of advance on joint venture	$	—		$	233,983
Shares issued for conversion of convertible notes payable and accrued interest	$	1,167,000		$	2,319,501
Shares issued for notes payable	$	50,000		$	—
Shares issued for contingent liability	$	5,250		$	—
Purchase of intangible assets with debt	$	758,501		$	—
Purchase of intangible assets with stock	$	370,000		$	—
Conversion of common stock to preferred stock	$	50,000		$	—
Debt discount on convertible notes payable	$	225,000		$	—
Conversion of related party notes payable to common stock	$	3,000		$	—
Shares issued for accrued interest	$	28,593		$	—

Level 1:	Quoted market prices available in active markets for identical assets or liabilities as of the reporting date.

Level 2:	Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date.

Level 3:	Pricing inputs that are generally unobservable inputs and not corroborated by market data.

Schedule of derivative liability
Description	Level 1		Level 2		Level 3		Total
Derivative	$	—	$	—	$	217,177	$	217,177
Total	$	—	$	—	$	217,177	$	217,177

Schedule of property and equipment
	December 31, 2023			December 31, 2022			Useful Lives
Equipment	$	1,172,038		$	782,576		5 to 20 years
Vehicles		67,000			99,700		5 to 15 years
Well development costs		2,571,221			1,604,983		*
Less accumulated depreciation		(103,254	)		(58,224	)
Property and equipment, net	$	3,707,005		$	2,429,035

Schedule of debt	December 31, 2023			December 31, 2022

Note payable	$	443,500		$	458,500
Loan payable – related party		153,989			—
Convertible notes payable		2,810,250			386,000
Convertible notes payable – related party		22,000			25,000
		3,429,739			869,500
Debt discount		(161,011	)		(74,028	)
		3,268,728			795,472
Less current portion		497,654			277,613
Long term portion	$	2,771,074		$	517,859

Schedule of debt maturity
Year	Amount
2024	$	634,750
2025		2,794,989
	$	3,429,739

Schedule of derivative liabilities
	December 31, 2023
The financings giving rise to derivative financial instruments	Indexed Shares		Fair Values
Embedded derivatives		878,836	$	217,177
Total		878,836	$	217,177

Schedule of changes in gain loss fair values of the derivative financial instruments
	For the Years Ended
	December 31, 2023			December 31, 2022
Embedded derivatives	$	88,880		$	—
Loss on issuance of derivative		(130,305	)		—
Total gain (loss)	$	(41,425	)	$	—

Schedule of embedded derivatives
	Inception Date September 27, 2023 Note			Inception Date December 29, 2023 Note			December 31, 2023
Quoted market price on valuation date	$	0.334		$	0.348		$	0.348
Effective contractual conversion rates	$	0.169		$	0.195		$	0.195
Contractual term to maturity		1 year			1 year			0.73 - 1 years
Market volatility:
Volatility		143.96%-730.38	%		161.76%-586.87	%		123.27%-733.78	%
Risk-adjusted interest rate		8.48	%		8	%		8	%

Schedule of fair value assumptions
	Year Ended December 31, 2023			Year Ended December 31, 2022
Balances at beginning of period	$	—		$	3,116,734
Issuances:
Embedded derivatives		355,305			396,013
Conversions		—			(3,512,747	)
Gain on extinguishment of debt		(49,248	)		—
Changes in fair value inputs and assumptions reflected in income		(88,880	)		—
Balances at end of period	$	217,177		$	—

Schedule of accounting effects
	June 3, 2023
		Replacement Award
Fair value of new award	$	60,472
Fair value of original award on modification date	$	1,377
Incremental cost	$	59,095
Unrecognized grant-date fair value of original award on modification date	$	37,647
Cost to be recognized after modification	$	96,742
Recognition Period		24 months

Schedule of significant inputs and results in options
Quoted market price on valuation date	$	0.3480
Exercise price	$	0.3600
Expected life (in years)		1.50 Years

Equivalent volatility		32.88	%
Interest rates		4.50	%

Schedule of stock option activity
	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life
Options outstanding December 31, 2021	—		$	—	—
Issued		200,000		0.5765		1.75
Exercised		—		—		—
Cancelled		—		—		—
Options outstanding December 31, 2022		200,000		0.5765		1.75
Options exercisable December 31, 2022		50,000		0.5765		1.75
Issued		1,000,000		0.3600		1.01
Exercised		—		—		—
Cancelled		200,000		0.5765		1.75
Options outstanding December 31, 2023		1,000,000		0.3600		1.01
Options exercisable December 31, 2023		1,000,000	$	0.3600		1.01

Schedule of assumptions
Quoted market price on valuation date	$	0.3100
Effective contractual strike price	$	0.0013
Market volatility		373	%
Contractual term to maturity		2 years
Risk-adjusted interest rate		4.87	%

Schedule of warrant option activity
	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life
Warrants outstanding December 31, 2021		—	$	—		—
Issued		—		—		—
Exercised		—		—		—
Expired		—		—		—
Warrants outstanding December 31, 2022		—		—		—
Warrants exercisable December 31, 2022		—		—		—
Issued		3,750,000		0.001		1.00
Exercised		—		—		—
Expired		—		—		—
Warrants outstanding December 31, 2023		3,750,000		0.001		0.50
Warrants exercisable December 31, 2023		3,750,000	$	0.001		0.50

Schedule of reportable segments
	Year ended December 31,
	2023		2022
Revenue
Alvey oil field	$	23,649	$	85,356
Other operations and overhead		—		—
Total	$	23,649	$	85,356

Schedule of federal income tax rate
	December 31, 2023			December 31, 2022
Federal income tax benefit attributable to:
Current Operations	$	901,551		$	343,275
Less: Valuation Allowance		(901,551	)		(343,275	)
Net provision for Federal income taxes	$	—		$	—

Schedule of deferred tax asset
	December 31, 2023			December 31, 2022
Deferred tax asset attributable to:
Net operating loss carryover	$	1,411,984		$	510,433
Less: Valuation Allowance		(1,411,984	)		(510,433	)
Net deferred tax asset	$	—		$	—

NAME	AGE		POSITION/INITIAL ELECTION	APPOINTMENT DATE

Kim D. Southworth		63	Chief Executive Officer and Director	September 3, 2020
TJ Agardy		68	President and Director	September 3, 2020
Dan Leboffe		66	Chief Financial Officer and Treasurer	February 7, 2022
Winston McKellar		73	Director of IR/PR (Non-Board)	NA

Name And Principal position	Year		Salary($)		Bonus($)		Stock Awards($)		Option Awards($)		Non-Equity Incentive Plan Compensation($)		Nonqualified Deferred Compensation Earnings($)		All Other Compensation($)		Total($)

Kim D. Southworth, CEO		2023	$	120,750	$	0	$	0	$	0	$	0	$	0	$	0	$	120,750
		2022	$	98,250	$	0	$	0	$	0	$	0	$	0	$	0	$	98,250

TJ Agardy, President		2023	$	120,000	$	0	$	0	$	0	$	0	$	0	$	0	$	120,00
		2022	$	98,250	$	0	$	0	$	0	$	0	$	0	$	0	$	98,250

Dan Leboffe. CFO and Treasurer		2023	$	99,250	$	0	$	0	$	0	$	0	$	0	$	0	$	99,250
		2022	$	64,250	$	0	$	0	$	0	$	0	$	0	$	0	$	64,250

Markham Broughton, Former Director		2023	$	10,000	$	0	$	90,000	$	0	$	0	$	0	$	0	$	100,000
		2022	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0

Winston McKellar, Director of IR/PR (Non-Board)		2023	$	112,850	$	0	$	0	$	0	$	0	$	0	$	0	$	112,850
		2022	$	75,750	$	0	$	0	$	0	$	0	$	0	$	0	$	75,750

	Number of Shares
Name and Address (1)	Beneficially Owned

Kim D. Southworth, CEO and Director		11,500,000

TJ Agardy, President and Director		11,500,000

Chris Ivey, Control Person		6,872,483

Dan Leboffe, CFO and Treasurer		4,648,352

Winston McKellar, Director IR/PR (Non-Board)		502,580

Officers and Directors as a group (5 people)		35,023,415
		(45	%)

	Year Ended December 31, 2023		Year Ended December 31, 2022

Audit Fees	$	84,250	$	39,500

Total Audit and Audit-Related Fees	$	84,250	$	39,500

		Incorporated by Reference			Filed or Furnished
Exhibit No.	Exhibit Description	Form	Date Filed	Number	Herewith

3.1	Articles of Incorporation, as currently in effect	S-1	9/22/2022	3.1
3.2	Bylaws as currently in effect	S-1	9/22/2022	3.2
31.1	Certification of CEO Pursuant to Exchange Act Rules 13a-14 and 15d-14, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002				X
31.2	Certification of CFO Pursuant to Exchange Act Rules 13a-14 and 15d-14, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002				X
32.1	Certification of CEO and CFO Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002				XX
101.INS	Inline XBRL Instance Document				X
101.SCH	Inline XBRL Instance Schema				X
101.CAL	Inline XBRL Instance Calculation Linkbase				X
101.DEF	Inline XBRL Instance Definition Linkbase				X
101.LAB	Inline XBRL Instance Label Linkbase				X
101.PRE	Inline XBRL Instance Presentation Linkbase				X
104	The Cover Page Interactive Data File, formatted in Inline XBRL (included in Exhibit 101).				X

CYBER ENVIRO-TECH, INC.

By:	/s/ Kim D. Southworth
	Kim D. Southworth Chief Executive Officer

Signature	Title	Date

/s/ Kim D. Southworth	Chief Executive Officer	March 28, 2024
Kim D. Southworth

/s/ Dan Leboffe	Principal Accounting Officer	March 28, 2024
Dan Leboffe

/s/ Kim D. Southworth
Kim D. Southworth
Chief Executive Officer