Waste Energy Corp.

What they do

The company is developing a thermal process operating in an oxygen-restricted environment to break down non-recyclable waste tires and plastics without combustion, producing tire-derived oil, recovered carbon black, recovered steel, and syngas. It also is developing a patent-pending AI-based platform for emissions monitoring, feedstock analysis, PFAS identification, and automated carbon credit creation. As of the 10-K, no material offtake agreements were finalized, though the company became a registered vendor for Midland County, Texas in 2025. The business previously operated under the names Redstone Literary Agents, ICOx Innovations, CurrencyWorks, and MetaWorks Platforms.

Revenue drivers

• Consulting services — The only revenue actually recognized to date, described as generated from the waste conversion business primarily from consulting services; 2025 annual revenue was $424,167 and substantially all of it came from a single consulting customer.
• Tire-Derived Oil (TDO) — Planned sale of liquid fuel to industrial users, refiners, brokers, and commercial buyers; intended to be recognized on shipment and delivery, but no material offtake agreements were finalized as of the 10-K.
• Recovered Carbon Black and Recovered Steel — Planned sale of rCB into rubber, plastics, pigments, and coatings applications and recovered steel into scrap and recycling markets; both remain pre-commercial with no disclosed revenue contribution.
• Feedstock processing fees and environmental credits — Planned tipping or processing fees from municipalities, haulers, transfer stations, and industrial generators, plus intended sale of carbon credits, plastic credits, and other sustainability-linked incentives; neither had produced reported revenue as of the filings.

Recent performance

For the three months ended June 30, 2026, revenue was $22,500 versus $125,000 for the same period in 2025, and six-month revenue was $105,833 versus $166,667. General and administrative expenses were $60,473 in the 2026 quarter and $426,312 for the six months, up $297,201 year over year on Midland build-out costs. Net income attributable to Waste Energy was $1,846,763 in the 2026 quarter versus a loss of $1,538,957 a year earlier, driven by $1,884,736 of other income largely from derivative fair value changes, while the six-month result was a $590,394 loss. At June 30, 2026, current assets were $67,922 against current liabilities of $5,061,723, a working capital deficit of $4,993,801.

Strategy

Management's stated priority is completing site preparation, importation, installation, commissioning, and operation of an initial 15 tons-per-day waste conversion system at the planned Midland, Texas facility, with plans to expand to 30 tons-per-day and additional future facilities. The company is also developing a patent-pending AI-based emissions monitoring and automated carbon credit creation platform it intends to integrate into its facilities and potentially license to third parties. It intends to pursue consulting, licensing, and proprietary equipment sales alongside its core waste conversion operations. Financing activities related to the Midland build-out have increased, as reflected in interest expense and derivative charges on notes payable.

Risks

• Going concern — The independent registered public accounting firm included an explanatory paragraph expressing substantial doubt about the company's ability to continue as a going concern, citing a $51.0 million accumulated deficit as of December 31, 2025.
• No commercial operations yet — The company has not commenced commercial operations at its planned Midland, Texas facility and generated only $424,167 of 2025 revenue, substantially all from a single consulting customer.
• Permitting and regulatory dependence — Operations require federal, state, and local environmental, air quality, scrap tire, zoning, and operating permits, including those administered by the Texas Commission on Environmental Quality, which may not be obtained, maintained, or renewed.
• Dilution from convertible notes — The company cites potential significant dilution from shares issued upon conversion of outstanding convertible notes, including notes with variable conversion features tied to its trading price, and from future capital raises.

Outlook

Management states that completing commissioning and operation of the initial 15 tons-per-day Midland system, with plans to expand to 30 tons-per-day and additional facilities, is the central objective. The company expects to continue incurring losses as it completes commissioning and expands, and its ability to continue as a going concern depends on generating revenue from the waste conversion business. No material offtake agreements had been finalized as of the 10-K, with limited revenue to date and no assurance of profitability or commercial viability at scale.