STTH Sept. Qtr. 2010 STRATUM HOLDINGS, INC.
Consolidated Balance Sheets
(Unaudited)
September 30, December 31,
2010 2009
Assets
Current assets:
Cash and cash equivalents $ 131,082 $ 142,703
Restricted cash - 1,613,637
Accounts receivable 3,004,983 2,948,159
Prepaid expenses and other 192,886 132,325
Total current assets 3,328,951 4,836,824
Property and equipment:
Oil and gas properties, evaluated (full cost method) 14,543,924 14,425,950
Other property and equipment 174,676 144,625
14,718,600 14,570,575
Less: Accumulated depreciation, depletion & amortization (8,713,744 ) (8,017,822 )
Net property and equipment 6,004,856 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 $ 10,972,798 $ 13,001,911
Liabilities and Stockholders’ Deficit
Current liabilities:
Current portion of long-term debt - stockholders $ 861,564 $ 1,682,317
Current portion of long-term debt - others 4,047,475 5,226,861
Accounts payable 2,804,302 2,436,846
Accrued liabilities 1,279,006 1,518,698
Fair value of oil and gas derivatives 6,330 88,990
Total current liabilities 8,998,677 10,953,712
Long-term debt, net of current portion 172,739 408,179
Deferred income taxes 1,655,600 1,513,847
Asset retirement obligations 326,327 305,370
Total liabilities 11,153,343 13,181,108
Stockholders’ 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 (12,868,546 ) (12,783,790 )
Accumulated foreign currency translation adjustment (233,045 ) (230,831 )
Total stockholders’ deficit (180,545 ) (179,197 )
Total liabilities and stockholders’ deficit $ 10,972,798 $ 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 September 30,
2010 2009
Revenues:
Energy services $ 4,694,278 $ 2,876,844
Oil and gas sales 689,502 782,297
Other 8,851 13,192
5,392,631 3,672,333
Expenses:
Energy services 4,341,858 2,620,190
Lease operating expense 320,411 368,301
Depreciation, depletion & amortization 216,333 118,402
Workover expense 93,461 105,579
Selling, general and administrative 389,309 405,724
5,361,372 3,618,196
Operating income 31,259 54,137
Other income (expense):
Interest expense (228,282 ) (192,969 )
Gain on oil and gas derivatives 160 4,868
Loss from continuing operations before income taxes (196,863 ) (133,964 )
Benefit (provision) for income taxes 66,900 (68,500 )
Net loss from continuing operations (129,963 ) (202,464 )
Discontinued operations, net of tax - -
Net loss $ (129,963 ) $ (202,464 )
Net loss per share, basic and diluted
Net loss from continuing operations $ (0.05 ) $ (0.08 )
Discontinued operations - -
Net loss $ (0.05 ) $ (0.08 )
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)
Nine Months Ended September 30,
2010 2009
Revenues:
Energy services $ 14,687,137 $ 10,691,581
Oil and gas sales 2,061,977 1,915,140
Other 50,711 63,757
16,799,825 12,670,478
Expenses:
Energy services 13,469,582 9,758,434
Lease operating expense 1,151,154 1,308,523
Depreciation, depletion & amortization 626,234 341,137
Impairment of acquisition goodwill - 1,900,000
Workover expense 310,630 297,723
Selling, general and administrative 1,283,315 1,385,827
16,840,915 14,991,644
Operating loss (41,090 ) (2,321,166 )
Other income (expense):
Interest expense (608,893 ) (581,230 )
Gain on debt extinguishment 438,967 -
Gain (loss) on oil and gas derivatives 82,660 (92,520 )
Loss from continuing operations before income taxes (128,356 ) (2,994,916 )
Benefit for income taxes 43,600 154,700
Net loss from continuing operations (84,756 ) (2,840,216 )
Discontinued operations, net of tax - (25,419 )
Net loss $ (84,756 ) $ (2,865,635 )
Net loss per share, basic and diluted
Net loss from continuing operations $ (0.03 ) $ (1.07 )
Discontinued operations - (0.01 )
Net loss $ (0.03 ) $ (1.08 )
Weighted average shares outstanding, basic and diluted 2,655,738 2,655,738
