Vivakor Reports 39% Revenue Growth to $16.3 Million Revenue for Third Quarter 2023

Rhea-AI Summary

Vivakor, Inc. (NASDAQ:VIVK) announced financial and operational results for the three and nine months ended September 30, 2023. Key highlights include a 39% increase in revenue to $16.3 million for the three months, and a 286% increase to $45.4 million for the nine months. Gross profit increased by 28% for the three months and 253% for the nine months, with a gross margin of 9.5% and 9.4% respectively. Operating loss decreased by 37% for the three months and 23% for the nine months. Adjusted EBITDA increased by approximately 1,065% for the three months and 211% for the nine months. Net loss decreased by 59% for the three months and 3% for the nine months. Total assets stand at $76.1 million. Vivakor's Chairman and CEO, James Ballengee, expressed satisfaction with the performance of their operating assets in Colorado City, Texas and Delhi, Louisiana, attributing their solid growth and margins to strong demand and opportunities.

DALLAS, TX / ACCESSWIRE / November 30, 2023 / Vivakor, Inc. (NASDAQ:VIVK) ("Vivakor" or the "Company"), a clean energy technology company focused on the oil remediation and natural resources sectors, today announced financial and operational results for the three and nine months ended September 30, 2023.

Key Financial Highlights for Three Months Ended September 30, 2023 (year-over-year):

• Revenue increased 39% to $16.3 million
• Gross profit increased 28% to $1.5 million
• Gross margin of 9.5%
• Operating loss decreased 37% to $2.3 million
• Adjusted EBITDA increased approximately 1,065% to $1.6 million
• Net loss decreased 59% to $2.5 million

Key Financial Highlights for Nine Months Ended September 30, 2023 (year-over-year):

• Revenue increased 286% to $45.4 million
• Gross profit increased 253% to $4.3 million
• Gross margin of 9.4%
• Operating loss decreased 23% to $7 million
• Adjusted EBITDA increased 211% to $1.9 million
• Net loss decreased 3% to $6.9 million
• Total assets of $76.1 million

Management Commentary

Vivakor Chairman and Chief Executive Officer James Ballengee commented, "Our operating assets in Colorado City, Texas and Delhi, Louisiana continue to perform very well and have exceeded our expectations. Demand and opportunities remain strong and are reflected in our third quarter and year-to-date operating and financial results, which show solid growth and margins. In addition, we are excited about our RPC Houston project. Construction is nearing completion. We are currently waiting on permits to allow us to operate the facility. We anticipate those to be approved in the near future and to begin processing samples shortly. We believe the Houston site provides a tremendous opportunity to be able to recover and reuse approximately 1.3 barrels of oil per ton of waste."

Financial Results for Three Months Ended September 30, 2023

• Revenue for the three months ended September 30, 2023 increased $4.5 million, or 39%, to $16.3 million, compared to $11.8 million for the three months ended September 30, 2022. This increase in revenue is primarily attributed to our oil and natural gas liquid sales which have been realized through the operations from Silver Fuels Delhi, LLC, which was acquired through our business combination, which closed on August 1, 2022.
• Gross profit for the three months ended September 30, 2023 increased $0.3 million, or 28%, to $1.5 million, compared to $1.2 million for the three months ended September 30, 2022. The resulting gross margin for the three months ended September 30, 2023 was 9.5%, compared to 10.3% for the three months ended September 30, 2022.
• Operating loss for the three months ended September 30, 2023 decreased $1.2 million, or 37%, to $2.3 million, compared to $3.5 million for the three months ended September 30, 2022. Operating loss of the three months ended September 30, 2023 included non-cash or one-time expenses totaling $2.1 million, and is related to depreciation and amortization expense of $0.8 million and stock-based compensation of $1.3M, compared to a total of $2.2 million, comprised of $1.1 million of depreciation and amortization expense, $0.3 million non-qualified stock options issued to third party and $0.8 million in stock-based compensation for the three months ended September 30, 2022.
• Adjusted EBITDA for the three months ended September 30, 2023 increased $1.5 million, or approximately 1,065%, to $1.6 million, compared to $0.1 million for the three months ended September 30, 2022. Our Adjusted EBITDA is calculated by adjusting earnings before interest, taxes, depreciation, and amortization (EBITDA) for unrealized gains or losses, and non-cash or one time expenses, including unrealized gains or losses on marketable securities, stock compensation expense, and non-qualified stock option expense, which led to net adjustments to EBITDA for the three months ended September 30, 2023 and 2022 of approximately $2.0 million and $0.1 million, respectively.
• Net loss for the three months ended September 30, 2023 increased $0.9 million, or 59%, to $2.5 million, compared to $1.6 million for the three months ended September 30, 2022. The resulting net loss per share of common stock loss for the three months ended September 30, 2023, was $0.14, compared to a net loss per share of common stock of $0.09 for the three months ended September 30, 2022.

Financial Results for the Nine Months Ended September 30, 2023

• Revenue for the nine months ended September 30, 2023 increased $33.6 million, or 286%, to $45.4 million, compared to $11.8 million for the nine months ended September 30, 2022. This increase in revenue is primarily attributed to our oil and natural gas liquid sales which have been realized through the operations from Silver Fuels Delhi, LLC, which was acquired through our business combination, which closed on August 1, 2022.
• Gross profit for the nine months ended September 30, 2023 increased $3.1 million, or 253%, to $4.3 million, compared to $1.2 for the nine months ended September 30, 2022. The resulting gross margin for the nine months ended September 30, 2023 was 9.4%, compared to 10.3% for the nine months ended September 30, 2022.
• Operating loss for the nine months ended September 30, 2023 decreased $2.0 million, or 22%, to $7.0 million, compared to $9.0 million for the nine months ended September 30, 2022. Operating loss of the nine months ended September 30, 2023 included non-cash expenses totaling $4.1 million related to depreciation and amortization expense of $2.3 million, non-qualified stock options issued to third party of $0.5 million, and stock compensation expense of $1.3 million, compared to a total of $5.5 million, comprised of $2.1 million of depreciation and amortization expense, $1.2 million of non-qualified stock options issued to third party, and $2.2 million stock-based compensation for the nine months ended September 30, 2022.
• Adjusted EBITDA for the nine months ended September 30, 2023 increased $1.3 million, or 211%, to $1.9 million, compared to $0.6 million for the nine months ended September 30, 2022. Our Adjusted EBITDA is calculated by adjusting earnings before interest, taxes, depreciation, and amortization (EBITDA) for unrealized gains or losses, and non-cash or one time expenses, including unrealized gains or losses on marketable securities, stock compensation expense, and non-qualified stock option expense, which led to net adjustments to EBITDA for the nine months ended September 30, 2023 and 2022 of approximately $2.7 million, respectively.
• Net loss for the nine months ended September 30, 2023 decreased $0.2 million, or 3%, to $6.9 million, compared to $7.1 million for the nine months ended September 30, 2022. The resulting net loss per share of common stock loss for the nine months ended September 30, 2023, was $0.38, compared to a net loss per share of common stock of $0.46 for the nine months ended September 30, 2022.

About Vivakor, Inc.

Vivakor, Inc. (NASDAQ:VIVK), is a clean energy technology company focused on the oil remediation and natural resources sectors. Vivakor's corporate mission is to create, acquire, accumulate, and operate distinct assets, intellectual properties, and exceptional technologies. Its Silver Fuels Delhi, LLC, and White Claw Colorado City, LLC subsidiaries include crude oil gathering, storage, and transportation facilities, which feature long-term ten year take-or-pay contracts.

The Company's patented Remediation Processing Centers allows for the environmentally-friendly recovery of bitumen (heavy crude) and other hydrocarbons from the remediation of contaminated soils. It is believed to be the only remediation system that can clean soils with more than 5% by weight oil contamination while recovering the oil and leaving the soil fully viable for reuse. Its Remediation Processing Centers currently focus on extraction from shallow, oil-laden sands, along with generating petroleum-based remediation projects in Kuwait and in Houston, Texas.

For more information, please visit our website: http://vivakor.com

Forward-Looking Statements

This news release may contain forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based upon our current expectations and speak only as of the date hereof. Our actual results may differ materially and adversely from those expressed in any forward-looking statements as a result of various factors and uncertainties, including economic slowdown affecting companies, our ability to successfully develop products, rapid change in our markets, changes in demand for our future products, legislative, regulatory and competitive developments and general economic conditions. These risks and uncertainties include, but are not limited to, risks and uncertainties discussed in Vivakor's filings with the Securities and Exchange Commission, which factors may be incorporated herein by reference. Forward-looking statements may be identified but not limited by the use of the words "anticipates," "expects," "intends," "plans," "should," "could," "would," "may," "will," "believes," "estimates," "potential," or "continue" and variations or similar expressions. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.

Investors Contact:
P:949-281-2606
info@vivakor.com

ClearThink
nyc@clearthink.capital

SOURCE: Vivakor, Inc.

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FAQ

What are Vivakor, Inc.'s (NASDAQ:VIVK) financial results for the three months ended September 30, 2023?

Vivakor, Inc. reported a 39% increase in revenue to $16.3 million, a 28% increase in gross profit to $1.5 million, with a gross margin of 9.5%. The operating loss decreased by 37% to $2.3 million. Adjusted EBITDA increased by approximately 1,065% to $1.6 million, and the net loss decreased by 59% to $2.5 million.

What are Vivakor, Inc.'s (NASDAQ:VIVK) financial results for the nine months ended September 30, 2023?

Vivakor, Inc. reported a 286% increase in revenue to $45.4 million, a 253% increase in gross profit to $4.3 million, with a gross margin of 9.4%. The operating loss decreased by 23% to $7 million. Adjusted EBITDA increased by 211% to $1.9 million, and the net loss decreased by 3% to $6.9 million.

What did Vivakor, Inc.'s (NASDAQ:VIVK) Chairman and CEO, James Ballengee, comment on the financial results?

James Ballengee expressed satisfaction with the performance of their operating assets in Colorado City, Texas and Delhi, Louisiana, attributing their solid growth and margins to strong demand and opportunities.

What are the total assets of Vivakor, Inc. (NASDAQ:VIVK)?

Vivakor, Inc. reported total assets of $76.1 million for the period ended September 30, 2023.