Continues Progress on Streamlining Operations to Focus
on Core Environmental Services Business
Third Quarter 2023 Financial Results
Total revenue decreased 21% to
General and administrative (“G&A”) expenses were
Interest expense was
Loss from operations was
As of
Management Commentary
“These are exciting times for
“The environmental services market is highly fragmented with many attractive acquisition targets and growing demand driven by a compelling regulatory environment, both of which are contributing to our opportunities to grow. Gaining access to the public capital markets via the
“We believe to be well positioned for sustained growth given our strong market presence in
“Looking to the future, we remain focused on executing our strategy by integrating recent acquisitions and streamlining our business to concentrate exclusively on environmental solutions, which deliver high levels of recurring revenues while reducing costs to deliver sustained profitable growth.”
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Safe Harbor
This press release contains forward-looking statements, particularly as related to, among other things, the business plans of AEPT, statements relating to goals, plans and projections regarding AEPT’s financial position and business strategy. The words or phrases “would be,” “will allow,” “intends to,” “may result,” “are expected to,” “will continue,” “anticipates,” “expects,” “estimate,” “project,” “indicate,” “could,” “potentially,” “should,” “believe,” “think”, “considers” or similar expressions are intended to identify “forward-looking statements.” These forward-looking statements fall within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934 and are subject to the safe harbor created by these sections. Actual results could differ materially from those projected in the forward-looking statements as a result of a number of risks and uncertainties. Such forward-looking statements are based on current expectations, involve known and unknown risks, a reliance on third parties for information, transactions or orders that may be cancelled, and other factors that may cause our actual results, performance or achievements, or developments in our industry, to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties related to the fluctuation of global economic conditions, the performance of management and our employees, our ability to obtain financing, competition, general economic conditions and other factors that are detailed in our periodic reports and on documents we file from time to time with the
Company Contact:
AEPT@finprofiles.com
Consolidated Balance Sheets | |||||||
Current Assets | |||||||
Cash | $ | 510,220 | $ | 651,194 | |||
Accounts receivable – Environmental services | 4,498,217 | 5,459,330 | |||||
Accounts receivable – Other | - | 423,464 | |||||
Inventory | 82,496 | 82,496 | |||||
Prepaids and other | (1,896,187 | ) | 48,138 | ||||
Total Current Assets | 3,194,746 | 6,664,622 | |||||
Operating lease – right-of-use asset | 1,609,545 | 1,609,545 | |||||
Property and equipment – net | 2,460,577 | 2,919,562 | |||||
6,936,331 | 6,945,653 | ||||||
Other Assets | 111,838 | 12,331 | |||||
Total Assets | $ | 14,313,037 | $ | 18,151,713 | |||
Current Liabilities | |||||||
Accounts payable and accrued expenses | $ | 6,331,639 | $ | 4,898,180 | |||
Notes payable | 2,650,665 | 3,981,061 | |||||
Operating lease liability | 848,075 | 848,075 | |||||
Other Current Liabilities | - | (3,379 | ) | ||||
Total Current Liabilities | 9,830,379 | 9,723,937 | |||||
Long Term Liabilities | |||||||
Notes payable | 3,740,791 | 5,216,036 | |||||
Operating lease liability | 822,490 | 822,490 | |||||
Total Long-Term Liabilities | 4,563,281 | 6,038,526 | |||||
Total Liabilities | 14,393,660 | 15,762,463 | |||||
Stockholders' Equity | |||||||
Common stock, Class A, | 377,288 | 243,228 | |||||
377,288,277 and 243,228,277 shares issued and outstanding, respectively | |||||||
Additional paid-in capital | 72,412,252 | 60,964,413 | |||||
Accumulated deficit | (72,870,163 | ) | (58,818,391 | ) | |||
Total Stockholders' Equity | (80,623 | ) | 2,389,250 | ||||
Total Liabilities and Stockholders’ Equity | $ | 14,313,037 | $ | 18,151,713 | |||
The accompanying notes are an integral part of these consolidated financial statements |
Consolidated Statement of Operations | |||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Revenues | |||||||||||||||
Oil and natural gas | $ | - | $ | 972,364 | $ | - | $ | 1,882,607 | |||||||
Environmental Services | 6,719,583 | 7,551,295 | 19,091,684 | 13,683,599 | |||||||||||
Other | - | - | - | - | |||||||||||
Total Revenues | 6,719,583 | 8,523,659 | 19,091,684 | 15,566,206 | |||||||||||
Cost and expenses | |||||||||||||||
General and administrative expenses | 6,515,691 | 7,077,613 | 18,658,347 | 14,211,675 | |||||||||||
Lease operating expenses | 320,902 | 258,359 | 919,091 | 525,282 | |||||||||||
Royalties | - | 116,894 | - | 204,654 | |||||||||||
Depreciation, depletion, amortization and accretion | 122,372 | 118,682 | 374,674 | 634,440 | |||||||||||
Total costs and expenses | 6,958,965 | 7,571,548 | 19,952,112 | 15,576,051 | |||||||||||
Income (Loss) from operations | (239,382 | ) | 952,111 | (860,428 | ) | (9,845 | ) | ||||||||
Other income (expense) | |||||||||||||||
Interest expense | (601,786 | ) | (82,841 | ) | (1,744,960 | ) | (241,161 | ) | |||||||
Amortization of debt discount | - | - | - | - | |||||||||||
Stock Issuance and Option expense | (1,249,930 | ) | - | (11,581,899 | ) | (321,448 | ) | ||||||||
Other income (loss) | 7,061 | 20,579 | 135,260 | (117,057 | ) | ||||||||||
Total other income (expense) - net | (1,844,655 | ) | (62,262 | ) | (13,191,599 | ) | (679,666 | ) | |||||||
Net Income (Loss) | $ | (2,08,037 | ) | $ | 889,849 | $ | (14,052,027 | ) | $ | (689,511 | ) | ||||
Loss per share – basic and diluted | $ | - | $ | - | $ | (0.04 | ) | $ | - | ||||||
Weighted average number of shares – basic and diluted | 377,288,277 | 278,663,200 | 377,288,277 | 278,663,200 | |||||||||||
The accompanying notes are an integral part of these consolidated financial statements |
Consolidated Statements of Changes in Stockholders’ Equity | |||||||||||||||||
For the Nine Months Ended | |||||||||||||||||
Common Stock – Class A | |||||||||||||||||
Shares | Amount | Accumulated Deficit | Total Shareholders’ Equity | ||||||||||||||
243,228,277 | $ | 243,228 | $ | 60,964,413 | $ | (58,818,391 | ) | $ | 2,981,665 | ||||||||
Stock issued ( | 134,500,000 | 134,500 | 8,070,000 | - | 8,204,500 | ||||||||||||
Stock options granted in 1st Qtr. 2023 | - | - | 1,362,908 | - | 1,362,908 | ||||||||||||
Stock canceled in 1st Qtr. 2023 | (440,000 | ) | (440 | ) | - | - | (440 | ) | |||||||||
Net loss – 1st Qtr. 2023 | - | - | - | (11,303,998 | ) | (11,303,998 | ) | ||||||||||
377,288,277 | $ | 377,288 | $ | 70,397,321 | $ | (70,122,389 | ) | $ | 1,244,635 | ||||||||
Stock options granted in 2nd Qtr. 2023 | - | - | 765,001 | - | 765,001 | ||||||||||||
Stock canceled in 2nd Qtr. 2023 | - | - | - | - | - | ||||||||||||
Net loss – 2nd Qtr. 2023 | - | - | - | (663,737 | ) | (663,737 | ) | ||||||||||
377,288,277 | $ | 377,288 | $ | 71,162,322 | $ | (70,786,126 | ) | $ | 1,345,899 | ||||||||
Stock options granted in 3rd Qtr. 2023 | - | - | 1,249,930 | - | 1,249,930 | ||||||||||||
Net loss – 3rd Qtr. 2023 | - | - | - | (2,084,037 | ) | (2,084,037 | ) | ||||||||||
377,288,277 | $ | 377,288 | $ | 72,412,252 | $ | (72,870,163 | ) | $ | (80,623 | ) | |||||||
The accompanying notes are an integral part of these consolidated financial statements |
Consolidated Statement of Cash Flows | |||||||
For the Nine Months Ended | |||||||
2023 | 2022 | ||||||
Operating activities | |||||||
Net (loss) | $ | (14,052,027 | ) | $ | (689,511 | ) | |
Adjustments to reconcile net loss to net cash provided by (used in) operations | |||||||
Depreciation, depletion, amortization and accretion | 374,674 | 634,440 | |||||
Stock issued for services | 8,204,500 | - | |||||
Stock options issued for services | 3,377,399 | 321,448 | |||||
Changes in | - | - | |||||
Accounts receivable - oil and natural gas | - | 968,578 | |||||
Accounts receivable – environmental services | 1,384,577 | (4,046,510 | ) | ||||
Prepaids and other | (5,307 | ) | (514,479 | ) | |||
Increase (decrease) in | |||||||
Accounts payable and accrued expenses | 2,038,699 | 2,278,780 | |||||
Operating lease liability | - | 698 | |||||
Net cash provided by (used in) operating activities | 1,322,515 | (1,046,556 | ) | ||||
Investing activities | |||||||
Cash acquired in acquisition of AMS | - | 348,871 | |||||
Stock issued for acquisitions | - | 2,169,303 | |||||
Acquisition of property and equipment | 11,756 | (7,367,191 | ) | ||||
Net cash provided by investing activities | 11,756 | (4,849,017 | ) | ||||
Financing activities | |||||||
Proceeds from issuance of debt | - | 5,777,116 | |||||
Repayments on notes payable | (1,475,245 | ) | - | ||||
Net cash provided by (used in) financing activities | (1,475,245 | ) | 5,777,116 | ||||
Net increase (decrease) in cash | (140,974 | ) | (118,457 | ) | |||
Cash – beginning of period | 651,194 | 1,020,432 | |||||
Cash – end of period | $ | 510,220 | $ | 901,975 | |||
Supplemental disclosure of cash flow information | |||||||
Cash paid for interest | $ | 1,744,960 | $ | 241,161 | |||
Cash paid for income tax | $ | - | $ | - | |||
Supplemental disclosure of non-cash investing and financing activities | |||||||
Stock issued upon exercise of stock options | $ | - | $ | - | |||
The accompanying notes are an integral part of these consolidated financial statements |
Source:
2023 GlobeNewswire, Inc., source