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Royale Energy Funds Inc (ROYL) Quarterly 10-Q Report

By Quartz Intelligence Newsroom
Published

Royale Energy Funds Inc (ROYL) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.

The filing includes financial statements for the quarter, showing a net loss of $1,184,291 for the three months ended September 30, 2024, compared to a net loss of $470,730 in the same period the previous year.

Revenues from oil and gas production increased to $559,709 for the quarter, up from $458,954 in the third quarter of 2023, due to higher oil production volumes.

Lease operating expenses for the quarter increased by 62% to $512,400, primarily due to repairs and restoration of well equipment.

General and administrative expenses decreased slightly to $369,646 for the quarter, compared to $384,373 in the previous year.

The company recorded a lease impairment of $337,500 during the quarter, with no such impairments recorded in the same period of the previous year.

Interest expense increased significantly to $108,004 for the quarter, primarily due to a $1.4 million note payable obtained in February 2024.

Royale Energy reported a working capital deficit of $10,990,782 as of September 30, 2024, with total current liabilities of $19,962,529.

The filing highlights ongoing liquidity challenges, with the company noting substantial doubt about its ability to continue as a going concern.

Management plans to address liquidity issues through cost control measures, asset sales, and potential financing, though there is no assurance of success.

The filing also details a recent exchange agreement with preferred stockholders, resulting in the elimination of the Series B Preferred Stock class.

This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Royale Energy Funds Inc quarterly 10-Q report dated November 14, 2024. To report an error, please email [email protected].

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