EX-99.1 3 ex99-1.htm

 

Exhibit 99.1

 

FORTIUM HOLDINGS CORP.

UNAUDITED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED JUNE 30, 2022

 

 
 

 

WHITE RIVER HOLDINGS, INC.

CONSOLIDATED BALANCE SHEETS

UNAUDITED

JUNE 30, 2022 AND MARCH 31, 2022

 

   UNAUDITED 
   JUNE 30,   MARCH 31, 
   2022   2022 
ASSETS        
         
CURRENT ASSETS:          
           
Cash (all restricted cash)  $201,050   $251,050 
Accounts receivable, net of allowance of $208,713 as of March 31, 2022 and 2021,          
respectively   795,178    634,483 
Inventories - Crude Oil   136,007    107,026 
Prepaid expenses and other current assets   1,387,922    176,492 
           
Total current assets   2,520,157    1,169,051 
           
NON-CURRENT ASSETS:          
Property and equipment, net   1,182,034    596,464 
Right of use asset - operating lease   207,842    243,494 
Oil and gas properties, full cost-method   5,536,495    6,626,793 
Capitalized drilling costs, net of depletion   348,725    604,574 
Goodwill   2,100,374    2,100,374 
           
Total non-current assets   9,375,470    10,171,699 
           
TOTAL ASSETS  $11,895,627   $11,340,750 
           
           
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)          
           
LIABILITIES          
CURRENT LIABILITIES          
Accounts payable  $568,399   $799,100 
Accrued liabilities   541,952    138,269 
Due to parent   27,675,750    24,966,684 
Cash overdraft   138,191    27,918 
Current portion of notes payable   41,414    - 
Current portion of lease liability - operating lease   156,259    155,263 
           
Total current liabilities   29,121,965    26,087,234 
           
NON-CURRENT LIABILITIES          
Lease liability - operating lease, net of current portion   70,763    110,235 
Notes payable, net of current portion   103,852    - 
Asset retirement obligations   746,061    1,303,751 
           
Total non-current liabilities   920,676    1,413,986 
           
Total Liabilities   30,042,641    27,501,220 
           
COMMITMENTS AND CONTINGENCIES          
           
STOCKHOLDERS’ EQUITY (DEFICIT)          
Preferred stock, $0.000001 par value, 1,000 shares authorized and no shares issued and          
outstanding   -    - 
Common stock, $0.000001 par value, 100,000,000 shares authorized and 60,000,000          
shares issued and outstanding   60    60 
Additional paid in capital   591,947    591,947 
Accumulated deficit   (18,739,021)   (16,752,477)
           
Total stockholders’ equity (deficit)   (18,147,014)   (16,160,470)
           
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)  $11,895,627   $11,340,750 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

 

 

 

WHITE RIVER HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

UNAUDITED

FOR THE THREE MONTHS ENDED JUNE 30, 2022 AND 2021

 

   UNAUDITED 
   JUNE 30, 
   2022   2021 
         
REVENUES  $1,614,275   $1,574,404 
COST OF REVENUES   26,485    343,286 
GROSS PROFIT   1,587,790    1,231,118 
           
           
OPERATING EXPENSES          
Salaries and salaries related costs   445,605    282,173 
Professional and consulting fees   -    - 
Oilfield supplies and repairs   1,998,508    341,189 
Selling, general and administrative costs   1,319,708    941,684 
Depreciation, amortization, impairment, depletion, and accretion   168,684    766,655 
           
Total operating expenses   3,932,505    2,331,701 
           
LOSS FROM OPERATIONS BEFORE OTHER INCOME (EXPENSE)   (2,344,715)   (1,100,583)
           
OTHER INCOME (EXPENSE)          
Change in fair value of derivative liabilities   -    1,537,365 
Gain on sale of oil and gas property and ARO   360,376    598,860 
Interest expense, net of interest income   (2,205)   (17,876)
Total other income   358,171    2,118,349 
           
(LOSS) INCOME FROM OPERATIONS BEFORE PROVISION FOR INCOME TAXES   (1,986,544)   1,017,766 
           
PROVISION FOR INCOME TAXES   -    - 
           
NET (LOSS) INCOME  $(1,986,544)  $1,017,766 
           
NET (LOSS) INCOME PER SHARE  $(0.03)  $0.03 
           
           
WEIGHTED AVERAGE SHARES OUTSTANDING   60,000,000    60,000,000 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

 

 

 

WHITE RIVER HOLDINGS, INC.

STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT)

UNAUDITED

FOR THE THREE MONTHS ENDED JUNE 30, 2022 AND 2021

 

               Additional         
   Preferred Stock   Common Stock   Paid-In   Accumulated     
   Shares   Amount   Shares   Amount   Capital   Deficit   Total 
                             
Balance - March 31, 2021         -   $      -    60,000,000   $60   $2,325,731   $(9,756,222)  $(7,430,431)
                                    
Cost allocations from Ecoark Holdings   -    -    -    -    (974,485)   -    (974,485)
Net loss for the year   -    -    -    -    -    1,017,766    1,017,766 
                                    
Balance - June 30, 2021   -    -    60,000,000    60    1,351,246    (8,738,456)   (7,387,150)
                                    
Balance - March 31, 2022   -   $-    60,000,000   $60   $591,947   $(16,752,477)  $(16,160,470)
    -    -    -    -    -    -    - 
Cost allocations from Ecoark Holdings   -    -    -    -    -    -    - 
Net income (loss) for the period   -    -    -    -    -    (1,986,544)   (1,986,544)
                                    
Balance - June 30,, 2022   -   $-    60,000,000   $60   $591,947   $(18,739,021)  $(18,147,014)

 

The accompanying notes are an integral part of these consolidated financial statements.

 

 

 

 

WHITE RIVER HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

UNAUDITED

FOR THE THREE MONTHS ENDED JUNE 30, 2022 AND 2021

 

   UNAUDITED 
   JUNE 30, 
   2022   2021 
         
CASH FLOW FROM OPERATING ACTIVITIES FROM OPERATIONS          
Net (loss) income  $(1,986,544)  $1,017,766 
Adjustments to reconcile net (loss) income to net cash          
(used in) provided by operating activities          
Home office allocation   -    (974,485)
Depreciation, amortization, depletion, and accretion   168,864    766,655 
Loss on disposal of oil and gas property, ARO and fixed assets   (360,376)   (6,573)
Changes in assets and liabilities          
Accounts receivable   (160,695)   229,149 
Inventory   (28,981)   6,561 
Prepaid expenses and other current assets   (1,211,430)   (700,697)
Amortization of right of use asset - operating leases   35,652    33,962 
Due to parent   2,709,066    2,762,343 
Operating lease expense   (38,476)   (36,010)
Accrued payable and accrued liabilities   172,982    (2,994,272)
Total adjustments   1,286,606    (913,367)
Net cash (used in) provided by operating activities   (699,938)   104,399 
           
           
CASH FLOWS FROM INVESTING ACTIVITES          
Proceeds from the sale of oil and gas properties   999,999    - 
Purchase of fixed assets   (605,600)   - 
Net cash provided by investing activities   394,399    - 
           
           
CASH FLOWS FROM FINANCING ACTIVITES          
Increase (decrease) in cash overdraft   110,273    (104,399)
Proceeds from long-term debt   145,266    - 
Net cash provided by (used in) financing activities   255,539    (104,399)
           
NET DECREASE IN CASH AND RESTRICTED CASH   (50,000)   - 
           
CASH AND RESTRCITED CASH - BEGINNING OF PERIOD   251,050    250,413 
           
CASH AND RESTRICTED CASH - END OF PERIOD  $201,050   $250,413 
           
SUPPLEMENTAL DISCLOSURES          
Cash paid for interest expense  $-   $- 
Cash paid for income taxes  $-   $- 

 

The accompanying notes are an integral part of these consolidated financial statements.