Vivakor (US:VIVK)2023-11-20 21:41Revenue 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].