STTH.. $0 1728.. Earns money..
STRATUM HOLDINGS, INC.
Consolidated Balance Sheets
(Unaudited)
March 31, December 31,
2011 2010
Assets
Current assets:
Cash and cash equivalents $ 28,864 $ 142,236
Accounts receivable 4,698,598 4,532,676
Prepaid expenses and other 126,938 148,010
Total current assets 4,854,400 4,822,922
Property and equipment:
Oil and gas properties, evaluated (full cost method) 14,683,846 14,560,532
Other property and equipment 149,676 149,676
14,833,522 14,710,208
Less: Accumulated depreciation, depletion & amortization (8,739,975 ) (8,615,840 )
Net property and equipment 6,093,547 6,094,368
Other assets:
Goodwill 1,536,313 1,536,313
Other assets 119,472 111,139
Total other assets 1,655,785 1,647,452
Total assets $ 12,603,732 $ 12,564,742
Liabilities and Stockholders’ Deficit
Current liabilities:
Current portion of long-term debt - stockholders $ 770,000 $ 730,709
Current portion of long-term debt - others 3,757,012 4,885,961
Accounts payable 4,730,002 3,723,754
Accrued liabilities 1,382,817 1,246,232
Fair value of oil and gas derivatives 78,755 37,835
Total current liabilities 10,718,586 10,624,491
Long-term debt, net of current portion 262,524 337,378
Deferred income taxes 1,578,000 1,559,500
Asset retirement obligations 341,180 333,670
Total liabilities 12,900,290 12,855,039
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 12,894,490
Accumulated deficit (12,968,310 ) (13,001,655 )
Accumulated foreign currency translation adjustment (249,295 ) (209,689 )
Total stockholders’ deficit (296,558 ) (290,297 )
Total liabilities and stockholders’ deficit $ 12,603,732 $ 12,564,742
See accompanying notes to unaudited consolidated financial statements.
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STRATUM HOLDINGS, INC.
Consolidated Statements of Operations
(Unaudited)
Three Months Ended
March 31,
2011 2010
Revenues:
Energy services $ 7,775,868 $ 5,747,471
Oil and gas sales 756,500 594,430
Other 15,323 11,187
8,547,691 6,353,088
Expenses:
Energy services 7,152,211 5,234,996
Lease operating expense 398,123 477,358
Depreciation, depletion & amortization 124,135 168,337
Workover expense 103,649 200,495
Selling, general and administrative 544,387 417,660
8,322,505 6,498,846
Operating income (loss) 225,186 (145,758 )
Other income (expense):
Interest expense (132,421 ) (190,418 )
Gain on debt extinguishment - 438,967
Unrealized gain (loss) on oil and gas derivatives (40,920 ) 21,590
Income before income taxes 51,845 124,381
Provision for income taxes (18,500 ) (42,300 )
Net income $ 33,345 $ 82,081
Net income per share, basic and diluted $ 0.01 $ 0.03
Weighted average shares outstanding, basic and diluted 2,655,738 2,655,738
See accompanying notes to unaudited consolidated financial statements.
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STRATUM HOLDINGS, INC.
Consolidated Statements of Cash Flows
(Unaudited)
Three Months Ended
March 31,
2011 2010
Cash flows from operating activities:
Net income $ 33,345 $ 82,081
Adjustments to reconcile net income to net
cash provided by (used in) operations
Depreciation, depletion & amortization 124,135 168,337
Provision for income taxes 18,500 42,300
Stock based compensation - 11,525
Gain on debt extinguishment - (438,967 )
Unrealized (gain) loss on oil and gas derivatives 40,920 (21,590 )
Changes in current assets and liabilities 958,377 (754,172 )
Other changes, net (823 ) 22,667
Net cash flows from operating activities 1,174,454 (887,819 )
Cash flows from investing activities:
Decrease in restricted cash - 1,613,637
Purchase of property and equipment (123,314 ) (109,893 )
Net cash flows from investing activities (123,314 ) 1,503,744
Cash flows from financing activities:
Payments of long term debt (1,194,512 ) (953,844 )
Proceeds from long term debt 30,000 877,711
Net payments of stockholder advances - (490,854 )
Net cash flows from financing activities (1,164,512 ) (566,987 )
Net increase (decrease) in cash and cash equivalents (113,372 ) 48,938
Cash and equivalents at beginning of period 142,236 142,703
Cash and equivalents at end of period $ 28,864 $ 191,641
Supplemental cash flow data:
Cash paid for interest $ 111,953 $ 97,830
Cash paid for income taxes - -
Supplemental financing activity:
Gain on debt extinguishment - related party $ - $ 74,097
