EPS of $-0.02 decreased by 35.3% from previous year
Net income of -1.17M
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Bion Environmental Technologies Inc (BNET) QQ1 2025 Results – Industrial Pollution Treatment Controls: Large OpEx, No Revenue Yet, Negative Equity and Tight Liquidity
Executive Summary
Bion Environmental Technologies reported QQ1 2025 results with no revenue disclosed for the quarter, continuing meaningful operating losses and a challenging liquidity position. Net income of approximately -$1.172 million and EBITDA of about -$0.966 million underscore the company’s ongoing high fixed-cost base amid no top-line contribution in the period. Operating cash flow was negative at -$0.218 million, and free cash flow matched this cash burn, while stock-based compensation (approximately $0.665 million) contributed to non-cash expense and further pressured near-term profitability.
The company remains in a development and commercialization phase, focusing on retrofitting CAFOs, licensing, and joint ventures. The balance sheet shows a precarious liquidity profile: cash of about $0.036 million versus short-term debt of roughly $2.367 million and total current liabilities around $6.094 million, yielding an extremely tight current ratio (~0.017x). Negative retained earnings (~$140.099 million) and a negative stockholders’ equity position (~$6.134 million) highlight sustainability risk absent a material revenue uplift or strategic financing. The absence of an earnings call transcript limits visibility into near-term guidance; investors should monitor any updates on pilot deployments, licensing agreements, and financing actions that could alter the company’s path to cash flow break-even. In the near term, the investment thesis hinges on successful monetization opportunities and the ability to secure strategic partnerships that translate IP into revenue.
Key Performance Indicators
Operating Income
-966.06K
QoQ: -341.52% | YoY:-43.12%
Net Income
-1.17M
QoQ: 87.91% | YoY:-57.15%
EPS
-0.02
QoQ: 88.50% | YoY:-35.29%
Revenue Trend
Margin Analysis
Key Insights
Revenue: None reported for QQ1 2025 (no revenue figure populated in the data). This absence drives the lack of gross profit and makes profitability highly contingent on cost management and potential licensing/technology deployment monetization.
Gross Profit / Gross Margin: Not reported (grossProfit = null). Given the revenue absence, gross margin cannot be assessed.
Operating Income: -$966,062. YoY change: -43.12%. QoQ change: -341.52%.
- Interpretation: The company remains in operating loss territory with no revenue contribution during QQ1 2025, and the QoQ deterioration reflects continued fixed-cost absorption without scale benefits.
EBITDA: -$965,759. YoY data not provided; QoQ comparison not provided. Note: depreciation and amortization (285) is minimal in the quarter; stock-based compensation (664,603) is a material non-cash item that affects reported profitability.
Net Income: -$1,171,636. YoY change: -57.15%. QoQ change: +87.91%.
- Interpretation: The bottom line improved QoQ in the sense of a smaller loss relative to the prior quarter’s large impairment/expense stride, but remains deeply negative due to ongoing operating losses and high non-cash charges.
Financial Highlights
Overview of QQ1 2025 financials with YoY and QoQ context where available:
- Revenue: None reported for QQ1 2025 (no revenue figure populated in the data). This absence drives the lack of gross profit and makes profitability highly contingent on cost management and potential licensing/technology deployment monetization.
- Gross Profit / Gross Margin: Not reported (grossProfit = null). Given the revenue absence, gross margin cannot be assessed.
- Operating Income: -$966,062. YoY change: -43.12%. QoQ change: -341.52%.
- Interpretation: The company remains in operating loss territory with no revenue contribution during QQ1 2025, and the QoQ deterioration reflects continued fixed-cost absorption without scale benefits.
- EBITDA: -$965,759. YoY data not provided; QoQ comparison not provided. Note: depreciation and amortization (285) is minimal in the quarter; stock-based compensation (664,603) is a material non-cash item that affects reported profitability.
- Net Income: -$1,171,636. YoY change: -57.15%. QoQ change: +87.91%.
- Interpretation: The bottom line improved QoQ in the sense of a smaller loss relative to the prior quarter’s large impairment/expense stride, but remains deeply negative due to ongoing operating losses and high non-cash charges.
- Earnings Per Share (EPS): -$0.0207. YoY change: -35.29%. QoQ change: +88.50%.
- Cash Flow highlights: Net cash from operating activities -$217,806; free cash flow -$217,806; operating cash flow is negative due to the loss and working capital dynamics.
- Balance sheet and liquidity:
- Cash and cash equivalents: $35,970
- Total current liabilities: $6,094,530; short-term debt: $2,366,747
- Total debt: $2,494,205; net debt: $2,458,235
- Total assets: $124,957; total stockholders’ equity: -$6,134,604; retained earnings: -$140,099,414
- Current ratio: 0.017x; quick ratio: 0.017x; cash ratio: 0.0059x
- Interpretation: Liquidity is severely constrained. The company carries meaningful debt and negative equity, which constrains financial flexibility and increases the risk of distress without a near-term revenue inflection.
Income Statement
Metric
Value
YoY Change
QoQ Change
Operating Income
-966.06K
-43.12%
-341.52%
Net Income
-1.17M
-57.15%
87.91%
EPS
-0.02
-35.29%
88.50%
Key Financial Ratios
currentRatio
0.02
returnOnAssets
-938%
returnOnEquity
19.1%
debtEquityRatio
-0.41
operatingCashFlowPerShare
$-0
freeCashFlowPerShare
$-0
priceToBookRatio
-1.94
priceEarningsRatio
-2.53
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Earnings transcript data not provided. No management quotes or thematic highlights are available from the QQ1 2025 materials. If/when an earnings call transcript is released, sample highlight themes could include: strategy execution on CAFO retrofits, licensing pipeline, pilot program progress, and financial runway considerations. For now, no structured transcript highlights can be generated.
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Forward Guidance
Management did not publish explicit QQ1 2025 forward guidance within the provided data. Given the financials, near-term guidance would plausibly center on monetization milestones (e.g., licensing agreements, joint ventures, and deployment milestones) and efforts to improve liquidity (fundraising, debt refinancing, or equity transactions). Industry context suggests extended sales cycles for environmental retrofit/licensing deals in the CAFO sector and sensitivity to regulatory development and farm-scale CAPEX cycles. Expected drivers to monitor:
- Progress on licensing deals or joint ventures that translate IP into revenue.
- Announced pilot installations or retrofit projects with CAFO operators.
- Updates on capital raising, debt maturities, or equity financing that could bolster liquidity.
- Any changes in regulatory incentives or environmental standards affecting CAFO waste remediation demand.
Assessment: The current QQ1 2025 numbers imply significant execution risk; the achievability of a meaningful revenue ramp will depend on securing large-scale deployments or licensing deals that can monetize IP. Investors should monitor liquidity actions and milestones tied to revenue generation.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
BNET Focus
0.00%
0.00%
19.10%
-2.53%
SSHPF
30.90%
-0.39%
-4.85%
-18.80%
EESH
95.70%
-2.00%
-21.20%
-54.35%
EAWD
0.00%
0.00%
1.10%
-3.08%
TOMZ
0.00%
0.00%
-6.65%
-16.05%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
The QQ1 2025 results underscore a highly speculative investment thesis. The company’s core challenge is converting IP into revenue while preserving liquidity. The stock trades with negative earnings and a precarious balance sheet, implying potential distress risk absent a credible path to revenue generation. Investors should consider: (1) visibility into licensing or deployment milestones and (2) the ability to secure financing to support operations until a revenue ramp materializes. A favorable outcome would require a definitive monetization plan with multiple revenue generators (licenses, retrofits, and coproduct streams) and a credible plan to restore liquidity. Until such milestones are demonstrated, the investment thesis remains high risk and highly dependent on execution in the CAFO environmental remediation space.
Key Investment Factors
Growth Potential
Growth potential hinges on monetizing Bion’s CAFO waste remediation technology through licenses, joint ventures, or retrofitted facilities. If management advances pilot projects into revenue-generating deployments and broadens licensing agreements, the company could move toward cash flow breakeven and potential scale. Additional upside could come from recognizing coproduct revenues (renewable energy, water, and nutrients) and any incremental efficiency gains from retrofits that enhance CAFO operability.
Profitability Risk
Key risks include ongoing lack of reported revenue, elevated operating losses, and severe liquidity constraints (current ratio ~0.017x). The company carries substantial debt and negative equity, creating balance-sheet fragility. Revenue cyclicality in the agribusiness/CAFO sector, competitive pressures in environmental tech, dependency on successful licensing/deployment agreements, and potential dilutive financing risk are meaningful downside considerations.
Financial Position
Balance-sheet stress is evident: cash ~$36k, total assets ~$125k, total liabilities ~$6.22M, and negative equity (~-$6.13M). Net debt ~$2.46M with operating cash flow negative by ~$0.218M in QQ1 2025. The heavy SG&A and stock-based compensation (non-cash) further erode margins. Without a material revenue line or strategic financing, liquidity risk remains elevated.
SWOT Analysis
Strengths
Patented/proprietary environmental remediation technology targeting CAFOs, with potential to recover coproducts (renewable energy, water, ammonia/nitrogen and phosphorus).
Strategic positioning toward retrofitting and licensing of existing CAFO infrastructure, offering scalable deployment opportunities if monetized.
Weaknesses
No revenue reported for QQ1 2025 and persistent operating losses.
Severe liquidity constraints with minimal cash reserves and high current liabilities.
Negative stockholders’ equity and substantial debt burden that heightens financial risk.
Opportunities
Licensing agreements and joint ventures that convert IP into recurring revenue streams.
Pilot projects and retrofits that demonstrate value and unlock broader deployment potential.
Regulatory shifts toward environmental remediation in animal agriculture could increase demand for Bion’s solutions.
Threats
Market adoption risk in a capital-intensive segment with long sales cycles.
Regulatory changes or commodity/CAFO industry cycles could affect project pipelines.
Financing risk and potential equity dilution if cash runway remains tight.