Cielo Waste Solutions (CMC) Q2 2025 earnings summary

Executive summary

• Net and comprehensive loss of $13.5M for the quarter and $15.7M for six months ended October 31, 2024, reflecting significant impairments and ongoing R&D expenses.

• No revenue generated from commercial operations; company remains pre-revenue and dependent on external financing.

• Material uncertainty exists regarding the company's ability to continue as a going concern due to accumulated losses and working capital deficit.

Financial highlights

• Net loss of $13.5M for the quarter, up from $1.4M in the same quarter last year; six-month net loss of $15.7M, up from $7.3M year-over-year.

• Impairment charges: $7.7M for property, plant, and equipment and $3.4M for intangible assets in the quarter.

• Cash and cash equivalents at $7K as of October 31, 2024, down from $420K at April 30, 2024.

• Working capital deficit of $11.1M as of October 31, 2024.

• Shareholders' equity decreased to $27.5M from $41.2M at April 30, 2024.

Outlook and guidance

• Additional capital required to fund R&D, corporate activities, and short-term debt obligations over the next year.

• Continuation as a going concern depends on support from debtholders, lenders, and new investors.

• No assurance of successful capital raising; material uncertainty remains.