CitroTech Inc 10-Q for FY2025 Q1
CitroTech Inc. (CITR)
About this 10-Q
CitroTech Inc filed this 10-Q on May 20, 2025, covering the quarter ended March 31, 2025 (FY2025 Q1).
Headline figures
Quarter ended March 31, 2025, as reported in this filing, compared with the same period a year earlier where the filing states it.
- Revenue
- $969.38K
- up 123.9% from $433.02K a year earlier
- Net loss
- $10.9M
- compared with a net loss of $3.52M a year earlier
- Diluted EPS
- -$0.23
- compared with -$0.04 a year earlier
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
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| For the quarterly period ended: |
or
TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
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| For the transition period from ___________ to ___________ |
Commission File Number:
(Exact name of registrant as specified in its charter) |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |
(Address of principal executive offices) | (Zip Code) |
(
(Registrant’s telephone number, including area code)
___________________________________________________________
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act: None
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer | ☐ | Accelerated filer | ☐ |
☒ | Smaller reporting company | ||
Emerging growth company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) YES
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
TABLE OF CONTENTS
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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| Table of Contents |
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
GENERAL ENTERPRISE VENTURES, INC.
UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
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| Table of Contents |
General Enterprise Ventures, Inc.
Consolidated Balance Sheets
(Unaudited)
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Assets |
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Current Assets |
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Cash |
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Accounts receivable, net |
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Inventory |
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Prepaid expenses and other current assets |
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Deferred offering costs |
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Total Current Assets |
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Non-Current Assets |
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Intangible assets, net |
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Operating lease right-of-use asset |
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Equipment, net |
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Security deposit |
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Total Assets |
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Liabilities and Stockholders' Equity |
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Current liabilities |
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Accounts payable and accrued liabilities |
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Deferred revenue |
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Convertibles notes, net of discount |
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Convertibles notes - related parties |
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Accrued interest - related parties |
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Financing loan |
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Derivative liability |
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Operating lease liability |
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Total Current Liabilities |
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Total Liabilities |
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Stockholders' Equity |
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Preferred Stock, par value $ |
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Series A Preferred Stock, par value $ |
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Series C Convertible Preferred Stock, par value $ |
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Common Stock, par value $ |
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Additional paid-in capital |
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Accumulated deficit |
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Total Stockholders' Equity |
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Total Liabilities and Stockholders' Equity |
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See the accompanying Notes, which are an integral part of these unaudited consolidated financial statements.
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| Table of Contents |
General Enterprise Ventures, Inc.
Consolidated Statements of Operations and Comprehensive Loss
(Unaudited)
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| Three months ended |
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| March 31, |
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Revenue |
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Operating expenses |
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Cost of revenue, exclusive of amortization and depreciation shown separately below |
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Cost of revenue - related parties |
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Amortization and depreciation |
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General and administration |
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Advertising and marketing |
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Salary and management compensation |
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Professional fees |
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Professional fees - related parties |
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Total operating expenses |
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Loss from operations |
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Other income (expense) |
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Interest expense |
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Interest expense - related party |
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Financing expense |
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Change in fair value of derivative liability |
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Loss on settlement of debt |
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Total other expense |
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Loss from operations before taxes |
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Provision for income taxes |
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Net loss |
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Comprehensive loss |
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Net loss per common share - basic and diluted |
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Basic and diluted weighted average number of common shares outstanding |
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See the accompanying Notes, which are an integral part of these unaudited consolidated financial statements.
| 5 |
| Table of Contents |
General Enterprise Ventures, Inc.
Consolidated Statements of Change in Stockholders’ Equity
(Unaudited)
For the three months ended March 31, 2025
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| Convertible Series A |
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| Convertible Series C |
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| Additional |
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| Total |
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| Common Stock |
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| Accumulated |
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| Shares |
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| Amount |
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| Capital |
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Balance - December 31, 2024 |
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Series C Preferred Stock issued for cash |
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Series C Preferred Stock issued for services |
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Series C Preferred Stock issued for compensation |
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Common stock issued for conversion of Series C Preferred Stock |
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Common stock warrants issued |
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Net loss |
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Balance - March 31, 2025 |
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For the three months ended March 31, 2024
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| Series A Preferred stock |
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| Convertible Series C Preferred stock |
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| Common Stock |
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| Preferred Stock to be |
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| Common Stock to be |
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| Additional Paid-In |
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| Accumulated |
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| Total Stockholders' |
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| Shares |
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| Amount |
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| Capital |
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Balance - December 31, 2023 |
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Series C Preferred Stock issued for cash |
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Series C Preferred Stock issued for services |
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| - |
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Common stock issued for stock to be issued - management |
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Common stock issued for conversion and settlement of debt |
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Cancellation of comment stock -related party |
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Common stock issued for services |
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Net loss |
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Balance - March 31, 2024 |
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See the accompanying Notes, which are an integral part of these unaudited consolidated financial statements.
| 6 |
| Table of Contents |
General Enterprise Ventures, Inc.
Consolidated Statements of Cash Flows
(Unaudited)
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| Three months ended |
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Cash Flows from Operating Activities: |
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Net loss |
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Adjustments to reconcile net loss to net cash used in operating activities: |
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Stock-based compensation |
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Financing expense |
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Non-cash lease expenses |
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Depreciation and amortization |
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Amortization debt discount |
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Loss on settlement of debt |
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Change in fair value of derivative |
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Changes in operating assets and liabilities: |
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Accounts receivable |
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Inventory |
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Prepaid expense and other current assets |
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Security deposit |
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Accounts payable and accrued liabilities |
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Accrued interest - related parties |
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Deferred revenue |
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Operating lease liabilities |
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Net Cash used in Operating Activities |
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Cash Flows from Investing Activities: |
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Purchase of equipment |
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Net Cash used in Investing Activities |
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Cash Flows from Financing Activities: |
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Proceeds from convertible notes |
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Proceeds from convertible note - related party |
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Deferred offering cost |
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Proceeds from issuance Series C Preferred Stock |
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Repayment of financing loan |
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Net Cash provided by Financing Activities |
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Change in cash |
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Cash, beginning of period |
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Cash, end of period |
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Supplemental Disclosure Information: |
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Cash paid for interest |
| $ |
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Cash paid for taxes |
| $ |
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Non-Cash Financing Disclosure: |
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Common stock issued upon conversion of Series C Preferred stock |
| $ |
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| $ |
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Common stock issued for conversion and settlement of debt |
| $ |
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| $ |
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Common stock issued for stock to be issued - management |
| $ |
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| $ |
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Series C Preferred stock issued for subscription received |
| $ |
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| $ |
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Cancellation comment stock - related party |
| $ |
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| $ |
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Warrants issued in conjunction with convertible debt |
| $ |
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| $ |
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Recognition of derivative liability as debt discount |
| $ |
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| $ |
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Transfer from inventory to property and equipment |
| $ |
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| $ |
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Acquisition of property and equipment as financing loan |
| $ |
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| $ |
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See the accompanying Notes, which are an integral part of these unaudited consolidated financial statements.
| 7 |
| Table of Contents |
General Enterprise Ventures, Inc.
Notes to Unaudited Consolidated Financial Statements
March 31, 2025
Note 1 – Organization, Business and Going Concern
General Enterprise Ventures, Inc., was originally incorporated under the laws of the State of Nevada on March 14, 1990. On June 3, 2021, after approval by the board of directors and shareholders of the Company, the Company was redomiciled to the State of Wyoming. On October 11, 2021, after approval by the board of directors and shareholders of the Company, the Company was renamed General Enterprise Ventures, Inc., in the State of Wyoming. When used in these notes, the terms “GEVI,” “Company,” “we,” “us” and “our” mean General Enterprise Ventures, Inc. and all entities included in our unaudited consolidated financial statements.
Corporate Changes
Effective June 25, 2024, the Company formed and organized a wholly owned subsidiary, GEVI Insurance Holdings Inc., an Ohio corporation (“GEVI Insurance”), to enter the wildfire insurance markets utilizing the Company’s flame retardant and flame suppression product. Effective February 21, 2025, the Company formed MFB Insurance Company, Inc., a Hawaii corporation and organized it as a wholly owned subsidiary of GEVI Insurance to act as a captive insurance company to enter the wildfire insurance market.
Business
Our product is CitroTech™, which is utilized in wildfire defense and to treat lumber to inhibit fire. In addition, we are developing a coating to treat lumber during manufacture prior to distribution. Our product is sustainable, because it is made of food-grade ingredients derived from corn, fruits and other renewable sources. Our current customer base is mainly comprised of homeowners, developers and fire departments. Homeowners and developers use our product to proactively spray wood framing during construction to treat the property prior to the occurrence of fires. We install systems to deploy our product remotely to provide a buffer zone around properties to prevent combustion. Fire Departments use our product to proactively spray around controlled burns and areas that traditionally have active wildfire risk to prevent expansion of the burn area.
Going Concern
Our unaudited consolidated financial statements are prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. The Company has incurred losses since inception and has a net loss of approximately $
Management recognizes that the Company must obtain additional resources to successfully implement its business plans. During the three months ended March 31, 2025, the Company completed financings from the issuance of Series C preferred stock, and convertible notes, generating net proceeds of approximately $
Management plans to continue to raise funds and complete a public offering to support our operations in 2025. However, no assurances can be given that we will be successful. If management is not able to timely and successfully raise additional capital and/or complete a public offering, the implementation of the Company’s business plan, financial condition and results of operations will be materially affected. These unaudited consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.
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| Table of Contents |
Note 2 – Summary of Significant Accounting Policies
Basis of Presentation
The accompanying unaudited interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, the unaudited interim financial statements do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.
In the opinion of management, all adjustments consisting of normal recurring entries necessary for a fair statement of the periods presented for: (a) the financial position; (b) the result of operations; and (c) cash flows, have been made in order to make the unaudited interim financial statements presented not misleading. The results of operations for such interim periods are not necessarily indicative of operations for a full year. The accompanying unaudited interim consolidated financial statements should be read in conjunction with the unaudited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K, for the year ended December 31, 2024, as filed with the SEC on March 31, 2025.
Principles of Consolidation
The unaudited interim consolidated financial statements include the accounts of General Enterprise Ventures, Inc., and its wholly owned subsidiaries. Intercompany transactions and balances have been eliminated.
Reclassification
Certain amounts have been reclassified to improve the clarity and comparability of the financial statements. These reclassifications had no impact on previously reported total assets, liabilities, equity, net income (loss), or cash flows for any periods presented.
Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. The estimates and judgments will also affect the reported amounts for certain expenses during the reporting period. Actual results could differ from these good faith estimates and judgments.
Segment Information
Our Chief Executive Officer (“CEO”) is the chief operating decision maker who reviews financial information on a consolidated basis for purposes of allocating resources and evaluating financial performance. Accordingly, we determined we operate in a single reporting segment - environmentally sustainable flame retardant and flame suppression company for the residential home industry.
Our CEO assesses performance and decides how to allocate resources primarily based on consolidated net income, which is reported on our Consolidated Statements of Operations. Total assets on the Consolidated Balance Sheets represent our segment assets.
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| Table of Contents |
Cash and Cash Equivalents
For purposes of balance sheet presentation and reporting of cash flows, the Company considers all unrestricted demand deposits, money market funds and highly liquid debt instruments with an original maturity of less than 90 days to be cash and cash equivalents. The Company did not have any cash equivalents as of March 31, 2025 and December 31, 2024. The Company had cash of $
Periodically, the Company may carry cash balances at financial institutions more than the federally insured limit of $
Accounts Receivable
Trade accounts receivable are recorded at the invoiced amount and do not bear interest. This value includes an appropriate allowance for estimated uncollectible accounts to reflect any expected loss on the trade accounts receivable balances and charged to the provision for doubtful accounts. The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make the required payments for services. Accounts with known financial issues are first reviewed and specific estimates are recorded. The remaining accounts receivable balances are then grouped in categories by the number of days the balance is past due, and the estimated loss is calculated as a percentage of the total category based upon past history. Account balances are charged against the allowance when it is probable that the receivable will not be recovered.
During the three months ended March 31, 2025 and 2024, the Company recorded no bad debt expense, and no allowance for credit losses as of March 31, 2025 and December 31, 2024.
Fair Value of Financial Instruments
The Company uses a three-tier fair value hierarchy to classify and disclose all assets and liabilities measured at fair value on a recurring basis, as well as assets and liabilities measured at fair value on a non-recurring basis, in periods subsequent to their initial measurement. The hierarchy requires the Company to use observable inputs when available, and to minimize the use of unobservable inputs, when determining fair value. The three tiers are defined as follows:
| ● | Level 1—Observable inputs that reflect quoted market prices (unadjusted) for identical assets or liabilities in active markets; |
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| ● | Level 2—Observable inputs other than quoted prices in active markets that are observable either directly or indirectly in the marketplace for identical or similar assets and liabilities; and |
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| ● | Level 3—Unobservable inputs that are supported by little or no market data, which require the Company to develop its own assumptions. |
The Company’s financial instruments, including cash, accounts receivable, prepaid expenses, accounts payable and accrued liabilities, and loans payable, are carried at historical cost. As of March 31, 2025 and December 31, 2024, the carrying amounts of these instruments approximated their fair values because of the short-term nature of these instruments.
Convertible Notes
The Company bifurcates conversion options from their host instruments and accounts for them as free-standing derivative financial instruments if certain criteria are met. The criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under otherwise applicable generally accepted accounting principles with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument.
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| Table of Contents |
Derivative Financial Instruments
The Company does not use derivative instruments to hedge exposures to cash flow, market or foreign currency risks. We evaluate all of our financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the statements of operations. For our derivative financial instruments, the Company used a Binomial Lattice model to value the derivative instruments at inception and on subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement or conversion of the instrument could be required within twelve (12) months of the balance sheet date.
Warrants
For warrants that are determined to be equity-classified, we estimate the fair value at issuance and record the amounts to additional paid in capital (potentially on a relative fair value basis if issued in a basket transaction with other financial instruments). Warrants that are equity-classified are not subsequently remeasured unless modified or required to be reclassified as liabilities.
Revenue
The Company recognizes revenue from its contracts with customers in accordance with ASC 606 – Revenue from Contracts with Customers. The Company recognizes revenues when satisfying the performance obligation of the associated contract that reflects the consideration expected to be received based on the terms of the contract.
Revenue related to contracts with customers is evaluated utilizing the following steps:
i. Identify the contract, or contracts, with a customer;
ii. Identify the performance obligations in the contract;
iii. Determine the transaction price;
iv. Allocate the transaction price to the performance obligations in the contract;
v. Recognize revenue when the Company satisfies a performance obligation.
For the three months ended March 31, 2025, our revenues currently consist of a sale of product used for lumber products for fire prevention and an installation of self-contained sprinkler systems. Revenue is recognized at a point in time, that is which the risks and rewards of ownership of the product transfer from the Company to the customer.
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| Table of Contents |
Deferred revenue
Deferred revenue consists of advanced payments for our service that have not been rendered. Revenue is recognized when service is rendered. As of March 31, 2025 and December 31, 2024, total deferred revenue was $
Cost of Revenue
For the three months ended March 31, 2025 and 2024, cost of revenue consisted of:
|
| Three months ended |
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| March 31, |
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| 2025 |
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| 2024 |
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Cost of inventory |
| $ |
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| $ |
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Freight and shipping |
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Consulting and advisory-related party |
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Royalty and sales commission-related party |
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Rent expense |
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Total cost of revenue |
| $ |
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| $ |
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Basic and Diluted Net Loss Per Common Share
Basic earnings (loss) per common share is computed by dividing net income (loss) available to common shareholders by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per common share is computed by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if potentially dilutive securities had been issued.
For the three months ended March 31, 2025 and 2024, the following common stock equivalents were excluded from the computation of diluted net loss per share as the result of the computation was anti-dilutive.
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| March 31, |
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| March 31, |
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| 2025 |
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| 2024 |
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| Shares |
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| Shares |
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Convertible notes |
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| - |
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Common stock warrants |
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| - |
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Convertible Series C Preferred Stock |
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Deferred Offering Costs
Pursuant to ASC 340-10-S99-1, costs directly attributable to an offering of equity securities are deferred and would be charged against the gross proceeds of the offering as a reduction of additional paid-in capital. Deferred offering costs consist of underwriting, legal, accounting, and other expenses incurred through the balance sheet date that are directly related to the proposed public offering. Should the proposed public offering prove to be unsuccessful, these deferred costs, as well as additional expenses to be incurred, will be expensed.
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| Table of Contents |
As of March 31, 2025 and December 31, 2024, deferred offering costs consisted of the following:
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| March 31, |
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| December 31 |
| ||
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| 2025 |
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| 2024 |
| ||
Legal fees |
| $ |
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| $ |
| ||
General and administrative expenses |
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Total |
| $ |
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| $ |
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Share-Based Compensation
The Company accounts for employee and non-employee stock awards under ASC 718, Compensation – Stock Compensation, whereby equity instruments issued to employees for services are recorded based on the fair value of the instrument issued and those issued to nonemployees are recorded based on the fair value of the consideration received or the fair value of the equity instrument, whichever is more reliably measurable. Equity grants are amortized on a straight-line basis over the requisite service periods, which is generally the vesting period. If an award is granted, but vesting does not occur, any previously recognized compensation cost is reversed in the period related to the termination of service.
During the three months ended March 31, 2025 and 2024, stock-based compensation was recognized as follows:
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| Three months ended |
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| March 31, |
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| 2025 |
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| 2024 |
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Management compensation |
| $ |
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| $ |
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Professional fees |
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Professional fees - related party |
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Financing expense |
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| $ |
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| $ |
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The Company valued common stock based on the quoted stock price on a date of issuance, warrants with using a Black Scholes valuation model, and Series C Preferred stock as if converted to common stock, using the quoted stock price of the Company’s common stock on a date of issuance.
Recently Issued Accounting Pronouncements
In November 2024, the FASB issued ASU 2024-03, “Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures” (Subtopic 220-40): Disaggregation of Income Statement Expenses, requiring public entities to disclose additional information about specific expense categories in the notes to the financial statements on an interim and annual basis. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and for interim periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2024-03.
In March 2024, the FASB issued ASU 2024-02 "Codification Improvements – Amendments to Remove References to the Concepts Statements" ("ASU 2024-02"), which contains amendments to the Codification to remove references to various FASB Concepts Statements. In most instances, the references are extraneous and not required to understand or apply the guidance. Generally, ASU 2024-02 is not intended to result in significant accounting changes for most entities. ASU 2024-02 is effective for the Company for fiscal years beginning after December 15, 2024. The Company does not expect this update to have a material impact on its financial statements.
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| Table of Contents |
In December 2023, the FASB issued ASU 2023-09, “Income Taxes” (Topic 740): Improvements to Income Tax Disclosures, which requires, among other things, additional disclosures primarily related to the income tax rate reconciliation and income taxes paid. The expanded annual disclosures are effective for our year ending December 31, 2025. The Company is currently evaluating the impact that ASU 2023-09 will have its financial statements and whether we will apply the standard prospectively or retrospectively.
The Company has considered all other recently issued accounting pronouncements and does not believe the adoption of such pronouncements will have a material impact on its financial statements.
Note 3 – Inventory
As of March 31, 2025 and December 31, 2024, inventory consisted of the following:
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| March 31, |
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| December 31, |
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| 2025 |
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| 2024 |
| ||
Finished goods |
| $ |
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| $ |
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WIP |
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Raw materials |
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Inventory in transit (*) |
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| $ |
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| $ |
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(*) Inventory was returned to the Company on April 1, 2025.
The Company did not impair any inventories as unsalable for the three months ended March 31, 2025 and 2024.
Note 4 – Equipment, net
As of March 31, 2025 and December 31, 2024, equipment consisted of the following:
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| March 31, |
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| December 31, |
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| 2025 |
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| 2024 |
| ||
Cost: |
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Equipment |
| $ |
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| $ |
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Vehicles |
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Less: accumulated depreciation |
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| ( | ) |
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| ( | ) |
Equipment, net |
| $ |
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| $ |
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During the three months ended March 31, 2025 and 2024, the Company recorded depreciation of $
During the three months ended March 31, 2025, the Company purchased a vehicle for $
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| Table of Contents |
Financing loan
The Company had a financing loan for the purchase of vehicle for the year ended December 31, 2024.
The Company had a financing loan for the purchase of vehicle in January 2025.
Note 5 – Intangible Assets, net
In 2022, the Company acquired the intellectual property of MFB California, 19 patents centered around its MFB Technology for the prevention and spread of wildfires.
As of March 31, 2025 and December 31, 2024, finite lived intangible assets consisted of the following:
|
| March 31, |
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| December 31, |
| ||
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| 2025 |
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| 2024 |
| ||
Patents |
| $ |
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| $ |
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Accumulated amortization |
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| ( | ) |
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| ( | ) |
Intangible assets, net |
| $ |
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| $ |
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Estimated future amortization expense for finite lived intangibles are as follows:
December 31, |
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2025 (remaining nine months) |
| $ |
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2026 |
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2027 |
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2028 |
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2029 |
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Thereafter |
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| |
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| $ |
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As of March 31, 2025, the weighted-average useful life is
During the three months ended March 31, 2025 and 2024, the amortization expense was $
Note 6 – Lease
In March 2022, the Company entered into an operating lease for a warehouse, with a term of eighteen (18) months. In July 2023, the Company amended the contract and extended the lease term to July 2025.
In January 2025, the Company entered into an operating lease for our office and warehouse. The commencement date is April 1, 2025, and the termination date is March 31, 2030. The Company records a security deposit of $
| 15 |
| Table of Contents |
Short-term lease
The Company has some rental equipment with a month-to-month contract and leases commercial space for office, retail and warehousing, which is under one year lease agreement and expires March 31, 2025.
For the three months ended March 31, 2025 and 2024, right-of-use asset and lease information about the Company’s operating lease consist of:
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| March 31, |
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| 2025 |
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| 2024 |
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The components of lease expense were as follows: |
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Operating lease cost |
| $ |
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| $ |
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Short-term lease cost |
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Variable lease cost |
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Total lease cost |
| $ |
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| $ |
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Supplemental cash flow information related to leases was as follows:
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| Three months ended |
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| March 31, |
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| 2025 |
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| 2024 |
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Cash paid for operating cash flows from operating leases |
| $ |
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Weighted-average remaining lease term - operating leases (year) |
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Weighted-average discount rate — operating leases |
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The following table outlines maturities of our lease liabilities as of March 31, 2025:
Year ending December 31, |
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2025 (remaining four months) |
| $ |
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Thereafter |
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Less: Imputed interest |
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| ( | ) |
Operating lease liabilities |
| $ |
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| 16 |
| Table of Contents |
Note 7 – Convertible Notes
The components of convertible notes as of March 31, 2025 and December 31, 2024, were as follows:
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| Interest |
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| Interest |
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Payment date |
| Amount |
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| Maturity date |
| Rate |
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| Rate |
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| 2025 |
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July 15, 2024 |
| $ |
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August 15, 2024 |
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November 15, 2024 |
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December 15, 2024 |
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February 7, 2025 |
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February 15, 2025 |
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Total Convertible notes |
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| $ |
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Less: Unamortized debt discount |
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Less: Current portion |
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| ( | ) |
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| ( | ) |
Long -term portion |
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| $ |
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| $ |
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On July 15, 2024 and August 15, 2024, the Company entered into seventeen (17) convertible notes ($
In February 2025, the Company entered into eleven (11) convertible notes ($
During the three months ended March 31, 2025, the Company recognized the debt discount of $
During the three months ended March 31, 2025 and 2024, the Company recognized interest expenses of $
The Company determined that the conversion feature met the definition of a liability in accordance with ASC Topic No. 815-40, Derivatives and Hedging - Contracts in Entity's Own Stock and therefore bifurcated the embedded conversion option once the note becomes convertible and accounted for it as a derivative liability. The fair value of the conversion feature was recorded as a debt discount and “day 1” derivative loss for the excess amount of debt discount and amortized to interest expense over the term of the note.
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| Table of Contents |
Note 8 – Derivative Liability
Fair Value Assumptions Used in Accounting for Derivative Liabilities
ASC 815 requires us to assess the fair market value of derivative liabilities at the end of each reporting period and recognize any change in the fair market value as other income or expense.
The Company determined our derivative liabilities to be a Level 3 fair value measurement and used the Binomial Lattice model to calculate the fair value as of March 31, 2025 and December 31, 2024.
For the three months ended March 31, 2025 and the year ended December 31, 2024, the estimated fair values of the liabilities measured on a recurring basis, used the following significant assumptions:
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| March 31, |
| December 31 |
| |
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| 2025 |
| 2024 |
| |
Expected term |
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Risk-free interest rate |
| % |
| % | ||
Stock price at valuation date |
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| $ |
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Expected average volatility |
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| % | ||
The following table summarizes the changes in the derivative liabilities during the three months ended March 31, 2025:
Fair Value Measurements Using Significant Observable Inputs (Level 3) |
| |||
Balance - December 31, 2024 |
| $ |
| |
Addition of new derivatives recognized as debt discounts |
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Loss on change in fair value of the derivative |
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Balance - March 31, 2025 |
| $ |
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| 18 |
| Table of Contents |
Note 9 – Accounts payable and accrued liabilities
As of March 31, 2025 and December 31, 2024, accounts payable and accrued liabilities consisted of the following:
|
| March 31, |
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| December 31, |
| ||
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| 2025 |
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| 2024 |
| ||
Accounts payable |
| $ |
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| $ |
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Accrued interest |
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Credit card |
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Sales tax payable |
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Other liabilities |
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| $ |
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| $ |
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Note 10 – Related Party Transactions
The related parties that had material transactions for the three months ended March 31, 2025 and 2024, consist of the following:
Related Party | Nature of Relationship to the Company | |
A | An Ohio limited liability company - a significant shareholder | |
B | Owner of A and our Chief Executive Officer of the Company from April 1, 2025 | |
C | Chief Executive Officer of the Company until March 31, 2025 and Vice President of Operations from April 1, 2025. | |
D | A California limited liability company owned by a related party E | |
E | Significant shareholder and our Chief Technology Officer | |
F | Director and Chief Executive Officer of GEVI Insurance Holdings Inc. | |
G | A Delaware limited liability company – Series A Preferred shareholder | |
H |
| Subsidiary - MFB Ohio board advisor, resigned during 2024 |
I |
| Subsidiary - MFB Ohio board advisor, resigned during 2024 |
J |
| Subsidiary - MFB Ohio board advisor |
K |
| Subsidiary - MFB Ohio board advisor |
L |
| Subsidiary - MFB Ohio board advisor |
For the three months ended March 31, 2025 and 2024, expenses to related parties and their nature consists of:
|
| Three Months Ended |
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| March 31 |
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Related Party |
| 2025 |
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| 2024 |
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| Nature of transaction |
| Financial Statement Line Item | |||
A |
| $ |
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| $ |
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| Interest expenses - related party | ||||
A |
| $ |
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| $ |
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| Professional fees - related party | ||||
C |
| $ |
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| $ |
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| Management compensation | ||||
D |
| $ |
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| $ |
|
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| Professional fees - related party | ||||
D |
| $ |
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| $ |
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| Cost of revenue - related party | ||||
E |
| $ |
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| $ |
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| Professional fees - related party | ||||
E |
| $ |
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| $ |
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| Cost of revenue - related party | ||||
F |
| $ |
|
| $ |
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| Management compensation | ||||
F |
| $ |
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| $ |
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| Professional fees - related party | ||||
H |
| $ |
|
| $ |
|
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| Professional fees - related party | ||||
I |
| $ |
|
| $ |
|
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| Professional fees - related party | ||||
J |
| $ |
|
| $ |
|
|
| Professional fees - related party | ||||
K |
| $ |
|
| $ |
|
|
| Professional fees - related party | ||||
L |
| $ |
|
| $ |
|
|
| Professional fees - related party | ||||
| 19 |
| Table of Contents |
Convertible notes – related parties
The components of convertible notes as of March 31, 2025 and December 31, 2024, were as follows:
|
| Principal |
|
|
| Effective |
|
| Stated Interest |
|
| March 31, |
|
| December 31, |
| ||||||
Payment date |
| Amount |
|
| Maturity date |
| Interest rate |
|
| Rate |
|
| 2025 |
|
| 2024 |
| |||||
December 1, 2024 |
| $ |
|
|
|
|
|
|
| % |
| $ |
|
| $ |
| ||||||
February 2025 |
| $ |
|
|
|
| % |
|
| % |
|
|
|
|
|
| ||||||
Total Convertible notes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| $ |
|
| $ |
| ||
Less: Unamortized debt discount |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ( | ) |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Less: Current portion |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ( | ) |
|
| ( | ) |
Long -term portion |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| $ |
|
| $ |
| ||
On December 31, 2024, the Company issued a convertible note of $
In February 2025, the Company entered into one (1) subscription agreement for convertible notes ($
During the three months ended March 31, 2025, the Company recognized the debt discount of $
During the three months ended March 31, 2025, the Company recognized interest expenses of $
Note 11 – Stockholders’ Equity
Amended Articles of Incorporation
Effective on March 17, 2025,
Preferred Shares
Shares Outstanding
The Company is authorized to issue up to
Series A Preferred Stock
The Company originally designated
| 20 |
| Table of Contents |
Dividends. Holders of shares of Series A Preferred Stock are not entitled to receive dividends.
Voting Rights. Each share of Series A Preferred Stock is entitled to
Other Rights. Shares of Series A Preferred Stock are not entitled to a liquidation preference. The holders of the Series A Preferred Stock may not be redeemed without the consent of the holders of the Series A Preferred Stock. The holder of the Series A Preferred Stock are not entitled to pre-emptive rights or subscription rights.
The Company will not, by amendment of its Charter or through any reorganization, transfer of assets, consolidation, merger, dissolution, issuance or sale of securities, or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed hereunder by the Company, but will at all times in good faith assist in the carrying out of all the provisions of its Charter and in the taking of all such action as may be necessary or appropriate to protect the rights of the holders of the Series A Preferred Stock against impairment.
So long as any shares of Series A Preferred Stock are outstanding, the Company shall not, without first obtaining the approval (by vote or written consent as provided by the Wyoming Business Corporations Act) of the holders of at least a majority of the then outstanding shares of Series A Preferred Stock: (a) alter or change the rights, preferences or privileges of the Series A Preferred Stock; (b) alter or change the rights, preferences or privileges of any capital stock of the Company so as to affect adversely the Series A Preferred Stock; (c) increase the authorized number of shares of Series A Preferred Stock; or (d) authorize or issue any shares of senior securities.
Fully Paid. The issued and outstanding shares of Series A Preferred Stock are fully paid and non-assessable. This means the full purchase price for the outstanding shares of Series A Preferred Stock has been paid and the holders of such shares will not be assessed any additional amounts for such shares.
As of March 31, 2025 and December 31, 2024, there were
Series C Convertible Preferred Stock
The Company has designated
Dividends. Holders of shares of Series C Convertible Preferred Stock are not entitled to receive dividends.
Voting Rights. The holders of the Series C Convertible Preferred Stock are not entitled to vote.
Conversion Rights. Each share of Series C Convertible Preferred Stock outstanding as such time shall be convertible, at the option of the holder thereof, at any time and from time to time, and without the payment of additional consideration by the holder thereof, into
If at any time or from time to time there shall be (i) a merger or consolidation of the Company with or into another corporation, (ii) the sale of all or substantially all of the Company’s capital stock or assets to any other person, (iii) any other form of business combination or reorganization in which the Company shall not be the continuing or surviving entity of such business combination or reorganization, or (iv)
| 21 |
| Table of Contents |
Other Rights. The holders of the Series C Convertible Preferred Stock are not entitled to a liquidation preference. The holders of the Series C Convertible Preferred Stock may not be redeemed without the consent of the holders of the Series C Convertible Preferred Stock. The holder of the Series C Convertible Preferred Stock are not entitled to pre-emptive rights or subscription rights.
The Company will not, by amendment of its Charter or through any reorganization, transfer of assets, consolidation, merger, dissolution, issuance or sale of securities, or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed hereunder by the Company, but will at all times in good faith assist in the carrying out of all the provisions of its Charter and in the taking of all such action as may be necessary or appropriate to protect the rights of the holders of the Series C Convertible Preferred Stock against impairment.
So long as any shares of Series C Convertible Preferred Stock are outstanding, the Company shall not, without first obtaining the approval (by vote or written consent as provided by the Wyoming Business Corporations Act) of the holders of at least a majority of the then outstanding shares of Series C Convertible Preferred Stock: (a) alter or change the rights, preferences or privileges of the Series C Convertible Preferred Stock; (b) alter or change the rights, preferences or privileges of any capital stock of the Company so as to affect adversely the Series C Convertible Preferred Stock; (c) increase the authorized number of shares of Series C Convertible Preferred Stock; or (d) authorize or issue any shares of senior securities.
Fully Paid. The issued and outstanding shares of Series C Convertible Preferred Stock are fully paid and non-assessable. This means the full purchase price for the outstanding shares of Series C Convertible Preferred Stock has been paid and the holders of such shares will not be assessed any additional amounts for such shares.
During the three months ended March 31, 2025, the Company issued
| · | |
| · | |
| · |
During the three months ended March 31, 2025, the holders of the Convertible Series C Preferred Stock converted
As of March 31, 2025 and December 31, 2024, there were
| 22 |
| Table of Contents |
Common Stock
The holders of shares of our Common Stock are entitled to one vote for each share held of record on all matters submitted to a vote of stockholders. The holders of Common Stock are entitled to equal dividends and distributions, with respect to the Common Stock when, as, and if declared by the Board of Directors from funds legally available for such dividends. No holder of Common Stock has any preemptive right to subscribe for any of our stock nor are any shares subject to redemption. Upon our liquidation, dissolution, or winding up, and after payment of creditors and any amounts payable to senior securities, the assets will be divided pro rata on a share-for-share basis among the holders of the shares of Common Stock.
No holder of shares of Common Stock of the Company shall be entitled as of right to purchase or subscribe for any part of any unissued stock of the Company or of any new or additional authorized stock of the Company of any class whatsoever, or any issue of securities of the Company convertible into stock, whether such stock or securities be issued for money or consideration other than money or by way of dividend, but any such unissued stock or such new or additional authorized stock or such securities convertible into stock may be issued and disposed of to such persons, firms, corporations and associations, and upon such terms as may be deemed advisable by the Board of Directors without offering to stockholders then of record or any class of stockholders any thereof upon the same terms or upon any terms.
During the three months ended March 31, 2025, the Company issued
As of March 31, 2025 and December 31, 2024, there were
Warrants
The Company issued a total of
The Company issued
The Company issued a total of
The Company issued a total of
We evaluate all warrants issued to determine the appropriate classification under ASC 480 and ASC 815. In addition to determining classification, we evaluate these instruments to determine if such instruments meet the definition of a derivative. The classification of all outstanding warrants, including whether such instruments should be recorded as equity, is evaluated at the end of each reporting period.
The warrants are valued using a Black Scholes valuation model. The use of this valuation model requires the input of highly subjective assumptions. Any change to these inputs could produce significantly higher or lower fair value measurements.
The Company utilized the following assumptions:
|
| March 31 |
| |
|
| 2025 |
| |
Expected term |
|
| ||
Expected average volatility |
|
| ||
Risk-free interest rate |
|
| ||
Expected dividend yield |
|
|
| |
| 23 |
| Table of Contents |
A summary of activity of the warrants during the three months ended March 31, 2025 as follows:
|
| Warrants Outstanding |
|
| Weighted Average Remaining |
| ||||||
|
|
|
| Weighted Average |
|
| Contractual life |
| ||||
|
| Shares |
|
| Exercise Price |
|
| (in years) |
| |||
|
|
|
|
|
|
|
|
|
| |||
Outstanding, December 31, 2024 |
|
|
|
| $ |
|
|
|
| |||
Granted |
|
|
|
|
|
|
|
|
| |||
Exercised |
|
| - |
|
|
| - |
|
|
| - |
|
Forfeited/cancelled |
|
| - |
|
|
| - |
|
|
| - |
|
Outstanding, March 31, 2025 |
|
|
|
| $ |
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
Exercisable, March 31, 2025 |
|
|
|
| $ |
|
|
|
| |||
The intrinsic value of the warrants as of March 31, 2025 is $
Note 12 – Disaggregated revenue and Concentration
During the three months ended March 31, 2025 and 2024, disaggregated revenue was as follows:
|
| Three months ended |
| |||||
|
| March 31, |
| |||||
|
| 2025 |
|
| 2024 |
| ||
Products sale |
| $ |
|
| $ |
| ||
Product installation service |
|
|
|
|
|
| ||
|
| $ |
|
| $ |
| ||
During the three months ended March 31, 2025 and 2024, customer and supplier concentration (more than 10%) were as follows:
Revenue and accounts receivable
|
| Percentage of Revenue |
|
| Percentage of |
| ||||||||||
|
| For three months ended |
|
| Accounts Receivable |
| ||||||||||
|
| March 31 |
|
| March 31 |
|
| December 31 |
| |||||||
|
| 2025 |
|
| 2024 |
|
| 2025 |
|
| 2024 |
| ||||
Customer A |
|
|
|
|
| % |
|
|
|
|
|
| ||||
Customer B |
|
|
|
|
| % |
|
|
|
|
| % | ||||
Customer C |
|
|
|
|
| % |
|
|
|
|
|
| ||||
Customer D |
|
|
|
|
| % |
|
| % |
|
| % | ||||
Customer E |
|
| % |
|
|
|
|
| % |
|
|
| ||||
Customer F |
|
|
|
|
|
|
|
| % |
|
| % | ||||
Customer G |
|
| % |
|
|
|
|
|
|
|
|
| ||||
Customer H |
|
| % |
|
|
|
|
| % |
|
|
| ||||
Total (as a group) |
|
| % |
|
| % |
|
| % |
|
| % | ||||
| 24 |
| Table of Contents |
Purchase and accounts payable
|
| Percentage of Purchase |
|
| Percentage of |
| ||||||||||
|
| For three months ended |
|
| Accounts payable for purchase |
| ||||||||||
|
| March 31, |
|
| March 31, |
|
| December 31 |
| |||||||
|
| 2025 |
|
| 2024 |
|
| 2025 |
|
| 2024 |
| ||||
Supplier A |
|
| % |
|
|
|
|
|
|
|
|
| ||||
Supplier B |
|
| % |
|
| % |
|
| % |
|
| % | ||||
Supplier C |
|
|
|
|
| % |
|
|
|
|
|
| ||||
Supplier D |
|
| % |
|
| % |
|
|
|
|
| % | ||||
Supplier E |
|
| % |
|
|
|
|
| % |
|
|
| ||||
Supplier F |
|
| % |
|
|
|
|
| % |
|
|
| ||||
Total (as a group) |
|
| % |
|
| % |
|
| % |
|
| % | ||||
To reduce risk, the Company closely monitors the amounts due from its customers and assesses the financial strength of its customers through a variety of methods that include, but are not limited to, engaging directly with customer operations and leadership personnel, visiting customer locations to observe operating activities, and assessing customer longevity and reputation in the marketplace. As a result, the Company believes that its accounts receivable credit risk exposure is limited.
Note 13 – Subsequent Events
Management has evaluated subsequent events through May 19, 2025, which is the date these unaudited consolidated financial statements were available to be issued. Based on our evaluation no material events have occurred that require disclosure, except as follows:
| · | |
| · |
| 25 |
| Table of Contents |
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
FORWARD-LOOKING STATEMENTS
This report contains forward-looking statements. The Securities and Exchange Commission encourages companies to disclose forward-looking information so that investors can better understand a company’s future prospects and make informed investment decisions. This report and other written and oral statements that we make from time to time contain such forward-looking statements that set out anticipated results based on management’s plans and assumptions regarding future events or performance. We have tried, wherever possible, to identify such statements by using words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “will” and similar expressions in connection with any discussion of future operating or financial performance. In particular, these include statements relating to future actions, future performance or results of current and anticipated sales efforts, expenses, the outcome of contingencies, such as legal proceedings, and financial results.
We caution that the factors described herein, and other factors could cause our actual results of operations and financial condition to differ materially from those expressed in any forward-looking statements we make and that investors should not place undue reliance on any such forward-looking statements. Further, any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. New factors emerge from time to time, and it is not possible for us to predict all of such factors. Further, we cannot assess the impact of each such factor on our results of operations or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.
Our unaudited financial statements are stated in United States Dollars (USD) and are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The following discussion should be read in conjunction with our financial statements and the related notes that appear elsewhere in this quarterly report. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed below and elsewhere in this quarterly report.
In this quarterly report, unless otherwise specified, all dollar amounts are expressed in United States Dollars and all references to “common shares” refer to the common shares in our capital stock.
As used in this quarterly report, the terms “we”, “us”, “our” and “our company” mean General Enterprise Ventures, Inc.
General Overview
General Enterprise Ventures, Inc., was originally incorporated under the laws of the State of Nevada on March 14, 1990. When used in these notes, the terms “GEVI,” “Company,” “we,” “us” and “our” mean General Enterprise Ventures, Inc. and all entities included in our unaudited consolidated financial statements.
In January 2021, Board of Directors of the Company approved redomiciling the Company in Delaware. On March 31, 2021, the Company formed General Entertainment Ventures, Inc. in Delaware as a wholly owned subsidiary of the Company (“GEVI”). The purpose of the formation of GEVI was to merge the Company into GEVI pursuant to Section 251(g) of the General Corporation Law of the State of Delaware. On April 10, 2021, after approval by the board of directors and shareholders of the Company, the Company was merged into GEVI pursuant to an Agreement and Plan of Merger dated as of the same date. GEVI is the accounting and legal acquiror of the Company.
On June 3, 2021, after approval by the board of directors and shareholders of the Company, the Company was redomiciled to the State of Wyoming. On October 11, 2021, after approval by the board of directors and shareholders of the Company, the Company was renamed General Enterprise Ventures, Inc., in the State of Wyoming.
| 26 |
| Table of Contents |
Corporate Changes
On April 13, 2022, the Company, Mighty Fire Breaker, LLC, an Ohio limited liability company (“MFB Ohio”), Mighty Fire Breaker, LLC, a California limited liability company (“MFB California”) and Mr. Steven Conboy, the sole member of MFB California, entered into a Purchase Agreement (the “Purchase Agreement”), pursuant to which the Company (i) acquired all membership interests of MFB California, (ii) acquired all intellectual property owned by MFB California and Mr. Conboy, (iii) issued 166,667 shares of Series C Convertible Preferred Stock, par value of $0.0001 per share of the Company (“Series C Convertible Preferred Stock”), valued at $4,200,000 at closing to Mr. Conboy and (iv) agreed to provide a 10% royalty to Mr. Conboy on gross sales before taxes of the MFB Ohio product.
Effective June 25, 2024, the Company formed and organized a wholly owned subsidiary, GEVI Insurance Holdings Inc., an Ohio corporation (“GEVI Insurance”), to enter the wildfire insurance markets utilizing the Company’s flame retardant and flame suppression product. Effective February 21, 2025, the Company formed MFB Insurance Company, Inc., a Hawaii corporation and organized it as a wholly owned subsidiary of GEVI Insurance to act as a captive insurance company to enter the wildfire insurance market.
Results of Operations
The following summary of our results of operations should be read in conjunction with our unaudited interim financial statements for the three months ended March 31, 2025 and 2024, which are included herein.
The Company is in the early stage of developing and commercializing their product lines. The Company has been focused historically on obtaining patents and various accreditations. To date, the Company does not have a large customer base, having relied on a few customers, for the commercialization and testing of our CitroTech products and delivery systems. The Company currently does not have an established retail product line nor recurring significant customer base. Therefore, period over period comparisons of our results of operations are not indicative of future results.
The following summary of our results of operations should be read in conjunction with our audited financial statements for the three months ended March 31, 2025 and 2024, which are included herein.
Our results of operations for the three months ended March 31, 2025 and 2024 are summarized below:
|
| Three months ended |
|
|
|
|
| |||||||||
|
| March 31, |
|
|
|
|
| |||||||||
|
| 2025 |
|
| 2024 |
|
| Change |
|
| % |
| ||||
Revenue |
| $ | 969,382 |
|
| $ | 433,018 |
|
| $ | 536,364 |
|
|
| 124 | % |
Operating expenses |
|
| 4,427,838 |
|
|
| 3,069,564 |
|
|
| 1,358,274 |
|
|
| 44 | % |
Other expenses |
|
| 7,444,948 |
|
|
| 883,164 |
|
|
| 6,561,784 |
|
|
| 743 | % |
Net loss |
| $ | (10,903,404 | ) |
| $ | (3,519,710 | ) |
| $ | (7,383,694 | ) |
|
| 210 | % |
| 27 |
| Table of Contents |
Revenue
The Company’s revenue is associated with revenue from MFB Ohio which acquired intellectual property to fire suppression in April 2022. During the three months ended March 31, 2025, the revenue increased $536,000 from the three months ended March 31, 2024, largely due to the adoption of our technology by the marketplace, including the sale of homebased wildfire defense systems, commercial and fire department chemical sales, and directly spraying residential properties due to the wildfire concerns.
Our revenues consisted of the following:
|
| Three months ended |
| |||||
|
| March 31, |
| |||||
|
| 2025 |
|
| 2024 |
| ||
Products sale |
| $ | 604,482 |
|
| $ | 433,018 |
|
Product installation service |
|
| 364,900 |
|
|
| - |
|
|
| $ | 969,382 |
|
| $ | 433,018 |
|
Product installation services commenced in the second quarter of 2024.
Our revenues from significant customers for the three months ended March 31, 2025 and 2024, are as follows:
|
| Percentage of products sale |
|
| Percentage of installation service |
| ||||||||||
|
| For three months Ended |
|
| For three months Ended |
| ||||||||||
|
| March 31 |
|
| March 31 |
| ||||||||||
|
| 2025 |
|
| 2024 |
|
| 2025 |
|
| 2024 |
| ||||
Customer A |
|
| - |
|
|
| 28 | % |
|
| - |
|
|
| - |
|
Customer B |
|
| - |
|
|
| 26 | % |
|
| - |
|
|
| - |
|
Customer C |
|
| - |
|
|
| 9 | % |
|
| - |
|
|
| - |
|
Customer D |
|
| - |
|
|
| 36 | % |
|
| - |
|
|
| - |
|
Customer E |
|
| 11 | % |
|
| - |
|
|
| - |
|
|
| - |
|
Customer G |
|
| 4 | % |
|
| - |
|
|
| 6 | % |
|
| - |
|
Customer H |
|
| 3 | % |
|
| - |
|
|
| 8 | % |
|
| - |
|
Total (as a group) |
|
| 18 | % |
|
| 99 | % |
|
| 14 | % |
|
| - |
|
Operating Expenses
|
| Three months ended |
|
|
|
|
|
|
| |||||||
|
| March 31, |
|
|
|
|
|
|
| |||||||
|
| 2025 |
|
| 2024 |
|
| Change |
|
| % |
| ||||
Cost of revenue |
| $ | 652,260 |
|
| $ | 144,215 |
|
| $ | 508,045 |
|
|
| 352 | % |
Amortization and depreciation |
|
| 74,539 |
|
|
| 63,835 |
|
|
| 10,704 |
|
|
| 17 | % |
General and administration |
|
| 211,202 |
|
|
| 97,325 |
|
|
| 113,877 |
|
|
| 117 | % |
Advertising and marketing |
|
| 104,496 |
|
|
| 90,406 |
|
|
| 14,090 |
|
|
| 16 | % |
Payroll and management compensation |
|
| 638,423 |
|
|
| 25,000 |
|
|
| 613,423 |
|
|
| 2,454 | % |
Professional fees |
|
| 2,746,918 |
|
|
| 2,648,783 |
|
|
| 98,135 |
|
|
| 4 | % |
Total operating expenses |
| $ | 4,427,838 |
|
| $ | 3,069,564 |
|
| $ | 1,358,274 |
|
|
| 44 | % |
The increase in operating expenses was primarily attributed to increases in cost of revenue and payroll and management compensation.
| 28 |
| Table of Contents |
Cost of revenue
|
| Three months ended |
| |||||
|
| March 31, |
| |||||
|
| 2025 |
|
| 2024 |
| ||
Cost of inventory |
| $ | 516,443 |
|
| $ | 76,196 |
|
Freight and shipping |
|
| 160 |
|
|
| 2,530 |
|
Consulting and advisory-related party |
|
| 4,000 |
|
|
| 4,200 |
|
Royalty and sales commission-related party |
|
| 91,290 |
|
|
| 43,146 |
|
Rent expense |
|
| 40,367 |
|
|
| 18,143 |
|
Total cost of revenue |
| $ | 652,260 |
|
| $ | 144,215 |
|
During the three months ended March 31, 2025, the cost of revenue increased over the three months ended March 31, 2024, primarily due to an increase in cost of inventory and royalty and sales commissions.
Cost of inventory consists of product costs, related supplies and direct testing of our CitroTech product and various components required to for installation of Mighty Fire Breaker proactive wildfire defense systems. Cost of inventory increased during the three months ended March 31, 2025, primarily due to an increase in product sales and supplies from increased sales.
Consulting and advisory services are to a related party company for services related to product installations.
Freight and shipping relate to costs for shipping products to customers.
Royalty and sales commissions increased in the three months ended March 31, 2025 from more revenue. The Company recognizes an allocated portion of consulting and direct labor costs associated with our revenue as royalty and sales cost of revenue. In March 2025, the Company entered int new contract and there is no longer royalty.
Rent expenses are warehouse rent expenses. The increase in rent expense is because the Company leased commercial space for office, retail and warehousing from March 2024 under a one-year contract.
Amortization and depreciation
Amortization and depreciation expenses are an amortization of patents and a depreciation of vehicle, and furniture and equipment.
General and administrative
General and administrative expenses are office, rent, travel, insurance, website, IT and other office related expenses. For the three months ended March 31, 2025, the Company incurred increased expenditures on our website and IT development and travel as well as general office and insurance expenses from expansion of operations.
Advertising and marketing
The increase in advertising and marketing during the three months ended March 31, 2025, over the three months ended March 31, 2024, is primarily due to an increase in expenses to support revenue growth.
| 29 |
| Table of Contents |
Professional fees
The professional fees during the three months ended March 31, 2025, primarily included stock-based compensation of $2.1 million to a related party consultant (TC Special Investments, LLC (“TCSI”)) and various professional fee for accounting and audit related to SEC filing, legal on patents and other consulting services in 2025. The professional fees during the three months ended March 31, 2024, primarily included stock-based management compensation of $1.4 million to advisors to our subsidiary MFB and stock-based compensation of $1.0 million to various consultants for IT service for software development, legal on patents and other consulting services in 2024.
TCSI’s consulting services to the Company include sales and business development, customer relationship management, strategy optimization, investor relations, underwriter interface, coordinating outside counsel and other business aspects at the request of the Board of Directors. In addition to TCSI, stock-based compensation was remitted to certain individuals with fire retardant and flame suppression industry experience, who provided guidance and insight to the Company’s management and Board of Directors with respect to the fire retardant and flame suppression industry, business development connections, and oversight during the testing and recognition processes.
Payroll and management compensation
During the three months ended March 31, 2025, management compensation primality included stock-based management compensation of $410,000 to a management of subsidiary and cash payments of $142,000 to our former CEO, and payroll to our employees of $76,203.
During the three months ended March 31, 2024, management compensation primality included cash payment of $25,000 to our former CEO.
Other Expenses
For the three months ended March 31, 2025 and 2024, the other expenses consisted of $473,000 and $1,000 interest related to convertible notes payable issued in 2024, respectively, change in fair value of derivative liability related to convertible notes payable issued in 2024 of $805,000 and $0, respectively, financing expense of $6.2 million and $0, respectively, and loss on settlement of notes payable and convertible note issued in 2022 of $0 and $882,000, respectively. Financing expense is 4 million warrants granted to a financial advisor in 2025.
Net loss
The net loss for the three months ended March 31, 2025, increased by approximately $7.4 million as compared to the three months ended March 31, 2024 primarily due to the increase in operating expenses and other expense offset by the increase in revenue.
Liquidity and Capital Resources
Sources of Liquidity
Since our inception, we have incurred significant operating losses and negative cash flows from our operations. Our net loss was $10.9 million and $3.5 million for the three months ended March 31, 2025 and 2024, respectively. During the three months ended March 31, 2025, we completed a debt offering and an equity offering which generated net proceeds of approximately $3.7 million and $0.3 million respectively.
Working capital
|
| March 31, |
|
| December 31, |
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|
|
|
| ||||||
|
| 2025 |
|
| 2024 |
|
| Change |
|
| % |
| ||||
Current assets |
| $ | 5,008,943 |
|
| $ | 1,617,478 |
|
| $ | 3,391,465 |
|
|
| 210 | % |
Current liabilities |
| $ | 4,960,105 |
|
| $ | 2,161,883 |
|
| $ | 2,798,222 |
|
|
| 129 | % |
Working capital (deficiency) |
| $ | 48,838 |
|
| $ | (544,405 | ) |
| $ | 593,243 |
|
| (109 | %) | |
As of March 31, 2025 and December 31, 2024, the current assets consisted of cash of $3.7 million and $775,000, respectively, inventory of $312,000 and $325,000, respectively accounts receivable of $746,000 and $317,000, respectively, prepaid expenses and other current assets of $61,000 and $74,000, respectively, and deferred offering costs of $149,000 and $126,000, respectively.
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| Table of Contents |
As of March 31, 2025 and December 31, 2024, the current liabilities consisted of accounts payable and accrued liabilities of $530,000 and $187,000, respectively, convertible notes net of discount of $542,000 and $196,000, respectively, convertible note – related parties of $783,000 and $577,000, respectively, accrued interest – related parties of $31,000 and $0, respectively financing loan of $0 and $97,000, respectively, derivative liability of $2.9 million and $1.1 million, respectively, and current portion of operating lease liability of $29,000 and $50,000, respectively.
The increase in working capital in 2025 was primarily due to an increase in cash and accounts receivable offset by an increase in the convertible notes and derivative liability related to convertible notes. The Company had net loss and negative cash flows from our operations. In 2025, the Company generated funds from more debt financing than equity financing, however, the carrying value of convertible notes included of unamortized debt discount of $4.6 million. Considering this unamortized discount, the Company still had capital deficiency of $4.6 million as of March 31, 2025.
Cash Flows
For the three months ended March 31, 2025 and 2024
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| Three months ended |
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|
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| ||||||
|
| March 31, |
|
|
|
| ||||||
|
| 2025 |
|
| 2024 |
|
| Change |
| |||
Cash used in operating activities |
| $ | (713,918 | ) |
| $ | (343,660 | ) |
| $ | (370,258 | ) |
Cash used in investing activities |
| $ | (26,988 | ) |
| $ | - |
|
| $ | (26,988 | ) |
Cash provided by financing activities |
| $ | 3,706,109 |
|
| $ | 165,000 |
|
| $ | 3,541,109 |
|
Net Change in cash |
| $ | 2,965,203 |
|
| $ | (178,660 | ) |
| $ | 3,143,863 |
|
Operating Activities
We have not generated positive cash flows from operating activities.
For the three months ended March 31, 2025, net cash flows used in operating activities consisted of a net loss of $10.9 million, reduced by stock-based compensation of $2.8 million, financing expense of $6.2 million, non-cash lease expenses of $21,000, amortization and depreciation of $75,000, amortization of debt discount of $377,000, and changes in derivative liability of $805,000, which were increased by net changes in operating assets and liabilities of $24,000.
For the three months ended March 31, 2024, net cash flows used in operating activities consisted of a net loss of $3.5 million, reduced by stock-based compensation of $1.7 million, non-cash lease expenses of $20,000, amortization and depreciation of $64,000, loss on settlement of debt of $882,000 and increased by net changes in operating assets and liabilities of $188,000.
Investing Activities
For the three months ended March 31, 2025, the cash flows used in investing activities were $27,000, which was related to the purchase of equipment.
The Company did not use any funds for investing activities during the three months ended March 31, 2024.
Financing Activities
For the three months ended March 31, 2025, net cash provided by financing activities consisted of $260,000 proceeds from the issuance of Series C Convertible Preferred Stock, $3.7 million from the issuance of convertible promissory notes and associated warrants, $23,000 deferred offering cost payment, and repayment of a financing loan of $216,000.
The basic terms of the convertible promissory notes issued in 2025 are: (i) a 12-month term; (ii) interest of 10% per annum, compounded annually; and (iii) voluntary conversion during the term at a conversion price of $0.40 for each dollar of principal amount. The associated warrants are exercisable for a period of 5 years from the issuance date, for an aggregate of up to 5,093,750 shares at an exercise price of $0.50.
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For the three months ended March 31, 2024, net cash provided by financing activities consisted of $165,000 proceed from issuance Series C Preferred Stock.
Contractual Obligations
Convertible notes
In third and fourth quarter 2024 and first quarter 2025, the Company entered into thirty-one (31) subscription agreements for convertible notes ($3,371,000) and warrants (4,213,750 shares of common stock). The material terms of this convertible note indebtedness are, (i) a 12-month maturity; (ii) 10% interest per annum, capitalized on the maturity date; (iii) conversion rights in the amount of the principal, either (x) divided by 0.40 or (y) a 30% discount to the price sale of its Common Stock pursuant to a registration statement filed with the SEC and listing of the Common Stock on national securities exchange; and (iv) warrant coverage for five years at the rate of 1.25 shares of Common Stock for each dollar of principal, at an exercise price of $0.50 per share.
Convertible notes – related party
On December 31, 2024, the Company issued convertible note of $577,000 to a related party, in exchange for the amount due to related party. The convertible note has a term of twelve (12) months, at an interest rate of 10% per annum. The outstanding principal amount of convertible note and unpaid interest is convertible at a fixed conversion price of $0.36.
In February 2025, the Company entered into one (1) subscription agreement for convertible notes ($2,000,000) and warrants (2,500,000 shares of common stock) with a related party. The convertible note has a term of twelve (12) months, at an interest rate of 10% per annum and warrants are with a term of five (5) years, at exercise price of $0.50 per share. The outstanding principal amount of convertible notes and unpaid interest is convertible at a fixed conversion price of $0.40. The obligations of the Company under the convertible note are secured by a pledge of the Company’s membership interests in MFB Ohio. In the event of a default, related party G could proceed against the equity of MFB Ohio pledged to collateralize the convertible note. MFB Ohio owns the Company’s intellectual property portfolio.
Lease Agreements
The Company has one lease classified as an operating lease for an office and warehouse purpose. The following table outlines maturities of our lease liabilities as of March 31, 2025:
Year ending December 31, |
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|
| |
2025 (remaining four months) |
| $ | 29,064 |
|
Thereafter |
|
| - |
|
|
|
| 29,064 |
|
Less: Imputed interest |
|
| (234 | ) |
Operating lease liabilities |
| $ | 28,830 |
|
Going Concern
The accompanying unaudited consolidated financial statements have been prepared (i) in accordance with accounting principles generally accepted in the United States, and (ii) assuming that the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has not generated significant income to date. The Company is subject to the risks and uncertainties associated with a business with no substantive revenue, as well as limitations on its operating capital resources. These matters, among others, raise substantial doubt about the ability of the Company to continue as a going concern. These financial statements do not include any adjustments to the amounts and classification of assets and liabilities that may be necessary should the Company be unable to continue as a going concern. In light of these matters, the Company’s ability to continue as a going concern is dependent upon the Company’s ability to raise capital and generate revenue and profits in the future.
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Contingencies
Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. In consultation with its legal counsel as appropriate, our management assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against us or unasserted claims that may result in such proceedings, we, in consultation with legal counsel, evaluates the perceived merits of any legal proceedings or unasserted claims, as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in our financial statements. If the assessment indicates a potentially material loss contingency is not probable, but is reasonably possible, or is likely, but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed.
Critical Accounting Estimates
Our unaudited consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”), which require management to make estimates, judgments and assumptions that affect the amounts reported in our unaudited consolidated financial statements and accompanying notes. We believe our most critical accounting estimates relate to the following:
| · | Fair Value of Convertible Notes |
| · | Fair Value of Warrant to Purchase Common Stock |
While our estimates and assumptions are based on our knowledge of current events and on actions we may undertake in the future, actual results may ultimately differ from these estimates and assumptions. For a discussion of the Company’s significant accounting policies, refer to Note 2 of Notes to Unaudited Consolidated Financial Statements.
Fair Value of Convertible Notes
The Company determined that the conversion feature, embedded in convertible notes, met the definition of a liability in accordance with ASC Topic No. 815-40, Derivatives and Hedging - Contracts in Entity's Own Stock and therefore bifurcated the embedded conversion option once the note become convertible and accounted for it as a derivative liability. The fair value of the conversion feature was recorded as a debt discount and “day 1” derivative loss for the excess amount of debt discount and amortized to interest expense over the term of the note.
For the conversion feature classified as a liability, the Company uses a Binomial Lattice valuation model to value the derivative instrument at inception and on subsequent valuation dates. The use of this valuation model requires the input of highly subjective assumptions. Any change to these inputs could produce significantly higher or lower fair value measurements.
Fair Value of Warrant to Purchase Common Stock
The Company has issued warrants to investors in our debt offerings.
We evaluate all warrants issued to determine the appropriate classification under ASC 480 and ASC 815. In addition to determining classification, we evaluate these instruments to determine if such instruments meet the definition of a derivative.
For warrants that are determined to be equity-classified, we estimate the fair value at issuance and record the amounts to additional paid in capital (potentially on a relative fair value basis if issued in a basket transaction with other financial instruments). Warrants that are equity-classified are not subsequently remeasured unless modified or required to be reclassified as liabilities. The classification of all outstanding warrants, including whether such instruments should be recorded as equity, is evaluated at the end of each reporting period.
The warrants are valued using a Black Scholes valuation model. The use of this valuation model requires the input of highly subjective assumptions. Any change to these inputs could produce significantly higher or lower fair value measurements.
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Off-balance sheet arrangements
We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to stockholders.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
As a “smaller reporting company”, we are not required to provide the information required by this Item.
Item 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
Our management is responsible for establishing and maintaining a system of disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) that is designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management, including its principal executive officer or officers and principal financial officer or officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.
An evaluation was conducted under the supervision and with the participation of our management of the effectiveness of the design and operation of our disclosure controls and procedures as of March 31, 2025. Based on that evaluation, our management concluded that our disclosure controls and procedures were not effective as of such date to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms as a result of the following material weaknesses: (1) lack of a functioning audit committee, (2) lack of a majority of outside directors on our Board of Directors, resulting in ineffective oversight in the establishment and monitoring of required internal controls and procedures; (3) inadequate segregation of duties consistent with control objectives; and (4) management consists of only six (6) individuals which may result in control deficiencies and the absence of sufficient other mitigating controls.
A “material weakness” is a deficiency, or combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of the Company’s annual or interim financial statements would not be prevented or detected on a timely basis.
Changes in Internal Controls
There has been no change in the Company’s internal control over financial reporting during the three months ended March 31, 2025 that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting. Management will continue to monitor and evaluate the effectiveness of our internal controls and procedures over financial reporting on an ongoing basis and is committed to taking further action and implementing additional improvements as necessary.
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| Table of Contents |
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
From time to time, we may be involved in various claims and legal proceedings relating to claims arising out of our operations. We are not currently a party to any legal proceedings that, in the opinion of our management, are likely to have a material adverse effect on our business, financial condition, and results of operations. Regardless of outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors.
Item 1A. Risk Factors
As a “smaller reporting company,” we are not required to provide the information required by this Item.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
During the three months ended March 31, 2025, the Company issued 225,000 shares of Series C Preferred Stock as follow;
| ● | 47,500 shares issued to our four (4) employees for compensation valued at $665,000. |
| ● | 27,500 shares to two (2) investors for proceeds of $165,000 |
| ● | 150,000 issued to TC Special Investments, LLC for compensation, valued at $2,100,000. |
During the three months ended March 31, 2025, the Company issued 15,536,620 shares of Common Stock as follow:
| ● | 15,536,620 issued to twenty-six (26) investors upon conversion of 776,831 shares of Series C Convertible Preferred Stock. |
Item 3. Defaults Upon Senior Securities
None.
Item 4. Mine Safety Disclosures
Not Applicable.
Item 5. Other Information
None.
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Item 6. Exhibits
Exhibit Number | Description | |
Rule 13a-14(a) / 15d-14(a) Certification of Chief Executive Officer. | ||
| Rule 13a-14(a) / 15d-14(a) Certification of Chief Financial Officer. | |
| Section 1350 Certifications of Chief Executive Officer and Chief Financial Officer. | |
101* |
| Inline XBRL Document Set for the condensed financial statements and accompanying notes in Part I, Item 1, “Financial Statements” of this Quarterly Report on Form 10-Q. |
104* |
| Inline XBRL for the cover page of this Quarterly Report on Form 10-Q, included in the Exhibit 101 Inline XBRL Document Set. |
________
* Filed herewith.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
General Enterprise Ventures, Inc. | |||
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| |
Dated: May 20, 2025 | By: | /s/ Nanuk Warman | |
| Nanuk Warman | ||
| Chief Financial Officer | ||
| 37 |
EXHIBIT 31.1
CERTIFICATION
I, Theodore Ralston, certify that:
| 1. | I have reviewed this quarterly report on Form 10-Q of General Enterprise Ventures, Inc.; |
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| 2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
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| 3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report; |
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| 4. | The Registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have: |
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| (a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
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| (b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
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| (c) | Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
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| (d) | Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and |
| 5. | The Registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions): |
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| (a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and |
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| (b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting. |
Date: May 20, 2025
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| By: | /s/ Theodore Ralston |
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| Theodore Ralston |
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| Chief Executive Officer |
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EXHIBIT 31.2
CERTIFICATION
I, Nanuk Warman, certify that:
| 1. | I have reviewed this quarterly report on Form 10-Q of General Enterprise Ventures, Inc.; |
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| 2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
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| 3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report; |
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| 4. | The Registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have: |
|
| (e) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
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| (f) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
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| (g) | Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
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| (h) | Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and |
| 5. | The Registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions): |
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| (c) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and |
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| (d) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting. |
Date: May 20, 2025
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| By: | /s/ Nanuk Warman |
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| Nanuk Warman |
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| Chief Financial Officer |
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EXHIBIT 32.1
CERTIFICATIONS OF CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER
PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
I, Theodore Ralston, certify, as of the date hereof, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report of General Enterprise Ventures, Inc. on Form 10-Q for the period ended March 31, 2025 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in such Form 10-Q fairly presents in all material respects the financial condition and results of operations of General Enterprise Ventures, Inc. at the dates and for the periods indicated.
Date: May 20, 2025
| By: | /s/ Theodore Ralston |
| |
| Theodore Ralston |
| ||
| Chief Executive Officer |
|
I, Nanuk Warman, certify, as of the date hereof, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report of General Enterprise Ventures, Inc. on Form 10-Q for the period ended March 31, 2025 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in such Form 10-Q fairly presents in all material respects the financial condition and results of operations of General Enterprise Ventures, Inc. at the dates and for the periods indicated.
Date: May 20, 2025
| By: | /s/ Nanuk Warman |
| |
| Nanuk Warman |
| ||
| Chief Financial Officer |
|