# EDGAR Filing Document

**Accession Number:** 0001549145
**File Stem:** 0001641172-25-021604
**Filing Date:** 2025-7
**Character Count:** 77724
**Document Hash:** 81f841ddf46712f47b26682764dcfc71
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001641172-25-021604.hdr.sgml**: 20250731

**ACCESSION NUMBER**: 0001641172-25-021604

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 54

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20250731

**DATE AS OF CHANGE**: 20250730

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** BLUE BIOFUELS, INC.
- **CENTRAL INDEX KEY:** 0001549145
- **STANDARD INDUSTRIAL CLASSIFICATION:** INDUSTRIAL ORGANIC CHEMICALS [2860]
- **ORGANIZATION NAME:** 08 Industrial Applications and Services
- **EIN:** 454944960
- **STATE OF INCORPORATION:** NV
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-54942
- **FILM NUMBER:** 251168484

**BUSINESS ADDRESS:**
- **STREET 1:** 3710 BUCKEYE ST
- **STREET 2:** SUITE 120
- **CITY:** PALM BEACH GARDENS
- **STATE:** FL
- **ZIP:** 33401
- **BUSINESS PHONE:** (888)607-3555

**MAIL ADDRESS:**
- **STREET 1:** 3710 BUCKEYE ST
- **STREET 2:** SUITE 120
- **CITY:** PALM BEACH GARDENS
- **STATE:** FL
- **ZIP:** 33401

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** ALLIANCE BIOENERGY PLUS, INC.
- **DATE OF NAME CHANGE:** 20141204

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Alliance Media Group Holdings, Inc.
- **DATE OF NAME CHANGE:** 20120504

?xml version='1.0' encoding='ASCII'?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 10-Q**

☒ **QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

For the Quarter ended June 30, 2025

or

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

Commission File Number: 000-54942

**<u>BLUE BIOFUELS, INC.</u>**

(Exact name of small Business Issuer as specified in its charter)

---

| | |
|:---|:---|
| **Nevada** | **45-4944960** |
| (State or other jurisdiction | (IRS Employer |
| of incorporation or organization) | Identification No.) |

---

---

| | |
|:---|:---|
| **3710 Buckeye Street, Suite 120**<br>**Palm Beach Gardens, FL** | **33410** |
| (Address of principal executive offices) | (Zip Code) |

---

Registrant's telephone number, including area code: **<u>(888) 607-3555</u>**

n/a

Former name or former address if changed since last report

Securities registered pursuant to Section 12(b) of the Act: None.

Securities registered pursuant to Section 12(g) of the Exchange Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| Common Stock par value $0.001 | BIOF | OTCQB |

---

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒.

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒

Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer ☐ Accelerated Filer ☐ Non-Accelerated Filer ☒ Emerging Growth Company ☐ <br> Smaller reporting company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised accounting standards provided to Section 7(a)(2)(B) of the Securities Act. ☐

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

State the number of shares outstanding of the registrant's $.001 par value common stock as of the close of business on the latest practicable date (July 30, 2025): 313,199,690.

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
|  |  | Page |
|  | [PART I—FINANCIAL INFORMATION](#a_001) | 3 |
| ITEM 1. | [Condensed Financial Statements (unaudited)](#a_020) | 4 |
| ITEM 2. | [Management's Discussion and Analysis of Financial Condition and Results of Operations](#a_007) | 15 |
| ITEM 3. | [Quantitative and Qualitative Disclosures About Market Risk](#a_008) | 19 |
| ITEM 4. | [Controls and Procedures](#a_009) | 19 |
|  | [PART II—OTHER INFORMATION](#a_010) | 20 |
| ITEM 1. | [Legal Proceedings](#a_011) | 20 |
| ITEM 1A. | [Risk Factors](#a_012) | 20 |
| ITEM 2. | [Unregistered Sales of Equity Securities](#a_013) | 20 |
| ITEM 3. | [Defaults Upon Senior Securities](#a_014) | 20 |
| ITEM 4. | [Mine Safety Disclosures](#a_015) | 20 |
| ITEM 5. | [Other Information](#a_016) | 20 |
| ITEM 6. | [Exhibits](#a_017) | 21 |
|  | [Signatures](#a_018) | 22 |

---

**PART I – FINANCIAL INFORMATION**

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
| **Index to Financial Statements** | **Page** |
| [Condensed Balance Sheets as of June 30, 2025, and December 31, 2024 (unaudited)](#a_002) | 4 |
| [Condensed Statements of Operations for the Three and Six Months Ended June 30, 2025 and 2024 (unaudited)](#a_003) | 5 |
| [Condensed Statements of Stockholders' Deficit for the Three and Six Months Ended June 30, 2025 and 2024 (unaudited)](#a_004) | 6 |
| [Condensed Statements of Cash Flows for the Six Months Ended June 30, 2025 and 2024 (unaudited)](#a_005) | 7 |
| [Notes to Condensed Financial Statements (unaudited)](#a_006) | 8 |

---

**Blue Biofuels, Inc.**

**Financial Statements**

**UNAUDITED FINANCIAL STATEMENTS**

**OF**

**BLUE BIOFUELS, INC.**

**Blue Biofuels, Inc.**

**CONDENSED BALANCE SHEETS**

**(unaudited)**

---

| | | |
|:---|:---|:---|
|  | **June 30, 2025** | **December 31, 2024** |
| **ASSETS** |  |  |
| **Current Assets** |  |  |
| &nbsp;&nbsp;&nbsp;Cash and Cash Equivalents | $8026 | $48797 |
| &nbsp;&nbsp;&nbsp;Prepaid Expenses | 11452 | 32489 |
| **TOTAL CURRENT ASSETS** | $**19478** | $**81286** |
| **Other Assets** |  |  |
| &nbsp;&nbsp;&nbsp;Property and Equipment, net of accumulated depreciation and amortization of $421,940 and $361,887 at June 30, 2025 and December 31, 2024, respectively | $615746 | 539648 |
| &nbsp;&nbsp;&nbsp;Security Deposits | 80276 | 30276 |
| &nbsp;&nbsp;&nbsp;Right of Use Assets, net of accumulated amortization | 403705 | 440298 |
| &nbsp;&nbsp;&nbsp;Patents and Trademarks, net of accumulated amortization | 329056 | 298079 |
| **TOTAL OTHER ASSETS** | $**1428783** | $**1308301** |
| **TOTAL ASSETS** | $**1448261** | $**1389587** |
| **LIABILITIES AND STOCKHOLDERS' DEFICIT** |  |  |
| **Current Liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;Accounts Payable | 258690 | 227195 |
| &nbsp;&nbsp;&nbsp;Accounts Payable - Related Party | 72670 | 72670 |
| &nbsp;&nbsp;&nbsp;Deferred Wages and Directors Fees - Related Party | 1859431 | 1607870 |
| &nbsp;&nbsp;&nbsp;Right of Use Lease Liability - Current | 73856 | 68677 |
| &nbsp;&nbsp;&nbsp;Convertible Notes Payable — Other |  | 50000 |
| &nbsp;&nbsp;&nbsp;Interest Payable - Related Party | 185703 | 185703 |
| **TOTAL CURRENT LIABILITIES** | $**2450350** | $**2212115** |
| **Long Term Liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;Right of Use Lease Liability - Long Term | 334350 | 372745 |
| &nbsp;&nbsp;&nbsp;Notes Payable — Related Party | 1325000 | 1140000 |
| &nbsp;&nbsp;&nbsp;Convertible Notes Payable — Related Party | 190000 | 190000 |
| &nbsp;&nbsp;&nbsp;Legacy Notes Payable — Related Party | 200630 | 200630 |
| &nbsp;&nbsp;&nbsp;Legacy Notes Payable — Other | 120000 | 120000 |
| **TOTAL LONG TERM LIABILITIES** | $**2169980** | $**2023375** |
| **TOTAL LIABILITIES** | $**4620330** | $**4235490** |
| **COMMITMENTS AND CONTINGENCIES (Note 8)** |  |  |
| **STOCKHOLDERS' DEFICIT** |  |  |
| &nbsp;&nbsp;&nbsp;Preferred stock; $0.001 par value; 10,000,000 shares authorized; zero shares issued and outstanding |  |  |
| &nbsp;&nbsp;&nbsp;Common stock; $0.001 par value; 1,000,000,000 shares authorized; 311,877,170 issued and outstanding at June 30, 2025, and 307,960,508 shares issued and outstanding at December 31, 2024. | 311877 | 307961 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 54936400 | 54101897 |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (58420346) | (57255761) |
| **TOTAL STOCKHOLDERS' DEFICIT** | $**(3172069)** | $**(2845903)** |
| **TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT** | $**1448261** | $**1389587** |

---

*The accompanying notes to the Condensed Financial Statements are an integral part of these statements.*

**Blue Biofuels, Inc**

**CONDENSED STATEMENTS OF OPERATIONS**

**(unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
|  | **June 30** | **June 30** | **June 30** | **June 30** |
|  | **2025** | **2024** | **2025** | **2024** |
| **Revenues** | $- | $- | $- | $- |
| **Operating expense:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;General and administrative | 431134 | 249755 | 769232 | 545736 |
| &nbsp;&nbsp;&nbsp;Research and development | 471470 | 291389 | 822176 | 899025 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 902604 | 541144 | 1591408 | 1444761 |
| **Loss from operations:** | **(902604)** | **(541144)** | **(1591408)** | **(1444761)** |
| **Other (income) expense:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Grants income |  |  | (444970) |  |
| &nbsp;&nbsp;&nbsp;Interest expense - related party | 18149 | 6723 | 18149 | 48815 |
| &nbsp;&nbsp;&nbsp;Interest expense - other | (1) | 956 | (2) | 2119 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other (income) expense | 18148 | 7679 | (426823) | 50934 |
| **Income (Loss) before provisions for income taxes** | $**(920752)** | $**(548823)** | $**(1164585)** | $**(1495695)** |
| &nbsp;&nbsp;&nbsp;Provisions for income taxes | **-** | **-** | **-** | **-** |
| **Net Income (Loss):** | $**(920752)** | $**(548823)** | $**(1164585)** | $**(1495695)** |
| **Net income (loss) per share and diluted** | $**(0.003)** | $**(0.002)** | $**(0.004)** | $**(0.005)** |
| **Weighted average common shares outstanding** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic and diluted | 310047521 | 302848463 | 309300452 | 302818463 |

---

*The accompanying notes to the Condensed Financial Statements are an integral part of these statements.*

**Blue Biofuels, Inc.**

**CONDENSED STATEMENTS OF STOCKHOLDERS' DEFICIT**

**(Unaudited)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | | | |
|  | **Shares** | **Amount** | **Additional Paid-in**<br>**Capital** | **Accumulated**<br>**Deficit** | **Total Stockholder's**<br>**(Deficit)** |
| **Balance as of December 31, 2023** | **302750963** | $**302751** | $**51972947** | $**(55836780)** | $**&nbsp;&nbsp;&nbsp;&nbsp;(3561082)** |
| Issuance of common stock for services | 52500 | $52 | $4148 |  | $4200 |
| Issuance of 87,500 warrants for services |  |  | 5494 |  | 5494 |
| Stock based compensation recognized under the employee, director plan |  |  | 279248 |  | 279248 |
| Net Income (Loss) | - | - | - | $(946872) | $(946872) |
| **Balance as of March 31, 2024** | **302803463** | $**302803** | $**52261837** | $**(56783652)** | $**(4219012)** |
| Issuance of common stock for services | 62045 | $62 | $5832 |  | $5894 |
| Issuance of 40,000 warrants for services |  |  | 3094 |  | 3094 |
| Issuance of 100,000 warrants for interest |  |  | 6518 |  | 6518 |
| Cancelling 350,000 warrants for services |  |  | (29991) |  | (29991) |
| Stock based compensation recognized under the employee, director plan |  |  | 29767 |  | 29767 |
| Net Income (Loss) | - | - | - | $(548823) | $(548823) |
| **Balance as of June 30, 2024** | **302865508** | $**302865** | $**52277057** | $**(57332475)** | $**(4752553)** |
| **Balance as of December 31, 2024** | **307960508** | $**307961** | $**54101897** | $**(57255761)** | $**(2845903)** |
| Employee director stock options exercised on a cashless basis | 44000 | 44 | (44) |  |  |
| Issuance of common stock and warrants on the conversion of notes | 625000 | 625 | 49375 |  | 50000 |
| Stock based compensation recognized under the employee, director plan |  |  | 88165 |  | 88165 |
| Net Income (Loss) |  |  |  | (243833) | (243833) |
| **Balance as of March 31, 2025** | **308629508** | $**308630** | $**54239393** | $**(57499594)** | $**(2951571)** |
| Issuance of common stock for services and capitalized patent and trademark costs | 415975 | $416 | $41181 |  | $41597 |
| Issuance of 250,000 warrants for services |  |  | 22936 |  | 22936 |
| Issuance of 200,000 warrants for interest |  |  | 18149 |  | 18149 |
| Employee director stock options exercised on a cashless basis | 106687 | 106 | (106) |  | $- |
| Warrants exercised | 125000 | 125 | 6125 |  | $6250 |
| Stock based compensation recognized under the employee, director plan |  |  | 351322 |  | 351322 |
| Issuance of common stock and warrants for cash through private placements | 2600000 | $2600 | 257400 |  | $260000 |
| Net Income (Loss) | - | - | - | $(920752) | $(920752) |
| **Balance as of June 30, 2025** | **311877170** | $**311877** | $**54936400** | $**(58420346)** | $**(3172069)** |

---

*The accompanying notes to the Condensed Financial Statements are an integral part of these statements.*

**Blue Biofuels, Inc.**

**CONDENSED STATEMENTS OF CASH FLOWS**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **For the Six Months Ended** | **For the Six Months Ended** |
|  | **June 30, 2025** | **June 30, 2024** |
| **Cash flows from operating activities** |  |  |
| &nbsp;&nbsp;&nbsp;**Net income (loss)** | $**(1164585)** | $**(1495695)** |
| &nbsp;&nbsp;&nbsp;**Reconciliation of net income (loss) to net cash used in operating activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 96023 | 59473 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock based compensation for services | 465557 | 297706 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Issuance of warrants for interest | 18149 | 6518 |
| &nbsp;&nbsp;&nbsp;**Changes in operating assets and liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses | (300) | 3261 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | 31495 | (2518) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred wages and directors' fees — related party | 251561 | 548000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest payable - related party |  | 42298 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Right of use lease | 3377 | (2420) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net cash used in operating activities** | **(298723)** | **(543377)** |
| **Cash flows from investing activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net purchase of property and equipment | (136151) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deposit on land | (50000) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Patent and trademark, net amortization costs | (7147) | (19825) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net cash used in investing activities** | **(193298)** | **(19825)** |
| **Cash flows from financing activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from exercise of warrants and options | 6250 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from the issuance of notes payable - RP | 185000 | 680000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from the issuance of convertible notes - other |  | 250000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from issuance of common stock and warrants | 260000 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net cash provided by financing activities** | **451250** | **930000** |
| **Net increase (decrease) in cash and cash equivalents** | **(40771)** | **366798** |
| **Cash and cash equivalents at beginning of the period** | **48797** | **41008** |
| **Cash and cash equivalents at end of the period** | $**8026** | $**407806** |
| **Non-cash Financing and Investing Activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Issuance of common stock and warrants on the conversion of notes payable | $50000 | $- |
| Issuance of common stock for capitalized patent and trademark costs | $38463 | $- |

---

*The accompanying notes to the Condensed Financial Statements are an integral part of these statements.*

**Blue Biofuels, Inc.**

**NOTES TO CONDENSED FINANCIAL STATEMENTS**

**(Unaudited)**

**NOTE 1 – ORGANIZATION**

Blue Biofuels, Inc., was incorporated in Nevada on March 28, 2012, as Alliance Media Group Holdings, Inc. Since December 2013, Blue Biofuels, Inc. (the "Company") has been a technology company focused on emerging technologies in renewable energy, biofuels, and lignin.

**NOTE 2 – GOING CONCERN**

The accompanying condensed financial statements have been prepared in conformity with generally accepted accounting principles, which contemplate continuation of the Company as a going concern, which assumes the Company will realize its assets and discharge its liabilities in the normal course of business. The Company has not generated any significant revenue since inception and has incurred losses since inception. As of June 30, 2025, the Company has incurred accumulated losses of $58,420,346. The Company expects to incur significant additional losses and liabilities in connection with its start-up and commercialization activities. These factors, among others, raise substantial doubt as to the Company's ability to continue as a going concern. The Company's ability to continue as a going concern is dependent upon its ability to obtain the necessary financing to meet its obligations and repay its liabilities when they become due and to generate sufficient revenues from its operations to pay its operating expenses. These financial statements do not include any adjustments related to the recoverability and classifications of recorded asset amounts, or amounts and classifications of liabilities that might result from this uncertainty. There are no assurances that the Company will continue as a going concern.

Management believes that the Company's future success is dependent upon its ability to achieve profitable operations, generate cash from operating activities, and obtain additional financing. There is no assurance that the Company will be able to generate sufficient cash from operations, or sell additional shares of stock or borrow additional funds. The Company's inability to obtain additional cash could have a material adverse effect on its financial position, results of operations, and its ability to continue in existence.

**NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

*Basis of Presentation*

The condensed financial statements are prepared in accordance with accounting principles generally accepted in the United States ("GAAP"). The condensed financial statements do not include all disclosures required of annual financial statements and, accordingly, should be read in conjunction with our financial statements and notes thereto in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024.

Operating results for the six months ended June 30, 2025, may not be indicative of full year 2025 results.

In management's opinion, the accompanying condensed financial statements contain all adjustments necessary for a fair statement of our financial position as of June 30, 2025, and our results of operations, changes in stockholders' deficit and cash flows for the three and six months ended June 30, 2025 and 2024. Certain prior period amounts have been reclassified to conform to the *2025* financial statement presentation. Reclassifications had no effect on net income (loss), cash flows, or stockholders' equity as previously reported.

*Net Income (Loss) per Common Share:*

Basic net earnings per share amounts have been calculated using the weighted-average number of common shares outstanding during each reporting period. Diluted earnings per share has been calculated using the weighted-average number of common shares plus the potentially dilutive effect of securities such as common stock that potentially could be issued upon the conversion of convertible notes or upon the exercise of outstanding options and warrants. The computation of potential common shares has been performed using the treasury stock method.

For the three and six months ended June 30, 2025 and 2024, due to net losses, all potential dilutive securities are antidilutive.

*Grant Income*

Government grants income is recognized in earnings on a systematic basis in a manner that mirrors the manner in which the Company recognizes the underlying costs for which the grant is intended to compensate. A grant receivable is recognized for expenses or losses already incurred but for which grant funding has not yet been received. Grant funding received in excess of expenses or losses incurred is recognized as deferred revenue.

The Company has adopted the disclosure requirements of Accounting Standards Codification ("ASC") 832 Government Assistance.

*Recent Accounting Pronouncements*

From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board or other standard setting bodies that may have an impact on the Company's accounting and reporting. The Company believes that such recently issued accounting pronouncements and other authoritative guidance for which the effective date is in the future either will not have an impact on its accounting or reporting or that such impact will not be material to its financial position, results of operations, and cash flows when implemented.

In December 2023, the Financial Accounting Standards Board (" FASB") issued Accounting Standards Update (" ASU") 2023-09, Income Taxes (Topic 740): Improvement to Income Tax Disclosures, amending income tax disclosure requirements for the effective tax rate reconciliation and income taxes paid. The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15, 2024, and are applied prospectively. Early adoption and retrospective application of the amendments are permitted. We are currently evaluating the impact of this update on our consolidated financial statements and disclosures. In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires disclosure about the types of costs and expenses included in certain expense captions presented on the income statement. The new disclosure requirements are effective for the Company's annual periods beginning after December 15, 2026, and interim periods beginning after December 15, 2027, with early adoption permitted, and may be applied either prospectively or retrospectively. The Company is currently evaluating the ASU to determine its impact on our consolidated financial statements and disclosures.

**NOTE 4 – PROPERTY AND EQUIPMENT**

---

| | | | |
|:---|:---|:---|:---|
| **PROPERTY AND EQUIPMENT** | **Life** | **June 30, 2025** | **December 31, 2024** |
| Building and Improvements | 15 | $9370 | $9370 |
| Construction and Engineering | 10 | 171817 | 45342 |
| Machinery and Equipment | 10 | 831078 | 821402 |
| Furniture and Fixtures | 5 | 13596 | 13596 |
| Computer Equipment | 3 | 11825 | 11825 |
| Property and Equipment, gross |  | 1037686 | 901535 |
| &nbsp;&nbsp;&nbsp;Less Accumulated Depreciation |  | $(421940) | $(361887) |
| &nbsp;&nbsp;&nbsp;Property and Equipment |  | $615746 | $539648 |

---

Total depreciation expense was $60,053 and $59,473 for the six months ended June 30, 2025 and 2024, respectively.

**NOTE 5 – PATENTS AND TRADEMARKS**

The Company has been issued three patents on its technology in the United States and has six pending patents. The Company has also applied for international patents on all of its patents. The Company has capitalized patent legal and filing fees of $310,491 and $286,115 as of June 30, 2025, and December 31, 2024, respectively. The amount amortized is $35,970 as of June, 2025, and $0 as of December 2024. The Company has one trademark registered and four pending. The Company has capitalized the trademark legal and filing fees of $18,565 and $11,964 as of June 30, 2025 and December 31, 2024, respectively.

**NOTE 6 – DEBT**

*Notes Payable – Related Party*

In 2023 and 2024, the Company borrowed a total of $1,140,000 from board member Chris Kneppers.The notes are now payable on the earliest of the date on which the Company (1) uplists to the Nasdaq or NYSE; (2) receives $5 million in equity financing; or (3) begins generating revenue from its first facility. In the first half of 2025, the Company borrowed an additional $185,000 from Mr. Kneppers with the same terms. In lieu of interest, the Company will pay Mr. Kneppers 100% of the outstanding loan balance due him contingent upon the financing of the first plant. All interest and loan amounts automatically come due upon a change of control of the Company or if the Company files for bankruptcy under Chapter 11 or Chapter 7. During the three and six months ended June 30, 2025 and 2024, the Company recognized $0 (2024: $0) and $0 (2024: $11,500), respectively, in interest expense on these notes due to Mr. Kneppers. At June 30, 2025, accrued interest payable to Mr. Kneppers is $46,651.

*Convertible Notes Payable – Related Party*

In July and November 2023, the Company entered two long-term convertible notes with board member Edmund Burke with principal amounts of $25,000 and $15,000, respectively, to be repaid when the Company receives an equity investment of at least $3 million. The notes may convert into common stock at $0.13/share at the option of the holder for a total of 307,692 shares. Until repayment, the note agreement requires the Company to issue to Mr. Burke 80,000 warrants having a strike price of $0.15 and an expiration of 5 years every twelve months in lieu of interest. During the three and six months ended June 30, 2025, and June 30, 2024, no warrants were issued as they are issued each July and November for the prior year.

In April 2023, the Company entered a long-term convertible note with board member Edmund Burke, with a principal balance of $150,000, to be repaid when the Company receives an equity investment of at least $1.5 million. The notes may convert into common stock at $0.13/share at the option of the holder for a total of 1,153,846 shares. Until repayment, the note agreement requires the Company to issue to Mr. Burke 100,000 warrants having a strike price of $0.15 and an expiration of 5 years every six months in lieu of interest. During the three and six months ended June 30, 2025, 200,000 and 200,000 warrants were issued, and in 2024, 100,000 and 100,000, respectively. These had a value of $18,149 (2025) and $6,518 (2024) and were recognized as interest expense – related party on the statement of operations.

*Convertible Notes Payable – Non-Related Parties*

In December 2023, the Company issued a convertible note to one individual for $50,000. The note was non-interest bearing and had a term of thirteen months. In January 2025, the note was converted into 625,000 shares of the Company's common stock and 625,000 warrants with a strike price of $0.10 per share and a five year expiration.

A summary of all Notes that remain including those indicated in the Notes above is as follows:

---

| | | |
|:---|:---|:---|
| **Notes Payable** | **June 30, 2025** | **December 31, 2024** |
| Current Convertible Notes — Other | $- | $50000 |
| Long Term Convertible Notes Payable – Related Party | 190000 | 190000 |
| Long-Term Notes Payable – Related Party | 1325000 | 1140000 |
| Long Term Notes Payable from future revenue — Related Party | 200630 | 200630 |
| Long Term Notes Payable from future revenue — Other | 120000 | 120000 |
| **TOTAL NOTES** | $**1835630** | $**1700630** |

---

Of the $1,835,630 payable as of June 30, 2025, none is payable in cash at a specific point in time. $1,515,000 is due only after achieving certain milestones. $320,630 is due out of future revenue with no specific due date.

At June 30, 2025, there are $190,000 in convertible notes that, if converted, would convert into 1,461,538 shares.

**NOTE 7 – STOCKHOLDERS' EQUITY**

During the six months ended June 30, 2025 and 2024, the Company issued an aggregate of 415,975 and 114,545 shares, respectively, of its common stock for services with a fair value based on the trading price of the Company's stock on the date of issuance of $41,597 and $10,094, respectively.

During the six months ended June 30, 2025 in connection with the conversion of debt with a balance of $50,000, the Company issued 625,000 shares of its common stock and 625,000 warrants with an exercise price $0.10 and term of five years. See Note 6.

During the six months ended June 30, 2025, the Company issued 150,687 shares of its common stock due to the cashless exercise of 300,000 options by one of its directors and one of its employees.

During the six-months ended June 30, 2025, the Company issued 125,000 shares of its common stock due to the exercise of 125,000 warrants for $6,250.

During the six-months ended June 30, 2025, the Company issued 2,600,000 shares of its common stock and warrants, with a strike price of 15 cents and a five-year expiration, through a private placement for proceeds of $260,000.

<u>Warrants</u>:

During the six-month period ended June 30, 2025 and 2024, the Company issued 250,000 and 127,500 warrants for services with a fair value of $22,936 and $5,494, respectively for the vested warrants. An additional 500,000 unvested warrants were issued during 2025.

During the six-month period ended June 30, 2025 and 2024, the Company issued 200,000 and 100,000 warrants for interest with a fair value of $18,149 and $6,518, respectively.

A summary of warrant activity for the year ended December 31, 2024 and six months ended June 30, 2025 is as follows:

---

| | | |
|:---|:---|:---|
|  | **Number of <br> Warrants** | **Weighted Average <br> Exercise Price** |
| Balance, December 31, 2023 | 24015976 | 0.22 |
| Issued in connection with: |  |  |
| &nbsp;&nbsp;&nbsp;Common stock units sold for cash | 1970000 | 0.15 |
| &nbsp;&nbsp;&nbsp;Services | 303500 | 0.11 |
| &nbsp;&nbsp;&nbsp;Debt-related interest | 180000 | 0.15 |
| &nbsp;&nbsp;&nbsp;Debt conversion | 3125000 | 0.10 |
| Expired or rescinded | (3397981) | 0.09 |
| Exchanged for stock options | 1250000 | 0.20 |
| Balance, December 31, 2024 | 27446495 | $0.21 |
| Issued in connection with: |  |  |
| &nbsp;&nbsp;&nbsp;Common stock units sold for cash | 2600000 | 0.15 |
| &nbsp;&nbsp;&nbsp;Debt conversion | 625000 | 0.10 |
| &nbsp;&nbsp;&nbsp;Debt-related interest | 200000 | 0.15 |
| &nbsp;&nbsp;&nbsp;Services | 750000 | 0.12 |
| Exercised | (125000) | 0.05 |
| Balance, June 30, 2025 | 31496495 | 0.20 |

---

Warrants outstanding at June 30, 2025 have a weighted average exercise price of $0.20 and a weighted average remaining term of 3.0 years.

Stock Options:

During the three and six-month period ended June 30, 2025, the Company recognized stock based compensation of $351,322 and $439,487 respectively versus $29,767 and $309,015 respectively for 2024. Of this amount, $204,425 was classified as general and administrative expenses for the three month period ended in 2025 and $238,134 for the six month period, versus $28,782 and $45,721 for 2024, respectively. The remainder was classified as research and development expenses (2025: $146,897 and $201,353 for three and six month respectively; and for 2024: $985 and $263,294).

A summary of option activity for the year ended December 31, 2024 and six months ended June 30, 2025 is as follows:

---

| | | |
|:---|:---|:---|
|  | **Number of**<br> **Options** | **Weighted Average**<br> **Exercise Price** |
| Balance, December 31, 2023 | 61555000 | 0.15 |
| Options granted | 29166571 | 0.11 |
| Options expired | (500000) | 0.05 |
| Exchanged for warrant | (1250000) | 0.20 |
| Balance, December 31, 2024 | 88971571 | $0.13 |
| Options granted | 12774470 | 0.12 |
| Options expired | (3158334) | 0.18 |
| Options exercised | (300000) | 0.06 |
| Balance, June 30, 2025 | 98287707 | 0.13 |
| Vested, June 30, 2025 | 46059324 | 0.13 |

---

The weighted average exercise price of outstanding and vested options is $0.13 and $0.13, respectively. The weighted average remaining life of outstanding and vested options is 6.9 years and 6.2 years, respectively. At June 30, 2025, outstanding vested options had an intrinsic value of $1,427,472, and the total intrinsic value of all options is $3,011,064.

At June 30, 2025, remaining compensation to be recognized as future vesting of stock options is approximately $5.8 million of which approximately $0.9 million will vest with a weighted average remaining vesting period of approximately 1 year, and approximately $4.9 million will vest upon the probability of achieving performance milestone criteria.

Black Scholes Model Variables:

The fair value associated with warrants and options issued or modified during the six months ended June 30, 2025 were valued on the date of issuance or modification.

The following ranges of assumptions were used in calculations of the Black-Scholes option pricing models for option and warrant-based stock compensation issued in the six months ended June 30, 2025 and 2024:

SCHEDULE OF BLACK-SCHOLES OPTION PRICING MODELS FOR WARRANT-BASED STOCK COMPENSATION

---

| | | |
|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2024** |
| Exercise price | $0.11 to 0.13 | $0.10 to 0.15 |
| Risk-free interest rate | 3.81% - 4.54 | 3.93% - 4.71% |
| Expected term (in years) | 5.0 to 10.0 | 5.0 to 10.0 |
| Expected share price volatility | 107.75 to 109.69% | 89.73% to 113.72% |
| Expected dividend yield | 0.0% - 0.0% | 0.0% - 0.0% |

---

**NOTE 8 - COMMITMENTS AND CONTINGENCIES**

***Litigation***

The Company is subject, from time to time, to litigation, claims and suits arising in the ordinary course of business. The Company is not in any litigation at this time.

***Leases***

The Company currently leases office and laboratory space in Palm Beach Gardens, FL, that is classified as operating lease right-of-use ("ROU") assets and operating lease liabilities in the Company's condensed balance sheet. During the three month period ended March 31, 2025, the Company renewed the leases when they expired. The new lease has a term of five years and has escalating monthly payments range from $9,100 to $10,242. At inception, the lease was classified as an operating lease and the Company recorded a ROU lease asset and liability of $452,132 and $452,132, respectively, reflecting the future lease payment discounted at a discount rate of 10% over the lease term. Rent expense for the three and six months ending June 30, 2025, were $42,330 and $99,909 and for 2024 were $66,972 and $110,287, respectively, which is expensed as part of G&A in the statement of operations.

At June 30, 2025, minimum lease payments to be paid by the Company are as follows:

---

| | |
|:---|:---|
| Remainder of 2025 | $55148 |
| 2026 | 113043 |
| 2027 | 116434 |
| 2028 | 119928 |
| 2029 | 102426 |
| Total lease payments | 506979 |
| Less imputed interest | (98773) |
| Present value of lease liabilities | 408206 |
| Current portion | (73856) |
| Long term portion | $334350 |

---

**NOTE 9 – RELATED PARTY TRANSACTIONS**

Related Party transactions with the Company are as follows:

1) Short-term notes payable, convertible notes, and legacy liabilities issued to related parties are described in NOTE 6.

2) A board resolution was passed on February 13, 2020 that pledged the patents and pending patents to secure the back pay claims of Ben Slager, CEO, Anthony Santelli, CFO, and Charles Sills, Director. This was done to ensure the continued involvement of management to build the Company while they receive less than full salaries.

3) During 2024, the board of directors approved an increase in salaries to two officers of the Company retroactive to August 1, 2023, in light of the fact that they are not receiving payments of salaries on a consistent basis. CEO Ben Slager is to receive annual salary of $525,000 and CFO Anthony Santelli $325,000.

4) In June 2024, the board of directors approved a partial anti-dilution compensation for CEO Ben Slager, CFO Anthony Santelli, and Director Chris Kneppers to be paid in restricted stock units and options of 4%, 3%, and 3%, respectively, of the equity and warrants granted to investors on the next $50 million in equity raised into the Company or its subsidiaries. This is compensation for their deferring salary or lending funds to the Company until such raise(s) is affected. These restricted share units will be issued as the Company raises capital through sale of its common stock. As of June 30, 2025, Ben Slager is to be issued 188,800 RSUs and options with a 15 cent exercise price, and both Anthony Santelli and Chris Kneppers are each to be issued 141,600 RSUs and 66,600 options. None of the RSUs nor options have been issued as of June 30, 2025.

5) As of April 1, 2024, the board of directors approved ceasing accruing interest on back pay due to officers and on directors fees. In lieu of interest, the Company will pay an additional $25,000 to each director contingent upon the financing of the first plant or the successful uplisting to the NYSE or Nasdaq. Similarly, a performance bonus equal to 100% of the outstanding back pay balance due to Officers Ben Slager and Anthony Santelli shall be paid contingent upon the financing of the first plant. These amounts automatically come due upon a Change of Control or if the Company files for bankruptcy under Chapter 11 or Chapter 7.

6) As of August 28, 2024, each Director that is not an Officer shall receive 3.5% in cash and 3.5% in warrants for any investor first introduced to the Company by the Director. The warrants shall either be at the same price as any warrants being offered in the raise, or, if there are no warrants in the raise, then at the closing market price on the date in which the funds are received. All warrants will have a 5-year expiration from the date of the investment. No such cash/warrants have been earned to date.

**NOTE 10 – GRANT INCOME**

In September 2024, the Company was awarded a Small Business Innovation Research ("SBIR") grant by the U.S. Department of Energy (DOE) in the amount of $1.15 million to be received subject to meeting certain terms and conditions. The purpose of the grant is to support the further development of the Company's patented CTS process and to bring it to the point of being commercially ready. Accounting for this DOE grant does not fall under Accounting Standard Codification 606, *Revenue from Contracts with Customers*, as the DOE does not meet the definition of a customer under this standard.

During the three and six month periods ended June 30, 2025, $0 and $444,970 was recognized as grant income for this grant. The Company anticipates recognizing an additional $420,030 on this grant over the next 3 months.

**NOTE 11 – SUBSEQUENT EVENTS**

The Company has evaluated subsequent events through the date the financial statements were issued. Based on this evaluation, the Company has identified the following subsequent events:

From July 1, 2025 to the date of this filing, the Company issued 650,000 shares and warrants for $65,000 in cash to two unrelated parties. The warrants were exercisable at 15 cents and have a five-year expiration.

From July 1, 2025 to the date of this filing, the Company issued 672,520 shares for services.

From July 1, 2025 to the date of this filing, the Company issued 50,000 warrants for interest on a notes payable to a board member. The warrants are exercisable at 15 cents and have a five-year expiration.

**ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

**Forward-Looking Statements**

This quarterly report contains forward-looking statements and information relating to the Company that are based on the beliefs of its management as well as assumptions made by, and information currently available to, its management. When used in this report, the words "believe," "anticipate," "expect," "estimate," "intend", "plan" and similar expressions, as they relate to the Company or its management, are intended to identify forward-looking statements. These statements reflect management's current view of the Company concerning future events and are subject to certain risks, uncertainties and assumptions, including among many others: a general economic downturn; a downturn in the securities markets; federal or state laws or regulations having an adverse effect on proposed transactions that the Company desires to effect; Securities and Exchange Commission regulations which affect trading in the securities of "penny stocks"; and other risks and uncertainties. Some of those risks and uncertainties include the risk factors set forth in this report and our Annual Report on Form 10-K for the fiscal year ended December 31, 2024. Should any of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this report as anticipated, estimated or expected. The accompanying information contained in this financial statement identifies important additional factors that could materially adversely affect actual results and performance. You are urged to carefully consider these factors. All forward-looking statements attributable to the Company are expressly qualified in their entirety by the foregoing cautionary statement.

**Business Overview**

Blue Biofuels, Inc., was incorporated in Nevada on March 28, 2012, as Alliance Media Group Holdings, Inc. Since December 2013, Blue Biofuels, Inc. (the "Company") has been a technology company focused on emerging technologies in renewable energy, biofuels, and lignin.

In early 2018, the Company's chief executive officer ("CEO") Ben Slager invented a new reactor technology with a higher yield and a continuous throughput in the Cellulose-to-Sugar process, or CTS, and the Company filed a process patent application for this technology. Mr. Slager has since further developed the system with the technical staff of the Company. The CTS patent was awarded in 2021 in the United States (U.S. Patent No. 10,994,255) and has subsequently been granted in Japan, Australia, Russia, and El Salvador. The Company also filed this patent in other major jurisdictions of the world including the European Patent Organization, Brazil, China, and the African Regional Intellectual Property Organization. The patent applications are currently pending in all of these international jurisdictions. In addition to this patent, the Company has received two additional patents in the United States, for which it has also applied in all the above-mentioned jurisdictions. Further, the company has filed for 6 other patents in the United States which are currently pending.

Mr. Slager has since further developed the system with the technical staff of the Company. The patented CTS process is a continuous mechanical/chemical dry process for breaking down cellulosic material for conversion into biofuels. CTS can break down any cellulosic material – including grasses and agricultural waste. The CTS mechanical/chemical process allows for exact process control to ensure that all the material passing through it does so on the optimum reaction parameters through which optimal efficiency is achieved.

The new technology made it worthwhile to financially restructure the Company through Chapter 11. The Company voluntarily filed for Chapter 11 on October 22, 2018, in the U.S. Bankruptcy Court in the Southern District of Florida. The Company exited Chapter 11 on September 18, 2019, while keeping all classes, including shareholders, unimpaired. The bankruptcy case was closed on October 25, 2019.

The Company believes a significant difference between CTS cellulosic ethanol and corn ethanol is the wide range of abundantly available feedstocks that CTS can process compared to just corn as the feedstock. The CTS feedstocks are nonfood and have much lower costs than corn. In addition, while in corn ethanol only the corn kernels are used, CTS uses the whole plant or its waste products, meaning it could obtain much higher yields per acre.

In 2022, the Company partnered with K.R. Komarek to build its CTS machines going forward. Komarek is an industry leading manufacturing company that builds briquetting machines and compaction/granulation systems with throughput capacities up to 50 tons per hour.

In 2023, the Company completed the build-out of a pilot plant based on a modified Komarek machine and optimized the core process. In 2024 and 2025, the Company has upscaled, tested and optimized the pre and post processing elements at this pilot scale plant and is finalizing design and operational parameters to provide operating cost estimates of a full-scale commercial volume system. Due to its mechanical nature and modularity, we anticipate that one plant would have multiple modular CTS systems. This process is partially funded by the $1.15 million SBIR Phase 2 Department of Energy grant, which followed up from the SBIR Phase 1 DOE grant that helped fund the finalizing of the proof of concept.

In addition, the Company has licensed the Vertimass Process which is a patented one step process that converts ethanol into sustainable aviation fuel (SAF) and other renewable biofuels including bio-gasoline. The license agreement with Vertimass is the subject to a confidentiality agreement between the parties.

**Plan of Operation**

The total process from cellulosic feedstock to SAF consists basically of three steps:

1) Conversion from feedstock to fermentable cellulosic sugars (CTS) <br> 2) Ferment the cellulosic sugars into cellulosic ethanol. <br> 3) Covert the ethanol into SAF and related products. This third step happens with the Vertimass technology which the Company has licensed.

In January 2024, the Company formed a 50-50 joint venture partnership with Vertimass called VertiBlue Fuels, LLC, that has the mission to build an ethanol-to-SAF facility in Florida with the initial goal to produce around 5-10 million gallons of Sustainable Aviation Fuel (SAF), and then expand SAF and other renewable fuels production to approximately 40 million gallon per year. VertiBlue Fuels plans to initially convert first-generation ethanol, and then, when the Company's CTS technology is fully commercialized, to build commercial CTS and ethanol facilities on the front-end to produce cellulosic SAF and generate the large D7 RIN and other government credits. Parallel to that, the Company will plan, design, and build a demonstration plant on the same location for the production of cellulosic ethanol from king grass with a capacity of around 5 million gallons per year. The Company is already in preparation and planting king grass close by for this purpose. As soon as we are able to produce cellulosic ethanol, it will be the feedstock for the SAF facility. Commencing commercial production will require project financing.

Any new biofuels plant that is built would require various government permits. In particular, renewable fuels are subject to rigorous testing and premarket approval requirements by the EPA's Office of Transportation and Air Quality and regulatory authorities in other countries. In the U.S., various federal, and, in some cases, state statutes and regulations also govern or impact the manufacturing, safety, storage and use of renewable fuels. The process of seeking required approvals and the continuing need for compliance with applicable statutes and regulations requires the expenditure of resources. The Company anticipates raising the necessary capital for this as a part of its project-based financing.

The ethanol industry is competitive with over 200 ethanol plants in the United States alone. Currently, the vast majority use corn as feedstock. Their profitability depends highly on the fluctuations between the price of corn and the price of ethanol. Since the Company does not plan to use corn, and plans on having long-term purchase agreements with cellulosic feedstock suppliers, we anticipate that our profitability will be more consistent. Further, cellulosic biofuels yield much higher incentives than non-cellulosic biofuels.

The Energy Policy Act of 2005, which included the Renewable Fuel Standard Program enforced by the US Environmental Protection Agency (EPA), mandates a certain amount of renewable fuel be blended into the transportation fuel used by all vehicles in the country. This Program provides monetary incentives to companies that produce renewable transportation fuel, and establishes Renewable Identification Numbers (RINs) or credits for each gallon of renewable transportation fuel produced in the United States, and breaks down those fuels into different D-codes depending on the source of the renewable fuel. D3 is the code for renewable ethanol that comes from cellulosic materials. The EPA's final D3 RIN volume mandates for cellulosic biofuel include 840 million gallons for 2023, 1.09 billion gallons for 2024, and 1.19 billion gallons for 2025, with proposals for 1.30 billion gallons for 2026, and 1.36 billion gallons for 2027 (the D3 mandate). This mandate has increased every year and is statutorily mandated to increase in the future and become a larger portion of the full renewable fuels mandate, if and when cellulosic biofuels can be produced profitably in larger and larger quantities. The RFS mandate for 2024 called for 21.54 billion gallons of total renewable fuel, whereas for 2025 it's 22.33 billion gallons with 7.33 billion gallons from advanced biofuels, including cellulosic biofuels, leaving 15 billion gallons for conventional biofuels (corn ethanol). For 2026 and 2027, the proposals for total renewable fuel is 24.02 and 24.46 billion gallons respectively. The "blend wall" (or upper limit to the amount of ethanol that can be blended into U.S. gasoline and automobile performance and comply with the Clean Air Act) of limiting ethanol content in gasoline to 10%, limits the total amount of ethanol consumed in the United States. Recent proposals have make 15% blending available year around in some states. The value of the D3 RIN fluctuates, but as of this filing, it is approximately $2.18 per gallon of ethanol. For comparison, the D6 RIN for corn ethanol is $1.20. To profit from these incentives, the Company plans to apply for these RIN credits as it brings its first plant into commercial operation.

Section 45Z of the Inflation Reduction Act passed on August 16, 2022, offers a Clean Fuel Production Credit (CFPC) per gallon of transportation fuel produced with a base amount of 20 cents per gallon or up to $1 per gallon for a qualified facility (depending on its carbon index) that was built while paying at least prevailing wages and which met apprenticeship requirements. The Company plans to apply for CFPC credits when it begins building its commercial facilities. The CFPC currently does not apply to transportation fuel sold after December 31, 2029.

A Low Carbon Fuel Standard Credit (LCFS) is offered by various states (primarily California) for any amount of reduced CO2 in the production lifecycle of transportation fuels as compared to the amount of CO2 emitted in the production lifecycle of fossil fuels. The production lifecycle includes transportation costs to the point of use. California is currently offering around $43 per metric ton of CO2 reduction. When it is closer to commercial production, the Company plans to analyze the cost effectiveness of applying for these LCFS credits to determine in which state it could earn the most credits.

At commercial scale, management expects to be able to earn substantial renewable fuel credits and produce sustainable ethanol, sustainable aviation fuel, bio-gasoline, and other sustainable biofuels more profitably than they could be from existing commercial corn ethanol producers. Cellulosic ethanol comes with a much more valuable D3 RIN credit as compared to the D6 RIN allocated to corn ethanol; cellulosic SAF comes with a very valuable D7 RIN, and cellulosic bio-gasoline comes with a valuable D3 RIN. The Company also expects to receive Clean Fuel Production Credits related to section 45Z of the Inflation Reduction Act, and the Company also plans to pursue Low Carbon Fuel Standard Credits.

After its first plant is profitable, the Company intends to grow with additional plants in the United States and explore international growth by either licensing the CTS technology or forming joint ventures with foreign domestic partners to build plants.

The Company believes that its management and consultants have significant experience in the development of technologies from concept to commercialization. As of this date, the Company has not generated any material revenues from its business.

**Capital Formation**

From January 1, 2025, through the date of filing, the Company issued an aggregate of 150,687 shares of its common stock for the cashless exercise of 300,000 options.

From January 1, 2025, through the date of filing, the Company issued an aggregate of 4,000,000 shares and warrants for the conversion of $50,000 in debt and for $331,250 in cash.

From January 1, 2025, through the date of filing, 8,915,757 options vested. During the six months ended June 30, 2025, the Company recognized additional stock-based compensation of $439,487 in connection with the expensing of unvested options.

From January 1, 2025, through the date of filing, 3,158,334 unvested options expired.

**Going Concern**

The Company has incurred losses since inception, has a working capital deficiency, and may be unable to raise further capital. As of June 30, 2025, the Company had a working capital deficit of $2,430,872 and had incurred accumulated losses of $58,420,346 since its inception. The Company expects to incur significant additional losses in connection with its continued start-up activities. As a result, there is substantial doubt about the Company's ability to continue as a going concern based upon recurring operating losses and its need to obtain additional financing to sustain operations. The Company's ability to continue as a going concern is dependent upon its ability to obtain the necessary financing to meet its obligations and repay its liabilities when they become due and to generate sufficient revenues from its operations to pay its operating expenses.

**Results of Operations**

***Comparison of the three and six month periods ended June 30, 2025 to June 30, 2024***

For the three and six months ended June 30, 2025, the Company recognized $0 in revenue, and also $0 in 2024.

For the three months ended June 30, 2025, the Company's general and administrative expenses increased by $181,379 to $431,134 from $249,755 in 2024. This increase is primarily the result of $204,425 in equity based compensation versus $28,782 in 2024.

For the six months ended June 30, 2025, the Company's general and administrative expenses increased by $223,496 to $769,232 from $545,736 in 2024.This increase is primarily due to equity based compensation of $238,135 versus $45,721 in 2024.

Interest expense increased in the quarter ended June 30, 2025 by $10,470 to $18,149 from $7,679 in 2024. Interest expense decreased in the six-month period ended June 30, 2025 by $32,787 to $18,147 from $50,934 in 2024.

Research and development (R&D) costs for the quarter ended June 30, 2025, were $471,470 an increase of $180,081 from $291,389 in 2024. The increase in R&D expenses is primarily the result of equity-based compensation of $146,898 in 2025 versus $985 in 2024.

Research and development (R&D) costs for the six months ended June 30, 2025, were $822,176 a decrease of $76,849 from $899,025 in 2024. The decrease in R&D expenses is primarily the result of equity-based compensation of $263,893 in 2024 versus $201,353 in 2025 plus $86,025 in consulting fees in 2024 versus $9,835 in 2025.

**Liquidity and Capital Resources**

Liquidity

As of June 30, 2025, the Company had $8,026 in cash and cash equivalents, and total stockholders' deficit on June 30, 2025, was $3,172,069. As of December 31, 2024, the Company had $48,797 in cash and cash equivalents, and total stockholders' deficit at December 31, 2024, was $2,845,903. Total debt, including convertible notes, accounts payable and other notes payable at June 30, 2025, together with interest payable thereon and legacy liabilities, was $4,620,330 an increase of $384,840 from December 31, 2024, where it stood at $4,235,490. This increase is primarily attributable to an increase in deferred wages of $251,560 and a net increase in debt of $135,000.

During the six months ended June 30, 2025, the Company's net cash used in operating activities was $298,723 compared to net cash used in operating activities of $543,377 in the six months ending June 30, 2024. This is primarily attributed to the use of grant funds in 2025 which led to a lower net loss.

During the six months ended June 30, 2025, the Company generated an aggregate of $451,250 through its financing activities versus $930,000 in the six months ended June 30, 2024, which is a decrease of $478,750. This decrease from the prior year can primarily be attributed to net proceeds of $185,000 for the issuance of notes payable in 2025 versus $930,000 in 2024.

Capital Resources

At this time, the Company has limited liquidity and capital resources. To continue funding its operations, the Company will need to generate revenue or obtain additional financing for current and future operations. The Company anticipates needing additional funds for G&A expenses and will seek project financing for a commercial ethanol to SAF facility in addition to funds needed to complete the commercialization of its CTS system. There is no guarantee that the Company will achieve all of the additional funding that is needed.

As of the date of this filing, in 2025 the Company has raised $185,000 through the issuance of notes and $331,250 through the issuance of common stock and warrants. The Company previously raised $17,160,625 in shares and $2,245,916 through converted notes and $1,430,000 in debt or convertible notes since inception. However, there is no guarantee that the Company will be able to raise any additional capital on terms acceptable to the Company.

The inability to obtain this funding either in the near term and/or longer term will materially affect the ability of the Company to implement its business plan of operations and jeopardize the viability of the Company. In that case, the Company may need to reevaluate and revise its operations.

**Equity**

As of June 30, 2025, shareholders' deficit was $3,172,069.

There were 311,877,170 shares of common stock issued and outstanding as of June 30, 2025.

There were no preferred shares outstanding.

The Company has paid no dividends.

**ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

As a "smaller reporting company" as defined by Item 10 of Regulation S-K, the Company is not required to provide information required by this Item.

**ITEM 4. CONTROLS AND PROCEDURES**

***Evaluation of Disclosure Controls and Procedures***

We maintain disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act). Disclosure controls and procedures refer to controls and other procedures designed to ensure that information required to be disclosed in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC and that such information is accumulated and communicated to our management, including our chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure.

As required by Rule 13a-15(e) of the Exchange Act, our management has carried out an evaluation, with the participation and under the supervision of our chief executive officer and chief financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures, as of June 30, 2025. Based upon, and as of the date of this evaluation, our chief executive officer and chief financial officer determined that our disclosure controls and procedures were effective.

***Changes in Internal Control over Financial Reporting***

There has been no change in our internal control over financial reporting during the quarter ended June 30, 2025 that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.

**PART II - OTHER INFORMATION**

**ITEM 1. LEGAL PROCEEDINGS**

The Company is subject, from time to time, to litigation, claims and suits arising in the ordinary course of business. As of the date of filing, there are no material claims or suits whose outcomes could have a material effect on the Company's financial statements.

**ITEM 1A. RISK FACTORS.**

As a "smaller reporting company" as defined by Item 10 of Regulation S-K, the Company is not required to provide information required by this Item.

**ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES**

Below is a list of securities issued by the Company from January 1, 2025, through the date of filing which were not registered under the Securities Act.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Entity** | **Date of Investment** | **Title of Security** | **Amount of**<br> **Securities Sold** | **Consideration** |
| Clay Taylor | 01/21/25 | Common Stock | 625000 | Note Conversion |
| Peter Zimeri | 02/18/25 | Common Stock | 44000 | Exercise of Options |
| Anthony Santelli, Sr. | 04/04/25 | Common Stock | 500000 | Purchase @ $0.10 per share |
| Anthony Santelli, Sr. | 05/05/25 | Common Stock | 250000 | Purchase @ $0.10 per share |
| Thomas Camerlengo | 05/08/25 | Common Stock | 106687 | Exercise of Options |
| Randall Brodsky | 05/21/25 | Common Stock | 250000 | Purchase @ $0.10 per share |
| Anthony Santelli, Sr. | 05/24/25 | Common Stock | 500000 | Purchase @ $0.10 per share |
| Mark Monahan | 05/30/25 | Common Stock | 500000 | Purchase @ $0.10 per share |
| John Orlando | 06/09/25 | Common Stock | 125000 | Exercise of Warrants |
| Anthony Santelli, Sr. | 06/26/25 | Common Stock | 600000 | Purchase @ $0.10 per share |
| David Bolton | 07/02/25 | Common Stock | 250000 | Purchase @ $0.10 per share |
| Peter van Eerten | 07/09/25 | Common Stock | 400000 | Purchase @ $0.10 per share |

---

The securities issued in the above-mentioned transactions were issued in connection with private placements exempt from the registration requirements of Section 5 of the Securities Act of 1933, as amended, pursuant to the terms of Section 4(a)(2) of that Act and Rules 504 and 506 of Regulation D.

**ITEM 3. DEFAULTS UPON SENIOR SECURITIES**

None.

**ITEM 4. MINE SAFETY DISCLOSURES**

Not applicable.

**ITEM 5. OTHER INFORMATION**

None.

**ITEM 6. EXHIBITS**

The exhibits listed below are filed as part of or incorporated by reference in this report.

---

| | |
|:---|:---|
| **Exhibit No.** | **Identification of Exhibit** |
| 3.1 | [Articles of Incorporation (incorporated by reference to the Company's S-1 filed May 23, 2012)](https://www.sec.gov/Archives/edgar/data/1549145/000114544312000754/d29479_ex3i.htm) |
| 3.2 | [Certificate of Amendment to Articles of Incorporation filed November 19, 2014 (incorporated by reference to the Company's Form 10-12G/A filed on February 16, 2021)](https://www.sec.gov/Archives/edgar/data/1549145/000149315221004040/ex3-1c.htm) |
| 3.3 | [Certificate of Amendment to Articles of Incorporation filed June 17, 2016 (incorporated by reference to the Company's Form 10-12G/A filed on February 16, 2021)](https://www.sec.gov/Archives/edgar/data/1549145/000149315221004040/ex3-1b.htm) |
| 3.4 | [Certificate of Amendment to Articles of Incorporation filed July 26, 2021 (incorporated by reference to the Company's 8-K filed on July 30, 2021)](https://www.sec.gov/Archives/edgar/data/1549145/000149315221018158/ex3-1.htm) |
| 3.5 | [Bylaws (incorporated by reference to the Company's Form 10-12G/A filed on February 16, 2021)](https://www.sec.gov/Archives/edgar/data/1549145/000149315221004040/ex3-2.htm) |
| 10.1 | [Employment Agreement, dated June 1, 2020, between the Company and Ben Slager (incorporated by reference to the Company's Form 10-12G/A filed on February 16, 2021)](https://www.sec.gov/Archives/edgar/data/1549145/000149315221004040/ex10-b.htm) |
| 10.2 | [Employment Agreement, dated June 1, 2020, between the Company and Anthony Santelli (incorporated by reference to the Company's Form 10-12G/A filed on February 16, 2021](https://www.sec.gov/Archives/edgar/data/1549145/000149315221004040/ex10-c.htm) |
| 10.3 | [2021 Employee, Director Stock Plan (incorporated by reference to definitive 14C filed with the SEC on June 24, 2021)](https://www.sec.gov/Archives/edgar/data/1549145/000149315221015192/formdef14c.htm) |
| 31.1. | [Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](ex31-1.htm) |
| 31.2 | [Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](ex31-2.htm) |
| 32.1 | [Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](ex32-1.htm) |
| 32.2 | [Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](ex32-2.htm) |
| 101.INS | Inline XBRL Instance Document |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

**SIGNATURES**

Pursuant to the requirements of Section 13 or 15(d) of the Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | |
|:---|:---|
| Blue Biofuels, Inc. | Blue Biofuels, Inc. |
| (Registrant) | (Registrant) |
| By | */s/ Benjamin Slager* |
|  | Benjamin Slager |
|  | Chief Executive Officer, (Principal Executive Officer) |
| Date July 30, 2025 | Date July 30, 2025 |
| By | */s/ Anthony Santelli* |
|  | Anthony Santelli |
|  | Chief Financial Officer (Principal Financial and Accounting Officer) |
| Date July 30, 2025 | Date July 30, 2025 |

---

## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATIONS**

I, Benjamin Slager, certify that:

1. I have reviewed this quarterly report on Form 10Q of Blue Biofuels, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: July 30, 2025

---

| |
|:---|
| */s/ Benjamin Slager* |
| Benjamin Slager |
| Chief Executive Officer<br> *(Principal Executive Officer)* |

---

## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATIONS**

I, Anthony Santelli, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Blue Biofuels, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: July 30, 2025

---

| |
|:---|
| */s/ Anthony Santelli* |
| Anthony Santelli |
| Chief Financial Officer<br> *(Principal Financial and Accounting Officer)* |

---

## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906**

**OF THE SARBANES-OXLEY ACT OF 2002**

The undersigned, Benjamin Slager, the Chief Executive Officer of Blue Biofuels, Inc (the "Company"), DOES HEREBY CERTIFY that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2025 (the "Report"), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the Company.

IN WITNESS WHEREOF, the undersigned has executed this statement this 30<sup>th</sup> day of July, 2025.

---

| |
|:---|
| */s/ Benjamin Slager* |
| Benjamin Slager |
| Chief Executive Officer<br> *(Principal Executive Officer)* |

---

A signed original of this written statement required by Section 906 has been provided to Blue Biofuels, Inc. and will be retained by Blue Biofuels, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

## Exhibit 32.2

**Exhibit 32.2**

**CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906**

**OF THE SARBANES-OXLEY ACT OF 2002**

The undersigned, Anthony Santelli, the Chief Financial Officer of Blue Biofuels, Inc. (the "Company"), DOES HEREBY CERTIFY that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2025 (the "Report"), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the Company.

IN WITNESS WHEREOF, the undersigned has executed this statement this 30<sup>th</sup> day of July, 2025.

---

| |
|:---|
| */s/ Anthony Santelli* |
| Anthony Santelli |
| Chief Financial Officer<br> *(Principal Financial and Accounting Officer)* |

---

A signed original of this written statement required by Section 906 has been provided to Blue Biofuels, Inc. and will be retained by Blue Biofuels, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.