| 22. SEGMENT REPORTING |
22.SEGMENT REPORTING
The Company has one reportable segment: refined crude oil. The Company refines crude oil to produce several key products, including Diesel, Liquid Asphalt, Vacuum Gas Oil (VGO), and Naphtha, each with distinct industrial applications. Diesel is used primarily in transportation and industrial sectors, while Liquid Asphalt is essential for road construction and roofing. VGO serves as an intermediate product for further refining, and Naphtha is used as a feedstock for gasoline production and petrochemicals.
The Company’s chief operating decision maker is the executive officer team. The chief decision maker uses gross profit to evaluate income generated from segment assets in deciding whether to reinvest profits into the refined crude oil segment or into other parts of the entity.
The Company is in the process of developing a second segment, 2020 Resources LLC PR Spring facility which currently is not generating revenues. There continues to be associated development costs which are being capitalized, with a plan to be completed in 2025.
The following presents selected financial information with respect to our single reportable segment for the three and six months ended June 30:
| Three Months
Ended
June 30, 2025
|
|
| Three Months
Ended
June 30, 2024
|
| Six Months
Ended
June30, 2025
|
|
|
| Six Months
Ended
June 30, 2024
|
Net sales
| $ 4,541,472
|
|
| $ 3,375,244
|
| $ 10,874,439
|
|
|
| $ 14,327,574
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
| 4,658,440
|
|
| 3,860,833
|
| 11,717,499
|
|
|
| 14,243,714
|
Gross margin
| (116,968)
|
|
| (485,589)
|
| (843,060)
|
|
|
| 83,860
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
General and administrative
| 1,620,696
|
|
| 971,378
|
| 3,554,522
|
|
|
| 2,579,262
|
Depreciation and amortization
| 2,916
|
|
| 1,473
|
| 4,944
|
|
|
| 2,945
|
Total operating expenses
| 1,623,612
|
|
| 972,851
|
| 3,559,466
|
|
|
| 2,582,207
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations
| (1,740,580)
|
|
| (1,458,440)
|
| (4,402,428)
|
|
|
| (2,498,347)
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
Interest expense
| (318,708)
|
|
| (2,105,821)
|
| (1,191,176)
|
|
|
| (3,414,266)
|
Loss on extinguishment of debt
| 29,093
|
|
| -
|
| (56,660)
|
|
|
| (108,887)
|
Gain on warrant valuation
| (174,354)
|
|
| -
|
| 100,626
|
|
|
| -
|
Other income (expense)
| (4,101)
|
|
| 26,858
|
| 3,472
|
|
|
| 21,552
|
Gain on sale of assets
| -
|
|
| (25,075)
|
| 3,920
|
|
|
| (25,075)
|
Other expense, net
| (468,070)
|
|
| (2,104,038)
|
| (1,139,818)
|
|
|
| (3,526,676)
|
|
|
|
|
|
|
|
|
|
|
|
Loss before provision for income taxes
| (2,208,650)
|
|
| (3,562,478)
|
| (5,542,344)
|
|
|
| (6,025,023)
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes
| -
|
|
| -
|
| -
|
|
|
| -
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
| (2,208,650)
|
|
| (3,562,478)
|
| (5,542,344)
|
|
|
| (6,025,023)
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive loss
|
|
|
|
|
|
|
|
|
|
|
Exchange loss on translation of foreign operations
| (2,097)
|
|
| -
|
| (1,675)
|
|
|
| (8,134)
|
|
|
|
|
|
|
|
|
|
|
|
Net loss and comprehensive loss
| $ (2,210,747)
|
|
| $ (3,562,478)
|
| $ (5,544,019)
|
|
|
| $ (6,033,157)
|
|
|
|
|
|
|
|
|
|
|
|
Loss per common share
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
| $ (0.10)
|
|
| $ (0.22)
|
| $ (0.27)
|
|
|
| $ (0.37)
|
Weighted average shares outstanding
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
| 21,589,413
|
|
| 16,347,767
|
| 20,422,497
|
|
|
| 16,426,722
|
The segmented assets as of June 30, 2025 are as follows:
| Foreland
Refining
| 2020
Resource
LLC
| Total
|
Total assets
| $11,091,482
| $11,709,079
| $22,800,561
|
The segmented assets as of June 30, 2024 are as follows:
| Foreland
Refining
| 2020
Resource
LLC
| Total
|
Total assets
| $16,980,073
| $11,785,204
| $28,738,277
|
|