10-Q: Leopard Energy Reports First Revenue Since Shift to Energy Sector in Quarterly Filing
Quarterly Report
Leopard Energy, formerly Cyber Apps World Inc., reported its first revenue of $1,923 from a royalty interest in oil production, marking a shift in its business focus to the energy sector.
Summary
- Leopard Energy, previously known as Cyber Apps World Inc., has transitioned its business focus to the energy sector.
- The company reported a net loss of $9,048 for the quarter ended October 31, 2024, compared to a net loss of $18,571 for the same period in 2023.
- Leopard Energy generated $1,923 in revenue from a 5% royalty interest in oil wells in Texas, acquired in January 2024.
- Operating expenses for the quarter were $10,908, a significant decrease from $66,747 in the same quarter of the previous year.
- The company's accumulated deficit stands at $11,733,998 as of October 31, 2024.
- As of October 31, 2024, the company had a working capital deficit of $221,962.
- The company's cash balance was $8,293 as of October 31, 2024.
- Zenith Energy, the controlling shareholder, has provided $349,759 in capital through payments on behalf of the company and $45,000 in cash.
- The company's management has expressed substantial doubt about its ability to continue as a going concern for the next twelve months.
Sentiment
Score: 3
Explanation: The sentiment is negative due to the company's ongoing losses, accumulated deficit, and concerns about its ability to continue as a going concern. While there is some positive movement with the first revenue, the overall financial situation is precarious.
Positives
- The company has successfully generated its first revenue since shifting its focus to the energy sector.
- Operating expenses have been significantly reduced compared to the same quarter last year.
- The net loss has decreased year-over-year, indicating some improvement in financial performance.
- The company has secured financial support from its controlling shareholder, Zenith Energy.
Negatives
- The company continues to operate at a loss, with a net loss of $9,048 for the quarter.
- The company has a significant accumulated deficit of $11,733,998.
- There is a working capital deficit of $221,962.
- Management has expressed substantial doubt about the company's ability to continue as a going concern.
Risks
- The company's ability to continue as a going concern is uncertain due to its accumulated deficit and working capital deficit.
- The company is dependent on additional financing from its controlling shareholder or other sources.
- There is no guarantee that the company will be successful in arranging financing on acceptable terms.
- The company's ability to raise additional capital is affected by trends and uncertainties beyond its control.
Future Outlook
The company intends to complete additional acquisitions in the U.S. energy sector and expects to raise additional capital through the sale of equity or debt securities. Zenith Energy intends to continue to provide working capital to fund operations and acquisitions.
Management Comments
- Management believes that the company's continued existence is dependent upon its ability to obtain needed working capital through additional equity and/or debt financing and revenue to cover expenses.
- Management monitors and analyzes the company's cash on-hand, its ability to generate sufficient revenue sources in the future, and its operating and capital expenditure commitments.
- Management believes it is more likely than not that the company can meet its obligations as they become due within one year from the reporting date and can continue as a going concern.
Industry Context
The company's shift to the energy sector reflects a strategic move to capitalize on opportunities in oil and gas production. This is a significant change from its previous focus on mobile applications, and the company is now competing in a different market with different risks and opportunities.
Comparison to Industry Standards
- It is difficult to compare Leopard Energy's results directly to industry standards due to its recent transition and small scale of operations.
- Companies like Occidental Petroleum, ConocoPhillips, and EOG Resources are major players in the oil and gas industry, with significantly larger revenues and established operations.
- Leopard Energy's royalty interest model is different from direct operators, making comparisons challenging.
- The company's financial metrics are not comparable to larger, established energy companies, as it is in an early stage of development in the energy sector.
Management Changes
| Role | Previous Person | New Person | Effective Date | Reason |
|---|---|---|---|---|
| Secretary and director | Ippolito Cattaneo | 2024-03-06 | Ippolito Cattaneo stepped down from the role. |
Stakeholder Impact
- Shareholders face significant risk due to the company's financial instability and going concern issues.
- Employees may be impacted by the company's financial challenges and potential restructuring.
- Customers are not directly impacted as the company is not currently selling products or services.
- Suppliers and creditors face risk due to the company's financial instability.
Next Steps
- The company intends to complete additional acquisitions in the U.S. energy sector.
- The company expects to raise additional capital through the sale of equity or debt securities.
Key Dates
| Date | Description |
|---|---|
| 2013-01-17 | Date of a common stock event. |
| 2013-01-18 | Date of a common stock event. |
| 2021-08-18 | Date of a common stock event. |
| 2022-06-01 | Date of a Series A Preferred Stock event. |
| 2022-06-27 | Date of a Series A Preferred Stock event. |
| 2022-08-01 | Date of a common stock event. |
| 2023-06-27 | Date of a common stock event. |
| 2023-07-31 | End of fiscal year. |
| 2023-08-01 | Date of a common stock event. |
| 2023-08-23 | Zenith Energy acquired Series A Preferred Shares. |
| 2023-08-31 | Date of a Zenith Energy Ltd event. |
| 2024-01-17 | Company purchased a 5% royalty interest in oil wells. |
| 2024-04-26 | Company changed its name to Leopard Energy, Inc. |
| 2024-07-31 | End of fiscal year. |
| 2024-08-01 | Date of a common stock event. |
| 2024-10-31 | End of the reporting quarter. |
| 2024-12-13 | Latest practicable date for share information. |
| 2024-12-16 | Date the financial statements were available to be issued. |
Keywords
energy sector, oil production, royalty interest, financial results, going concern, Zenith Energy, Leopard Energy, capital raise
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