v3.25.2
23. SEGMENT REPORTING
 12 Months Ended
Dec. 31, 2024
Notes  
23. SEGMENT REPORTING

23.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. 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 second quarter of 2025.

 

The following presents selected financial information with respect to our single reportable segment for the years ended December 31:

 

 

 

 

 

2024

 

2023

Net sales

 

 

 

 

$23,364,188  

 

$50,731,889  

 

 

 

 

 

 

 

 

Cost of goods sold

 

 

 

 

24,759,530  

 

48,391,724  

Gross profit (loss)

 

 

 

 

(1,395,342) 

 

2,340,165  

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

General and administrative

 

 

 

 

6,121,955  

 

3,702,743  

Depreciation and amortization

 

 

 

 

5,889  

 

5,303  

Total operating expenses

 

 

 

 

6,127,844  

 

3,708,046  

 

 

 

 

 

 

 

 

Loss from operations

 

 

 

 

(7,523,186) 

 

(1,367,881) 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

Gain on warrant valuation

 

 

 

 

1,477,870  

 

-  

Other income

 

 

 

 

35,637  

 

26,008  

Gain (loss) on sale of assets

 

 

 

 

(25,075) 

 

564,811  

Loss on extinguishment of debt

 

 

 

 

(241,311) 

 

(205,425) 

Loss on issuance of private placement warrants

 

 

 

 

(1,935,934) 

 

-  

Interest expense

 

 

 

 

(6,516,512) 

 

(3,639,520) 

Other expense, net

 

 

 

 

(7,205,325) 

 

(3,254,126) 

 

 

 

 

 

 

 

 

Loss before benefit from income taxes

 

 

 

 

(14,728,511) 

 

(4,622,007) 

 

 

 

 

 

 

 

 

Provision for income tax benefit

 

 

 

 

-  

 

185,535  

 

 

 

 

 

 

 

 

Net loss

 

 

 

 

(14,728,511) 

 

(4,436,472) 

 

 

 

 

 

 

 

 

Other comprehensive loss

 

 

 

 

 

 

 

Foreign currency translation adjustment

 

 

 

 

(8,203) 

 

(24,185) 

 

 

 

 

 

 

 

 

Comprehensive loss

 

 

 

 

$(14,736,714) 

 

$(4,460,657) 

 

The segmented assets as of December 31, 2024 are as follows:

 

 

Foreland
Refining

2020
Resource
LLC

Total

Total assets

 $ 15,065,555

 $ 11,881,688

 $ 26,947,243

 

The segmented assets as of year-end December 31, 2023 are as follows:

 

 

Foreland
Refining

2020
Resource
LLC

Total

Total assets

 $ 18,503,859

 $ 9,672,121

 $ 28,175,980