CoJax Oil & Gas Corp
For the period ended Mar 31, 2025. Filed May 9, 2025.
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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.
Mar 31, 2025 · Filed May 9, 2025
CJAXStored price and day change unavailable
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious 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 OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-09.
0001753926-25-000769
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 51 previous paragraphs and 57 current paragraphs.
31 unchanged; 14 reworded; 11 added; 6 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 2 previous and 32 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 (11)
Current report
NOTE ABOUT FORWARD-LOOKING STATEMENTS
Current report
This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. The statements contained in this report that are not historical facts are forward-looking statements that represent management’s beliefs and assumptions based on currently available information. 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.
Current 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, 2024. While it is not possible to identify all factors, we continue to face many risks and uncertainties including, but not limited to:
Current 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.
Current 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.
Current report
Overview
Current report
Business Description and Plan of Operation
Current report
Risks and Uncertainties
Current report
The oil and natural gas industry is a global market impacted by many factors, including government regulations, particularly in the areas of trade sanctions, taxation, energy, climate change and the environment, geopolitical instability, and military conflicts (including the Russian-Ukrainian conflict in the Middle East), fluctuations in worldwide commodity demand, and the extent to which members of OPEC and other oil exporting nations manage oil supply through export quotas. In general, natural gas prices are determined by North American supply and demand and are affected by the import and export of liquefied natural gas. Oil and natural gas prices have been, and are expected to continue to be, volatile. This volatility could negatively impact future prices for oil, natural gas, petroleum products, and industrial products.
Current report
Revenues were $338,222 for the three months ended March 31, 2025, compared to $182,052 for the three months ended March 31, 2024. The increase in revenue of 85.8% was primarily driven by an increase in production in the Buckley Asset and the Liberty Asset.
Current report
Total operating loss was $144,323 for the three months ended March 31, 2025, and $303,408 for the three months ended March 31, 2024. The decreased loss was primarily driven by the $156,170 increase in revenues.
Removed paragraphs (6)
Previous report
Overview and Recent Transactions
Previous report
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 report
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.
Previous report
In excess of 1,000%
Previous report
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 report
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.
Reworded paragraphs (14)
Previous wording
CoJax is a growth-oriented independent exploration and production company based in Shreveport, Louisiana, and is engaged in oil and natural gas development, production, acquisition, and exploration activities currently focused on the Gulf States Drill Region. The Company is currently engaged in oil and natural gas acquisition, exploration, development, and production in Mississippi and Alabama. We focus on developing our existing properties while continuing to pursue acquisitions of oil and gas properties with upside potential in the Gulf States Drill Region.
Current wording
CoJax is currently engaged in oil and natural gas acquisition, exploration, development, and production in Mississippi and Alabama. We focus on developing our existing properties while continuing to pursue acquisitions of oil and gas properties with upside potential in the Gulf States Drill Region.
Previous wording
Executive Summary - Third Quarter 2024 Developments and Highlights
Current wording
Executive Summary - First Quarter 2025 Developments and Highlights
Previous wording
Results of Operations – For the Three and Nine Months Ended September 30, 2024, and 2023
Current wording
Results of Operations – For the Three Months Ended March 31, 2025, and 2024
Previous 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.
Current wording
Lease operating expenses were $97,240 for the three months ended March 31, 2025, compared to $47,341 for the three months ended March 31, 2024, representing an increase of 105.4% or $49,899. The increase in expense was primarily attributable to the Liberty and Pine Grove Assets, which were acquired in May 2024 and August 2024, respectively.
Previous 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.
Current wording
Other expense, net was $483 for the three months ended March 31, 2025, as compared to $78 for the three months ended March 31, 2024, due to an increase in interest expense.
Previous 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.
Current wording
As a result of the above factors, for the three months ended March 31, 2025, the Company had a net loss of $144,806 as compared to a net loss of $303,486 for the three months ended March 31, 2024.
Previous 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:
Current wording
The following table presents our sales volumes and received pricing information for the three-month periods ended March 31, 2025, and 2024:
Previous 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.
Current wording
The Company had cash on hand of $77,021 at March 31, 2025, compared to $46,738 at December 31, 2024. For the three months ended March 31, 2025, the Company had net cash provided by operating activities of $32,796, compared to $4,201 used in operating activities for the same period of 2024. The decrease in cash used in operating activities was driven by the $158,680 decrease of net loss, offset by the lack of common stock issuances for services and salaries this period.
Previous wording
Net cash used in investing activities was $0 for the nine months ended September 30, 2024, and September 30, 2023.
Current wording
Net cash used in investing activities was $0 for the three months ended March 31, 2025, and March 31, 2024.
Previous 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.
Current wording
Net cash used in financing activities was $2,513 for the three months ended March 31, 2025, compared to net cash used in financing activities of $2,484 for the same period in 2024.
Previous wording
The Company is presently committed to using the services of the existing gatherers in its present areas of production. This gives such gatherers certain short-term relative monopolistic powers to set gathering and transportation costs. Obtaining the services of an alternative gathering company would require substantial additional costs since an alternative gatherer would be required to lay a new pipeline and/or obtain new rights-of-way.
Current wording
CoJax is presently committed to using the services of the existing gatherers in its present areas of production. This gives such gatherers certain short-term relative monopolistic powers to set gathering and transportation costs. Obtaining the services of an alternative gathering company would require substantial additional costs since an alternative gatherer would be required to lay a new pipeline and/or obtain new rights-of-way.
Previous wording
We operate in a highly competitive environment for developing and acquiring properties, marketing oil and natural gas, and securing equipment and trained personnel. As a relatively small oil and natural gas company, many large producers possess and employ financial, technical, and personnel resources substantially greater than ours. Those companies may be able to develop and acquire more prospects and productive properties than our financial or personnel resources permit. It is also significant that more favorable prices can usually be negotiated for larger quantities of oil and/or gas products, such that the Company views itself as having a price disadvantage compared to larger producers.
Current wording
We operate in a highly competitive environment for developing and acquiring properties, marketing oil and natural gas, and securing equipment and trained personnel. As a relatively small oil and natural gas company, many large producers possess and employ financial, technical, and personnel resources substantially greater than ours. Those companies may be able to develop and acquire more prospects and productive properties than our financial or personnel resources permit. It is also significant that more favorable prices can usually be negotiated for larger quantities of oil and/or gas products, such that CoJax views itself as having a price disadvantage compared to larger producers.
Previous wording
Compliance with these regulations may constitute a significant cost and effort for the Company. To date, no specific accounting for environmental compliance has been maintained or projected by the Company. The Company does not presently know of any environmental demands, claims, adverse actions, litigation, or administrative proceedings in which it or the acquired properties are involved or subject to or arising out of its predecessor operations.
Current wording
Compliance with these regulations may constitute a significant cost and effort for CoJax. To date, no specific accounting for environmental compliance has been maintained or projected by CoJax. CoJax does not presently know of any environmental demands, claims, adverse actions, litigation, or administrative proceedings in which it or the acquired properties are involved or subject to or arising out of its predecessor operations.
Previous wording
The Company has yet to achieve profitable operations, expects to incur further losses in the development of its business, has negative cash flows from operating activities, and is dependent upon future issuances of equity or other financings to fund ongoing operations, all of which raises substantial doubt about the Company’s ability to continue as a going concern. The Company’s ability to continue as a going concern is dependent upon its ability to generate future profitable operations or to obtain the necessary financing from shareholders or other sources to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management has no formal plan in place to address this concern. Still, it considers that the Company will be able to obtain additional funds by equity financing or related party advances. However, there is no assurance of additional funding being available or on acceptable terms, if at all.
Current wording
The Company has yet to achieve profitable operations, expects to incur further losses in the development of its business, has only recently begun producing positive cash flows from operating activities, and is dependent upon future issuances of equity or other financings to fund ongoing operations, all of which raises substantial doubt about the Company’s ability to continue as a going concern. The Company’s ability to continue as a going concern is dependent upon its ability to generate future profitable operations or to obtain the necessary financing from shareholders or other sources to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management has developed a capital investment proposal plan and is currently pursuing funding opportunities; however, there is no assurance of additional funding being available or on acceptable terms, if at all.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
CoJax is a growth-oriented independent exploration and production company based in Shreveport, Louisiana, and is engaged in oil and natural gas development, production, acquisition, and exploration activities currently focused on the Gulf States Drill Region.