SSTH.. 10K.. STRATUM HOLDINGS, INC.
Consolidated Balance Sheets
December 31,
2010 2009
Assets
Current assets:
Cash and cash equivalents $ 142,236 $ 142,703
Restricted cash - 1,613,637
Accounts receivable 4,532,676 2,948,159
Prepaid expenses and other 148,010 132,325
Total current assets 4,822,922 4,836,824
Property and equipment:
Oil and gas properties, evaluated (full cost method) 14,560,532 14,425,950
Other property and equipment 149,676 144,625
14,710,208 14,570,575
Less: Accumulated depreciation, depletion & amortization (8,615,840 ) (8,017,822 )
Net property and equipment 6,094,368 6,552,753
Other assets:
Goodwill 1,536,313 1,536,313
Other assets 111,139 76,021
Total other assets 1,647,452 1,612,334
Total assets $ 12,564,742 $ 13,001,911
Liabilities and Stockholders’ Deficit
Current liabilities:
Current portion of long-term debt - stockholders $ 730,709 $ 1,682,317
Current portion of long-term debt - others 4,885,961 5,226,861
Accounts payable 3,723,754 2,436,846
Accrued liabilities 1,246,232 1,518,698
Fair value of oil and gas derivatives 37,835 88,990
Total current liabilities 10,624,491 10,953,712
Long-term debt, net of current portion 337,378 408,179
Deferred income taxes 1,559,500 1,513,847
Asset retirement obligations 333,670 305,370
Total liabilities 12,855,039 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 12,894,490 12,808,867
Accumulated deficit (13,001,655 ) (12,783,790 )
Accumulated foreign currency translation adjustment (209,689 ) (230,831 )
Total stockholders’ deficit (290,297 ) (179,197 )
Total liabilities and stockholders’ deficit $ 12,564,742 $ 13,001,911
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STRATUM HOLDINGS, INC.
Consolidated Statements of Operations
Year Ended December 31,
2010 2009
Revenues:
Energy services $ 20,058,038 $ 14,767,683
Oil and gas sales 2,625,586 2,612,954
Other 57,193 73,560
22,740,817 17,454,197
Expenses:
Energy services 18,470,895 13,491,023
Lease operating expense 1,509,274 1,803,848
Depreciation, depletion & amortization 528,298 1,120,000
Impairment expense:
Acquisition goodwill - 1,900,000
Oil and gas properties - 907,000
Workover expense 475,356 425,033
Selling, general and administrative 1,814,446 2,075,584
22,798,269 21,722,488
Operating loss (57,452 ) (4,268,291 )
Other expenses:
Interest expense (790,235 ) (764,221 )
Gain on debt extinguishment 438,967 -
Gain (loss) on oil and gas derivatives 51,155 (183,850 )
Loss from continuing operations before income taxes (357,565 ) (5,216,362 )
Benefit for income taxes 139,700 1,450,856
Net loss from continuing operations (217,865 ) (3,765,506 )
Discontinued operations, net of tax - (25,419 )
Net loss $ (217,865 ) $ (3,790,925 )
Net loss per share, basic and diluted
Net loss from continuing operations $ (0.08 ) $ (1.42 )
Discontinued operations - (0.01 )
Net loss $ (0.08 ) $ (1.43 )
Weighted average shares outstanding, basic and diluted 2,655,738 2,655,738
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STRATUM HOLDINGS, INC.
Consolidated Statements of Cash Flows
Year Ended December 31,
2010 2009
Cash flows from operating activities:
Net loss from continuing operations $ (217,865 ) $ (3,765,506 )
Adjustments to reconcile net loss from continuing
operations to cash provided by (used in) operations:
Depreciation, depletion & amortization 528,298 1,120,000
Impairment expense:
Acquisition goodwill - 1,900,000
Oil and gas properties - 907,000
Benefit for income taxes (139,700 ) (1,450,856 )
Stock based compensation 11,525 50,357
Gain on debt extinguishment (438,967 ) -
Unrealized (gain) loss on oil and gas derivatives (51,155 ) 88,990
Changes in current assets and liabilities (147,664 ) (396,481 )
Other changes, net 62,903 41,802
Net cash flows used in continuing operations (392,625 ) (1,504,694 )
Net cash flows from discontinued operations - (25,419 )
Total cash flows from operating activities (392,625 ) (1,530,113 )
Cash flows from investing activities:
Decrease in restricted cash 1,613,637 1,490,063
Purchase of property and equipment (139,633 ) (171,920 )
Net cash flows from investing activities 1,474,004 1,318,143
Cash flows from financing activities:
Proceeds from long term debt 1,920,581 696,333
Payments of long term debt (2,541,573 ) (284,860 )
Net payments of stockholder advances (460,854 ) (260,000 )
Net cash flows from financing activities (1,081,846 ) 151,473
Net decrease in cash and cash equivalents (467 ) (60,497 )
Cash and equivalents at beginning of period 142,703 203,200
Cash and equivalents at end of period $ 142,236 $ 142,703
Supplemental cash flow data:
Cash paid for interest $ 558,861 $ 524,003
Cash paid for income taxes - 273,682
Supplemental investing activity:
Non-cash additions to asset retirement obligations $ - $ 113,000
Stockholder debt forgiveness 74,098 -
See Accompanying Notes to Consolidated Financial Statements.
