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.