Figure: 1 Vivakor’s Footprint in the Permian Dallas, TX, June 03, 2025 (GLOBE NEWSWIRE) -- Vivakor, Inc. (Nasdaq: VIVK) (“Vivakor” or the “Company”) is an integrated provider of energy transportation, storage, reuse, and remediation services. Vivakor’s growth strategy is anchored in the Permian and Eagle Ford Basins where the Company is positioned to opportunistically expand its integrated crude oil storage, logistics, and marketing value chains. Vivakor owns and operates 10 strategically located pipeli ...

Core Viewpoint - Vivakor, Inc. has announced a plan to issue a special dividend to its shareholders, reflecting its ongoing commitment to return value to investors [1][3]. Group 1: Dividend Announcement - The Board of Directors of Vivakor has approved a special dividend for shareholders [1]. - Each Vivakor shareholder will receive approximately 0.0079 shares of Adapti, Inc. common stock per Vivakor share, translating to a total value of approximately $0.815 million based on current share prices [3]. - A record date for the dividend will be established in the coming weeks [4]. Group 2: Shareholding in Adapti, Inc. - Vivakor currently holds 206,595 shares of Adapti, Inc., which constitutes about 13.5% of the outstanding common shares [2]. - Adapti, Inc. is involved in marketing products through its AdaptAI software platform, which connects products with influencers [2]. Group 3: Corporate Background - Vivakor, Inc. is an integrated provider of energy transportation, storage, reuse, and remediation services, operating one of the largest fleets of oilfield trucking services in the continental United States [6]. - The company aims to develop, acquire, and operate assets in the energy sector, providing services under long-term contracts [6].

Core Insights - Vivakor, Inc. reported strong financial results for Q1 2025, with significant revenue growth driven by logistics and terminaling operations from newly acquired businesses [3][6] - The company anticipates continued expansion and higher revenue contracts due to its midstream assets and long-term contracts [3][5] Financial Performance - Revenue increased by 133% to $37.3 million compared to $16.0 million in Q1 2024 [5][6] - Gross profit rose by 345% to $4.8 million, resulting in a gross margin of 12.7%, up from 6.7% in the previous year [5][6] - Adjusted EBITDA increased to $2.5 million, reflecting a positive trend in operational performance [5][10] - Net loss for Q1 2025 was $7.5 million, a 300% increase from $1.9 million in Q1 2024, with a net loss per share of ($0.21) [10] Operational Highlights - Transportation logistics revenue was $11.0 million, with an additional $2.5 million from related parties [5] - Terminaling and storage revenue totaled $21.8 million, with $2.0 million from related parties [5] - The company is currently undergoing expansion and plans to contract at higher revenue levels to meet increased demand [3][5]

Revenue and Profitability - For the three months ended March 31, 2025, the company realized revenues of $37,340,291, representing an increase of $21,318,900 or 133.07% compared to $16,021,391 in the same period of 2024, primarily due to the operations of the newly acquired Endeavor Entities[96] - Gross profit for the three months ended March 31, 2025, was $4,758,434, an increase of $3,690,297 or 345.49% compared to $1,068,137 in 2024, reflecting the growth in revenue and costs associated with oil and natural gas liquid products[99] - For the three months ended March 31, 2025, total revenues increased to $23,864,036, a rise of 48.95% compared to $16,021,391 in 2024[103] - The Terminaling and Storage Segment reported revenues of $21,826,502, up 69.03% from $12,913,165 in the previous year[103] - The Transportation Logistics Segment generated total revenues of $13,476,255, marking a 100% increase as it was newly acquired in October 2024[106] Costs and Expenses - The cost of revenues for the same period was $32,581,857, an increase of $17,628,603 or 117.89% from $14,953,254 in 2024, attributed to the cost of goods sold from logistics and terminaling operations[98] - Operating expenses increased to $11,200,915 for the three months ended March 31, 2025, up by $8,515,856 or 317.16% from $2,685,059 in 2024, driven by the operations of the Endeavor Entities[100] - Total interest expense for the same period was $1,184,198, an increase of $740,158 or 154.72% from $444,040 in 2024, mainly due to accrued interest on newly acquired debt from the Endeavor Entities acquisition[101] - Operating expenses rose to $3,191,441, an increase of 86.68% compared to $1,709,596 in the previous year, primarily due to the acquisition of the Endeavor Entities[108] Acquisitions and Strategic Initiatives - The company acquired Endeavor Crude, LLC and other entities on October 1, 2024, expanding its operations in the midstream oil and gas industry[88] - The company plans to review the assets and operations of the Endeavor Entities for potential strategic alternatives if they do not fit organizationally[88] - A consulting agreement was entered into with WSGS, LLC for management consulting services, with a potential cost of up to $1.3 million per year, payable in common stock[90] Financial Position - Cash and cash equivalents as of March 31, 2025, were $4,788,783, including $4 million in restricted cash[113] - The company had an accumulated deficit of approximately $98 million and a working capital deficit of about $99 million as of March 31, 2025[112] Losses and Cash Flow - The company reported a consolidated net loss of $1,774,631 for the three months ended March 31, 2025, a decrease of 4.07% from a net loss of $1,849,908 in 2024[108] - The company experienced a net cash used in operating activities of $(35) for the three months ended March 31, 2025, compared to $(1,829,679) in 2024[111] Marketable Securities - Unrealized gains on marketable securities increased significantly to $1,652,754, representing a 2,099.99% increase from an unrealized loss of $82,638 in 2024[110] Future Investments - The company is constructing a remediation processing center in Texas, expected to process oilfield solid wastes into economic byproducts, enhancing its service offerings in environmental solutions[87] - The company anticipates further construction costs of approximately $1.5 million for its Texas remediation and wash plant facilities[116] Debt and Financing - The company issued a junior secured convertible promissory note for $6,625,000, with a net loan amount of $5,000,000 received, to be repaid in weekly installments[94]

Business Segments and Operations - The company operates in two main business segments: transportation logistics services and terminaling/storage services related to oil and gas production[18]. - The trucking fleet hauls approximately 50,000 barrels of crude oil and 31,000 barrels of produced water daily, with a significant presence in the Permian and Eagle Ford Basins[23]. - The Omega Gathering Pipeline is a 45-mile integrated crude oil gathering pipeline, underpinned by a 10-year agreement with Validus Energy II Midcon, LLC, covering over 36,000 acres[28]. - The company has two major crude oil terminaling facilities, one in Colorado City, Texas, and another in Delhi, Louisiana, generating tank storage revenue of approximately $1.8 million for both 2024 and 2023[30]. - In 2024, the Endeavor Entities hauled approximately 4.64 million barrels of produced water to Pilot's saltwater disposal wells, enhancing freight volumes in key basins[27]. - The company plans to construct a remediation processing center (RPC) in Harris County, Texas, expected to process oilfield solid wastes into economic byproducts, with operations commencing in Q4 2025[32]. Financial Performance and Revenue - The company produced and sold natural gas liquids to WC Crude amounting to $10,790,417 and $11,268,005 for the years ended December 31, 2024 and 2023, respectively[30]. - For the year ended December 31, 2024, approximately 75.76% of total revenues were derived from two major customers, indicating a high dependency on these clients[91]. - The company has an accumulated deficit of approximately $99 million as of December 31, 2024, raising concerns about its ability to sustain profitability[104]. - The company's revenues are significantly influenced by capital spending by producers, which is dependent on oil and natural gas prices, affecting demand for its services[89]. - A substantial or extended decline in oil and natural gas prices may adversely affect the company's results of operations, cash flows, and financial position[92]. Acquisitions and Growth Strategy - The company is actively seeking additional acquisition opportunities in the midstream oil and gas sector to capture more of the energy value chain[37]. - The company acquired a crude oil terminaling facility in Delhi, Louisiana, for approximately $32.9 million, supported by long-term contracts with Denbury Onshore, LLC and WC Crude[39][60]. - The final purchase price for the Endeavor Entities acquisition was $116.3 million, including assumed debt and performance adjustments[61]. - The company closed the acquisition of the Endeavor Entities on October 1, 2024, and is in the process of integrating their operations and personnel[173]. Risks and Challenges - The company may face challenges in pursuing additional commercial opportunities, which could strain resources and negatively impact financial performance[94]. - The success of the company's RPC services is uncertain, with initial operations focusing on soil remediation and hydrocarbon extraction[102]. - The company relies on a few key employees, and their loss could materially impact operations and growth prospects[106]. - The company's future growth may be hindered by regulatory, environmental, and political uncertainties associated with facility construction[97]. - Demand for the company's services is closely tied to the oil and gas industry, and a significant reduction in market demand could adversely affect business operations[120]. Capital and Financing - The ability to raise additional capital is crucial for the company's growth plans, but market conditions may limit financing options[108]. - Future equity financing may involve substantial dilution to existing shareholders, and debt financing could impose restrictive covenants, complicating capital raising efforts[110]. - The company expects to obtain additional capital during 2025 through financing structures for its sites, indicating a need for ongoing funding to sustain operations[109]. - The company has limited cash to cover operating expenses and may need to obtain additional financing, which could negatively impact its stock price[168]. Legal and Regulatory Matters - The company has experienced various legal proceedings, including a claim for $28,000 in damages related to breach of contract[77]. - The company is negotiating with the Kuwait Oil Company for soil remediation services, with the UN allocating up to $14.7 billion for post-Iraq war reparations in Kuwait[41]. - The company requires various permits to operate, and failure to obtain or maintain these permits could substantially impact operations and financial condition[126]. Employee and Management Information - The management team has over seventy years of combined experience in the energy industry, contributing to the company's growth as a major midstream logistics provider[47]. - The company has approximately 150 employees, including over 80 truck drivers, with no labor union representation[67]. - James Ballengee, a key officer and director, owns approximately 43.63% of the company's outstanding Common Stock, allowing him to significantly influence shareholder decisions[135]. Competition and Market Position - The company faces competition from larger tank farm businesses, which may have greater resources and could price the company out of the market[138]. - The company is subject to competition for attractive investment opportunities, which may increase acquisition prices and adversely affect its financial condition[166]. Technology and Innovation - The company aims to identify and develop products in the petroleum, mining, and alternative energy sectors, focusing on near-commercial viability[58]. - The company owns four issued US patents and two pending international PCT patent applications related to proprietary technology[65]. Shareholder and Stock Information - The company has issued 6,724,291 shares of common stock and 107,789 shares of Series A Preferred Stock as part of acquisitions[74]. - As of April 14, 2025, the 2023 Equity and Incentive Plan has authorized shares of 40,000,000, with 4,429,431 shares granted[203]. - The Series A Preferred Stock has a stated value of $1,000 per share with an annual dividend rate of 6%[200]. - The company has not paid any dividends on its common stock and does not anticipate paying any in the foreseeable future[201].

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2][3] - The news team covers key finance and investing hubs, focusing on medium and small-cap markets, as well as blue-chip companies and broader investment stories [2][3] - Proactive's content includes insights across various sectors such as biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging technologies [3][4] Group 2 - The company utilizes technology to enhance workflows and has a team with decades of expertise in content creation [3] - Proactive occasionally employs automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [4]

Group 1 - Proactive news team operates in key finance and investing hubs globally, including London, New York, Toronto, Vancouver, Sydney, and Perth [1] - The team provides news and insights across various markets, including biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging technologies [2] - Proactive emphasizes the use of technology and automation in content production while ensuring all content is edited and authored by humans [4] Group 2 - Emily Jarvie, a journalist with a background in political reporting and experience in the psychedelics sector, joined Proactive in 2022 [5] - Proactive focuses on delivering fast, accessible, and actionable business and finance news to a global investment audience [5] - The company specializes in medium and small-cap markets while also covering blue-chip companies and broader investment stories [6]

Financial Performance - For the three months ended March 31, 2024, the company reported revenues of $16,021,391, an increase of $476,519 or 3.07% compared to $15,544,872 in the same period of 2023 [121]. - The cost of revenue for the three months ended March 31, 2024, was $14,953,254, representing an increase of $921,540 or 6.57% from $14,031,714 in 2023, primarily due to rising oil prices [123]. - Gross profit for the three months ended March 31, 2024, decreased to $1,068,137, a decline of $445,021 or 29.41% compared to $1,513,158 in 2023 [124]. - Operating expenses for the three months ended March 31, 2024, were $2,685,059, an increase of $47,029 or 1.78% from $2,638,030 in 2023, attributed to increased amortization and a shift from consulting to full-time employees [125]. - Interest expense decreased by $761,629, or 63.17%, from $1,205,669 in Q1 2023 to $444,040 in Q1 2024 due to a troubled debt restructuring [126]. - Unrealized loss on marketable securities decreased from $495,826 in Q1 2023 to $82,638 in Q1 2024, reflecting improved market conditions [127]. - Net cash used in operating activities increased from $1,276,123 in Q1 2023 to $1,829,679 in Q1 2024, indicating higher operational costs [129]. - The accumulated deficit as of March 31, 2024, was approximately $67.8 million, with a working capital deficit of about $37 million [130]. - Cash and cash equivalents slightly increased from $744,307 as of December 31, 2023, to $767,273 as of March 31, 2024 [131]. - The company raised approximately $3 million through debt financing in Q1 2024, contributing to its liquidity [132]. Acquisition and Financing - The Company entered into a Membership Interest Purchase Agreement to acquire all issued and outstanding membership interests in Endeavor and its subsidiaries for a purchase price of $120 million [101]. - The acquisition will be financed through a combination of Company common stock and Series A Preferred Stock, which will have a cumulative annual dividend of 6% payable quarterly [101]. - The Preferred Stock can be converted into common stock at a price of $1 per share after the first anniversary of issuance [101]. - The acquisition is expected to be completed within approximately 90 days of the Execution Date, subject to satisfaction of closing conditions [101]. - The purchase price for the acquisition is subject to a post-Closing working capital adjustment, with a target working capital amount of $150,000 [103]. - If the EBITDA for the company's 2024 fiscal year exceeds $12,000,000, the seller earn-out payment could reach up to $49,000,000 [105]. - The purchase price can be adjusted to a maximum of $169,000,000 or reduced to a minimum of $71,000,000 based on performance metrics [105]. - The company will file a registration statement for the resale of shares related to the acquisition within 45 days of closing [106]. - The acquisition involves customary representations and warranties, including a fairness opinion from a financial advisor [107]. - The sellers will enter into 18-month lock-up agreements regarding the common stock consideration received [102]. Debt and Obligations - The company has a secured promissory note of $3,000,000 issued to Cedarview Opportunities Master Fund LP, with a 3% origination fee deducted from the proceeds [74][75]. - The company plans to repay the note with interest-only payments for the first three months, followed by twelve equal monthly installments including $250,000, due by May 5, 2025 [76]. - The Company received a loan of $1 million at an interest rate of 10% per annum, maturing on December 31, 2024, with 100,000 restricted shares issued as part of the agreement [99]. - The loan is personally guaranteed by the Company's CEO, James Ballengee, who is not a related party to the lender [99]. - Contractual obligations for finance lease liabilities totaled $1,789,473 as of March 31, 2024, with operating lease obligations amounting to $3,760,107 [137]. Merger and Corporate Structure - The merger agreement with Empire Energy Acquisition Corp. involves the exchange of 67,200,000 shares of the parent company's common stock, valued at $67,200,000 [79]. - Empire is required to maintain a minimum of $2,500,000 in unrestricted net cash at the closing of the merger [81]. - The board of directors will consist of seven members post-merger, including three chosen by Empire and two by the parent company [84]. - The Merger Agreement includes indemnification provisions with a Parent Cap of $500,000 and a threshold of $250,000 for claims [89]. - The Parent's obligations to consummate the transactions are contingent upon various conditions, including the accuracy of representations and warranties [88]. - A lock-up agreement will be executed by Empire Stockholders representing at least 65% of the issued shares, restricting their shares for 12 months post-Closing [95]. - The Escrow Agreement will hold 5,040,000 shares as security for the Parent's obligations, effective on the Closing Date and terminating 12 months thereafter [97]. Operational Highlights - The company operates crude oil gathering, storage, and transportation facilities, with one facility selling up to 60,000 barrels of crude oil per month [72]. - The company focuses on soil remediation services, particularly in Kuwait and Houston, Texas, utilizing patented processes to recover hydrocarbons [73]. - The company has a 120,000 barrel crude oil storage tank connected to the Lotus pipeline system, with plans to connect to major pipeline systems [72]. - Capitalized interest on construction in process was $318,447 in Q1 2024, with anticipated further construction costs of approximately $1.5 million for new facilities [135]. Risks and Uncertainties - The company emphasizes that forward-looking statements are subject to risks and uncertainties, and actual results may differ significantly from expectations [68][69]. - The company faces potential adverse effects on capital access due to market conditions and lender perceptions, which may impact growth strategies [136].

Financial Performance - For the fiscal year ended December 31, 2023, the company realized gross profit of $5,020,964, an increase of $2,153,703 or 75.11% compared to $2,867,261 in 2022[98]. - The company's gross margin is influenced by market prices of oil products, production volume, and capital raising capabilities[99]. - Operating expenses primarily consist of marketing, general and administrative expenses, bad debt expense, impairment loss, and amortization and depreciation expense[100]. Stock Information - As of April 4, 2024, the company had 27,710,253 shares of common stock outstanding[111]. - The aggregate market value of the 10,699,214 voting common stock held by non-affiliates was $12,090,112 based on a closing price of $1.13 per share as of June 30, 2023[110]. - The company has 200,000,000 shares of common stock and 15,000,000 shares of preferred stock authorized as of November 2023[120]. Business Operations - The company's soil remediation services focus on extracting hydrocarbons from contaminated properties, potentially producing asphaltic cement and other petroleum-based products[94]. - The company’s patented process for soil remediation is a key aspect of its operational strategy in the oil and gas industry[94]. Company Classification and Future Outlook - The company is classified as a smaller reporting company and an emerging growth company[109]. - The company’s future performance may be affected by competition, economic conditions, and the ability to attract key employees[119].

Revenue Performance - For the three months ended September 30, 2023, the company reported revenues of $16,313,406, an increase of $4,547,431 or 38.65% compared to the same period in 2022[112]. - For the nine months ended September 30, 2023, revenues reached $45,448,916, representing an increase of $33,682,941 or 286.27% year-over-year[112]. Cost and Profit Analysis - The cost of revenue for the nine months ended September 30, 2023 was $41,174,082, an increase of $30,620,707 or 290.15% compared to the same period in 2022[115]. - Gross profit for the three months ended September 30, 2023 was $1,546,912, an increase of $334,312 or 27.57% from the previous year[116]. Operating Expenses - Operating expenses for the three months ended September 30, 2023 decreased by $1,251,500 or 35.32%, totaling $2,292,026[117]. - The company experienced a decrease in employee stock option expenses of $925,139 or 42.33% for the nine months ended September 30, 2023 compared to the previous year[118]. Financing and Liabilities - The company recorded a liability of $1,564,771 in accounts payable related to construction funded by Maxus for a new facility in Houston, Texas[109]. - The company issued a 15% secured promissory note for up to $1,950,000 to fund the relocation and installation of its Remediation Processing Center in Kuwait[108]. - The company has obligations to pay approximately $14.4 million in cash within one year, with $10 million satisfied through common stock issuance[127]. Cash Flow and Deficits - Net cash used in operating activities for the nine months ended September 30, 2023, was $(838,693), an improvement from $(3,452,980) in 2022[121]. - As of September 30, 2023, the accumulated deficit was approximately $62.1 million, up from $55.2 million as of December 31, 2022[122]. - Cash and cash equivalents as of September 30, 2023, were $1,199,097, down from $3,182,793 in 2022[123]. - The company has a working capital deficit of approximately $19 million as of September 30, 2023, which was partially addressed by a $10 million common stock issuance[127]. Investment Activities - Net cash used in investing activities for the nine months ended September 30, 2023, was primarily due to equipment purchases totaling $3,841,589 compared to $1,807,140 in 2022[126]. - Capitalized interest on construction in process was $735,919 for the nine months ended September 30, 2023, compared to $499,537 in 2022[128]. - The company anticipates further construction costs of approximately $1 million for its Texas remediation and wash plant facilities[128]. Interest and Market Performance - Interest expense for the three months ended September 30, 2023, increased by $832,879, or 162.60%, totaling $1,345,096 compared to $512,217 in 2022[119]. - Unrealized loss on marketable securities for the three months ended September 30, 2023, was $661,101, a decrease of $1,735,391, or 161.54%, from an unrealized gain of $1,074,290 in 2022[120]. Strategic Focus - The company is focusing its soil remediation efforts on projects in Kuwait and Houston, Texas, utilizing its patented processes[103]. - The company hired a new Vice President of Operations and Construction with an annual salary of $150,000 and additional stock compensation[110].