Cyber App Solutions Corp., a company specializing in helium production and CO2 removal technologies, has released its Form 10-Q report for the first quarter of 2024. The report highlights significant developments in both financial performance and business operations, driven by the startup of its first helium plant and participation in a major U.S. Department of Energy program.
Financial Highlights
- Helium revenue: $0.222 million, attributed to the completion and startup of the first helium plant in the St. Johns Field during the third quarter of 2023.
- Net loss from operations: $(1.826) million, an increase due to higher operating expenses, including general and administrative expenses and gathering and processing expenses.
- Net loss: $(2.312) million, a decrease compared to the previous year due to a reduction in event of default fees and an unrealized gain on the fair value of notes payable.
- Net loss per share of common stock outstanding - Basic and Diluted: $(0.03), an improvement compared to the previous year due to a decrease in net loss.
Business Highlights
- Revenue Segments: The company reported helium revenue of $222,088 for the three months ended March 31, 2024, marking a significant increase due to the completion and startup of its first helium plant in the St. Johns Field during the third quarter of 2023.
- Sales Units: Approximately 459 thousand cubic feet of helium were sold during the three months ended March 31, 2024, compared to none in the same period in 2023, indicating a successful ramp-up in production capabilities.
- New Production Launches: The first helium plant in the St. Johns Field commenced operations in the third quarter of 2023, contributing to the company's ability to generate revenue from helium sales.
- Operational Challenges: The company faced mechanical issues and design limitations at its helium plant, resulting in inefficient operations and lower helium recovery rates, which have impacted revenue generation and led to recurring losses.
- Future Outlook: The company is evaluating optimization projects and upgrades at the helium plant to improve helium recovery rates and operational reliability. Additionally, it plans to focus on plant designs that will allow for continued development of helium reserves while also developing CO2 reserves.
- U.S. Department of Energy Program: The company is part of a consortium selected to receive an approximately $11.6 million grant from the U.S. Department of Energy to develop the Southwest Regional Direct Air Capture Hub, which aims to advance CO2 removal technologies.
SEC Filing: