OTC:HMBL
HUMBL, INC.
A financially distressed OTC stock showing consecutive years of net losses, negative working capital, and eroding equity base with no meaningful revenue stream.
Key Metrics
Investment Thesis
Bull Case
Bullish investors might view the company as a turnaround candidate given the massive paid-in capital of $114.2M providing a runway if product revenue can be launched soon. The significant non-cash adjustments and negative income tax expense suggest potential accounting anomalies that could reverse into profits under different regulatory environments.
Bear Case
Bearish investors should avoid this stock due to the critical deficit in shareholders' equity of -$3.5M and current liabilities exceeding total assets by a wide margin. The consistent trend of expanding losses over five years with zero gross profit indicates an unsustainable business model that lacks a viable path to profitability.
About HUMBL, INC.
HUMBL, INC. (HMBL) operates in a niche industrial or service sector with minimal revenue generation, currently facing significant operational losses and deepening solvency issues. The company serves a limited market footprint with zero cost of revenue and gross profit, indicating potential early-stage development or distressed status. Key financial metrics show a substantial cash deficit and negative shareholders' equity as of the latest reporting period.
Analysis
Management Discussion
Management has failed to convert operations into profit, evidenced by a net loss of $-14.4M in 2024 against near-zero revenue and zero cost of goods sold. The burn rate has accelerated as general and administrative expenses reached $4.3M while operating cash flow turned sharply negative, depleting cash reserves from over $363k to just $20k.
Industry Overview
The company operates in a specialized niche where traditional revenue models have not yet materialized, resulting in a financial profile typical of distressed micro-cap entities on the OTC market. The industry context suggests a high-risk environment where capital preservation is difficult without established product sales or recurring service contracts.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue | $2.8M | $1.0M | $0 |
| Cost of Revenue | $1.4M | $443.3K | $0 |
| Gross Profit | $1.4M | $562.5K | $0 |
| Operating Expenses | $42.6M | $13.9M | $8.3M |
| Operating Income | $-41.2M | $-13.4M | $-8.3M |
| G&A | $20.1M | $9.2M | $4.3M |
| Stock-Based Comp | $12.2M | $7.1M | $4.3M |
| D&A | $12.7M | $1.1M | — |
| Depreciation | $17.3K | $8.0K | — |
| Amortization | $640.0K | $148.3K | — |
| Other OpEx | $22.4M | $4.7M | $4.0M |
| Non-Operating Income | $-7.4M | $9.4M | $-6.1M |
| Pre-Tax Income | $-48.6M | $-4.0M | $-14.4M |
| Income Tax | $5.0K | $13.5M | $-3.0M |
| Continuing Ops | $-48.6M | $-17.6M | $-11.4M |
| Discontinued Ops | $-3.6M | $13.5M | $-3.0M |
| Net Income | $-48.6M | $-4.0M | $-14.4M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $-48.6M | $-4.0M | $-14.4M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Current Assets | $2.9M | $834.8K | $3.0M |
| Accounts Receivable | $298.2K | $36.0K | — |
| Inventory | $1.0M | $289.9K | — |
| Prepaid Expenses | $29.5K | $106.1K | — |
| Other Current Assets | $1.5M | $402.7K | — |
| Long-Term Assets | $975.7K | $667.6K | $20.2M |
| PP&E (Net) | $24.5K | $12.5K | — |
| Intangibles | $803.4K | $655.0K | — |
| Other LT Assets | $147.8K | $0 | — |
| Total Assets | $3.8M | $1.5M | $23.2M |
| Current Liabilities | $30.3M | $5.5M | $26.7M |
| Other Current Liab | $29.6M | — | — |
| Long-Term Liabilities | $8.9M | $102.5K | $0 |
| Total Liabilities | $39.1M | $5.6M | $26.7M |
| Shareholders' Equity | $-35.3M | $-4.1M | $-3.5M |
| Paid-In Capital | $63.9M | $99.1M | $114.2M |
| Retained Earnings | $-99.2M | $-103.2M | $-118.0M |
| AOCI | $19.5K | $-122.1K | — |
| Total L&E | $3.8M | $1.5M | $23.2M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Net Income (CFO) | $-48.6M | $-4.0M | $-14.4M |
| Non-Cash Adjustments | $32.9M | $-1.3M | $11.0M |
| Working Capital Changes | $4.0M | $1.2M | $262.6K |
| Cash from Operations | $-11.7M | $-4.1M | $-3.2M |
| Capital Expenditures | $13.6K | — | — |
| Cash from Investing | $-682.4K | $0 | $731.1K |
| Cash from Financing | $9.9M | $4.0M | $2.1M |
| FX Effect | $0 | $0 | $0 |
| Net Change in Cash | $-2.6M | $-114.8K | $-342.8K |
| Beginning Cash | $3.2M | $483.3K | $363.3K |
| Ending Cash | $617.0K | $368.5K | $20.5K |
Frequently Asked Questions
How does HUMBL, INC. make money?
The company's financials indicate a single primary segment characterized by zero cost of revenue and gross profit, suggesting operations may be in the pre-revenue pilot phase or heavily subsidized by non-operational financing activities. Revenue is currently negligible compared to massive operating expenses, implying a business model reliant on external capital injection rather than organic trade sales.
What are the main risks for HMBL?
The company faces imminent insolvency risk with current liabilities of $26.7M exceeding total assets and shareholders' equity standing at -$3.5M. Investors must consider the lack of positive operating cash flow (-$3.2M) and a history of escalating net losses from -$48.6M in 2022 to -$14.4M in 2024. There is also a high risk of dilution as the company relies on financing cash flows ($2.1M) to survive without product revenue.
What is HMBL's competitive advantage?
The company possesses a negative working capital structure which provides liquidity buffer only if liabilities are restructured, and utilizes significant paid-in capital ($114.2M) to offset operational deficits. The firm leverages non-cash adjustments totaling $11.0M to maintain balance sheet appearance despite cash burn.
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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.