American Environmental Partners Announces Third Quarter 2023 Financial Results
American Environmental Partners, Inc. (AEPT) announced its financial results for the third quarter of 2023. The total revenue decreased by 21% to $6.7 million, and the net loss was $2.0 million. The company is planning to merge into SCWorx Corp., listed on NASDAQ under ticker symbol WORX, by the end of the first quarter of 2024. The company is focused on streamlining operations to concentrate on core environmental services.
Negative
Total revenue decreased by 21% to $6.7 million
Net loss was $2.0 million
11/30/2023 - 04:30 PM
Continues Progress on Streamlining Operations to Focus on Core Environmental Services Business
CANONSBURG, PA, Nov. 30, 2023 (GLOBE NEWSWIRE) -- via NewMediaWire – American Environmental Partners, Inc. (“American Environmental,” “AEPT” or “the Company”) (PINK: AEPT), a mission critical environmental services company focused on remediation and processing solutions for infrastructure and industrial companies, today announced its financial results for the third quarter ended Sept. 30, 2023.
Third Quarter 2023 Financial Results
Total revenue decreased 21% to $6.7 million from $8.5 million from the year-ago period, primarily due to discontinued unprofitable services in the Apex industrial business lines.
General and administrative (“G&A”) expenses were $6.5 million , down 8% from $7.1 million , compared to the three months ended Sept. 30, 2022. The decrease in G&A expenses was primarily due to the discontinuation of services at Apex, partially offset by higher salaries and wages, payroll taxes and employee benefits.
Interest expense was $0.6 million in the third quarter of 2023 versus $0.08 million in the third quarter of 2022, primarily due to the rising cost of capital.
Loss from operations was $0.24 million . Net loss was $2.0 million , or $0.00 per share.
As of Sept. 30, 2023, current assets were $14.2 million , including cash on hand of $0.5 million . Total debt outstanding was $8.1 million .
Management Commentary
“These are exciting times for American Environmental Partners,” said Brad Domitrovitsch, Chairman and Chief Executive Officer of American Environmental Partners. “We recently rebranded our company as American Environmental Partners to better reflect the services we provide to our customers and to further our strategy to expand our environmental services platform. Additionally, on October 23, we announced our plans to reverse merge into SCWorx Corp., a publicly traded company listed on NASDAQ under ticker symbol: WORX. We expect the transaction to close by the end of the first quarter of 2024.
“The environmental services market is highly fragmented with many attractive acquisition targets and growing demand driven by a compelling regulatory environment, both of which are contributing to our opportunities to grow. Gaining access to the public capital markets via the Nasdaq Stock Market should allow us to capitalize on the huge opportunity we see in our market today.
“We believe to be well positioned for sustained growth given our strong market presence in Pennsylvania, Ohio, West Virginia and New York. Tighter environmental regulations at the federal, state and local levels and growing interest in sustainability are driving demand for our environmental services. Furthermore, AEPT meets significant regulatory standards for permitting, which has created high barriers to entry for new market participants.
“Looking to the future, we remain focused on executing our strategy by integrating recent acquisitions and streamlining our business to concentrate exclusively on environmental solutions, which deliver high levels of recurring revenues while reducing costs to deliver sustained profitable growth.”
About American Environmental Partners, Inc.
American Environmental Partners, Inc. (PINK: AEPT) provides mission critical environmental solutions to the energy and infrastructure sectors primarily in Pennsylvania, Ohio, West Virginia, and New York. Our services include remediation and processing solutions for infrastructure and industrial companies. We create shareholder value through the acquisition and growth of environmental services businesses.
For additional information, visit: American Environmental Partners, Inc.
Safe Harbor
This press release contains forward-looking statements, particularly as related to, among other things, the business plans of AEPT, statements relating to goals, plans and projections regarding AEPT’s financial position and business strategy. The words or phrases “would be,” “will allow,” “intends to,” “may result,” “are expected to,” “will continue,” “anticipates,” “expects,” “estimate,” “project,” “indicate,” “could,” “potentially,” “should,” “believe,” “think”, “considers” or similar expressions are intended to identify “forward-looking statements.” These forward-looking statements fall within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934 and are subject to the safe harbor created by these sections. Actual results could differ materially from those projected in the forward-looking statements as a result of a number of risks and uncertainties. Such forward-looking statements are based on current expectations, involve known and unknown risks, a reliance on third parties for information, transactions or orders that may be cancelled, and other factors that may cause our actual results, performance or achievements, or developments in our industry, to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties related to the fluctuation of global economic conditions, the performance of management and our employees, our ability to obtain financing, competition, general economic conditions and other factors that are detailed in our periodic reports and on documents we file from time to time with the Securities and Exchange Commission. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. AEPT cautions readers not to place undue reliance on such statements. AEPT does not undertake, and AEPT specifically disclaims any obligation to update any forward-looking statements to reflect occurrences, developments, unanticipated events or circumstances after the date of such statement. Actual results may differ materially from AEPT’s expectations and estimates.
Company Contact: AEPT@finprofiles.com
American Energy Partners, Inc., and Subsidiaries Consolidated Balance Sheets September 30, 2023 December 31, 2022 Current Assets Cash $ 510,220 $ 651,194 Accounts receivable – Environmental services 4,498,217 5,459,330 Accounts receivable – Other - 423,464 Inventory 82,496 82,496 Prepaids and other (1,896,187 ) 48,138 Total Current Assets 3,194,746 6,664,622 Operating lease – right-of-use asset 1,609,545 1,609,545 Property and equipment – net 2,460,577 2,919,562 Goodwill 6,936,331 6,945,653 Other Assets 111,838 12,331 Total Assets $ 14,313,037 $ 18,151,713 Current Liabilities Accounts payable and accrued expenses $ 6,331,639 $ 4,898,180 Notes payable 2,650,665 3,981,061 Operating lease liability 848,075 848,075 Other Current Liabilities - (3,379 ) Total Current Liabilities 9,830,379 9,723,937 Long Term Liabilities Notes payable 3,740,791 5,216,036 Operating lease liability 822,490 822,490 Total Long-Term Liabilities 4,563,281 6,038,526 Total Liabilities 14,393,660 15,762,463 Stockholders' Equity Common stock, Class A, $0.00 1 par value, 1,500,000,000 shares authorized 377,288 243,228 377,288,277 and 243,228,277 shares issued and outstanding, respectively Additional paid-in capital 72,412,252 60,964,413 Accumulated deficit (72,870,163 ) (58,818,391 ) Total Stockholders' Equity (80,623 ) 2,389,250 Total Liabilities and Stockholders’ Equity $ 14,313,037 $ 18,151,713 The accompanying notes are an integral part of these consolidated financial statements
American Energy Partners, Inc., and Subsidiaries Consolidated Statement of Operations For the Three Months Ended September 30, For the Nine Months Ended September 30, 2023 2022 2023 2022 Revenues Oil and natural gas $ - $ 972,364 $ - $ 1,882,607 Environmental Services 6,719,583 7,551,295 19,091,684 13,683,599 Other - - - - Total Revenues 6,719,583 8,523,659 19,091,684 15,566,206 Cost and expenses General and administrative expenses 6,515,691 7,077,613 18,658,347 14,211,675 Lease operating expenses 320,902 258,359 919,091 525,282 Royalties - 116,894 - 204,654 Depreciation, depletion, amortization and accretion 122,372 118,682 374,674 634,440 Total costs and expenses 6,958,965 7,571,548 19,952,112 15,576,051 Income (Loss) from operations (239,382 ) 952,111 (860,428 ) (9,845 ) Other income (expense) Interest expense (601,786 ) (82,841 ) (1,744,960 ) (241,161 ) Amortization of debt discount - - - - Stock Issuance and Option expense (1,249,930 ) - (11,581,899 ) (321,448 ) Other income (loss) 7,061 20,579 135,260 (117,057 ) Total other income (expense) - net (1,844,655 ) (62,262 ) (13,191,599 ) (679,666 ) Net Income (Loss) $ (2,08,037 ) $ 889,849 $ (14,052,027 ) $ (689,511 ) Loss per share – basic and diluted $ - $ - $ (0.04 ) $ - Weighted average number of shares – basic and diluted 377,288,277 278,663,200 377,288,277 278,663,200 The accompanying notes are an integral part of these consolidated financial statements
American Energy Partners, Inc., and Subsidiaries Consolidated Statements of Changes in Stockholders’ Equity For the Nine Months Ended September 30, 2023 and the Year Ended December 31, 2022 Common Stock – Class A Shares Amount Additional Paid-in Capital Accumulated Deficit Total Shareholders’ Equity December 31, 2022 243,228,277 $ 243,228 $ 60,964,413 $ (58,818,391 ) $ 2,981,665 Stock issued ($0.06 1/share) 134,500,000 134,500 8,070,000 - 8,204,500 Stock options granted in 1st Qtr. 2023 - - 1,362,908 - 1,362,908 Stock canceled in 1st Qtr. 2023 (440,000 ) (440 ) - - (440 ) Net loss – 1st Qtr. 2023 - - - (11,303,998 ) (11,303,998 ) March 31, 2023 377,288,277 $ 377,288 $ 70,397,321 $ (70,122,389 ) $ 1,244,635 Stock options granted in 2nd Qtr. 2023 - - 765,001 - 765,001 Stock canceled in 2nd Qtr. 2023 - - - - - Net loss – 2nd Qtr. 2023 - - - (663,737 ) (663,737 ) June 30, 2023 377,288,277 $ 377,288 $ 71,162,322 $ (70,786,126 ) $ 1,345,899 Stock options granted in 3rd Qtr. 2023 - - 1,249,930 - 1,249,930 Net loss – 3rd Qtr. 2023 - - - (2,084,037 ) (2,084,037 ) September 30, 2023 377,288,277 $ 377,288 $ 72,412,252 $ (72,870,163 ) $ (80,623 ) The accompanying notes are an integral part of these consolidated financial statements
American Energy Partners, Inc. and Subsidiaries Consolidated Statement of Cash Flows For the Nine Months Ended September 30, 2023 2022 Operating activities Net (loss) $ (14,052,027 ) $ (689,511 ) Adjustments to reconcile net loss to net cash provided by (used in) operations Depreciation, depletion, amortization and accretion 374,674 634,440 Stock issued for services 8,204,500 - Stock options issued for services 3,377,399 321,448 Changes in Goodwill - - Accounts receivable - oil and natural gas - 968,578 Accounts receivable – environmental services 1,384,577 (4,046,510 ) Prepaids and other (5,307 ) (514,479 ) Increase (decrease) in Accounts payable and accrued expenses 2,038,699 2,278,780 Operating lease liability - 698 Net cash provided by (used in) operating activities 1,322,515 (1,046,556 ) Investing activities Cash acquired in acquisition of AMS - 348,871 Stock issued for acquisitions - 2,169,303 Acquisition of property and equipment 11,756 (7,367,191 ) Net cash provided by investing activities 11,756 (4,849,017 ) Financing activities Proceeds from issuance of debt - 5,777,116 Repayments on notes payable (1,475,245 ) - Net cash provided by (used in) financing activities (1,475,245 ) 5,777,116 Net increase (decrease) in cash (140,974 ) (118,457 ) Cash – beginning of period 651,194 1,020,432 Cash – end of period $ 510,220 $ 901,975 Supplemental disclosure of cash flow information Cash paid for interest $ 1,744,960 $ 241,161 Cash paid for income tax $ - $ - Supplemental disclosure of non-cash investing and financing activities Stock issued upon exercise of stock options $ - $ - The accompanying notes are an integral part of these consolidated financial statements
What are the financial results for the third quarter of 2023 for American Environmental Partners, Inc. (AEPT)?
The total revenue decreased by 21% to $6.7 million, and the net loss was $2.0 million.
What is the plan for American Environmental Partners, Inc. (AEPT) to merge into SCWorx Corp.?
The company is planning to merge into SCWorx Corp., listed on NASDAQ under ticker symbol WORX, by the end of the first quarter of 2024.
What is the focus of American Environmental Partners, Inc. (AEPT) regarding its operations?
The company is focused on streamlining operations to concentrate on core environmental services.
