STTH.. June Qtr. 2010 STRATUM HOLDINGS, INC.
Consolidated Balance Sheets
(Unaudited)
June 30,
2010 December 31,
2009
Assets
Current assets:
Cash and cash equivalents $ 235,815 $ 142,703
Restricted cash - 1,613,637
Accounts receivable 3,110,409 2,948,159
Prepaid expenses and other 111,503 132,325
Total current assets 3,457,727 4,836,824
Property and equipment:
Oil and gas properties, evaluated (full cost method) 14,568,863 14,425,950
Other property and equipment 174,676 144,625
14,743,539 14,570,575
Less: Accumulated depreciation, depletion & amortization (8,532,533 ) (8,017,822 )
Net property and equipment 6,211,006 6,552,753
Other assets:
Goodwill (less impairment allowance of $3,400,000) 1,536,313 1,536,313
Other assets 102,678 76,021
Total other assets 1,638,991 1,612,334
Total assets $ 11,307,724 $ 13,001,911
Liabilities and Stockholders’ Equity (Deficit)
Current liabilities:
Current portion of long-term debt - stockholders $ 854,214 $ 1,682,317
Current portion of long-term debt - others 4,294,610 5,226,861
Accounts payable 2,713,510 2,436,846
Accrued liabilities 1,320,657 1,518,698
Fair value of oil and gas derivatives 6,490 88,990
Total current liabilities 9,189,481 10,953,712
Long-term debt, net of current portion 203,762 408,179
Deferred income taxes 1,575,300 1,513,847
Asset retirement obligations 319,001 305,370
Total liabilities 11,287,544 13,181,108
Stockholders’ equity (deficit):
Preferred stock, $.01 par value per share, 1,000,000 shares authorized,
none issued - -
Common stock, $.01 par value per share, 5,000,000 shares authorized,
2,655,738 shares issued and outstanding 26,557 26,557
Additional paid in capital 12,894,489 12,808,867
Accumulated deficit (12,738,583 ) (12,783,790 )
Accumulated foreign currency translation adjustment (162,283 ) (230,831 )
Total stockholders’ equity (deficit) 20,180 (179,197 )
Total liabilities and stockholders’ equity (deficit) $ 11,307,724 $ 13,001,911
See accompanying notes to consolidated financial statements.
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STRATUM HOLDINGS, INC.
Consolidated Statements of Operations
(Unaudited)
Three Months Ended June 30,
2010 2009
Revenues:
Energy services $ 4,245,388 $ 2,220,823
Oil and gas sales 778,045 583,912
Other 30,673 7,955
5,054,106 2,812,690
Expenses:
Energy services 3,892,728 2,050,827
Lease operating expense 353,385 390,878
Depreciation, depletion & amortization 241,564 100,926
Workover expense 16,674 152,546
Selling, general and administrative 476,346 418,057
4,980,697 3,113,234
Operating income (loss) 73,409 (300,544 )
Other income (expense):
Interest expense (190,193 ) (209,798 )
Gain (loss) on oil and gas derivatives 60,910 (97,388 )
Loss from continuing operations before income taxes (55,874 ) (607,730 )
Benefit for income taxes 19,000 103,100
Net loss $ (36,874 ) $ (504,630 )
Net loss per share, basic and diluted $ (0.01 ) $ (0.19 )
Weighted average shares outstanding, basic and diluted 2,655,738 2,655,738
See accompanying notes to consolidated financial statements.
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STRATUM HOLDINGS, INC.
Consolidated Statements of Operations
(Unaudited)
Six Months Ended June 30,
2010 2009
Revenues:
Energy services $ 9,992,859 $ 7,814,737
Oil and gas sales 1,372,475 1,132,843
Other 41,860 50,565
11,407,194 8,998,145
Expenses:
Energy services 9,127,724 7,138,244
Lease operating expense 830,743 940,222
Depreciation, depletion & amortization 409,901 222,735
Impairment of acquisition goodwill - 1,900,000
Workover expense 217,169 192,144
Selling, general and administrative 894,006 980,102
11,479,543 11,373,447
Operating loss (72,349 ) (2,375,302 )
Other income (expense):
Interest expense (380,611 ) (388,261 )
Gain on debt extinguishment 438,967 -
Gain (loss) on oil and gas derivatives 82,500 (97,388 )
Income (loss) from continuing operations before income taxes 68,507 (2,860,951 )
Benefit (provision) for income taxes (23,300 ) 223,200
Net income (loss) from continuing operations 45,207 (2,637,751 )
Discontinued operations, net of tax - (25,419 )
Net income (loss) $ 45,207 $ (2,663,170 )
Net income (loss) per share, basic and diluted
Net income (loss) from continuing operations $ 0.02 $ (0.99 )
Discontinued operations - (0.01 )
Net income (loss) $ 0.02 $ (1.00 )
Weighted average shares outstanding, basic and diluted 2,655,738 2,655,738
