Vivakor Reports 39% Revenue Growth to $16.3 Million Revenue for Third Quarter 2023

DALLAS, TX / ACCESSWIRE / November 30, 2023 / Vivakor, Inc. (NASDAQ:VIVK) ("Vivakor" or the "Company"), a clean energy technology company focused on the oil remediation and natural resources sectors, today announced financial and operational results for the three and nine months ended September 30, 2023.

Key Financial Highlights for Three Months Ended September 30, 2023 (year-over-year):

• Revenue increased 39% to $16.3 million
• Gross profit increased 28% to $1.5 million
• Gross margin of 9.5%
• Operating loss decreased 37% to $2.3 million
• Adjusted EBITDA increased approximately 1,065% to $1.6 million
• Net loss decreased 59% to $2.5 million

Key Financial Highlights for Nine Months Ended September 30, 2023 (year-over-year):

• Revenue increased 286% to $45.4 million
• Gross profit increased 253% to $4.3 million
• Gross margin of 9.4%
• Operating loss decreased 23% to $7 million
• Adjusted EBITDA increased 211% to $1.9 million
• Net loss decreased 3% to $6.9 million
• Total assets of $76.1 million

Management Commentary

Vivakor Chairman and Chief Executive Officer James Ballengee commented, "Our operating assets in Colorado City, Texas and Delhi, Louisiana continue to perform very well and have exceeded our expectations. Demand and opportunities remain strong and are reflected in our third quarter and year-to-date operating and financial results, which show solid growth and margins. In addition, we are excited about our RPC Houston project. Construction is nearing completion. We are currently waiting on permits to allow us to operate the facility. We anticipate those to be approved in the near future and to begin processing samples shortly. We believe the Houston site provides a tremendous opportunity to be able to recover and reuse approximately 1.3 barrels of oil per ton of waste."

Financial Results for Three Months Ended September 30, 2023

• Revenue for the three months ended September 30, 2023 increased $4.5 million, or 39%, to $16.3 million, compared to $11.8 million for the three months ended September 30, 2022. This increase in revenue is primarily attributed to our oil and natural gas liquid sales which have been realized through the operations from Silver Fuels Delhi, LLC, which was acquired through our business combination, which closed on August 1, 2022.
• Gross profit for the three months ended September 30, 2023 increased $0.3 million, or 28%, to $1.5 million, compared to $1.2 million for the three months ended September 30, 2022. The resulting gross margin for the three months ended September 30, 2023 was 9.5%, compared to 10.3% for the three months ended September 30, 2022.
• Operating loss for the three months ended September 30, 2023 decreased $1.2 million, or 37%, to $2.3 million, compared to $3.5 million for the three months ended September 30, 2022. Operating loss of the three months ended September 30, 2023 included non-cash or one-time expenses totaling $2.1 million, and is related to depreciation and amortization expense of $0.8 million and stock-based compensation of $1.3M, compared to a total of $2.2 million, comprised of $1.1 million of depreciation and amortization expense, $0.3 million non-qualified stock options issued to third party and $0.8 million in stock-based compensation for the three months ended September 30, 2022.
• Adjusted EBITDA for the three months ended September 30, 2023 increased $1.5 million, or approximately 1,065%, to $1.6 million, compared to $0.1 million for the three months ended September 30, 2022. Our Adjusted EBITDA is calculated by adjusting earnings before interest, taxes, depreciation, and amortization (EBITDA) for unrealized gains or losses, and non-cash or one time expenses, including unrealized gains or losses on marketable securities, stock compensation expense, and non-qualified stock option expense, which led to net adjustments to EBITDA for the three months ended September 30, 2023 and 2022 of approximately $2.0 million and $0.1 million, respectively.
• Net loss for the three months ended September 30, 2023 increased $0.9 million, or 59%, to $2.5 million, compared to $1.6 million for the three months ended September 30, 2022. The resulting net loss per share of common stock loss for the three months ended September 30, 2023, was $0.14, compared to a net loss per share of common stock of $0.09 for the three months ended September 30, 2022.

Financial Results for the Nine Months Ended September 30, 2023