CitroTech (CITR) Registration filing summary

Company overview and business model

• Operates as an environmentally sustainable flame retardant and suppression company targeting the residential and commercial construction markets in the U.S. and Canada.

• Core products include CitroTech fire retardants, with applications in wildfire defense and lumber treatment, made from food-grade, renewable ingredients.

• Holds 30 granted patents and 26 pending patents, with 21 trademarks, and is the only EPA Safer Choice approved long-term fire retardant in the U.S.

• Revenue model includes direct sales to homeowners, developers, fire departments, and insurance partnerships for wildfire defense systems.

• Acquired Mighty Fire Breaker, LLC’s intellectual property in 2022, including a 10% royalty on gross sales to the seller.

Financial performance and metrics

• As of September 30, 2024, reported $738,729 in revenue and a net loss of $5,082,352 for the nine months ended September 30, 2024.

• Fiscal year 2023 revenue was $520,645 with a net loss of $10,102,266; 2022 revenue was $62,732 with a net loss of $2,907,828.

• Operating expenses decreased in 2024 due to lower stock-based compensation and professional fees.

• Current assets as of September 30, 2024, were $1,110,368; current liabilities were $2,113,132, resulting in a working capital deficiency.

• Highly leveraged with $2,042,209 in outstanding indebtedness as of September 30, 2024, including $1,121,000 in convertible notes.

Use of proceeds and capital allocation

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

• If proceeds are insufficient, management will re-evaluate and adjust the budget to meet contingencies.