Business Overview
Cyber Enviro-Tech, Inc. is an environmental technology company focused on sustainable remediation solutions for contaminated industrial wastewater, primarily in the oil and gas sector, with operations in Arizona, Turkey, and the UAE. The company has entered into a manufacturing and distribution agreement with Air Power USA to commercialize zero-emission, compressed air energy systems for off-grid applications. During Q1 2026, the company discontinued its subsidiary Axenic operations and raised capital through equity issuances while incurring significant non-cash derivative liabilities.
Segment Performance
The company does not report separate business segments in this filing. Consolidated operating expenses decreased to $413,290 in Q1 2026 from $884,957 in Q1 2025, primarily due to lower consulting fees ($176,534 vs. $515,189). However, other expense increased substantially to $1.65 million in Q1 2026 from $181,850 in Q1 2025, driven by loss on issuance of derivatives of $1.09 billion and change in fair value of derivatives of $366,009. The subsidiary Axenic reported discontinued operations loss of $81,274 in Q1 2026 before being written off at year-end 2025.
Key Risk Factors
The company faces substantial financial distress with a stockholders' deficit of $4.3 million as of March 31, 2026, coupled with derivative liabilities of $3.0 million that increased significantly during the period. Operating losses continue to mount, with net loss of $2.1 million for Q1 2026 versus $1.1 million in Q1 2025, driven largely by non-cash derivative valuation adjustments totaling $1.1 billion in losses. The company's ability to continue as a going concern may be at risk given the substantial accumulated deficit of $22.8 million and ongoing operating losses without significant revenue generation. Significant debt obligations including convertible notes payable totaling $2.6 million in current maturities create refinancing risk and dilution pressure on existing shareholders.
