Greenwave Technology Solutions(GWAV) - 2025 Q1 - Quarterly Report

Financial Performance - For the three months ended March 31, 2025, the company generated revenues of $7,333,710, a decrease of 13.77% from $8,504,777 in the same period in 2024, primarily due to a decline in metal revenue[230][231] - Gross profit increased to $3,486,663 for the three months ended March 31, 2025, up 6.81% from $3,264,261 in the same period in 2024, attributed to improved margins on hauling and metal revenue[230][232] - Operating expenses rose by 21.27% to $7,368,170 for the three months ended March 31, 2025, compared to $6,075,985 in 2024, driven by increases in payroll, advertising, and depreciation expenses[230][233][234] - The loss from operations increased to $3,881,507 for the three months ended March 31, 2025, compared to $2,811,724 in the same period in 2024, reflecting higher operating expenses[230][235] - Net loss available to common stockholders was $7,665,703 for the three months ended March 31, 2025, a significant reduction of 77.09% from $33,460,778 in the same period in 2024[230][238] - Net cash used in operating activities was $4,161,414 for the three months ended March 31, 2025, compared to $3,460,823 in the same period in 2024, driven by a net loss of $4,665,739[239] - The company experienced a decrease in hauling costs, contributing to a reduction in the cost of revenues to $3,847,047 for the three months ended March 31, 2025, down from $5,240,516 in 2024[231][232] Cash Flow and Financing - Net cash provided by financing activities increased to $7,145,205 for the three months ended March 31, 2025, compared to $2,627,882 for the same period in 2024[241] - As of March 31, 2025, the company had cash on hand of $5,501,755 and a working capital deficit of $(7,478,957)[243] - The company raised approximately $4.0 million from a registered direct offering of 68,585 shares at $58.32 per share on January 13, 2025[247] - The company has no external sources of liquidity that could affect its financial condition or access to capital[242] - Additional debt financing may involve covenants that restrict operations or incur additional debt, impacting the company's ability to raise capital[244] Compliance and Regulatory Matters - The company received a notice from Nasdaq on May 23, 2025, for failing to file its Q1 10-Q, with a compliance deadline of November 17, 2025[248] - On August 20, 2025, the company executed a reverse stock split of 1-for-110 to regain compliance with Nasdaq's minimum bid price requirement[250] - The company intends to submit a plan to Nasdaq to regain compliance, but there is no assurance of acceptance[249] Operational Developments - The company expanded operations by opening a metal recycling facility in Cleveland, Ohio, as of the second quarter of 2023, enhancing its supply chain capabilities[226] - The company aims to open a facility with rail or deep-water port access to increase revenue and profitability by expanding the number of potential buyers for processed scrap products[219] - The company processes nonferrous metals and sells recovered catalytic converters from end-of-life vehicles, contributing to its diverse revenue streams[222] - The accumulated deficit as of March 31, 2025, was $(503,978,049), raising substantial doubt about the company's ability to continue as a going concern[243] - The company has entered into several material agreements during the most recent fiscal quarter[246]