Waste Energy Corp. 10-K Review: Turning Trash into Treasure

Waste Energy Corp. (formerly MetaWorks Platforms, Inc.) is an early-stage waste-to-energy (WTE) company focused on converting plastic and tire waste into useful energy products—and on creating an AI-powered emissions monitoring and automated carbon-credit system. Below is a detailed look at the most important aspects of its fiscal 2024 Annual Report (Form 10-K), followed by our investment score.

Warren.AI 💰 3.2 / 10

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1. Business Overview

Corporate Structure and Strategy

• Waste Energy Corp. is a Nevada corporation and operates through subsidiaries CurrencyWorks USA Inc., Energy Works Inc. (newly formed, no activity yet), EnderbyWorks LLC, and Motoclub LLC.
• As of September 2024, the company ceased legacy blockchain, NFT, and movie-distribution operations to fully focus on WTE.
• Its core technology is a modular thermal conversion (pyrolysis) process that breaks waste in an oxygen-free environment, producing:
  1) Clean synthetic diesel
  2) Carbon black (for rubber and coatings)
  3) Syngas (to power its own systems)
• It also plans to monetize environmental credits (carbon, plastic) and offer consulting services, equipment sales, and AI licensing for emissions monitoring and automated carbon-credit generation.

Technology and Intellectual Property

• Thermal Conversion Process: Heats plastic/tire feedstock to break molecular bonds without combustion.
• Patent-Pending AI Platform: Monitors PFAS and toxins in feedstock, optimizes emissions, and automates carbon-credit creation.
• IP Strategy: Provisional patents filed; trade secrets for proprietary processes; trademarks under development.

Market Opportunity and Growth Plan

• Global Plastic Crisis: Plastic waste is expected to nearly triple by 2060 (OECD), while landfill/tire waste poses environmental and health risks.
• Pilot Plant: Targeting a 30-tons-per-day facility to validate the model and generate recurring revenues.
• Scalability: Modular design to deploy in multiple geographies, feedstock sources, and offtake agreements.
• Revenue Streams: Fuel & carbon black sales, carbon credit trading, consulting, equipment & AI licensing.

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2. Financial Highlights (Item 8)

Income Statement Trends

• 2024 Revenues: $0 (pilot under development; legacy operations wound down mid-year).
• 2023 Revenues: $411,050 (consulting services, NFT sales, movie-rights license).
• Operating Loss: 2024: $1.19 million vs. 2023: $2.36 million (49% reduction).
• Total Net Loss: 2024: $2.88 million vs. 2023: $5.66 million (includes $1.55 million impairment on software and $0.67 million write-off in 2023).

Cash Flow and Liquidity

• Cash Burn: Operating cash outflow of $385,000 in 2024 vs. $995,000 in 2023.
• Financing: Issued convertible notes and equity raised about $383,000 in 2024 vs. $991,000 in 2023.
• Cash Balance: $682 at December 31, 2024 (vs. $3,076 at end of 2023).
• Working Capital: Deficit of $3.17 million at end of 2024 (vs. $2.45 million deficit in 2023).

Balance Sheet

• Total Assets: $35,682 (all current; intangible software fully impaired).
• Total Liabilities: $3.21 million, including accounts payable ($1.61 million), related-party payables ($1.06 million), convertible notes ($1.29 million), and debt ($183,000).
• Going Concern: Auditor flagged substantial doubt due to recurring losses, negative cash flows, and working capital deficit.

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3. Item 7 & 7A: Management’s Discussion & Market Risk

Key Points

1. Strategic Shift: From blockchain/NFT to waste-to-energy mid-2024.
2. Cost Control: Operating expense down by 49%—cuts in stock-based compensation, consulting.
3. Pilot Investment: Hardware and design proposals for WTE system; R&D expenses line item.
4. Scale-up Needs: Requires ~$900,000 to fund operations next 12 months (G&A, legal, marketing, pilot capex).
5. Market Risks: Feedstock competition, regulatory approvals, tech scale-up, commodity price swings, permitting delays.

Market Risk

• Feedstock Pricing & Availability: Competition from recyclers and other WTE firms.
• Regulatory & Permits: EPA (Clean Air, RCRA), state/local permits, OSHA, renewable-energy incentives.
• Credit Issuance: Plans to sell carbon credits in voluntary and regulated markets—pricing and verification risk.

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4. Item 1A: Principal Risks

1. No Proven Revenue: Pilot stage—no WTE revenues yet; legacy lines discontinued.
2. Capital Requirements: Needs external funding (equity or debt) to build pilot—dilution or covenant risk.
3. Technology Scale-Up: Pyrolysis efficiency and feedstock pre-treatment must perform at scale.
4. Regulatory Hurdles: Complex permitting, environmental compliance, potential future liabilities.
5. Working Capital Deficit: Negative cash and net assets—going-concern risk.
6. Concentration & Related-Party Debt: $1.06 million owed to related parties; legal dispute over $752,500 receivable.
7. Internal Control Weaknesses: Material weakness—manual reporting, small finance team.

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5. Corporate Governance & Management

• CEO/Chairman: Scott Gallagher—experienced public company CEO, capital markets and governance expert.
• CFO: Braden Glasbergen (appointed March 2025)—seasoned finance leader with manufacturing, environmental services background.
• Board: Edmund Moy (ex-U.S. Mint Director), Scott McBride (new WTE operations head).
• Audit Committee: Meets SEC and NASDAQ financial-expert standards.
• Material Weaknesses: Controls & segregation of duties due to small staff.

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6. 10-K Summary

• No summary provided in 10-K.

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Net Loss and Conclusion

• Net Loss: ($2,880,147) in fiscal 2024.

Investment Score: 3.2 / 10

Waste Energy has a compelling environmental mission and innovative technology, but it remains pre-revenue in WTE and carries high cash burn, negative working capital, and funding needs. Its pilot success, strategic offtake agreements, and ability to attract capital will determine its future.

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Stay tuned for updates as Waste Energy advances its pilot facility and strives to convert waste into clean energy—and potential social impact and carbon credits.