Led by Significant Increase in Oil and Natural Gas Liquid Sales from Prior Acquisition of Silver Fuels Delhi, LLC

LEHI, UT / ACCESSWIRE / August 24, 2023 / Vivakor, Inc. (NASDAQ:VIVK) ("Vivakor" or the "Company"), a socially responsible operator, acquirer and developer of clean energy technologies and environmental solutions, today announced financial and operational results for the three and six months ended June 30, 2023.

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

• Revenue increased to $13.6 million
• Gross profit increased to $1.2 million
• Gross margin of 8.9%
• Operating loss decreased 77% to $0.8 million (included $0.4 million of non-cash or one-time expenses)
• Net loss decreased 62% to $1.8 million
• Cash balance of $2.6 million
• Total assets of $76.9 million

Key Financial Highlights for Six Months Ended June 30, 2023 (year-over-year):

• Revenue increased to $29.1 million
• Gross profit increased to $2.7 million
• Gross margin of 9.4%
• Operating loss decreased 64% to $2.0 million (included $1.5 million of non-cash expenses)
• Net loss decreased 20% to $4.4 million

Management Commentary

Vivakor Chairman and Chief Executive Officer James Ballengee commented, "Our second quarter and first half 2023 operating and financial results were in-line with our internal expectations. I am happy to say that with this 10-Q Quarterly Report filed on August 21^st, we are current with our SEC filings and obligations. I want to thank our internal team and outside advisors in achieving this milestone, as I know it was not an easy feat."

Ballengee, continued, "On the business side, we continue to move forward with plans to further connect our Colorado City, Texas crude oil storage tank, which is currently connected to the Lotus pipeline system, to other major pipeline systems. As previously announced, the relocation of our Remediation Processing Center 2 (RPC #2) from Vernal, Utah to Kuwait is in process. The unit has been dismantled and is currently on its way to Kuwait with an expected target date in the fourth quarter 2023. This decision was based on successful results yielding less than 1% total petroleum hydrocarbons in treated contaminated soil in Kuwait. We are optimistic our upcoming project in the Houston, Texas area will also generate incremental revenue via an RPC unit. We look forward to sharing our progress with existing and prospective new shareholders over the coming months."

Financial Results for Three Months Ended June 30, 2023

• Revenue for the three months ended June 30, 2023 increased to $13.6 million, compared to $0 for the three months ended June 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 June 30, 2023 increased to $1.2 million, compared to $0 for the three months ended June 30, 2022. The resulting gross margin for the three months ended June 30, 2023 was 8.9%, compared to 0.0% for the three months ended June 30, 2022.
• Operating loss for the three months ended June 30, 2023 decreased $2.8 million, or 77%, to $0.8 million, compared to $3.6 million for the three months ended June 30, 2022. Operating loss of the three months ended June 30, 2023 included non-cash and one-time expenses totaling $0.7 million, and is related to depreciation and amortization expense, compared to a total of $2.2 million, comprised of $0.6 million depreciation and amortization, $0.4 million non-qualified stock options issued to third party and $1.2 million in stock-based compensation for the three months ended June 30, 2022.
• Net loss for the three months ended June 30, 2023 decreased $3.1 million, or 62%, to $1.8 million, compared to $4.9 million for the three months ended June 30, 2022. The resulting net loss per share of common stock loss for the three months ended June 30, 2023, was $0.10, compared to a net loss per share of common stock of $0.33 for the three months ended June 30, 2022.
• Cash and cash equivalents totaled $2.6 million at June 30, 2023.

Financial Results for the Six Months Ended June 30, 2023

• Revenue for the six months ended June 30, 2023 increased to $29.1 million, compared to $0 for the six months ended June 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 six months ended June 30, 2023 increased to $2.7 million, compared to $0 for the six months ended June 30, 2022. The resulting gross margin for the six months ended June 30, 2023 was 9.4%, compared to 0.0% for the six months ended June 30, 2022.
• Operating loss for the six months ended June 30, 2023 decreased $3.5 million, or 64%, to $2.0 million, compared to $5.5 million for the six months ended June 30, 2022. Operating loss of the six months ended June 30, 2023 included non-cash expenses totaling $1.5 million related to depreciation and amortization expense, compared to a total of $3.1 million, comprised of $0.9 million depreciation and amortization, $0.9 million non-qualified stock options issued to third party, and $1.3 million stock-based compensation for the six months ended June 30, 2022.
• Net loss for the six months ended June 30, 2023 decreased $1.1 million, or 20%, to $4.4 million, compared to $5.5 million for the six months ended June 30, 2022. The resulting net loss per share of common stock loss for the six months ended June 30, 2023, was $0.24, compared to a net loss per share of common stock of $0.38 for the six months ended June 30, 2022.

About Vivakor, Inc.

Vivakor, Inc. (NASDAQ:VIVK), is a clean energy technology company focused on the oil remediation and natural resources sectors. Vivakor's corporate mission is to create, acquire, accumulate, and operate distinct assets, intellectual properties, and exceptional technologies. Its Silver Fuels Delhi, LLC, and White Claw Colorado City, LLC subsidiaries include crude oil gathering, storage, and transportation facilities, which feature long-term ten year take-or-pay contracts.

The Company's patented Remediation Processing Centers allows for the environmentally-friendly recovery of bitumen (heavy crude) and other hydrocarbons from the remediation of contaminated soils. It is believed to be the only remediation system that can clean soils with more than 5% by weight oil contamination while recovering the oil and leaving the soil fully viable for reuse. Its Remediation Processing Centers currently focus on extraction from shallow, oil-laden sands, along with generating petroleum-based remediation projects in Kuwait and in Houston, Texas.

For more information, please visit our website: http://vivakor.com

Forward-Looking Statements

This news release may contain forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based upon our current expectations and speak only as of the date hereof. Our actual results may differ materially and adversely from those expressed in any forward-looking statements as a result of various factors and uncertainties, including economic slowdown affecting companies, our ability to successfully develop products, rapid change in our markets, changes in demand for our future products, legislative, regulatory and competitive developments and general economic conditions. These risks and uncertainties include, but are not limited to, risks and uncertainties discussed in Vivakor's filings with the Securities and Exchange Commission, which factors may be incorporated herein by reference. Forward-looking statements may be identified but not limited by the use of the words "anticipates," "expects," "intends," "plans," "should," "could," "would," "may," "will," "believes," "estimates," "potential," or "continue" and variations or similar expressions. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.

Investors Contact:
P:949-281-2606
info@vivakor.com

ClearThink
nyc@clearthink.capital

SOURCE: Vivakor Inc.