GENOIL INC Annual Report - How They Did This Year

I’ve put together this guide to help you understand how Genoil Inc. performed this year. My goal is to cut through the corporate talk and give you the facts you need to decide if this company fits your portfolio.

1. What does this company do and how did they perform?

Genoil is a technology company serving the oil industry. They hold patents for the Hydroconversion Upgrader (GHU), a technology designed to turn heavy crude oil into lighter, more valuable products while lowering sulfur levels to meet environmental standards.

Genoil is currently in the development phase. They have not reached a point where their technology generates steady profit. They have no commercial operations or active construction projects, meaning they are not currently processing oil or earning fees from their technology.

2. Financial performance

Genoil is not profitable. Since the company started, they have consistently spent more money than they have brought in, resulting in a large accumulated deficit. They have not generated significant, recurring revenue. Instead, they fund operations by selling shares to investors. In 2025, they raised approximately $402,500 through private stock sales to cover administrative costs and professional fees.

3. Major risks for your investment

• The "Dilution" Factor: Because Genoil frequently issues new shares to raise money, your ownership stake becomes smaller. By the end of 2025, nearly 1 billion potential new shares could be created from existing warrants, options, and debt. This reduces the value of the shares you currently hold, as any future earnings would be spread across a much larger pool of stock.
• The "Going Concern" Warning: The company’s survival depends entirely on its ability to keep raising money from investors. Because they lack steady cash flow, they may have to shut down if they cannot land a major contract or find new investors.
• Experimental Tech: Their technology has not been proven in a commercial setting. There is a risk it may not work at scale, or that the market may not adopt it, leaving the company with patents that lack a buyer.
• Legal & Competitive Hurdles: They face competition from larger companies with established industry relationships. They are also vulnerable to litigation and must work to protect their patents against competitors with significantly more resources.

4. Financial health

Management believes they have enough cash to last for the next 12 months, provided they can continue to find investors to purchase their stock. Their financial health is tied entirely to outside funding rather than revenue from operations.

5. Future Outlook

The company intends to continue pursuing contracts while relying on stock sales to maintain operations. They are monitoring climate regulations, which could eventually increase demand for their technology. However, because they are not currently operating, these regulations do not provide an immediate financial benefit.

Bottom Line: This is a highly speculative investment. You are looking at a company that has yet to prove its product is commercially viable and relies exclusively on selling shares to fund its existence. Before investing, consider whether you are comfortable with a company that is entirely dependent on future capital raises rather than current sales.