Vivakor (US:VIVK)2023-08-19 01:27Revenue and Profit - For the three months ended June 30, 2023, the company reported revenues of $13,590,638, a 100% increase compared to none in the same period of 2022[116] - For the six months ended June 30, 2023, revenues reached $29,135,510, also a 100% increase compared to none in the same period of 2022[116] - Gross profit for the three months ended June 30, 2023, was $1,214,764, marking a 100% increase compared to none in the same period of 2022[119] - For the six months ended June 30, 2023, gross profit totaled $2,727,922, also a 100% increase compared to none in the same period of 2022[119] Cost of Revenue - The cost of revenue for the three months ended June 30, 2023, was $12,375,874, representing a 100% increase compared to none in the same period of 2022[118] - For the six months ended June 30, 2023, the cost of revenue was $26,407,588, reflecting a 100% increase compared to none in the same period of 2022[118] Operating Expenses and Cash Flow - Operating expenses for the six months ended June 30, 2023 decreased by $789,236, or 14.40%, compared to the same period in 2022, totaling $4,690,728[120] - Net cash used in operating activities for the six months ended June 30, 2023 was $1,296,778, an improvement from $2,808,793 in 2022[124] - Cash and cash equivalents as of June 30, 2023 were $2,637,971, down from $3,182,793 as of December 31, 2022[126] Debt and Financial Obligations - Interest expense for the six months ended June 30, 2023 increased by $2,354,211, or 2,048.10%, totaling $2,469,157, primarily due to $28,664,284 in notes payable from newly acquired entities[122] - The company has obligations to pay approximately $15.4 million in cash within one year, with $13.2 million potentially satisfied through common stock issuance[131] Investments and Future Plans - The company is focusing on soil remediation services, particularly in Kuwait and Houston, Texas[101] - A secured promissory note of up to $1,950,000 was issued to DIC for relocating and installing a Remediation Processing Center in Kuwait[106] - The company plans to connect a 120,000 barrel crude oil storage tank to major pipeline systems to enhance operations[100] - A new facility in Houston, Texas, is expected to be financed with approximately $2.2 million from Maxus Capital Group for build-out[111] - Capitalized interest on construction in process was $589,775 for the six months ended June 30, 2023, with anticipated further construction costs of approximately $1 million for wash plant facilities[132] Management and Compensation - The company has entered into new compensation agreements for management, with the current CEO's salary increasing from $375,000 to $1,000,000 annually, payable in common stock[121] Marketable Securities and Deficits - Unrealized loss on marketable securities for the six months ended June 30, 2023 decreased by $82,638, or 20.00%, totaling $330,551[123] - As of June 30, 2023, the accumulated deficit was approximately $59.5 million, with a working capital deficit of approximately $8.3 million[125] - The company received proceeds of $3,984,667 from the issuance of notes and other loans for the six months ended June 30, 2023[130]