In This Story
Royale Energy Funds Inc (ROYL+15.22%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a net loss of $1,184,291 for the three months ended September 30, 2024, compared to a net loss of $470,730 in the same period the previous year.
Revenues from oil and gas production increased to $559,709 for the quarter, up from $458,954 in the third quarter of 2023, due to higher oil production volumes.
Lease operating expenses for the quarter increased by 62% to $512,400, primarily due to repairs and restoration of well equipment.
General and administrative expenses decreased slightly to $369,646 for the quarter, compared to $384,373 in the previous year.
The company recorded a lease impairment of $337,500 during the quarter, with no such impairments recorded in the same period of the previous year.
Interest expense increased significantly to $108,004 for the quarter, primarily due to a $1.4 million note payable obtained in February 2024.
Royale Energy reported a working capital deficit of $10,990,782 as of September 30, 2024, with total current liabilities of $19,962,529.
The filing highlights ongoing liquidity challenges, with the company noting substantial doubt about its ability to continue as a going concern.
Management plans to address liquidity issues through cost control measures, asset sales, and potential financing, though there is no assurance of success.
The filing also details a recent exchange agreement with preferred stockholders, resulting in the elimination of the Series B Preferred Stock class.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Royale Energy Funds Inc quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.