IIOT-OXYS, Inc. Annual Report: A Practical Investor’s Guide

I’m writing this guide to help you understand how IIOT-OXYS, Inc. performed this year. My goal is to turn complex filing information into clear insights so you can decide if this company fits your investment goals.

1. What does this company do?

IIOT-OXYS works in the "Industrial Internet of Things" (IIoT) sector. They build hardware and software to monitor and improve industrial equipment. They specialize in "edge computing," which processes data directly on the device rather than sending it to a central cloud server. Using their "OXYS" platform, they help factory managers predict mechanical failures before they happen, which helps avoid costly downtime.

2. Financial performance: The "Startup" Reality

To be blunt, this is an early-stage startup. While the company has existed in various forms since 2003, it spent most of that time as a "shell company" without a real business. They only began generating revenue in late 2017 and are still struggling to grow those sales.

As of May 2026, the company has only one full-time employee: the CEO. Everyone else is an outside contractor. The company is not yet making a profit. They rely entirely on selling stock or taking on debt to pay their bills. Because they lack steady sales, their survival depends on finding outside investors rather than making money from their own operations.

3. Major wins and challenges

• The Strategy: They compete with giants like IBM and Siemens by focusing on "edge" devices. They argue these are faster and cheaper for specific industrial tasks than cloud-based systems. They believe local data processing offers better speed and security for sensitive industrial sites.
• The Challenge: The company is in "survival" mode. Because they have little cash, they cannot scale their business. They constantly issue new types of preferred stock and debt to pay bills. This creates a complicated ownership structure, making it difficult to track the long-term value of individual shares.

4. Financial health and risks

• Dilution: The company frequently issues new shares to raise cash. This means your "slice of the pie" is at high risk of shrinking. Every time they raise money, your ownership percentage drops.
• Survival Risk: The company is still in a development phase with limited success in growing sales. They depend entirely on convincing investors to keep providing cash. Without consistent income, the company remains in constant financial uncertainty.
• Complexity: The balance sheet is a maze of different stock types and debt swaps. This makes it hard to understand who gets paid first if the company fails or how future debt deals will affect your shares.
• Cybersecurity: The company connects industrial machines to networks, yet the board has no formal process to monitor cybersecurity threats. This is a major risk, as it leaves them vulnerable to data breaches or system interference.

5. The Bottom Line

This is a high-risk, tiny company with a market value of roughly $340,000. It is a bet on a very small team trying to compete with tech giants. Given the reliance on constant financing, the lack of a full-time staff, and the lack of cybersecurity oversight, this is a speculative venture. It is not a traditional investment.

Investor Checklist:

• Are you comfortable with high volatility? This company’s survival is tied to its ability to secure new funding, not its current sales.
• Can you handle dilution? Be prepared for your ownership percentage to decrease as the company issues more stock to stay afloat.
• Is the risk-to-reward ratio right for you? You are betting on a micro-cap company competing against industry titans. Only invest what you are prepared to lose entirely.