HNR Acquisition p(HNRA) - 2025 Q1 - Quarterly Report

Part I. Financial Information This section details EON Resources, Inc.'s unaudited financial statements and management's analysis for Q1 2025 Item 1. Financial Statements This section presents EON Resources, Inc.'s unaudited consolidated financial statements and notes for Q1 2025 Condensed Consolidated Balance Sheets This statement provides a snapshot of the company's financial position, detailing assets, liabilities, and equity ASSETS (Unaudited) | ASSETS (Unaudited) | March 31, 2025 (USD) | December 31, 2024 (USD) | | :----------------------------------------- | :------------------- | :-------------------- | | Cash and cash equivalents | $3,074,094 | $2,971,558 | | Total current assets | $5,770,255 | $5,159,105 | | Total oil and natural gas properties, net | $98,069,791 | $97,525,912 | | TOTAL ASSETS | $103,860,046 | $102,705,017 | | Total current liabilities | $33,707,812 | $36,390,779 | | Total liabilities | $71,351,890 | $74,985,546 | | Total stockholders' equity | $32,508,156 | $27,719,471 | - Total assets increased by approximately $1.15 million from December 31, 2024, to March 31, 2025, primarily driven by an increase in net oil and natural gas properties and current assets[11] - Total liabilities decreased by approximately $3.63 million, mainly due to a reduction in current liabilities, while total stockholders' equity increased by approximately $4.79 million[11] Condensed Consolidated Statements of Operations This statement outlines the company's financial performance, including revenues, expenses, and net loss (Unaudited) | (Unaudited) | Three months Ended March 31, 2025 (USD) | Three months Ended March 31, 2024 (USD) | | :--------------------------------------- | :-------------------------------------- | :-------------------------------------- | | Total revenues | $4,564,598 | $3,283,099 | | Total expenses | $4,835,928 | $5,546,701 | | Operating loss | $(271,330) | $(2,263,602) | | Loss before income taxes | $(2,522,616) | $(5,894,781) | | Net loss | $(1,752,231) | $(4,693,502) | | Net loss per share – basic and diluted | $(0.11) | $(0.90) | - Total revenues increased by 39.0% to $4,564,598 for the three months ended March 31, 2025, compared to $3,283,099 in the prior year, primarily driven by a significant reduction in loss on derivative instruments[14] - Net loss decreased substantially from $(4,693,502) in Q1 2024 to $(1,752,231) in Q1 2025, and net loss per share improved from $(0.90) to $(0.11)[14] Condensed Consolidated Statements of Changes in Stockholders' Equity This statement details changes in stockholders' equity, including common stock issuances and accumulated deficit (Unaudited) | (Unaudited) | Balance – December 31, 2024 | Balance – March 31, 2025 | | :--------------------------------------- | :-------------------------- | :----------------------- | | Class A Common Stock (Shares) | 10,323,205 | 17,918,226 | | Class A Common Stock (Amount) | $1,032 | $1,792 | | Class B Common Stock (Shares) | 500,000 | 0 | | Class B Common Stock (Amount) | $50 | $0 | | Additional Paid-In Capital | $31,312,003 | $41,237,209 | | Accumulated Deficit | $(28,199,028) | $(29,951,259) | | Total Stockholders' Equity | $27,719,471 | $32,508,156 | - Total stockholders' equity increased by $4,788,685 from December 31, 2024, to March 31, 2025, primarily due to significant increases in Class A Common Stock and Additional Paid-In Capital from share issuances[15] - The Company issued 4,770,000 shares under an equity line of credit for $4,341,532 and 1,954,514 shares for conversion of notes payable for $1,786,241[15] - All 500,000 Class B Common Stock shares were exchanged for Class A Common Stock, resulting in no Class B shares outstanding as of March 31, 2025[15] Condensed Consolidated Statements of Cash Flows This statement summarizes cash inflows and outflows from operating, investing, and financing activities (Unaudited) | (Unaudited) | Three Months Ended March 31, 2025 (USD) | Three Months Ended March 31, 2024 (USD) | | :--------------------------------------- | :-------------------------------------- | :-------------------------------------- | | Net cash provided by (used in) operating activities | $(1,827,355) | $1,119,845 | | Net cash used in investing activities | $(1,117,540) | $(591,003) | | Net cash provided by (used in) financing activities | $3,047,431 | $(670,924) | | Net change in cash and cash equivalents | $102,536 | $(142,082) | | Cash and cash equivalents at end of period | $3,074,094 | $3,363,372 | - Net cash used in operating activities was $(1,827,355) for Q1 2025, a significant decrease from $1,119,845 provided in Q1 2024, primarily due to decreased production volumes and a reduction in payable balances[17][177] - Net cash provided by financing activities increased to $3,047,431 in Q1 2025, driven by $4,341,532 from common stock sales and $617,500 from short-term notes, offsetting debt repayments[17][179] - Cash and cash equivalents increased by $102,536 in Q1 2025, ending the period at $3,074,094[17] Notes to Unaudited Condensed Consolidated Financial Statements This section provides detailed explanations of significant accounting policies and financial statement items NOTE 1 — DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS This note describes EON Resources, Inc.'s business, operations, and going concern considerations - EON Resources, Inc. (formerly HNR Acquisition Corp.) is an independent oil and natural gas company focused on acquisition, development, exploration, and production in the Permian Basin, specifically the Grayburg-Jackson Field in Eddy County, New Mexico[19] - The Company faces substantial doubt about its ability to continue as a going concern due to a working capital deficit of $27,937,557 as of March 31, 2025, despite positive cash flow from operations in 2024[20] - Management plans to alleviate going concern doubt by improving profitability, maintaining active hedge positions, and utilizing a $150,000,000 Common Stock Purchase Agreement, under which $6,969,866 has been received through March 31, 2025[20] NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES This note outlines the key accounting principles and methods used in preparing the financial statements - The financial statements are prepared in accordance with GAAP for interim information,