Laredo Oil Reports Modest Revenue Growth Amid Significant Losses and Increased Liabilities

Laredo Oil, Inc. reported its financial results for the quarter ending November 30, 2024, revealing a modest revenue of $1,640, a significant increase from zero revenue in the same quarter of the previous year. For the six-month period, the company generated $7,688 in revenue, compared to no revenue in the prior year. Despite this revenue generation, Laredo Oil continued to face substantial operating losses, reporting a net loss of $815,720 for the quarter and $1,284,972 for the six months, reflecting a deterioration from the previous year's losses of $753,522 and $1,873,232, respectively.

The company's total assets increased to $4.94 million as of November 30, 2024, up from $2.80 million at the end of the previous fiscal year. This growth was primarily driven by a substantial rise in oil and gas acquisition and drilling costs, which surged to $2.84 million from $610,663. However, total liabilities also rose significantly to $16.45 million, compared to $13.99 million, largely due to increased accounts payable and accrued liabilities. The stockholders' deficit widened to $11.51 million from $11.19 million, indicating ongoing financial challenges.

Strategically, Laredo Oil has been active in expanding its operational footprint. The company has acquired 45,766 gross acres and 38,153 net acres of mineral property interests in Montana. It has entered into various agreements, including a Participation Agreement with Hell Creek Crude, LLC, which has provided over $2.4 million to fund the development of wells in the Midfork Field. Additionally, Laredo has engaged in a Development Agreement with Texakoma Exploration and Production, which has led to the successful drilling of two test wells, with plans for further development.

Operationally, Laredo Oil's engagement metrics indicate a focus on increasing production capacity. The company is preparing to bring three wells into production, pending the operational readiness of a saltwater disposal well. The company has also raised $960,200 from the sale of common stock to accredited investors, which will be used for general corporate purposes and to address maturing debt. However, the company continues to face challenges related to its accumulated deficit and reliance on external financing, raising concerns about its ability to sustain operations in the long term.

Looking ahead, Laredo Oil's management has expressed a commitment to improving operations and securing additional funding to support its development projects. However, the company acknowledges the uncertainty surrounding its ability to achieve profitable operations and obtain necessary financing. The financial statements reflect a going concern basis, indicating that without successful fundraising and operational improvements, the company's future remains uncertain.