Ozop Energy Solutions's Business Segments

The company faces substantial doubt about its ability to continue as a going concern due to recurring losses, equity deficits, and the need to raise additional capital. Its operations are primarily funded through existing cash, collection of accounts receivable, issuance of convertible notes payable, sales of common stock, sale of a building to a related party, and issuance of promissory notes payable. As of December 31, 2025, the company reported a significant working capital deficit, with current liabilities exceeding current assets. For the year ended December 31, 2025, operating activities used approximately $1.79 million in net cash, driven by a net loss of $8.7 million, adjusted for non-cash expenses and changes in operating assets and liabilities. Investing activities included the sale of a building to a related party and the purchase of office and computer equipment. Financing activities generated net cash inflows from convertible notes, common stock sales, and promissory notes. The company prepares its consolidated financial statements in accordance with U.S. GAAP and applies critical accounting policies related to convertible instruments and derivatives, utilizing the Monte Carlo simulation method for fair value estimation. The company has no off-balance sheet arrangements affecting liquidity or capital resources.

The Company operates in a single segment, renewable energy, as defined by ASC Topic 280 'Segment Reporting'. The chief executive officer, serving as the chief operating decision maker, uses internal organization and reporting to make operating decisions and assess performance. Management reviews operating results based on monthly revenue and overall operating results.