MMEX Resources Corporation reported a QQ1 2025 period with significant negative profitability and an overwhelmed balance sheet. Net income of -$455,222 and EBITDA of -$355,961 accompany operating expenses of $365,058 and a cost of revenue of $9,097, yielding a gross loss of -$9,097. Operating cash flow was -$107,514, while financing activities contributed +$106,876, leaving the company with a net cash decrease of $638 and an ending cash balance of $260. The current ratio is effectively 0.00, and short-term debt stands at $2.1618 million against current assets of only $3.76 thousand, highlighting an acute liquidity squeeze. Total liabilities of $5.2657 million dwarf reported assets of approximately $1.036 million, and equity is negative (-$4.2395 million), signaling substantial balance sheet fragility.
Management has articulated a longer-term transition strategy around solar-powered modular refineries, green/blue hydrogen production, and carbon capture with optional hydrogen conversion to ammonia or methanol. While these strategic initiatives could unlock meaningful upside over time, the QQ1 2025 results underscore a near-term investment risk due to limited revenue visibility, ongoing capex needs, and an outsized debt burden. Investors should weigh the potential upside of the energy-transition thesis against the immediate liquidity hazards and negative equity trajectory. The lack of disclosed quarterly revenue in QQ1 2025 further complicates the near-term profitability outlook, making the path to sustained cash flow contingent on external financing, project milestones, and strategic partnerships.