Greenwave Technology pares back losses in Q3

Greenwave Technology Solutions Inc., which operates about a dozen metals recycling facilities in the Carolinas, Virginia and Ohio under the Empire Metals name, has reported a net loss of slightly less than $4.8 million in this year’s third quarter, representing a smaller loss compared with most of its recent financial quarters.

The $4.8 million net loss is 79 percent less than the net loss of almost $16.5 million Greenwave experienced a year ago. The company’s operating loss figure also narrowed by 67 percent compared with one year ago, falling from nearly $13.5 million in the third quarter of 2023 to about $4.4 million in the recently completed quarter.

The Chesapeake, Virginia-based firm reported revenue of $8.5 million in this year’s third quarter, up 3.9 percent from the $8.1 million in revenue garnered in last year’s third quarter.

In this year’s third quarter, Greenwave reduced its “other expenses” line item to around $360,000 compared with more than $3.6 million one year ago. The company also had a “loss on asset” charge of more than $9.8 million attributed to last year’s third-quarter financials.

Greenwave’s third-quarter 2024 Form 10-Q filed with the Securities and Exchange Commission continues to include comments referring to the uncertainty of its overall condition.

“As of Sept. 30, 2024, the company had cash of $15,199,655 and working capital (current assets in excess of current liabilities) of $6,766,724,” a note accompanying Greenwave's financial report reads. “The accumulated deficit as of Sept. 30, 2024, was $477,931,850. These conditions raise substantial doubt about the company’s ability to continue as a going concern for one year from the issuance of the unaudited condensed consolidated financial statements.

“If the company raises additional funds by issuing equity securities, its stockholders would experience dilution. Additional debt financing, if available, may involve covenants restricting its operations or its ability to incur additional debt. Any additional debt financing or additional equity that the company raises may contain terms that are not favorable to it or its stockholders and require significant debt service payments, which diverts resources from other activities.”