Norris Industries Reports Mixed Financial Results, Net Loss Improvement, and Cash Position Growth

Norris Industries, Inc. (NRIS) reported its financial results for the three and six months ended August 31, 2024, revealing a mixed performance in revenue and profitability compared to the previous fiscal period. Total revenues for the three months decreased to $77,007, down from $82,606 in the same period of 2023. However, for the six months, total revenues increased to $177,274, compared to $163,958 in the prior year, driven primarily by higher oil sales, which rose from $114,387 to $143,823.

Despite the increase in six-month revenues, the company experienced a net loss of $286,893 for the six months ended August 31, 2024, an improvement from a net loss of $305,348 in the same period of 2023. The three-month net loss also improved slightly to $117,856 from $124,010 year-over-year. This reduction in losses was attributed to decreased operating expenses, which fell from $406,875 to $395,781 for the six months, and from $174,936 to $160,381 for the three months.

The company’s cash position improved, with cash increasing to $71,739 as of August 31, 2024, from $54,217 at the end of February 2024. Total current assets also rose to $85,189 from $71,228. However, total assets decreased to $400,608 from $457,738, primarily due to a decline in oil and gas property values, which fell from $386,510 to $315,419.

Norris Industries continues to face challenges, including a total stockholders’ deficit that widened to $(5,220,868) from $(4,933,975). The company has a convertible note payable to a related party that increased to $4,400,000 from $4,200,000. The company’s liquidity remains a concern, with negative working capital of approximately $17,000 as of August 31, 2024, and a reliance on a line of credit with $400,000 available for future financing needs.

Strategically, Norris Industries plans to focus on existing fields and selectively acquire larger-reserve oil and gas properties. The company has paused acquisition activities for three years due to the COVID-19 pandemic but aims to resume targeting mature smaller oil fields with Enhanced Oil Recovery (EOR) potential. The financial outlook remains cautious, with anticipated challenges in covering operating costs and the potential need for aggressive cost-cutting measures if additional capital cannot be secured.