Olenox Industries Inc.

What they do

Olenox manufactures modular structures, primarily from code-engineered cargo shipping containers, for residential, commercial, industrial and military uses. It also provides turnkey remote monitoring for oil and gas operations through its Machfu IoT unit, operates oil and gas wells in multiple U.S. states and Canada, and offers renewable energy and on-site environmental services. The company has operated four reporting segments since its February 2025 merger with New Asia Holdings and its December 2025 acquisition of Giant Containers Inc.

Revenue drivers

• Construction Services — Modular structures built from shipping containers and purpose-built steel or wood modules; generated $2,286,494 of 2025 revenue, or about 77% of the total, but revenue fell 54% year over year.
• Technology (Machfu) — Turnkey IoT remote monitoring for oil and gas and similar applications; contributed $377,617 in 2025, its first full year in the segment, and recorded a $974,309 operating loss.
• Oil & Gas — Wells in multiple U.S. states and Canada; generated $288,467 in 2025, also its first year in the segment, against a $2,759,937 operating loss.
• Environmental Services — Renewable energy and on-site services for the oil and gas industry; named as the fourth segment in the 10-K but no separate 2025 revenue figure was disclosed in the MD&A tables.

Recent performance

Full-year 2025 revenue was $2,952,578, down 41% from $4,976,618 in 2024, with the decline attributed to a 2025 restructuring. Operating loss widened 45% to $14,068,341 from $9,706,615, while net loss attributable to common stockholders was $18,820,190 versus $22,601,278 in 2024. Other income of $4,751,849 in 2025 included a $2,000,000 legal settlement gain and derivative fair-value gains, partly offset by a $4,648,282 loss on debt extinguishment and a $4,275,231 loss on initial recognition of embedded derivatives. Operating cash use was $7,836,959 in 2025, and the company ended the year with $427,866 of cash and cash equivalents. The latest 10-Q shows quarterly revenue of $285,313 in the March 2026 quarter and $2.1M in the June 2026 quarter, with total assets of $64.2M, liabilities of $44.8M and equity of $19.4M at June 30, 2026.

Strategy

The company's stated direction is built around the February 2025 merger with New Asia Holdings and the December 2025 acquisition of Giant Containers Inc., which it describes as a leading global manufacturer of modular structures using shipping containers. It markets modular construction on claims of speed, quality and environmental benefits, including up to 50% faster time to market, and has pivoted residential construction away from an earlier royalty-license model. Management says it will seek additional debt or equity financing to cover cash shortfalls and has already issued various debt instruments. It also states it will curtail expenses and may reduce operating expenses if revenue does not increase. No specific revenue or margin targets were provided in the excerpts.

Risks

• Going concern — Management states that negative operating cash flows have raised substantial doubt about the company's ability to continue as a going concern.
• Liquidity and financing dependence — With only $427,866 of cash at December 31, 2025, the company has deferred payments to vendors and suppliers and depends on continued debt or equity financings.
• Construction concentration and decline — Construction Services produced about 77% of 2025 revenue and fell 54% year over year, so a further decline would disproportionately hit total revenue.
• Accounting and listing issues — Since the last 10-K the company disclosed that previously issued financials are not reliable, changed accountants, received a delisting notice, and entered new material agreements and obligations.

Outlook

Management says its operations for 2025 may not be indicative of future operations and that it is attempting to curtail expenses. It states that if revenue does not increase it will face cash shortfalls and may be forced to reduce operating expenses, with a material adverse effect on operations. The company says it will also seek debt or additional equity financing to meet cash shortfalls. No forward revenue, profit or cash flow guidance was provided in the excerpts.