CoJax Oil & Gas Corp
For the period ended Sep 30, 2024. Filed Nov 14, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 14, 2024
CJAXStored price and day change unavailable
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-09.
0001753926-24-001389
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-14.
0001753926-24-001900
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 54 previous paragraphs and 51 current paragraphs.
37 unchanged; 12 reworded; 1 added; 5 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 31 previous and 2 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (1)
Current report
In excess of 1,000%
Removed paragraphs (5)
Previous report
NOTE ABOUT FORWARD-LOOKING STATEMENTS
Previous report
This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include information concerning our possible or assumed future results of operations, business strategies, need for financing, competitive position, and potential growth opportunities. Our forward-looking statements do not consider the effects of future legislation or regulations. Forward-looking statements include all statements that are not historical facts and can be identified by the use of forward-looking terminology such as the words “believes,” “intends,” “may,” “should,” “anticipates,” “expects,” “could,” “plans,” “estimates,” “projects,” “targets” or comparable terminology or by discussions of strategy or trends. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we cannot give any assurances that these expectations will prove to be correct. Such statements by their nature involve risks and uncertainties that could significantly affect expected results, and actual future results could differ materially from those described in such forward-looking statements.
Previous report
Among the factors that could cause actual future results to differ materially are the risks and uncertainties discussed in this report and in our annual report on Form 10-K for the year ended December 31, 2023. While it is not possible to identify all factors, we continue to face many risks and uncertainties including, but not limited to:
Previous report
Forward-looking statements speak only as to the date hereof. Except as otherwise required by applicable law, we disclaim any intention or obligation to update publicly or revise such statements whether as a result of new information, future events or otherwise.
Previous report
There may also be other risks and uncertainties that we are unable to predict at this time or that we do not now expect to have a material adverse impact on our business.
Reworded paragraphs (12)
Previous wording
On May 31, 2024, the Company issued 1,320,755 shares of common stock, $0.01 par value per share, valued at $2.00 per share (the “Shares”), to Liberty Operating, LLC, a Mississippi limited liability company (“Liberty”), in consideration for the sale and assignment of various mineral and oil and gas interests in and to certain properties located in Mississippi to Barrister Energy, LLC, a wholly-owned subsidiary of the Company organized under the laws of Mississippi. At the request and the instructions of Liberty, the Company issued the Shares to all members of Liberty on the pro rata basis of their ownership interest in Liberty. This acquisition was effective as of May 1, 2024.
Current wording
On August 29, 2024, the Company acquired various mineral and oil and gas interests in and to certain properties located in Mississippi from Liberty Operating, LLC, a Mississippi limited liability company (“Liberty”), which Liberty assigned to Barrister Energy, LLC, a wholly-owned subsidiary of the Company, in consideration of 2,211,982 shares of common stock, valued at $2.00 per share. This acquisition was effective as of July 1, 2024.
Previous wording
Executive Summary - First Quarter 2024 Developments and Highlights
Current wording
Executive Summary - Third Quarter 2024 Developments and Highlights
Previous wording
Results of Operations – For the Three and Six Months Ended June 30, 2024, and 2023
Current wording
Results of Operations – For the Three and Nine Months Ended September 30, 2024, and 2023
Previous wording
Revenues were $318,007 and $500,060 for the three and six months ended June 30, 2024, compared to $188,623 and $417,341 for the three and six months ended June 30, 2023. The Company is an early-stage company, having just begun to acquire assignments of hydrocarbon revenues and underlying oil and gas exploration and production rights, and therefore has just begun producing significant revenue in 2023. The increase in revenues from each period in 2023 to the same periods in 2024 was due to an increase in production and the acquisition of oil and gas properties.
Current wording
Revenues were $250,619 and $750,678 for the three and nine months ended September 30, 2024, compared to $248,302 and $665,643 for the three and nine months ended September 30, 2023. The Company is an early-stage company, having just begun to acquire assignments of hydrocarbon revenues and underlying oil and gas exploration and production rights, and therefore has just begun producing significant revenue in 2023. The increase in revenues from each period in 2023 to the same periods in 2024 was due to an increase in production and the acquisition of oil and gas properties.
Previous wording
Lease operating expenses were $163,483 for the six months ended June 30, 2024, compared to $117,877 for the six months ended June 30, 2023, representing an increase of $45,606 or 38.7%. Lease operating expenses were $116,142 and $58,738 for the three months ended June 30, 2024 and June 30, 2023, respectively. The increase in expense was primarily attributable to the increase in production, which is line with the change in revenue.
Current wording
Lease operating expenses were $273,801 for the nine months ended September 30, 2024, compared to $158,516 for the nine months ended September 30, 2023, representing an increase of $115,285 or 72.7%. Lease operating expenses were $110,318 and $40,639 for the three months ended September 30, 2024 and September 30, 2023, respectively. The increase in expense was primarily attributable to the increase in production, which is line with the change in revenue.
Previous wording
Total operating loss was $74,361 and $377,770 for the three and six months ended June 30, 2024, and $125,370 and $425,589 for the three and six months ended June 30, 2023. The decreased loss was primarily driven by the $129,384 and $82,719 increase in revenues during the three and six months ended June 30, 2024. The increase in revenue was partially offset by the increase in lease operating expenses and depletion and accretion expense over the same periods.
Current wording
Total operating loss was $149,185 and $526,811 for the three and nine months ended September 30, 2024, and operating profit of $13,661 and loss of $411,930 for the three and nine months ended September 30, 2023. The increased loss was primarily driven by the $180,313 and $207,998 increase in total lease operating and general and administrative expenses during the three and nine months ended September 30, 2024. The increase in expenses was partially offset by the increase in revenue over the same periods.
Previous wording
Other expense, net was $154 for the six months ended June 30, 2024, as compared to $1,102 for the six months ended June 30, 2023; and was $77 for the three months ended June 30, 2024, as compared to $546 for the three months ended June 30, 2023. These changes were primarily driven by an increase in interest income.
Current wording
Other expense, net was $871 for the nine months ended September 30, 2024, as compared to $1,621 for the nine months ended September 30, 2023; and was $573 for the three months ended September 30, 2024, as compared to $521 for the three months ended September 30, 2023. These changes were primarily driven by an increase in interest income.
Previous wording
As a result of the above factors, for the six months ended June 30, 2024, the Company had a net loss of $377,924, as compared to a net loss of $426,691 for the six months ended June 30, 2023. For the three months ended June 30, 2024, the Company had a net loss of $74,438, as compared to a net loss of $125,916 for the three months ended June 30, 2023.
Current wording
As a result of the above factors, for the nine months ended September 30, 2024, the Company had a net loss of $527,682, as compared to a net loss of $413,551 for the nine months ended September 30, 2023. For the three months ended September 30, 2024, the Company had a net loss of $149,758, as compared to a net profit of $13,140 for the three months ended September 30, 2023.
Previous wording
The following table presents our sales volumes and received pricing information for the three and six-month periods ended June 30, 2024, and 2023:
Current wording
The following table presents our sales volumes and received pricing information for the three and nine-month periods ended September 30, 2024, and 2023:
Previous wording
The Company had cash on hand of $116,905 at June 30, 2024, compared to $75,908 at December 31, 2023. For the six months ended June 30, 2024, the Company had net cash provided by operating activities of $45,974, compared to $84,062 for the same period of 2023. The decrease in cash provided by operating activities was driven by the $301,188 decrease in the adjustment for the noncash issuance of common stock for services and salaries, offset by the $207,264 increase in adjustments for changes in the balances of accounts receivable, prepaid expenses, accounts payable, and accrued liabilities.
Current wording
The Company had cash on hand of $127,650 at September 30, 2024, compared to $75,908 at December 31, 2023. For the nine months ended September 30, 2024, the Company had net cash provided by operating activities of $59,219, compared to net cash used of $7,898 for the same period of 2023. The increase in cash provided by operating activities was driven by the $501,998 increase in adjustments for changes in the balances of accounts receivable, prepaid expense, accounts payable, and accrued liabilities, offset by the $312,670 decrease in the adjustment for the noncash issuance of common stock for services and salaries.
Previous wording
Net cash used in investing activities was $0 for the six months ended June 30, 2024, and June 30, 2023.
Current wording
Net cash used in investing activities was $0 for the nine months ended September 30, 2024, and September 30, 2023.
Previous wording
Net cash used in financing activities was $4,977 for the six months ended June 30, 2024, compared to net cash used in financing activities of $4,930 for the same period in 2023. The increase is attributable to payments of the PPP loan.
Current wording
Net cash used in financing activities was $7,477 for the nine months ended September 30, 2024, compared to net cash used in financing activities of $7,404 for the same period in 2023. The increase is attributable to payments of the PPP loan.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
On May 31, 2024, the Company acquired various mineral and oil and gas interests in and to certain properties located in Mississippi from Liberty, in consideration for 1,320,755 shares of the Company’s common stock, valued at $2.00 per share. This acquisition was effective as of May 1, 2024.