Victory Clean Energy Reports Financial Results Following Merger, Anticipates Continued Operating Losses

Victory Clean Energy, Inc. (formerly Victory Oilfield Tech, Inc.) reported significant financial developments for the six months ended June 30, 2024, following its merger with H2 Energy Group Inc. on January 1, 2024. The company’s total assets decreased to $147,170, down from $247,221 as of December 31, 2023, while total liabilities were significantly reduced to $836,194 from $1,528,000. This resulted in an improved total stockholders' deficit of $(689,024) compared to $(1,280,779) at the end of the previous fiscal year.

The company did not generate any revenue during the reported periods, consistent with the same timeframe in 2023. Total operating expenses surged to $5,852,833 for the six months ended June 30, 2024, compared to $74,236 in the prior year, primarily due to increased personnel and consulting expenses related to the merger. Consulting expenses alone amounted to $4,137,558, a stark contrast to $0 in the same period of 2023. The loss from operations for the six months was $(5,852,833), a significant increase from $(74,236) in the previous year.

Net loss before income tax expense for the six months ended June 30, 2024, was $(4,927,277), compared to $(77,104) for the same period in 2023. The company also reported a net loss of $(1,105,912) for the three months ended June 30, 2024, up from $(46,011) in the same quarter of the previous year.

The financial activities included a gain on forgiveness of debt amounting to $1,260,782, which was offset by a loss of $328,794 from the sale of Pro-Tech Hardbanding Services, Inc. to Flagstaff International, LLC, also completed on January 1, 2024. The company has been actively seeking new capital, with Flagstaff committing to invest $4,000,000 in exchange for Series E Preferred Stock, of which $1,442,500 had been received by June 30, 2024.

Cash and cash equivalents decreased to $116,267 from $240,654 at the beginning of the period, reflecting net cash used in operating activities of $(957,881) compared to $(60,707) in the prior year. The company anticipates continued operating losses in the near term but aims to cover expenses through anticipated new sources of capital and cash flow from operations.

Victory Clean Energy is focusing on developing renewable hydrogen production solutions and plans to construct a hydrogen production facility and install hydrogen refueling stations in California, marking a strategic shift towards sustainable energy solutions.