Vivakor (VIVK) - 2025 Q1 - Quarterly Report

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$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$16,021,391 in 2024[103] - The Terminaling and Storage Segment reported revenues of $21,826,502, up 69.03$12,913,165 in the previous year[103] - The Transportation Logistics Segment generated total revenues of $13,476,255, marking a 100$32,581,857, an increase of $17,628,603 or 117.89$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$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$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]