OTC:WHEN
WORLD HEALTH ENERGY HOLDINGS, INC.
A financially distressed healthcare/energy entity reporting declining losses and minimal revenue growth on the OTC market.
Key Metrics
Investment Thesis
Bull Case
Investors might consider WHEN for its narrowing net loss trend which reduced the deficit by over $5M in two years and a massive non-controlling interest that buffers shareholder equity volatility. The company's significant intangible assets and long-term lease positions could provide stable cash flow once core operations stabilize, offering potential turnaround value at current OTC prices.
Bear Case
The stock is heavily penalized by persistent negative operating cash flow of -$1.4M and a massive retained earnings deficit of -$27.7M that threatens long-term solvency without external capital injection. Revenue has been volatile and low, failing to cover the $4.2M in operating expenses, while non-operating income masks the fundamental weakness of the core business segments.
About WORLD HEALTH ENERGY HOLDINGS, INC.
World Health Energy Holdings, Inc. (WHEN) operates within the healthcare and energy sectors, generating revenue primarily through specialized services or product distribution in emerging markets. The company reports a significant accumulated other comprehensive income loss and substantial retained earnings deficit, indicating historical financial challenges despite recent modest revenue growth. Key financial metrics include $166M in total revenue, though net income remains negative at -$4.9M, with cash flow from operations showing a burn rate of -$1.4M.
Analysis
Management Discussion
Management has successfully narrowed the net loss from -$9.9M in 2022 to -$4.9M in 2024, demonstrating an improving bottom line trajectory despite stagnant revenue around $0.2M-$166M range. However, the cash flow from operations remains negative at -$1.4M while investing cash flows hit -$45M, suggesting heavy capital expenditure or asset restructuring rather than organic growth.
Industry Overview
The company operates in a competitive landscape where revenue generation is critical but currently suppressed by high administrative and marketing costs typical of early-stage or distressed healthcare/energy firms. Industry peers often require positive cash flow from operations to sustain growth, whereas WHEN relies heavily on non-operating income and equity adjustments to remain solvent.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue | $91.1K | $207.7K | $166.0K |
| Cost of Revenue | $0 | $0 | $103.4K |
| Gross Profit | $91.1K | $207.7K | $62.7K |
| Operating Expenses | $10.0M | $7.1M | $4.2M |
| Operating Income | $-9.9M | $-6.9M | $-4.1M |
| R&D | $1.4M | $1.9M | $1.3M |
| G&A | $8.6M | $5.1M | $2.7M |
| Marketing | $15.7K | $92.1K | $152.1K |
| Stock-Based Comp | $9.0M | $5.7M | $2.6M |
| D&A | $11.7K | $18.6K | $19.3K |
| Depreciation | $11.4K | $18.6K | $19.3K |
| Other OpEx | $0 | $0 | $0 |
| Non-Operating Income | $19.9M | $13.9M | $9.0M |
| Pre-Tax Income | $9.9M | $7.0M | $4.9M |
| Income Tax | $19.9M | $14.1M | $9.8M |
| Continuing Ops | $-9.9M | $-7.1M | $-4.9M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $-9.9M | $-7.1M | $-4.9M |
| Minority Interest | $4.0K | $-71.1K | $-208.5K |
| Net to Common | $-10.0M | $-7.0M | $-4.7M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Current Assets | $276.5K | $250.9K | $296.5K |
| Cash & Equivalents | $56.3K | $46.4K | $63.2K |
| Accounts Receivable | $23.4K | $51.0K | $27.7K |
| Inventory | — | $4.7K | $17.6K |
| Other Current Assets | $196.8K | $148.7K | $188.1K |
| Long-Term Assets | $10.0M | $9.9M | $15.8M |
| PP&E (Net) | $43.2K | $55.5K | $43.1K |
| Intangibles | $9.7M | $9.7M | $14.7M |
| Operating Leases | $166.9K | $116.5K | $94.5K |
| Other LT Assets | $-3.9M | $82.1K | $990.6K |
| Total Assets | $10.2M | $10.2M | $16.1M |
| Current Liabilities | $787.7K | $718.1K | $1.3M |
| Accounts Payable | $108.0K | $107.0K | $109.6K |
| Current Leases | $58.0K | $56.2K | $82.1K |
| Other Current Liab | $621.7K | $554.9K | $1.1M |
| Long-Term Liabilities | $3.2M | $3.2M | $4.2M |
| LT Operating Leases | $96.1K | $49.4K | $6.8K |
| Other LT Liab | $3.1M | $3.1M | $4.2M |
| Total Liabilities | $3.9M | $3.9M | $5.4M |
| Shareholders' Equity | $6.3M | $6.3M | $10.7M |
| Paid-In Capital | $-40.6M | $-34.0M | $-30.9M |
| Retained Earnings | $-16.0M | $-23.0M | $-27.7M |
| AOCI | $-2.6K | $-17.8K | $-6.6K |
| Treasury Stock | $8.0M | $8.0M | $8.0M |
| Total L&E | $10.2M | $10.2M | $16.1M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Net Income (CFO) | $-9.9M | $-7.1M | $-4.9M |
| Non-Cash Adjustments | $9.0M | $5.9M | $3.2M |
| Working Capital Changes | $10.1K | $114.7K | $238.0K |
| Cash from Operations | $-943.7K | $-1.1M | $-1.4M |
| Capital Expenditures | $26.8K | $30.9K | $7.0K |
| Cash from Investing | $10.0K | $-72.2K | $-45.3K |
| Cash from Financing | $944.0K | $1.1M | $1.5M |
| FX Effect | $0 | $1.7K | $-529 |
| Net Change in Cash | $10.3K | $-9.9K | $16.8K |
| Beginning Cash | $46.0K | $56.3K | $46.4K |
| Ending Cash | $56.3K | $46.4K | $63.2K |
Frequently Asked Questions
How does WORLD HEALTH ENERGY HOLDINGS, INC. make money?
Revenue is driven by core operational services supported by significant research and development spending ($1.3M) and substantial marketing expenditures ($152M), alongside a diverse portfolio of other current assets including intangible assets valued at $14.7M.
What are the main risks for WHEN?
Severe liquidity constraints evidenced by negative operating cash flow of -$1.4M and a retained earnings deficit of -$27.7M; heavy reliance on non-operating income ($9.0M) suggests core business viability is questionable; high marketing spend ($152M) relative to revenue ($166M) indicates inefficient customer acquisition or channel strategy.
What is WHEN's competitive advantage?
The company leverages a large non-controlling interest equity base ($61.3M) to fund operations, maintains significant long-term operating lease assets ($94M) for infrastructure stability, and utilizes aggressive share-based compensation ($2.6M) to align management incentives despite current profitability issues.
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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.