A 70% gross loss.
On the surface Olenox looks like a company reshaping itself: construction services faded and the filings say oil & gas and industrial IoT (SaaS) revenue arrived. Instead of rescuing the top line, the move coincided with revenue halving to $285,313 for the quarter.
"Total revenue decreased by $281,041, or 50%, primarily due to less revenue being generated from construction services while revenue generated from our oil and gas and SaaS operations increased following our expansion into those business lines."
10-Q 2026-07-31; operating evidence
Olenox points to new lines as the reason revenue shifted. The filing also shows the new mix came with a much deeper gross loss: the company’s gross loss margin widened to 70% in the quarter.
"Gross loss margin percentage increased to (70)% for the three months ended March 31, 2026 compared to (57)% for the three months ended March 31, 2025, primarily due to the addition of oil and gas production revenue during the three months ended March 31, 2026."
10-Q 2026-07-31; operating evidence
Revenue was $285k while cost of revenue was $486k, payroll was $692k and other operating expenses almost doubled to $1.99 million, producing an operating loss of $2.88 million. Cash used in operations increased roughly $440,601 versus the prior period, and the company recorded a $395,967 deemed dividend tied to preferred-share conversions that reduced common shareholders’ net-loss claim.
The filing also discloses several heavy obligations tied to recent deals: a lease with equipment original cost $1,556,163 and a monthly lease charge of $65,880.95 is disclosed in the filing, and the company says its disclosure controls are not effective because of material weaknesses in internal reporting.
On top of that, Olenox flagged a related-party creditor exposure in the filings: the Chapter 11 for an affiliated entity triggered defaults under debt agreements that include about $4.0 million owed to Enhanced Capital Oklahoma Rural Fund, LLC.
"The Chapter 11 filing triggered an event of default under certain SG Echo debt agreements, including approximately $4.0 million owed to Enhanced Capital Oklahoma Rural Fund, LLC."
10-Q 2026-07-31; disclosed_by_company
Put plainly: new revenue lines are tiny but loss-making, operating expenses surged, leases and deemed dividends moved cash around, and there is a named creditor exposure of roughly $4.0 million. The single clear next disclosure that would narrow this picture is whether the company’s next 10-Q breaks out gross margin by business line and reports operating cash flow trending toward break-even or deeper burn.
New revenue is arriving while gross losses deepen.
Figures and quotations from Olenox Industries Form 10-Q filed 2026-07-31.