Executive Summary / Key Takeaways

• Differentiated Technology Driving Rapid Growth: General Enterprise Ventures, Inc. (GEVI) is experiencing significant revenue growth, with Q2 2025 revenue up 246% year-over-year, driven by the adoption of its proprietary, environmentally friendly CitroTech wildfire defense solution and new installation services.
• Strategic Market Expansion: GEVI is actively expanding its market footprint through partnerships, such as with Global Fire Rescue in Canada, and by establishing new fire risk reduction standards for builders in high-risk U.S. regions, underscoring its proactive approach to a growing global problem.
• Substantial Financial Headwinds and Going Concern: Despite impressive top-line growth, GEVI faces significant financial challenges, reporting a $22.81 million net loss for H1 2025 and a $2.02 million working capital deficiency, raising substantial doubt about its ability to continue as a going concern without further capital.
• Critical Capital Raise and Uplisting Strategy: Management is actively pursuing additional financing and a public offering in 2025, complemented by a recent 1-for-6 reverse stock split aimed at meeting national exchange listing requirements, which is crucial for long-term growth and stability.
• High-Risk, High-Reward Profile: GEVI presents a high-risk, high-reward investment opportunity, balancing a compelling technological advantage in a critical market against significant liquidity concerns and internal control weaknesses that demand close investor scrutiny.

A New Frontier in Wildfire Defense: GEVI's Sustainable Mission

General Enterprise Ventures, Inc. (GEVI) is carving a niche in the burgeoning wildfire prevention market, a sector increasingly vital amidst escalating global climate challenges. The company, which traces its origins back to a Nevada incorporation in 1990 and underwent significant restructuring and a redomicile to Wyoming in 2021, has pivoted to focus on environmentally sustainable flame retardant and suppression solutions. This strategic shift culminated in the 2022 acquisition of MFB California's intellectual property, including 19 patents centered on MFB Technology for wildfire prevention, laying the foundation for its flagship product, CitroTech.

GEVI's core mission is to provide proactive wildfire defense for the residential home industry, a market segment acutely aware of the devastating impacts of wildfires. The company's overarching strategy centers on leveraging its differentiated technology to gain market adoption, expand its service offerings, and eventually enter the wildfire insurance market. This approach positions GEVI at the forefront of a critical industry, offering innovative solutions where traditional methods often fall short.

Technological Edge: CitroTech's Differentiated Approach

At the heart of GEVI's investment thesis lies CitroTech, a proprietary flame retardant and suppression product that stands apart from conventional solutions. This technology is distinguished by its composition: it is made from food-grade ingredients derived from corn, fruits, and other renewable sources, making it sustainable, non-toxic, and EPA Safer Choice Certified. This environmental profile provides a significant competitive advantage, appealing to a market increasingly demanding safer, greener alternatives.

CitroTech offers tangible benefits across multiple applications. For homeowners and developers, it is used to proactively spray wood framing during construction, providing a foundational layer of fire inhibition. The company also installs sophisticated systems that remotely deploy CitroTech, creating crucial buffer zones around properties to prevent combustion. Fire departments utilize the product to proactively treat areas around controlled burns and regions with high wildfire risk, effectively preventing the expansion of fire. The company's intellectual property portfolio, boasting 31 granted patents and 56 pending applications, underpins this technological moat, making it challenging for competitors to replicate its unique formulation and application methods. This technological differentiation is not merely a feature; it is a strategic asset that drives market adoption and positions GEVI as a leader in environmentally responsible wildfire defense.

Strategic Expansion and Market Penetration

GEVI's strategic initiatives demonstrate a clear intent to capitalize on the growing demand for wildfire prevention. In June 2025, the company announced a significant partnership with Global Fire Rescue to deploy CitroTech across Canada, marking a crucial international expansion. This agreement is particularly noteworthy as Global Fire Rescue plans to transition from traditional firefighting foams and gels to GEVI's MFB-31 CitroTech, signaling a competitive win based on the product's superior environmental and safety profile.

Domestically, GEVI is actively shaping industry standards. In March 2025, its subsidiary, Mighty Fire Breaker, began showcasing a new fire risk reduction standard for U.S. builders constructing homes in California's Wildland-Urban Interface (WUI) regions. This involves applying CitroTech to wood framing during construction and providing ongoing protection with proactive wildfire defense systems. Furthermore, GEVI has initiated steps to enter the wildfire insurance market, forming GEVI Insurance Holdings Inc. in June 2024 and MFB Insurance Company, Inc. (MFBI) in February 2025. While MFBI is intended to act as a captive insurance company to reinsure properties protected with CitroTech, it is not yet operational, indicating an aspirational future revenue stream.

Financial Performance: Growth Amidst Growing Pains

GEVI's recent financial performance paints a picture of rapid top-line expansion juxtaposed with significant bottom-line challenges. For the three months ended June 30, 2025, revenue surged to $687,638, a remarkable 246% increase from $198,669 in the prior-year quarter. This growth was largely fueled by the adoption of GEVI's technology in the marketplace, including sales of home-based wildfire defense systems and direct residential property spraying. Product sales contributed $446,785 (up 161.09%), while product installation services, which commenced in Q2 2024, saw an extraordinary increase to $240,853 (up 779.03%).

The six months ended June 30, 2025, showed a similar trend, with total revenue reaching $1.66 million, a 162% increase from $631,687 in the same period of 2024. Product sales grew 73.76% to $1.05 million, and installation services soared 2110.78% to $605,753. However, this robust revenue growth was overshadowed by a substantial increase in operating expenses, which rose 235% in Q2 2025 to $3.71 million and 95% in H1 2025 to $8.13 million. These increases were primarily attributed to higher costs of revenue (driven by increased inventory and rent expenses), and a significant surge in payroll and management compensation, including substantial stock-based compensation. The company also incurred considerable professional fees related to SEC filings and patent legal work.

Consequently, GEVI reported a net loss of $11.90 million for Q2 2025 and $22.81 million for H1 2025, reflecting the heavy investment required for its early-stage commercialization and expansion.

Liquidity and the Going Concern Question

GEVI's financial health is currently characterized by significant liquidity challenges. As of June 30, 2025, the company reported a working capital deficiency of approximately $2.02 million, a substantial increase from $544,405 at the end of 2024. This deficiency, coupled with a net loss of $22.81 million for the first six months of 2025, raises substantial doubt about GEVI's ability to continue as a going concern within the next year. The company's cash flows from operating activities remained negative, using $1.93 million during H1 2025.

To address these capital needs, GEVI has relied heavily on financing activities. In the first half of 2025, the company generated approximately $3.90 million in net proceeds, primarily from debt offerings ($3.70 million) and a smaller portion from equity offerings ($0.30 million).

A critical risk factor is the collateralization of a $2.00 million convertible note with a related party, which is secured by a pledge of GEVI's membership interests in MFB Ohio, the entity that owns the company's intellectual property portfolio. A default on this note could lead to the loss of GEVI's core IP, a severe threat to its long-term viability. Management explicitly plans to continue raising funds and completing a public offering in 2025, acknowledging that "no assurances can be given that we will be successful."

Competitive Landscape: Carving a Niche

The wildfire prevention market is dynamic, with various solutions ranging from traditional chemical retardants to advanced detection and suppression systems. GEVI positions itself as a differentiated player through its environmentally sustainable CitroTech product. While precise, directly comparable market share figures for all niche competitors are not publicly detailed, GEVI's success in securing partnerships, such as with Global Fire Rescue, which is transitioning away from "traditional firefighting foams and gels," suggests a competitive edge. The company's focus on non-toxic, EPA Safer Choice Certified solutions provides a strong qualitative advantage over less environmentally friendly alternatives.

GEVI's competitive advantages stem from its patented CitroTech technology and its proactive application methods, including installation services and pre-treatment for new construction. Its regional focus, exemplified by the Canada partnership and California WUI initiatives, allows for tailored market penetration. However, GEVI's smaller scale and early-stage status present competitive disadvantages. Larger, more established companies in the broader fire safety industry may possess greater financial resources for R&D, marketing, and distribution. GEVI's customer acquisition costs could be higher due to its emerging brand presence, and its reliance on external financing for growth exposes it to market sentiment. The company's strategy to showcase new fire risk reduction standards aims to build a reputation for effectiveness and safety, thereby strengthening its competitive standing.

Outlook and Risks

GEVI's immediate outlook is defined by its pursuit of additional capital and its strategic move to uplist to a national exchange. The company announced a 1-for-6 reverse stock split on August 27, 2025, specifically to meet national exchange listing requirements and position itself for accelerated growth. This move, if successful, could enhance liquidity, attract institutional investors, and improve access to capital markets. The expected recognition of $94,860 in deferred revenue in Q3 2025 provides a small but positive near-term revenue boost.

However, significant risks persist. The most pressing is the "going concern" uncertainty; failure to successfully raise additional capital or complete a public offering would materially affect GEVI's business plan and financial condition. The pledge of MFB Ohio's intellectual property as collateral for a convertible note represents a critical vulnerability. Furthermore, internal control weaknesses, including a lack of a functioning audit committee, insufficient independent directors, inadequate segregation of duties, and a lean management team, pose operational and governance risks that could impact financial reporting and strategic execution. Investors must weigh GEVI's promising technological differentiation and market opportunity against these substantial financial and operational challenges.

Conclusion

General Enterprise Ventures, Inc. stands at a pivotal juncture, demonstrating impressive revenue growth driven by its innovative, environmentally sustainable CitroTech wildfire defense technology in a rapidly expanding market. The company's strategic partnerships and efforts to establish new industry standards underscore its potential to become a significant player in proactive wildfire prevention. However, GEVI's early-stage development is accompanied by substantial financial strain, including significant net losses and a working capital deficiency, which cast a shadow of "going concern" over its operations.

The investment thesis for GEVI hinges on its ability to successfully execute its capital-raising strategy, particularly the planned public offering, and leverage the recent reverse stock split to achieve a national exchange listing. While its differentiated technology and strategic market penetration offer a compelling growth narrative, the inherent risks associated with its liquidity, reliance on debt, and internal control environment cannot be overlooked. For investors with a high-risk tolerance and a long-term view, GEVI represents a speculative opportunity in a critical and growing sector, where technological leadership, if sustained and adequately funded, could eventually translate into significant value.