10-K: NEXT-ChemX Corporation Faces Financial Hurdles in Pursuit of iTDE Technology Commercialization

Sentiment:

Annual Report 30 April 2025 4:54 PM

NEXT-ChemX Corporation's 2024 annual report reveals ongoing financial challenges and operational delays as it strives to commercialize its innovative iTDE technology.

Delay expectedThe report is late in filing.The financial statements that form part of the present 2024 Annual Report on Form 10-K for the period covering fiscal year 2024 (the 2024 10-K or the Report) have not been audited by our registered public accounting firm.The Company continues to work with Fruci & Associates to carry out the reviews of the quarterly reports for the first, second and third quarters of 2024 as well as the auditing of this present Report.

Capital raiseThe Company believes that an effective equity offering may be priced at levels below the current share trading price given that any release of large blocks of shares onto the market results in a severe depression of the share price.A realistic offering price will consider the need to raise significant amounts that will be impossible without taking this into account.This may have a significant impact on the Companys share price.

Worse than expectedThe company has no revenues and is operating with insufficient funding.The company has a significant working capital deficit of $3,866,262.The financial statements included in the report have not been audited by the company's registered public accounting firm.Management has concluded that the company's disclosure controls and procedures were not effective in providing reasonable assurance that the information required to be disclosed in the company's reports filed or submitted under the Exchange Act was recorded, processed, summarized and reported within the time periods specified in the Commissions rules and forms.

Summary

NEXT-ChemX Corporation's 2024 annual report highlights the company's efforts to commercialize its iTDE technology, primarily for lithium extraction.
The company experienced a net loss of $1,814,326 in 2024, compared to $2,511,013 in 2023.
The company has no revenues and is operating with insufficient funding, leading to deferred payments to employees and consultants.
NEXT-ChemX is focusing on the development of its CPiTDE system, with plans for a commercial pilot plant in 2025.
The company is pursuing partnerships, including a joint venture with Clontarf Energy plc for lithium extraction in Bolivia.
The report identifies several risks and uncertainties, including the need for additional funding, competition, and potential regulatory issues.
The financial statements included in the report have not been audited by the company's registered public accounting firm.
Management has concluded that the company's disclosure controls and procedures were not effective in providing reasonable assurance that the information required to be disclosed in the company's reports filed or submitted under the Exchange Act was recorded, processed, summarized and reported within the time periods specified in the Commissions rules and forms.

Sentiment

Score: 3

Explanation: The document presents a concerning financial situation with no revenue, significant debt, and a going concern warning. While there are some positive developments in technology and partnerships, the overall outlook is negative due to the company's financial instability and operational delays.

Positives

The company is making progress in the design and construction of its CPiTDE system.
The company has secured a research grant to develop new membranes and environmental technologies.
The company has a partnership with Clontarf Energy plc for lithium extraction in Bolivia.
The company is exploring opportunities for extracting other high-value minerals.
The company's net loss decreased in 2024 compared to 2023.

Negatives

The company has no revenues and is operating with insufficient funding.
The company has a significant working capital deficit of $3,866,262.
The company has contracted significant debt from the rescheduling of payments to employees and consultants as well as from financing provided by certain non-related shareholders that have funded operations through loans and convertible loans.
The financial statements included in the report have not been audited by the company's registered public accounting firm.
Management has concluded that the company's disclosure controls and procedures were not effective in providing reasonable assurance that the information required to be disclosed in the company's reports filed or submitted under the Exchange Act was recorded, processed, summarized and reported within the time periods specified in the Commissions rules and forms.

Risks

The company's ability to continue as a going concern is dependent on securing additional funding.
The company faces competition from other direct lithium extraction technologies.
The company's operations in India are subject to various risks associated with the Indian business environment.
The company's business plan could be impacted by events in Ukraine and the Middle East.
The company is susceptible to cybersecurity incidents and data misuse.
The company's progress could be delayed by regulatory issues and potential changes in laws.
The company's operations could be disrupted by future pandemics or similar crises.
The company's increased focus on India as a location for its operations brings with it a number of risks associated with the Indian business environment and its geopolitical situation.

Future Outlook

The company plans to deploy its CPiTDE System units with customers that have the necessary facilities to accommodate such units and expects to complete testing on actual brine samples from more than one of the brine sites in Bolivia using the CPiTDE Pilot System during fiscal year 2025.

Management Comments

Management considers it essential that during fiscal year 2025, an accommodation is found with its shareholder debtors to convert or repay their debt in order that the other significant debts to employees, consultants and professionals can be deferred.
Management believes that the Companys cash on hand will not be sufficient to fund all Company obligations and commitments for the next twelve months.

Industry Context

The company operates in the direct lithium extraction (DLE) technology sector, which is gaining traction due to increasing environmental concerns associated with traditional evaporation ponds. The company believes its system is inherently more energy efficient and more environmentally friendly than all other currently known or proposed extraction systems.

Comparison to Industry Standards

The company competes with several DLE technology companies, including Lilac Solutions, Sunresin, Standard Lithium, International Battery Metals, Koch Technologies/Membranes, and EnergyX Technologies.
Lilac Solutions developed ion exchange resins and has made a pilot plant that is being tested by Lake Resources in Argentina with claims of success.
Sunresin a Chinese company has developed ion exchange resins that they claim are deployed at a site in China.
Standard Lithium affiliated with an existing bromine producer from brines in Arkansas, has acquired an absorption on sorbents technology which it uses in combination with other technologies.
International Battery Metals appears to be using an ion exchange resin process in combination with reverse osmosis.
Koch Technologies/Membranes appears to be using a reverse osmosis plus a sorption process.
EnergyX Technologies initially claimed to develop a Metal Organic Framework membranes, tailored to allow selective lithium transport, however recently, they are describing another combination of technologies which they are using in their tests.

Management Changes

Role	Previous Person	New Person	Effective Date	Reason
Corporate Secretary	Mr. Majendie	NA	January 2024	Resignation

Legal Proceedings

The Company is involved in legal proceedings related to a Turnover Order requiring the transfer of its common shares.
The Company intends to take action against Sparkie and its Director for disruption of its business, tortuous interference.
Innovation News Network has threatened the Company with litigation and appointed a collection agent to recover the funds.

Related Party Transactions

The company has relied on advances from related parties, including directors and officers, to fund its operations.
Certain key executives owed more than $50,000 in salary remuneration, having contributed significantly to the success of the Company by foregoing immediate payment of all or part of such remuneration, have been granted the right to receive the full amount of any back salary remuneration multiplied by 3 1/3 in the event that there is a change of control of the Company.

Stakeholder Impact

Shareholders face significant risks due to the company's financial instability and potential dilution from future capital raises.
Employees and consultants are impacted by deferred payments and potential job insecurity.
Customers may face uncertainty regarding the company's ability to deliver its technology and services.
Creditors face the risk of non-payment due to the company's financial difficulties.

Next Steps

Complete the audit of the 2024 financial statements.
Continue development and testing of the CPiTDE system.
Secure additional funding to support operations and commercialization efforts.
Advance the partnership with Clontarf Energy plc for lithium extraction in Bolivia.
Address the material weaknesses in internal control over financial reporting.

Key Dates

Date	Description
2014-08-13	NEXT-ChemX Corporation was organized as a Nevada corporation.
2018-12	WeWin Group Corp became AllyMe Group, Inc.
2021-04-26	Change of control in which the previous majority shareholder of the Company, sold 8,618,000 shares of common stock of the Company to Arastou Mahjoory and Kenneth Mollicone.
2021-04-27	The Company entered into an Asset Purchase Agreement with NEXT-ChemX Corporation (Private) to acquire intellectual property assets.
2021-06-16	The Companys Board of Directors approved the change of name from AllyMe Group Inc. to NEXT-ChemX Corporation.
2021-07-22	Approval for the name change was granted by FINRA.
2021-07-30	The Company began trading under the new trading symbol CHMX.
2023-03-27	Partnership Agreement signed between the Company and Clontarf Energy plc.
2024-02-21	The Company formed a partnership company as a Nevada LLC with Clontarf Energy plc.
2024-02-29	Seven senior employees and consultants of the Company agreed to defer payment of outstanding amounts owing to them on certain modified terms (Debt Extension Agreements).
2024-03-04	Clontarf submitted the qualification materials for the partnership to the Pblica Nacional Estratgica Yacimientos de Litio Bolivianos (YLB) in relation to the Call for Bids (convocatoria) for the seven priority salares (salt pans) in Southern Bolivia.
2024-04-26	Judge Elizabeth Leonard of the Midland County District Court in Midland, Texas entered a Third Turnover Order (the Turnover Order) requiring the Company to turn over 15,866,096 of its common shares.
2024-05-03	The Company was made aware that its former auditor had been denied the privilege of appearing or practicing before the Securities and Exchange Commission (the SEC) as an accountant.
2024-05-14	The YLB confirmed Clontarf in the partnership with the Company as one of the twenty-one approved companies moving into phase three of the convocatoria process.
2024-05-15	The Company appointed a new registered public accounting firm: Fruci & Associates II PLLC, Certified Public Accountants based in Spokane, Washington (Fruci & Associates) as its new Auditors.
2024-07-01	By signature of an addendum with each of the signatories of the Debt Extension Agreements, the said agreements shall only enter into force on the first date following May 30, 2025 on which the total debt of the Company outstanding to any listed shareholders of NCX who are not employees of NCX has been either converted to shares of common stock of NCX, or paid in full, or forgiven.
2024-10-24	The Company awarded a Research Grant (October Research Grant) to the Department of Chemical Engineering of the BITS Pilani K K Birla Goa Campus, an Indian Campus of Birla Institute of Technology and Sciences, based in South Goa, India (BITS) for the Development of Next-Generation Energy Technologies.
2024-12-07	The Company signed a Sponsored Research Agreement with BITS setting out the cooperation between BITS and the Company in relation to work to be carried out under the October Research Grant.
2025-04-28	The Company filed its revised and reaudited Annual Report on Form 10-K/A for the period covering fiscal year 2023 (2023 10-K/A).
2025-04-30	Date of report.

Keywords

iTDE Technology, Lithium Extraction, CPiTDE System, NEXT-ChemX, Financial Results, Direct Lithium Extraction, Bolivia, Clontarf Energy, Convertible Notes, Going Concern

Disclaimer:The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.