Executive Summary

Q2 2022 revenue rose 167% sequentially to $311,156, turning gross profit positive, while net income of $1.95M was driven primarily by a $2.90M non-cash derivative gain; operating loss remained ($352,715) .
Construction division continued to scale; current assets increased 227% YoY to $471k, with accounts receivable over $275k, supporting near-term cash collections .
Financing optionality improved via a new up to $10M equity line of credit intended to retire toxic notes and fund commercialization of the patented Advanced GET extraction system now in prototype phase two .
No formal quantitative guidance or earnings call was provided; shares authorized were raised to 5.0B on June 9, 2022, expanding issuance capacity .

What Went Well and What Went Wrong

What Went Well

Revenues increased 167% QoQ to $311,156; management highlighted gross profit turning positive and resilient operations despite macro headwinds .
Strengthening balance sheet indicators: current assets grew to $471,129 (+227% YoY), with accounts receivable at $275,913 (potential cash inflow) .
Strategic progress: secured full patent protection for Advanced GET and moved to prototype phase two; “Q2 was a turning point quarter… we work towards commercial launch” — Julia Otey‑Raudes (CEO) .

What Went Wrong

Core operations still loss-making: operating loss ($352,715); bottom-line profitability depended on a large non-cash derivative gain ($2,898,359) rather than recurring earnings .
Working capital deficit persisted ($4,647,942), underscoring near-term liquidity risk despite improved financing access .
No quantitative guidance or earnings call to clarify trajectory and milestones; limited disclosure on segment mix or margin drivers beyond construction commentary .

Financial Results

Metric	Q3 2021	Q1 2022	Q2 2022
Revenue ($USD)	$0	$116,605	$311,156
Gross Profit ($USD)	$0	$(25,700)	$22,045
Operating Income (Loss) ($USD)	$(446,536)	$(283,654)	$(352,715)
Net Income ($USD)	$(637,727)	$(4,533,710)	$1,952,464
Basic EPS ($USD)	$(0.00)	$(0.02)	$0.00

Notes:

YoY context: Q2 2021 revenue was $0 and basic EPS was $(0.01), highlighting early-stage ramp versus prior year .
No S&P Global Wall Street consensus estimates were available for ECOX; “vs estimates” comparison not possible.

KPIs and Balance Indicators

KPI	FY 2021 (Dec 31)	Q1 2022 (Mar 31)	Q2 2022 (Jun 30)
Total Current Assets ($USD)	$144,079	$197,891	$471,129
Accounts Receivable ($USD)	$33,047	$82,952	$275,913
Cash and Cash Equivalents ($USD)	$28,534	$32,514	$22,458
Working Capital Deficit ($USD)	$(4,509,624)	$(8,188,411)	$(4,647,942)
Derivative Liabilities Fair Value ($USD)	$2,328,234	$5,766,832	$1,724,145
Share Payable Liability ($USD)	$866,885	—	$1,603,208

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	2H 2022	None disclosed	None disclosed	Maintained (no formal guidance)
Margins	2H 2022	None disclosed	None disclosed	Maintained (no formal guidance)
OpEx/Tax/Segments/Dividends	2H 2022	None disclosed	None disclosed	Maintained (no formal guidance)

Earnings Call Themes & Trends

No earnings call transcript was available for Q2 2022. Themes synthesized from filings and press releases:

Topic	Previous Mentions (Q3 2021 and Q1 2022)	Current Period (Q2 2022)	Trend
Green construction operations	Formation of Spruce Engineering & Construction in Canada; ECOX Spruce in the U.S.; early revenue initiation	Licensing secured; construction division cited as “productive source of top- and bottom-line growth”	Strengthening
Advanced GET extraction tech (IP)	USPTO Notice of Allowance (Mar 17, 2022) and patent published Apr 19, 2022	“Securing full patent protection… in phase two of prototype build”	Execution toward commercialization
Financing & capital strategy	Heavy reliance on convertibles; derivative liabilities increased in Q1 2022	New $10M equity line to retire toxic notes and fund development	Improved optionality
Macro headwinds	COVID-19 risk factors, start-up stage constraints	Inflation, consumer slowdown, supply chain concerns cited; resilience noted	Persistent

Management Commentary

“We continue to drive toward scalable growth as we bring our innovation pipeline toward commercial phase operations… our construction division has been a productive source of top- and bottom-line growth…” — Julia Otey‑Raudes, CEO .
“Q2 was a turning point quarter… milestones ahead as we work towards commercial launch of our… patented Advanced GET system.” — Julia Otey‑Raudes .
“The line of credit will… retire outstanding toxic convertible financing notes… and push current projects toward commercialization.” — Equity line release .

Q&A Highlights

No Q2 2022 earnings call or Q&A was filed; no analyst Q&A clarifications were available [ListDocuments earnings-call-transcript returned none].

Estimates Context

No S&P Global Wall Street consensus EPS or revenue estimates were available for ECOX’s Q2 2022 given its microcap OTC profile; comparisons to estimates are unavailable (we attempted retrieval; none returned) [GetEstimates error log].

Key Takeaways for Investors

Sequential acceleration: construction-driven revenue ramp (to $311k) and first positive gross profit, but operations remain loss-making; bottom-line strength was primarily non-cash (derivative gain) rather than recurring profitability .
Liquidity trajectory: working capital deficit persists ($4.65M) despite stronger current assets; cash declined QoQ; accounts receivable build suggests near-term collections could help .
Capital structure risk: derivative liabilities fell markedly in Q2 (to $1.72M) from Q1 ($5.77M), aided by conversions and valuation changes; the $10M equity line is a catalyst if used to retire toxic notes and stabilize capital structure .
IP-led optionality: Advanced GET patent and prototype progress create optional future revenue streams; near-term execution remains construction-led while GET commercialization milestones develop .
Share supply increased: authorized shares raised to 5B (effective June 9); expect potential issuance under the equity line; monitor dilution versus debt retirement and growth funding .
Near-term trade: stock may react to additional construction wins, GET prototype updates, and concrete actions retiring toxic debt; absence of formal guidance and call keeps narrative sensitive to filings and press flow .

ECO INNOVATION GROUP, INC. (ECOX)·Q2 2022 Earnings Summary