Financial Performance - The company did not generate any revenue during the three months ended September 30, 2024, as it has not yet commenced natural gas production [101]. - Total operating costs and expenses increased to $6.98 million for the three months ended September 30, 2024, compared to $4.32 million for the same period in 2023, representing a 61.2% increase [100]. - Net loss for the three months ended September 30, 2024, was $6.76 million, compared to a net loss of $3.75 million for the same period in 2023, indicating an increase in losses of 80.5% [100]. - Interest income, net increased by $0.7 million to $0.8 million for the three months ended September 30, 2024, compared to $0.1 million for the same period in 2023 [106]. - The company recognized a foreign currency translation gain of $12.1 million for the three months ended September 30, 2024, compared to a loss of $5.3 million for the same period in 2023 [107]. Cash Flow - As of September 30, 2024, cash and cash equivalents were $74.0 million, a decrease of $0.7 million from June 30, 2024 [114]. - Net cash used in operating activities was $4.15 million for the three months ended September 30, 2024, compared to $3.34 million for the same period in 2023 [120]. - Net cash used in investing activities was $14.5 million for the three months ended September 30, 2024, compared to $18.9 million for the same period in 2023 [122]. - Net cash from financing activities was $16.7 million for the three months ended September 30, 2024, compared to $34.4 million for the same period in 2023 [123]. Internal Controls and Compliance - As of September 30, 2024, the company did not maintain effective internal control over financial reporting due to a material weakness identified in its Annual Report for the year ended June 30, 2024 [127]. - The identified deficiencies in internal control include insufficient evidence of internal control performance, inadequate resources in key accounting roles, and lack of IT general controls over the cloud-based ERP system [128]. - The company is implementing a remediation plan with external consultants to improve its control environment and internal controls [129]. - The company cannot predict the success of its remediation plan or the outcome of its assessment at this time [130]. - The company continues to hire personnel with the required technical knowledge to ensure compliance with reporting requirements [129]. - The company has implemented a new enterprise resource planning system to support financial reporting and internal controls [129]. Risk Factors and Corporate Actions - There were no material changes in risk factors for the quarterly period ended September 30, 2024, compared to the previous annual report [135]. - No shares of the company's common stock were repurchased during the three months ended September 30, 2024 [135]. - The company has not adopted or terminated any trading arrangements by directors or officers during the quarter [136]. - The company is subject to a merits review regarding its environmental management plan, which could impact its operations [134].
Tamboran Resources Corporation(TBN) - 2025 Q1 - Quarterly Report