CitroTech (CITR) Registration filing summary

Company overview and business model

• Operates as an environmentally sustainable flame retardant and suppression company, focusing on the residential home industry in the U.S. and international markets.

• Main product, CitroTech, is an all-green fire retardant with multiple EPA and UL certifications, targeting markets previously dominated by toxic alternatives.

• Holds 30 granted patents and 26 pending patents, with 21 trademarks and various copyrights, supporting a portfolio of fire suppression, mapping, and tracking technologies.

• Distribution includes direct shipping from California, drop shipping via toll blenders, and availability at regional retailers.

• Revenue streams include direct sales to fire departments, commercial customers, and partnerships with insurance companies for wildfire defense systems.

Financial performance and metrics

• For the six months ended June 30, 2024: revenue was $631,687, operating expenses $4,175,637, and net loss $4,427,114.

• For the year ended December 31, 2023: revenue was $520,645, operating expenses $10,618,583, and net loss $10,102,266.

• As of June 30, 2024: current assets $1,435,644, current liabilities $2,131,001, accumulated deficit $73,910,780, and stockholders' equity $3,216,346.

• Company has a history of operating losses and negative cash flows, with a going concern qualification from auditors.

• Working capital deficiency as of June 30, 2024 was $695,357, with $1,251,257 owed to related parties.

Use of proceeds and capital allocation

• Net proceeds from the IPO are expected to be used for general and administrative expenses, production and inventory, and marketing.

• Management has broad discretion over the use of proceeds, which may be adjusted if the offering does not provide sufficient funds.