Hub Cyber Security's 2025 Annual Report Flags Going Concern, Material Weaknesses, and Deep Financial Distress
HUBC is trading near its 52-week low of $1.13 (9.7% above the low).
Summary
Hub Cyber Security's 2025 annual report reveals a going concern warning, massive losses, material control weaknesses, and extreme liquidity strain — the company is in a fight for survival.
Key Events · Earnings and Guidance · HUBC
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Going Concern Warning
The auditor expresses substantial doubt about Hub's ability to continue as a going concern, citing recurring losses, negative working capital of $119.5M, and only $1.76M in cash as of Dec 31, 2025.
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Massive Net Loss
For 2025, the net loss from continuing operations reached $118.0M, driven by $46.7M in impairment charges — including a full write-down of BST technology — $49.2M in finance expenses from toxic convertible debt, and an $11M class action settlement provision.
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Material Weaknesses in Internal Controls
Management identified material weaknesses in internal control over financial reporting, including insufficient accounting personnel, ineffective IT controls, and lack of segregation of duties. Remediation efforts are ongoing but not yet effective.
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Debt Defaults and Liquidity Crisis
The company is in default on approximately $43M of convertible loans and roughly $7M of other debt. It has failed to meet payroll tax and pension obligations, and two insolvency motions have been filed against it and its subsidiary Comsec.
Analysis · HUBC · Technology
The 20-F from Hub Cyber Security paints a picture of a company in severe distress. Its auditor raises substantial doubt about the ability to continue as a going concern, pointing to recurring losses, a $119.5M net loss for 2025, negative working capital of $119.5M, and a cash balance of just $1.76M. The filing also discloses material weaknesses in internal controls, defaults on roughly $50M in debt, multiple reverse stock splits to maintain a Nasdaq listing, and a recent zero-cash acquisition of distressed Evofem notes that massively diluted existing shareholders. With liquidity so tight that obligations cannot be met as they come due, the report underscores a fight for survival.
At the time of this filing, HUBC was trading at $1.24 on NASDAQ in the Technology sector, with a market capitalization of approximately $4M. The 52-week trading range was $1.13 to $66,450.00. This filing was assessed with negative market sentiment and an importance score of 9 out of 10.