10-Q - Royale Energy, Inc. (0001694617) (Filer)

Wed, May 15, 4:36 PM (72 days ago)

Royale Energy, Inc. reported a net loss of $770,110 for Q1 2024 compared to a net income of $1,002,344 in Q1 2023, primarily due to a gain on turnkey drilling in the prior year. Revenues from oil and gas production rose 15.3% year-over-year to $643,665, driven by increased production volumes. Operating expenses decreased 24.8% due to water disposal recovery fees. However, legal and accounting expenses surged by 902% due to audit fees. The company faces substantial liquidity challenges with a working capital deficit of $9,407,630 and an accumulated deficit of $91,308,620, raising doubts about its ability to continue as a going concern. Management plans to address liquidity through cost control measures, asset sales, and additional financing.