10-Q: Leopard Energy Reports First Revenue Following Shift to Energy Sector in Q3 2024

Leopard Energy, formerly Cyber Apps World Inc., reports its financial results for the quarter ended April 30, 2024, highlighting its transition into the energy sector and the generation of initial revenues from oil sales.

Summary

• Leopard Energy, Inc., formerly Cyber Apps World Inc., filed its Form 10-Q for the quarter ended April 30, 2024.
• The company has shifted its focus to the energy sector following the acquisition of a controlling interest by Zenith Energy Ltd. in August 2023.
• The company reported net sales of $2,014 for both the three and nine-month periods ended April 30, 2024, marking its first revenue generation from oil sales.
• The company incurred a net loss of $144,390 for the three months ended April 30, 2024, and a net loss of $199,947 for the nine months ended April 30, 2024.
• These losses are primarily attributed to professional services fees and general and administrative expenses.
• The company's accumulated deficit as of April 30, 2024, is $11,672,094.
• The company purchased a 5% royalty interest in a package of seven producing oil wells in Lavaca County, Texas, on January 17, 2024.
• The company is restating its financial statements for the three and nine months ended April 30, 2023, due to identified misstatements.
• Zenith Energy, the controlling stockholder, has provided approximately $352,000 in working capital and intends to continue financing the company.
• The company's disclosure controls and procedures were deemed not effective due to material weaknesses in internal controls over financial reporting.

Sentiment

Score: 4

Explanation: The sentiment is slightly negative due to the company's net losses, accumulated deficit, and the need for additional financing, although the transition to the energy sector and initial revenue generation offer some positive aspects.

Positives

• The company has successfully transitioned into the energy sector with the acquisition of a royalty interest in producing oil wells.
• The company generated its first revenue of $2,014 from oil sales during the three months ended April 30, 2024.
• Zenith Energy, the controlling stockholder, has provided approximately $352,000 in working capital and intends to continue financing the company.

Negatives

• The company incurred a net loss of $144,390 for the three months ended April 30, 2024, and a net loss of $199,947 for the nine months ended April 30, 2024.
• The company has a working capital deficit of $202,492 as of April 30, 2024.
• The company's disclosure controls and procedures were deemed not effective due to material weaknesses in internal controls over financial reporting.
• The company is restating its financial statements for the three and nine months ended April 30, 2023, due to identified misstatements.

Risks

• The company's ability to continue as a going concern is dependent on obtaining additional working capital through equity and/or debt financing and revenue generation.
• The company's ability to raise additional capital is affected by trends and uncertainties beyond its control.
• The company's disclosure controls and procedures were deemed not effective due to material weaknesses in internal controls over financial reporting.

Future Outlook

The company intends to complete additional acquisitions in the U.S. energy sector and expects to require additional capital to meet its long-term operating requirements, potentially through the sale of equity or debt securities. Zenith Energy intends to provide the company with working capital to fund operations and acquisitions, pending receipt of additional funding.

Management Comments

• Zenith Energy has advised us that intends to provide the Company with working capital to fund the operations and acquisitions, pending receipt of additional funding.

Industry Context

The company's shift to the energy sector reflects a strategic move to capitalize on opportunities in U.S. energy production and development, aligning with broader industry trends of investment in domestic energy resources.

Comparison to Industry Standards

• It is difficult to compare Leopard Energy's results to industry standards due to its recent transition into the energy sector and limited revenue generation.
• Companies like Amplify Energy Corp. and California Resources Corporation are examples of small-cap oil and gas companies operating in the U.S., but their financial profiles and operational scale are significantly different from Leopard Energy's current state.
• A more relevant comparison might be made to other micro-cap companies focused on acquiring royalty interests in producing wells, but specific benchmarks would depend on the size and quality of the acquired assets.

Management Changes

Stakeholder Impact

• Shareholders: The company's financial performance and strategic shift to the energy sector will impact shareholder value.
• Employees: The company's expansion into the energy sector may create new employment opportunities.
• Creditors: The company's ability to secure additional financing will impact its ability to meet its financial obligations.

Next Steps

• The company intends to complete additional acquisitions of this kind in the near future and continue its focus on the U.S. energy sector.
• The company expects to raise additional capital through, among other methods, the sale of equity or debt securities.

Key Dates

Keywords

energy sector, oil wells, royalty interest, financial results, Leopard Energy, Zenith Energy, restatement