10-K: IIOT-OXYS, Inc. Files 10-K Report for Fiscal Year Ended December 31, 2024, Citing Revenue Decline and Ongoing Financial Challenges

IIOT-OXYS, Inc.'s 10-K filing reveals a decrease in revenue, a net loss, and substantial doubt about the company's ability to continue as a going concern due to limited funding and operational headwinds.

Summary

• IIOT-OXYS, Inc. reported revenues of $2,500 for the year ended December 31, 2024, a significant decrease compared to $114,666 in 2023.
• The company incurred a net loss of $764,655 for 2024, compared to a net loss of $1,136,460 in 2023.
• Operating expenses totaled $428,274 in 2024, including payroll costs of $200,000 and legal and professional fees of $147,991.
• The company has a working capital deficit of $2,477,428 and an accumulated deficit of $11,208,252 as of December 31, 2024.
• Management expresses substantial doubt about the company's ability to continue as a going concern due to ongoing operating losses and limited ability to raise funds.
• The company is exploring options including mergers or acquisitions to address financial challenges.
• The CEO and COO have not received compensation since mid-April 2023, and their salaries have accrued.
• The company secured $75,600 from equity financing of convertible preferred stock, net of $6,260 in commissions and legal fees.
• The company's common stock is quoted on the OTC Pink under the symbol ITOX.
• As of April 30, 2025, there were 560,315,293 shares of the registrant's Common Stock outstanding.

Sentiment

Score: 3

Explanation: The document presents a negative outlook due to declining revenue, significant financial challenges, and doubts about the company's ability to continue as a going concern. While there are some positive aspects, such as the decrease in net loss and potential for growth in the industry, the overall sentiment is pessimistic.

Positives

• The net loss decreased from $1,136,460 in 2023 to $764,655 in 2024.
• The company secured $75,600 in equity financing through convertible preferred stock.
• The company is actively pursuing strategic options, including mergers or acquisitions, to improve its financial position.
• The company operates in growing markets, including smart manufacturing and structural health monitoring.
• The company has valuable real-world data and AI/Machine Learning algorithms.

Negatives

• Revenue decreased significantly from $114,666 in 2023 to $2,500 in 2024.
• The company has a substantial working capital deficit of $2,477,428 and an accumulated deficit of $11,208,252.
• There is substantial doubt about the company's ability to continue as a going concern.
• The CEO and COO have not been compensated since mid-April 2023.
• The company faces significant headwinds and has not been able to raise material funds through existing financing agreements.

Risks

• The company's ability to continue as a going concern is uncertain due to ongoing operating losses and limited funding.
• The company faces significant competition from larger companies and startups in the IIoT and edge computing space.
• The company's dependence on a few major customers poses a risk.
• The company's internal control over financial reporting is not effective due to material weaknesses.
• The company is delinquent in filing its Federal and State income tax returns for the years ended December 31, 2021, 2022, 2023 and 2024.

Future Outlook

The company expects revenue to moderate in 2025 due to limited funding for sales and marketing efforts, but potential future revenue growth is possible pending adequate funding. Management is considering options including vetting suitable companies to merge with or acquire them.

Management Comments

• We expect revenue to moderate in 2025, as our ability to raise funding to fuel sales & marketing efforts has been limited.
• Potential future revenue growth is possible, pending adequate funding for sales and marketing efforts.
• Given the current challenges in raising adequate funds, management is continuing to pursue options including vetting suitable companies to merge with or acquire us.
• We believe we've created real value from our business development in these industries, which have potential for success, due to the strength of their size and growth.

Industry Context

The company operates in the smart manufacturing (Industry 4.0) and structural health monitoring (SHM) industries. The global smart manufacturing market is projected to grow to $479 billion by 2029, and the worldwide SHM industry is expected to reach $4.1 billion by 2029. The company believes its assets have potential continued annual revenue growth, that will be attractive to prospective partners interested in an acquisition or merger.

Comparison to Industry Standards

• The document does not provide enough information to compare IIOT-OXYS's results to specific industry standards or comparable companies.
• Without specific financial metrics from competitors like Siemens, PTC, IBM, GE, Amazon, Google, FogHorn Systems Inc., Tulip Interfaces, and MachineSense, a detailed comparison is not possible.
• A benchmark comparison would require data on revenue growth, profitability, and market share within the edge computing and IIoT sectors.

Related Party Transactions

• The company leases its current office facility from two stockholders on a month-to-month basis at a monthly rent of $250.
• The company executed a convertible promissory note payable with an officer and director.
• The company executed three convertible promissory notes payable to a director.

Stakeholder Impact

• Shareholders face significant risk due to the company's financial instability and potential dilution.
• Employees face uncertainty due to the company's financial challenges and potential restructuring.
• Customers may be concerned about the company's ability to continue providing products and services.
• Suppliers and creditors face increased risk of non-payment.

Next Steps

• The company is evaluating the material weaknesses in internal control and developing a remediation plan.
• Management is pursuing options including vetting suitable companies to merge with or acquire them.
• The company needs to raise additional capital to fuel sales and marketing efforts.

Key Dates

Keywords

IIOT, OXYS, 10-K, Financial Results, Edge Computing, Smart Manufacturing, Going Concern, Convertible Preferred Stock, Revenue, Net Loss