OTC:EBZT
Everything Blockchain, Inc.
A blockchain infrastructure company trading on the OTC market with significant accumulated losses and minimal recent revenue generation.
Key Metrics
Investment Thesis
Bull Case
The stock may represent a turnaround opportunity if management can successfully monetize its $16.5M goodwill base through strategic partnerships or asset sales. Investors might view the low share price as reflecting extreme pessimism rather than value, offering high upside potential if the company pivots to a profitable business model in the growing blockchain sector.
Bear Case
With only $60K in cash and $2.5M in current liabilities, the company faces an imminent risk of insolvency that could trigger a bankruptcy or forced liquidation. The drastic drop in revenue from 2023 to 2024 suggests a collapse in demand for their services, making recovery unlikely without significant external capital injection.
About Everything Blockchain, Inc.
Everything Blockchain Inc. (EBZT) operates within the blockchain technology sector, focusing on digital asset infrastructure and cryptocurrency-related services. The company reports minimal revenue generation alongside significant accumulated losses and substantial non-cash adjustments tied to intangible assets. With a paid-in capital of $87M against only $267K in current revenue, the firm appears to be in a development or restructuring phase rather than mature profitability.
Analysis
Management Discussion
The company has suffered a material decline in revenue from $2.6M in 2023 to just $300K in 2024, mirroring an improvement in net loss from -$9.4M to -$7.9M but failing to stop the bleeding entirely. Operating expenses have ballooned to $5.6M while generating only $267K in revenue, indicating a severe mismatch between burn rate and income generation that threatens long-term viability.
Industry Overview
The blockchain and cryptocurrency industry is characterized by high volatility, rapid technological iteration, and stringent regulatory scrutiny globally. Companies in this space often struggle with profitability while scaling operations, leading to frequent restructuring or consolidation as the market matures toward sustainable utility-focused models.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 |
|---|---|---|
| Revenue | $2.6M | $267.0K |
| Cost of Revenue | $1.5M | $0 |
| Gross Profit | $1.1M | $267.0K |
| Operating Expenses | $8.5M | $5.6M |
| Operating Income | $-7.4M | $-5.3M |
| G&A | $3.9M | $2.9M |
| Stock-Based Comp | $2.6M | $2.5M |
| D&A | $178.0K | $167.0K |
| Other OpEx | $4.5M | $2.7M |
| Non-Operating Income | $-2.5M | $-1.8M |
| Pre-Tax Income | $-9.9M | $-7.1M |
| Income Tax | $-474.0K | $37.0K |
| Continuing Ops | $-9.4M | $-7.2M |
| Discontinued Ops | $0 | $-689.0K |
| Net Income | $-9.4M | $-7.9M |
| Minority Interest | $0 | $0 |
| Net to Common | $-9.4M | $-7.9M |
| Metric | 2023 | 2024 |
|---|---|---|
| Current Assets | $3.8M | $456.0K |
| Inventory | $64.0K | — |
| Other Current Assets | $3.7M | — |
| Long-Term Assets | $21.9M | $21.7M |
| PP&E (Net) | $660.0K | $2.0K |
| Intangibles | — | $5.0M |
| Goodwill | $16.5M | $16.5M |
| Other LT Assets | $4.7M | $221.0K |
| Total Assets | $25.7M | $22.2M |
| Current Liabilities | $2.1M | $2.5M |
| Current Debt | — | $215.0K |
| Other Current Liab | — | $2.2M |
| Long-Term Liabilities | $47.0K | $1.1M |
| Total Liabilities | $2.1M | $3.6M |
| Shareholders' Equity | $23.6M | $18.6M |
| Paid-In Capital | $86.0M | $87.0M |
| Retained Earnings | $-60.5M | $-68.4M |
| Treasury Stock | $1.7M | — |
| Total L&E | $25.7M | $22.2M |
| Metric | 2023 | 2024 |
|---|---|---|
| Net Income (CFO) | $-9.4M | $-7.9M |
| Non-Cash Adjustments | $5.8M | $4.3M |
| Working Capital Changes | $877.0K | $1.3M |
| Cash from Operations | $-2.8M | $-2.3M |
| Cash from Investing | $-463.0K | $463.0K |
| Cash from Financing | $3.0M | $1.1M |
| FX Effect | $0 | $0 |
| Net Change in Cash | $-238.0K | $-764.0K |
| Beginning Cash | $1.1M | $657.0K |
| Ending Cash | $824.0K | $60.0K |
Frequently Asked Questions
How does Everything Blockchain, Inc. make money?
Digital asset custody and wallet solutions, blockchain network development services, cryptocurrency exchange licensing or advisory services, and potential staking yield operations.
What are the main risks for EBZT?
Severe liquidity constraints with ending cash of only $60K against $2.5M in current liabilities creating immediate solvency risk, persistent net losses of $7.9M annually depleting retained earnings to a -$68.4M deficit, heavy reliance on non-cash adjustments of $4.3M which may not reflect true cash generation capabilities, and potential regulatory headwinds facing the broader cryptocurrency industry.
What is EBZT's competitive advantage?
Possession of $16.5M in recorded goodwill indicating past strategic acquisitions or high-value intangible assets in the crypto space, access to a specialized blockchain developer community, and significant paid-in capital reserves providing operational runway despite current burn rates.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.