{"url_path":"/sec/wast/10-k/2026/item-1","section_key":"item-1","section_title":"Item 1 BUSINESS**","topic":"sec","document":{"doc_type":"10-K","doc_date":"2026-07-14","source_url":"https://www.sec.gov/Archives/edgar/data/1515139/0001493152-26-033196-index.html","accession_number":"0001493152-26-033196","cik":"0001515139","ticker":"WAST","issuer_name":"WASTE ENERGY CORP.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1515139/0001493152-26-033196-index.html","primary_entity_key":"0001515139","primary_entity_name":"WASTE ENERGY CORP."},"word_count":1463,"has_tables":true,"body_markdown":"**ITEM\n1. BUSINESS**\n\n \n\n**Corporate\nOverview**\n\n \n\nWaste\nEnergy Corp. (“Waste Energy,” “we,” “us,” “our,” or the “Company”) is an\nearly-stage clean-energy company focused on converting non-recyclable waste tires and plastics into usable fuel, reusable commodities,\nand renewable energy products. We are engaged in the development and commercial deployment of a waste conversion technology platform\nthat uses a thermal process operating in an oxygen-restricted environment to break down waste tires and plastic materials at elevated\ntemperatures, producing valuable byproducts without combustion.\n\n \n\nOur planned commercial operations are designed to produce four primary outputs:\n\n \n\n●**Tire-Derived\nOil (“TDO”)** — a liquid fuel product that may be sold directly for industrial\nuse or further refined through distillation into diesel-like products and other fuel fractions;\n\n●**Recovered\nCarbon Black (“rCB”)** — a reusable carbon material suitable for rubber\nproducts, plastics, pigments, coatings, and other manufacturing applications;\n\n●**Recovered\nSteel**— steel recovered from waste tires that can be sold into scrap and recycling\nmarkets; and\n\n●**Synthetic\nGas (“Syngas”)** — a gaseous fuel generated during processing that may\nbe reused internally to help power the system and reduce external energy requirements.\n\n \n\n4\n\n \n\n \n\nIn\naddition to our core waste conversion operations, we are developing a patent-pending platform for AI-based emissions monitoring, feedstock\nanalysis, PFAS identification, and automated carbon credit creation and tracking, which we intend to integrate into our facilities and\npotentially license to third parties.\n\n \n\nOur\nbusiness is in its early stages. We have generated only limited revenue to date, have incurred significant operating losses since inception,\nand have not yet commenced commercial operations at our planned Midland, Texas facility. There can be no assurance that we will achieve\nprofitability or that our technology will be commercially viable at scale. See “Risk Factors.”\n\n \n\n**Planned\nRevenue Sources**\n\n** **\n\nWe\nexpect to generate revenue from five principal sources:\n\n \n\n*(i) Sales of Tire-Derived Oil.* We intend\nto sell TDO products to industrial users, refiners, brokers, and commercial buyers. Revenue from these sales will be recognized upon shipment\nand delivery of products. In certain cases, buyers may enter into prepayment arrangements for secured supply.\n\n \n\n*(ii)\nSales of Recovered Carbon Black and Recovered Steel.* We intend to sell rCB and recovered steel into industrial, recycling, and commodity\nmarkets. Revenue will be recognized upon shipment and delivery.\n\n \n\n*(iii)\nFeedstock Processing Fees.* We intend to charge tipping or processing fees to municipalities, counties, tire haulers, transfer stations,\nwaste companies, and industrial generators for accepting waste tires and plastics. Revenue will be recognized at the point in time when\nwe accept the waste material for processing and the agreed fee becomes due.\n\n \n\n*(iv)\nEnvironmental Credit Monetization.* Our operations are expected to generate environmental credits, including carbon credits, plastic\ncredits, and other sustainability-linked incentives, which may be sold on regulated and voluntary markets or bundled with our fuel and\ncarbon black products at a premium for sustainability-focused buyers. Revenue will be recognized upon completion of credit sales on recognized\nmarkets or as part of contractual arrangements with off-takers.\n\n \n\n*(v)\nConsulting, Licensing, and Equipment Sales.* We intend to offer consulting services to landfills, waste management firms, and industrial\ngenerators, and we may pursue future revenue from licensing our intellectual property (including our AI-based emissions and carbon credit\nplatform) and from the sale of proprietary equipment. Revenue will be recognized based on the specific terms of each arrangement.\n\n \n\nAs\nof the date of this Annual Report, we have not finalized any material offtake agreements, although we have entered into agreements that\nare subject to output laboratory results. In 2025, we became a registered vendor for Midland County, Texas, which has been an important\nearly relationship in our feedstock development efforts.\n\n \n\n**Corporate\nHistory**\n\n** **\n\nWe\nwere incorporated under the laws of the State of Nevada on July 20, 2010, under the name Redstone Literary Agents, Inc. Since inception,\nwe have operated under several successive names and business models as our strategic focus has evolved:\n\n \n\n●In\n2017, we shifted our focus to blockchain consulting services and formed our subsidiary AppCoin\nInnovations (USA) Inc. (subsequently renamed ICOx USA, Inc. and later CurrencyWorks USA,\nInc.).\n\n●On\nSeptember 3, 2019, we changed our corporate name from ICOx Innovations Inc. to CurrencyWorks\nInc.\n\n●On\nAugust 24, 2022, we changed our corporate name from CurrencyWorks Inc. to MetaWorks Platforms,\nInc., reflecting a focus on digital asset platforms, metaverse applications, and related\nservices.\n\n●Between\nJune and September 2024, our board of directors approved a strategic shift away from our\nlegacy businesses in blockchain consulting, digital asset platforms, and entertainment content,\nand directed the Company’s focus toward the waste-to-energy industry. In connection\nwith this shift, we ceased operations at our EnderbyWorks, LLC and Motoclub LLC subsidiaries.\n\n●On\nSeptember 6, 2024, we changed our corporate name from MetaWorks Platforms, Inc. to Waste\nEnergy Corp.\n\n●During\n2025, we advanced from the development stage toward commercial deployment by securing and\npreparing our initial planned commercial deployment site in Midland, Texas; acquiring and\nimporting our initial 15-ton-per-day waste conversion system and related distillation equipment;\ncompleting substantial site preparation work; and filing a provisional patent application\ncovering our AI-based emissions monitoring and automated carbon credit creation technology.\n\n \n\n5\n\n \n\n \n\nWe\nmay continue to receive residual revenues from contractual obligations entered into under our former lines of business, but we do not\nplan to pursue new projects or contracts in those areas.\n\n \n\n**Subsidiaries**\n\n \n\nAs\nof the date of this Annual Report, we conduct our operations through the following subsidiaries:\n\n \n\n●CurrencyWorks\nUSA, Inc. (Nevada) — wholly owned; formerly used for legacy blockchain consulting operations.\n\n●Energy\nWorks, Inc. (Florida) — wholly owned; incorporated on May 13, 2024 to support our waste-to-energy\noperations.\n\n●EnderbyWorks,\nLLC (Delaware) — wholly owned since March 15, 2023; operations were ceased in 2024\nas part of our strategic shift. Residual rights under a film distribution agreement may be\nretained or transferred to a different entity in the future.\n\n●Motoclub\nLLC (Delaware) — 80% owned; operations were ceased in 2024 as part of our strategic\nshift.\n\n \n\nReferences\nin this Annual Report to “we,” “us,” “our,” “the Company,” and “Waste Energy”\nrefer to Waste Energy Corp. together with its consolidated subsidiaries, unless otherwise specified.\n\n \n\n**Market\nOpportunity**\n\n** **\n\nWe\nbelieve the market for waste tire and plastic waste conversion is substantial and growing. Each year, hundreds of millions of waste tires\nare generated in the United States alone, and millions of tons of plastic waste continue to be landfilled, stockpiled, or improperly\ndisposed of. Waste tires in particular create significant environmental concerns, including fire risk, mosquito breeding, landfill overuse,\nand long-term contamination.\n\n \n\nAccording\nto a report published by the Organisation for Economic Co-operation and Development in 2022, global plastic waste is projected to nearly\ntriple by 2060. Research published by the Yale School of the Environment has documented the presence of microplastic particles in human\ntissue, including brain tissue, underscoring the human-health implications of unmanaged plastic waste. The Ocean Conservancy has reported\nthat hypoxic “dead zones” — including one in the Gulf of Mexico associated with upstream pollutant discharge —\nhave expanded substantially in recent years. While we have not independently verified this third-party data and it is subject to the\nuncertainties described in “Special Note Regarding Forward-Looking Statements,” we believe these trends reflect a growing\nneed for scalable waste-conversion solutions of the type we are developing.\n\n \n\nWe\nbelieve Waste Energy is positioned to address these challenges through a modular deployment model that can be located near waste generation\nsources, industrial fuel demand, and regions with limited landfill capacity or significant waste-transportation costs.\n\n \n\n**Facilities**\n\n** **\n\nOur\nprincipal planned operating site is located in Midland, Texas, on approximately four acres of industrial property. The site includes\nan approximately 5,000 square foot workshop and office building and is being developed to support the installation and operation of our\ninitial 15-TPD waste conversion system and related distillation equipment.\n\n \n\nThe\nMidland site is designed to include feedstock receiving and storage areas, processing equipment, distillation equipment, product storage,\noffice space, and supporting infrastructure. The site has been designed to accommodate future expansion to 30 TPD through the planned\naddition of a second processing line, and is capable of further scaling to 60 TPD.\n\n \n\nAs of the date of this Annual Report, our initial\n15-TPD waste conversion system has arrived at the Midland site and is expected to be ready for operation in the third quarter of 2026.\nThe approximately $653,000 in payments made to acquire this equipment have been classified as a capital advance on our consolidated balance\nsheet pending transfer of control and the placement of the equipment into service. See Note 6 to our consolidated financial statements.\nWe have not yet commenced commercial operations at the Midland site, and there can be no assurance regarding the timing of equipment delivery,\ninstallation, commissioning, or the achievement of steady-state operations.\n\n \n\nIn\naddition to our Midland site, we lease office premises in Fairfield, California, which serve as our principal executive offices. See"}