Laredo Oil, Inc. reported its financial results for the three months ended August 31, 2024, revealing a modest revenue of $6,048, a significant increase from $0 in the same period of the previous year. The company experienced a net loss of $(469,252), an improvement compared to the net loss of $(1,119,710) reported for the three months ended August 31, 2023 (restated). This reduction in loss was attributed to lower operating expenses, which totaled $670,359, down from $1,349,579 in the prior year, primarily due to a decrease in stock-based compensation expenses.
The company’s total assets increased to $4.67 million as of August 31, 2024, compared to $2.80 million as of May 31, 2024. This growth was driven by a substantial rise in oil and gas acquisition and drilling costs, which surged to $2.48 million from $610,663 in the previous quarter. Total liabilities also rose to $15.90 million, up from $13.99 million, with current liabilities increasing to $14.79 million from $12.95 million.
Laredo Oil's cash and cash equivalents, along with restricted cash, decreased slightly to $1.94 million from $1.99 million at the end of the previous quarter. The company raised $375,000 through the sale of common stock during the quarter, contributing to cash flows provided by financing activities of $1.96 million, a notable increase from $125,425 in the same period last year.
Strategically, Laredo Oil has been active in acquiring oil and gas assets, with a focus on developing its mineral property interests in Montana. The company has entered into various agreements, including a Development Agreement with Texakoma Exploration & Production Company, which involves drilling additional wells in the Lustre Field Prospect. The company is also raising $7.5 million to drill three exploratory wells on over 30,000 acres of mineral rights.
Despite these developments, Laredo Oil continues to face challenges, including a total stockholders’ deficit of $(11.23 million) as of August 31, 2024, and ongoing operational losses that raise doubts about its ability to continue as a going concern. Management is implementing measures to improve operations and sustain the business over the next twelve months, including cost control and personnel management strategies.
About Laredo Oil, Inc.
About 10-Q Filings
A 10-Q form is an important financial report that public companies in the United States must submit every three months. It gives a clear picture of a company's financial health and recent performance.
Key points about the 10-Q:
- Frequency: Companies file it three times a year, covering the first three quarters. The fourth quarter is covered in a more comprehensive annual report.
-
Content: It includes:
- Financial statements showing the company's current financial position
- Updates from management on the performance and projections of the business
- Information about potential risks the company faces
- Details on how the company is run internally
- Deadline: Must be filed within 40 or 45 days after the quarter ends, depending on the size of the company.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.