Royale Energy flags going concern risk in Q1 loss

Rhea-AI Filing Summary

Royale Energy, Inc. (ROYL) reported a first‑quarter 2026 net loss of $819,629, compared with a loss of $681,951 in the prior‑year quarter, as higher operating and interest costs outweighed stronger production. Total revenues were $563,358, up from $487,236, driven mainly by increased oil and natural gas volumes.

At March 31, 2026, Royale had total assets of $16.8 million and total liabilities of $31.1 million, resulting in a stockholders’ deficit of $14.2 million. Current liabilities of $22.7 million exceeded current assets of $10.3 million, creating a working capital deficit of $12.4 million. Cash and cash equivalents were $758,615, with restricted cash of $6.7 million.

The company generated negative operating cash flow of $1.1 million in the quarter. Management disclosed that recurring losses, the working capital deficit, and accumulated deficit of $95.4 million raise substantial doubt about Royale’s ability to continue as a going concern. Management plans to rely on cost controls, asset sales, drilling participation and potential debt or equity financing. Management also concluded that disclosure controls and procedures were not effective due to a material weakness in internal control over financial reporting. A related‑party secured term loan with Walou Investments, LP had an outstanding principal of $1.9 million at a 15.0% interest rate.

Positive

• Revenue and production growth: Oil and gas sales rose to $563,119, up 18.8% from $474,148, with oil volumes up 26.6% to about 7,200 barrels and natural gas volumes up 50.8% to about 34,326 Mcf.

Negative

• Going concern uncertainty: Working capital deficit of $12.4 million, accumulated deficit of $95.4 million and continuing net losses led management to state there is substantial doubt about Royale’s ability to continue as a going concern.
• Persistent losses and cash burn: Net loss was $819,629 for the quarter and net cash used in operating activities was $1,051,755, indicating operations are not currently funding the business.
• Highly leveraged, negative equity position: Total liabilities of $31.1 million exceed total assets of $16.8 million, resulting in a stockholders’ deficit of $14.2 million.
• Material weakness in controls: Management concluded disclosure controls and procedures were not effective due to an identified material weakness in internal control over financial reporting.
• Large deferred drilling obligations: Deferred Drilling Obligations totaled $14,799,496 at March 31, 2026, representing a significant future operational commitment.
• High‑cost related‑party debt: A secured term loan with Walou Investments, LP, controlled by the CEO, had outstanding principal of $1,900,000 at 15.0% interest and a maturity extended to October 1, 2027.

Filing Explained

At March 31, 2026, the company had $758,615 in cash, $6,736,325 restricted for drilling, and $14,799,496 in deferred drilling obligations.

Royale Energy’s Form 10-Q is an unaudited quarterly report for the three months ended March 31, 2026; it reports no common shares issued during the quarter while carrying $14,799,496 of deferred drilling obligations.

The company reported $758,615 of cash and cash equivalents and $6,736,325 of restricted cash at March 31, 2026. The restricted funds were held for drilling purposes and, under stated conditions, could be applied to a substitute well or returned to a participant, so the reported cash total is not all presented as generally available operating cash.

The filing revises the three-month 2025 comparison by increasing reported oil and gas revenue and lease operating expense by $18,042 for severance taxes, without changing that period’s net loss.

As a subsequent event, the company and Walou Investments extended the $1,900,000 loan’s maturity from April 1, 2027 to October 1, 2027; the principal and 15.0% interest rate were unchanged.

Key Figures

Total revenues: $563,358 Net loss: $819,629 Net cash used in operating activities: $1,051,755 +5 more

8 metrics

Total revenues $563,358 For the three months ended March 31, 2026

Net loss $819,629 For the three months ended March 31, 2026

Net cash used in operating activities $1,051,755 For the three months ended March 31, 2026

Working capital deficit $12,396,063 Current assets vs. current liabilities at March 31, 2026

Total liabilities $31,053,929 Balance sheet at March 31, 2026

Total assets $16,843,085 Balance sheet at March 31, 2026

Deferred Drilling Obligations $14,799,496 Current liability at March 31, 2026

Walou Investments loan principal $1,900,000 Secured term loan outstanding at March 31, 2026, at 15.0% interest

Key Terms

Deferred Drilling Obligations, asset retirement obligation, Current Expected Credit Loss, successful efforts method, +2 more

6 terms

Deferred Drilling Obligations financial

"we record the liability as Deferred Drilling Obligations."

asset retirement obligation financial

"Settlement of Asset Retirement Obligation"

A liability recorded for the future cost to retire, dismantle or clean up a long-lived asset — for example removing an oil rig, closing a mine, or decommissioning a plant. Investors care because it reduces reported profit and ties up capital: companies must estimate and set aside money now for a known future expense, and changes to that estimate can swing earnings, debt ratios and the company’s cash needs much like setting aside savings to repair or return a rented property later.

Current Expected Credit Loss financial

"We account for expected credit losses on receivables using the Current Expected Credit Loss"

An accounting approach that requires lenders and companies to estimate and record the credit losses they expect on loans and receivables now, using current conditions and reasonable forecasts rather than waiting for a default to occur. It matters to investors because it changes reported reserves and profits up front and gives an earlier, more forward-looking signal of credit quality—like packing an umbrella today because the forecast predicts rain, which affects a company’s cushion against bad loans.

successful efforts method financial

"We use the “successful efforts” method to account for our exploration and production"

An accounting approach used mainly in oil and gas exploration where companies treat costs for failed exploration as immediate expenses while only keeping successful well and development costs as assets on the balance sheet. For investors, this matters because it makes a company’s profits and asset totals more sensitive to exploration results—like a shopper who throws out broken prototypes but shelves the ones that work—so earnings and book value can swing more sharply depending on drilling outcomes.

restricted cash financial

"we classify these funds prior to commencement of drilling as restricted cash."

Cash that a company holds but cannot use for day-to-day operations because it is set aside for a specific purpose—such as meeting loan covenants, serving as collateral, funding an escrow, or complying with regulations. Like money in a locked savings account earmarked for a bill, restricted cash reduces the cash available to run the business and pay dividends or debts, so investors treat it differently when assessing a company’s true short-term financial strength.

material weakness financial

"management concluded that our disclosure controls and procedures were not effective due to the identified material weakness."

A material weakness is a significant flaw in the systems and checks a company uses to ensure its financial reports are accurate, meaning errors or fraud could happen and not be caught. For investors it matters because it raises the risk that reported results are unreliable—similar to finding a hole in a ship’s hull—potentially leading to corrected financials, regulatory action, reduced trust, and negative effects on stock value and borrowing costs.

Earnings Snapshot

Total revenues: $563,358

Three months ended March 31, 2026

Total revenues $563,358 +$76,122 vs three months ended March 31, 2025

Net loss $819,629 +$137,678 vs three months ended March 31, 2025 (larger loss)

Net cash used in operating activities $1,051,755 +$434,143 vs three months ended March 31, 2025 (more cash used)

FAQ

How did Royale Energy (ROYL) perform financially in Q1 2026?

Royale Energy reported a net loss of $819,629 for the three months ended March 31, 2026, compared with a loss of $681,951 a year earlier. Total revenues were $563,358, up from $487,236, but higher operating and interest expenses widened the loss.

What is the liquidity position of Royale Energy (ROYL) as of March 31, 2026?

As of March 31, 2026, Royale had current assets of $10,257,782 and current liabilities of $22,653,845, resulting in a working capital deficit of $12,396,063. Cash was $758,615 and restricted cash was $6,736,325.

Did Royale Energy (ROYL) disclose substantial doubt about continuing as a going concern?

Yes. Royale reported that recurring losses, a $12.4 million working capital deficiency, and an accumulated deficit of $95,385,998 indicate substantial doubt about its ability to continue as a going concern. No adjustments have been made for this uncertainty.

What were Royale Energy’s (ROYL) operating cash flows in Q1 2026?

Net cash used in operating activities was $1,051,755 for the three months ended March 31, 2026, compared with $617,612 used in the same period of 2025, mainly due to changes in receivables and payables.

What related-party debt does Royale Energy (ROYL) have with Walou Investments?

Royale has a secured term loan with Walou Investments, LP, controlled by the CEO. As of March 31, 2026, outstanding principal was $1,900,000 at 15.0% interest. A third amendment extended the maturity from April 1, 2027 to October 1, 2027.

Did Royale Energy (ROYL) identify any internal control issues in this report?

Yes. Management concluded that disclosure controls and procedures were not effective as of March 31, 2026, due to a material weakness in internal control over financial reporting, although management believes the financial statements fairly present the company’s condition.

How did Royale Energy’s (ROYL) oil and gas production change in Q1 2026?

Oil and condensate net sales volume was about 7,200 barrels at an average price of $72.14 per barrel versus 5,688 barrels at $71.99 in 2025. Natural gas volume was about 34,326 Mcf at $1.03 per Mcf versus 22,767 Mcf at $2.79.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Available on EDGAR 08/31/2026 - 06:54 AM Accepted by SEC EDGAR 08/28/2026 - 05:44 PM Learn about SEC filing dates

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended March 31, 2026

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File No. 000-55912

ROYALE ENERGY, INC.

(Exact name of registrant as specified in its charter)

Delaware		81-4596368
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

1530 Hilton Head Rd, Suite 205

El Cajon, CA 92021

(Address of principal executive offices) (Zip Code)

(619) 383-6600

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act: None.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☐ No ☒

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒

At August 25, 2026, a total of 96,600,302 shares of registrant’s common stock were outstanding.

TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION
Item 1. Financial Statements	3
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	14
Item 3. Quantitative and Qualitative Disclosures About Market Risk	16
Item 4. Controls and Procedures	16
PART II. OTHER INFORMATION
Item 1. Legal Proceedings	17
Item 1A. Risk Factors	17
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	17
Item 3. Defaults Upon Senior Securities	17
Item 4. Mine Safety Disclosures	17
Item 5. Other Information	17
Item 6. Exhibits	17
Signatures	18

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PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

ROYALE ENERGY, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

		March 31, 2026				December 31, 2025
		(unaudited)
ASSETS
Current Assets:
Cash and Cash Equivalents		$	758,615			$	1,099,044
Restricted Cash			6,736,325				7,175,950
Other Receivables, net			743,671				793,608
Revenue Receivables			784,531				694,729
Prepaid Expenses and Other Current Assets			914,236				746,862
Deferred Drilling Costs			320,404				-
Total Current Assets			10,257,782				10,510,193
Other Assets			576,265				576,265
Right of Use Asset - Operating Leases			115,322				141,417
Oil and Gas Properties (Successful Efforts Basis), Real Property and Equipment and Fixtures, net			5,893,716				5,774,178
Total Assets		$	16,843,085			$	17,002,053

See notes to unaudited condensed consolidated financial statements.

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ROYALE ENERGY, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (Continued)

		March 31, 2026				December 31, 2025
		(unaudited)
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current Liabilities:
Accounts Payable and Accrued Expenses		$	6,126,592			$	6,033,878
Royalties Payable			611,833				611,833
RMX Resources, LLC			23,087				23,087
Operating Leases - Current			80,337				102,238
Asset Retirement Obligation - Current			1,012,500				1,012,500
Deferred Drilling Obligations			14,799,496				14,277,496
Total Current Liabilities			22,653,845				22,061,032
Noncurrent Liabilities:
Asset Retirement Obligation			4,069,152				4,065,352
Notes Payable - Non-current			4,188,690				4,121,112
Operating Leases - Non-current			39,856				43,386
Accrued Unpaid Guaranteed Payments			90,000				90,000
Accrued Liabilities - Non-current			12,386				12,386
Total Liabilities			31,053,929				30,393,268
Stockholders’ Deficit:
Common Stock, $0.001 Par Value, 280,000,000 Shares Authorized and 96,600,302 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively			96,600				96,600
Additional Paid in Capital			81,078,554				81,078,554
Accumulated Deficit			(95,385,998	)			(94,566,369	)
Total Stockholders’ Deficit			(14,210,844	)			(13,391,215	)
Total Liabilities, and Stockholders’ Deficit		$	16,843,085			$	17,002,053

See notes to unaudited condensed consolidated financial statements.

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ROYALE ENERGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

		For the 3 months ended				For the 3 months ended
		March 31, 2026				March 31, 2025
Revenues:
Oil, NGL and Gas Sales		$	563,119			$	474,148
Supervisory Fees and Other			239				13,088
Total Revenues			563,358				487,236
Costs and Expenses:
Oil and Gas Lease Operating			400,281				183,345
Severance Taxes			22,869				18,042
Depreciation, Depletion and Amortization			99,561				73,218
Impairment			-				27,250
Settlement of Asset Retirement Obligation			(5,676	)			(5,353	)
Credit Loss Expense			32,906				13,126
Legal and Accounting			124,238				245,506
Marketing			104,654				69,035
General and Administrative			474,055				466,418
Total Costs and Expenses			1,252,888				1,090,587
Loss From Operations			(689,530	)			(603,351	)
Other Income (Expense):
Interest Expense			(140,981	)			(97,179	)
Interest Income			10,882				18,579
Net Loss			(819,629	)			(681,951	)
Shares used in computing Basic Net Loss per share			96,600,302				96,600,302
Basic Loss per share		$	(0.01	)		$	(0.01	)
Shares used in computing Diluted Net Loss per share			96,600,302				96,600,302
Diluted Loss per share		$	(0.01	)		$	(0.01	)

See notes to unaudited condensed consolidated financial statements.

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ROYALE ENERGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025

		For the Three Months Ended
		March 31, 2026				March 31, 2025
CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss		$	(819,629	)		$	(681,951	)
Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities:
Depreciation, Depletion and Amortization			99,561				73,218
Impairment			-				27,250
Credit Loss Expense			32,906				13,126
Settlement of ARO			(5,676	)			(5,353	)
Cash Settlement on ARO			1,435				-
Accretion of Debt Restructure Notes Payable, and Interest			67,578				31,644
Right of use asset depreciation			3,799				3,582
Changes in assets and liabilities:
Other and Revenue Receivables			(72,771	)			510,876
Prepaid Expenses and Other Assets			(167,374	)			(133,001	)
Accounts Payable and Accrued Expenses			(191,584	)			(457,003	)
Net Cash Used in Operating Activities			(1,051,755	)			(617,612	)
CASH FLOWS FROM INVESTING ACTIVITIES
Expenditures for Oil and Gas Properties and Other Capital Expenditures			(47,164	)			(5,949	)
Proceeds from Turnkey Drilling Programs			522,000				575,000
Acquisition of producing properties			(200,000	)			-
Net Cash Provided by Investing Activities			274,836				569,051
CASH FLOWS FROM FINANCING ACTIVITIES
Lease Financing Payments			(3,135	)			(2,771	)
Net Cash Used in Financing Activities			(3,135	)			(2,771	)
Net Decrease in Cash and Cash Equivalents, and Restricted Cash			(780,054	)			(51,332	)
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period			8,274,994				7,902,163
Cash, Cash Equivalents, and Restricted Cash at End of Period		$	7,494,940			$	7,850,831
Cash Paid for Interest		$	73,403			$	65,535
Cash Paid for Taxes		$	800			$	1,250
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING & FINANCING ACTIVITIES:
Increase in Capital Accrued Balance		$	284,297			$	1,277

See notes to unaudited condensed consolidated financial statements.

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ROYALE ENERGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT

FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025 (UNAUDITED)

		Common Stock
		Number of Shares Issued and Outstanding				Amount				Additional Paid in Capital				Accumulated Deficit				Total Stockholders’ Deficit
December 31, 2024 Balance			96,600,302			$	96,600			$	81,078,554			$	(93,314,689	)		$	(12,139,535	)
Net Loss			-				-				-				(681,951	)			(681,951	)
March 31, 2025 Balance			96,600,302			$	96,600			$	81,078,554			$	(93,996,640	)		$	(12,821,486	)
December 31, 2025 Balance			96,600,302			$	96,600			$	81,078,554			$	(94,566,369	)		$	(13,391,215	)
Net Loss			-				-				-				(819,629	)			(819,629	)
March 31, 2026 Balance			96,600,302			$	96,600			$	81,078,554			$	(95,385,998	)		$	(14,210,844	)

See notes to unaudited condensed consolidated financial statements.

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ROYALE ENERGY, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 – BASIS OF PRESENTATION: ACCOUNTING STANDARDS

Description of Business

We are an independent oil and gas producer, and we also perform turnkey drilling operations. We own wells and leases in major geological basins located primarily in California, Texas, and Oklahoma, and offer fractional working interests and seek to minimize the risks of oil and gas drilling by selling multiple well drilling projects which do not include the use of debt financing.

Consolidation

In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments necessary to present fairly the Company’s financial position and the results of its operations and cash flows for the periods presented.

The accompanying unaudited condensed consolidated financial statements, which include the accounts of Royale Energy, Inc. (sometimes referred to as the “Company” “we,” “our,” “us,” “Royale Energy,” or “Royale”), Royale Energy Funds, Inc. (“REF”), and Matrix Oil Management Corporation and its subsidiaries, have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) for interim consolidated financial information pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) under Article 10 of Regulation S-X and the instructions to Form 10-Q. Accordingly, certain information and footnote disclosures normally included in our audited financial statements have been condensed or omitted pursuant to the SEC’s rules and regulations. Significant intercompany transactions have been eliminated in the consolidation. In our opinion, all adjustments considered necessary for a fair presentation have been included.

The consolidated balance sheet as of December 31, 2025, was derived from the audited financial statements at that date. The accompanying condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025. Operating results for the three months ended March 31, 2026, are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2026, or for any other period.

Revision of Previously Issued Financial Statements

As disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025, during the preparation of the 2025 consolidated financial statements we identified immaterial errors in previously issued financial statements, one of which affects the comparative interim period presented herein: severance taxes were inappropriately netted against Sale of Oil and Gas Revenue within our statement of operations, resulting in an understatement of both Sale of Oil and Gas Revenue and Lease Operating Expense. The remaining errors identified related to accrued liabilities corrected during the quarter ended June 30, 2025, our income tax footnote disclosures and our unaudited supplemental oil and gas disclosures, and had no effect on the condensed consolidated financial statements presented herein.

We assessed the materiality of the errors, both quantitatively and qualitatively, in accordance with the SEC’s Staff Accounting Bulletin No. 99 and Staff Accounting Bulletin No. 108, and concluded the errors were not material to any of our previously issued financial statements. Notwithstanding the results of that assessment, we have revised the applicable items in our previously issued financial statements to correct these misstatements. Accordingly, the comparative amounts presented for the three months ended March 31, 2025, have been revised to reflect these corrections. The revision increased both Sale of Oil and Gas Revenue and Lease Operating Expense by the amount of severance taxes incurred in the period, or $18,042 for the three months ended March 31, 2025, with no effect on net loss for that period. The revisions had no impact on our condensed consolidated balance sheet as of December 31, 2025, or on our financial position, results of operations or cash flows as of and for the three months ended March 31, 2026.

Liquidity and Going Concern

The primary sources of liquidity have historically been issuances of common stock, oil and gas sales through ongoing operations and the sale of oil and gas properties. There are factors that give rise to substantial doubt about our ability to continue as a going concern and meet liquidity demands, and we anticipate that our primary sources of liquidity will be from the issuance of debt and/or equity, the sale of oil and natural gas property participation interests through our normal course of business and the sale of non-strategic assets.

At March 31, 2026, our consolidated financial statements reflect a working capital deficiency of $12,396,063 and an accumulated deficit of $95,385,998. We had a net loss of $819,629 for the three months ended March 31, 2026. At December 31, 2025, our working capital deficiency was $11,550,839 and our accumulated deficit was $94,566,369. These factors indicate that there is substantial doubt about our ability to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments that might be necessary if we are unable to continue as a going concern.

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Management’s plans to alleviate the going concern by implementing cost control measures that include, among other things, the reduction of overhead costs, the sale of non-strategic assets, and, if possible, obtaining additional financing. There is no assurance that additional financing will be available when needed or that we will be able to obtain any financing on terms acceptable to us and whether we will become profitable and generate positive operating cash flow. If we are unable to raise sufficient additional funds, we will have to develop and implement a plan to further extend payables, attempt to extend note repayments, and reduce overhead until sufficient additional capital is raised to support further operations. There can be no assurance that such a plan will be successful.

Use of Estimates

The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America and requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Estimated quantities of crude oil and condensate, Natural Gas Liquids (“NGLs”) and natural gas reserves is a significant estimate that requires judgment. All of the reserve data referenced herein are estimates. Reservoir engineering is a subjective process of estimating underground accumulations of crude oil and condensate, NGLs and natural gas. There are numerous uncertainties inherent in estimating quantities of proved crude oil and condensate, NGLs and natural gas reserves. The accuracy of any reserves estimate is a function of the quality of available data and of engineering and geological interpretation and judgment. As a result, reserve estimates may be different from the quantities of crude oil and condensate, NGLs and natural gas that are ultimately recovered. See Note 18 – Supplemental Information About Oil and Gas Producing Activities (Unaudited) to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2025, for further detail.

Other items subject to estimates and assumptions include the carrying amounts of accounts receivable, property, plant and equipment, equity method investments, asset retirement obligations, and valuation allowances for deferred tax assets, among others. Although we believe these estimates are accurate, actual results could differ from these estimates.

Revenue Recognition

A significant portion of our revenues are derived from the sale of crude oil, condensate, NGL and natural gas under spot and term agreements with our customers as follows:

		For the three months ended March 31
		2026				2025
Oil & Condensate Sales		$	519,439			$	409,494
Natural Gas Sales			35,324				63,504
NGL Sales			8,356				1,150
Total		$	563,119			$	474,148

The pricing in our hydrocarbon sales agreements are determined using various published benchmarks which are adjusted for negotiated quality and location differentials. As a result, revenue collected under our agreements with customers is highly dependent on the market conditions and may fluctuate considerably as the hydrocarbon market prices rise or fall. Typically, our customers pay us monthly, within a short period of time after we deliver the hydrocarbon products. As such, we do not have any financing element associated with our contracts. We do not have any issues related to returns or refunds, as product specifications are standardized for the industry and are typically measured when transferred to a common carrier or midstream entity, and other contractual mechanisms (e.g., price adjustments) are used when products do not meet those specifications.

In limited cases, we may also collect advance payments from customers as stipulated in our agreements; payments in excess of recognized revenue are recorded as contract liabilities on our consolidated balance sheets.

Under our hydrocarbon sales agreements, the entire consideration amount is variable either due to pricing and/or volumes. We recognize revenues in the amount of variable consideration allocated to distinct units of hydrocarbons transferred to a customer. Such allocation reflects the amount of total consideration we expect to collect for completed deliveries of hydrocarbons and the terms of variable payment relate specifically to our efforts to satisfy the performance obligations under these contracts. Our performance obligations under our hydrocarbon sales agreements are to deliver either the entire production from the dedicated wells or specified contractual volumes of hydrocarbons.

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We often serve as the operator for jointly owned oil and gas properties. As part of this role, we perform activities to explore, develop and produce oil and gas properties in accordance with the joint operating arrangement and collective decisions of the joint parties. Other working interest owners reimburse us for costs incurred based on our agreements. We determined that these activities are not performed as part of customer relationships, and such reimbursements are recorded as cost reimbursements of Lease Operating Expense.

We commonly market the share of production belonging to other working interest owners as the operator of jointly owned oil and gas properties. Those marketing activities are carried out as part of the collaborative arrangement, and we do not purchase or otherwise obtain control of other working interest owners’ share of production. Therefore, we act as a principal only in regard to the sale of our share of production and recognize revenue for the volumes associated with our net production.

We frequently sell a portion of the working interest in each well we drill or participate in to third-party investors and retain a portion of the prospect for our own account. We typically guarantee a cost to drill to the third-party drilling participants and record a loss or gain on the difference between the guaranteed price and the actual cost to drill the well. When monies are received from third parties for future drilling obligations, we record the liability as Deferred Drilling Obligations. Once the contracted depth for the drilling of the well is reached and a determination as to the commercial viability of the well (typically call “Casing Point Election” or “Logging Point”), the difference in the actual cost to drill and the guaranteed cost is recorded as income or expense depending on whether there was a gain or loss.

Crude oil and condensate

For the crude sales agreements, we satisfy our performance obligations and recognize revenue once customers take control of the crude at the designated delivery points, which include pipelines, trucks or vessels.

Natural Gas and NGLs

When selling natural gas and NGLs, we engage midstream entities to process our production stream by separating natural gas from the NGLs. Frequently, these midstream entities also purchase our natural gas and NGLs under the same agreements. In these situations, we determine the performance obligation is complete and satisfied at the tailgate of the processing plant when the natural gas and NGLs become identifiable and measurable products. We determine the plant tailgate is the point in time where control, is transferred to midstream entities and they are entitled to the risks and rewards of ownership of the natural gas and NGLs.

The amounts due to midstream entities for gathering and processing services are recognized as shipping and handling cost and included as lease operating expense in our consolidated Statement of Operations, since we make those payments in exchange for distinct services with the exception of natural gas sold to PG&E where transportation cost is netted directly against revenues. Under some of our natural gas processing agreements, we have an option to take the processed natural gas and NGLs in-kind and sell to customers other than the processing company. In those circumstances, our performance obligations are complete after delivering the processed hydrocarbons to the customer at the designated delivery points, which may be the tailgate of the processing plant or an alternative delivery point requested by the customer.

Restricted Cash

We sponsor turnkey drilling arrangements in proved and unproved oil and gas properties. The contracts require that participants pay us the full contract price upon execution of the drilling agreement. Each participant earns an undivided interest in the well bore at the completion of the well. A portion of the funds received in advance of the drilling of a well from a working interest participant are held for the expressed purpose of drilling a well. If something changes, we may designate these funds for a substitute well. Under certain conditions, a portion of these funds may be required to be returned to a participant. Once the well is drilled, the funds are used to satisfy the drilling cost. We classify these funds prior to commencement of drilling as restricted cash. In the event that progress payments are made from these funds; they are recorded as Prepaid Expenses and Other Current Assets.

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets that sum to the total of the same amounts shown in the statement of cash flows.

		March 31, 2026				December 31, 2025
Cash and Cash Equivalents		$	758,615			$	1,099,044
Restricted Cash			6,736,325				7,175,950
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows		$	7,494,940			$	8,274,994

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Other Receivables, net

Our other receivables consist of receivables from direct working interest investors and industry partners. We account for expected credit losses on receivables using the Current Expected Credit Loss (“CECL”) methodology. At March 31, 2026 and December 31, 2025, we established an allowance for expected credit losses of $2,319,595 and $2,302,873, respectively, for receivables from direct working interest investors whose expenses on non-producing wells were unlikely to be collected from revenue.

All amounts considered uncollectible are charged against the allowance account and recoveries of previously charged off accounts are added to the allowance.

Fair Value

The following table sets forth by level within the fair value hierarchy the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2026 and December 31, 2025.

Description		Quoted prices in active markets (Level 1)				Other observable inputs (Level 2)				Unobservable inputs (Level 3)				Fair Value
Money market funds		$	6,898,349			$	-			$	-			$	6,898,349
Total as of March 31, 2026		$	6,898,349			$	-			$	-			$	6,898,349
Money market funds		$	7,942,085			$	-			$	-			$	7,942,085
Total as of December 31, 2025		$	7,942,085			$	-			$	-			$	7,942,085

The following table represents the carrying amounts and fair values of the Company’s financial instruments at March 31, 2026 and December 31, 2025.

		March 31, 2026								December 31, 2025
		Carrying Value				Fair Value				Carrying Value				Fair Value
Assets:
Money market funds		$	6,898,349			$	6,898,349			$	7,942,085			$	7,942,085

The fair value of the Company’s Series 2024 Senior Unsecured Promissory Notes and Walou Note was $2,433,051 and $2,005,278 at March 31, 2026 respectively, and $2,369,158 and $2,032,792, respectively, as of December 31, 2025. Such fair value was determined to be Level 3 due to the use of significant unobservable inputs, including management’s assessment of credit risk and cash flow projections.

The Company has other financial instruments consisting primarily of receivables, payables and other current assets and liabilities. The carrying amounts approximate fair value due to the short maturity of these instruments.

ACCOUNTING STANDARDS

Recently Issued, Not Yet Adopted

In November 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2024-03, Income Statement (Subtopic 220-40) Reporting Comprehensive Income-Expense Disaggregation Disclosures, which broadens the disclosures required for certain costs and expenses in the Company’s annual and interim consolidated financial statements. This ASU is effective prospectively for fiscal years beginning after December 15, 2026, and interim reporting periods within fiscal years beginning after December 15, 2027. The Company is currently evaluating disclosures related to our annual report for fiscal year 2027.

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NOTE 2 – OIL AND GAS PROPERTY, REAL PROPERTY, AND EQUIPMENT AND FIXTURES

Oil and gas properties, real property, and equipment and fixtures consist of:

		March 31, 2026 (Unaudited)				December 31, 2025
Oil and Gas
Producing properties, including drilling costs		$	7,435,778			$	7,229,767
Undeveloped properties			3,247,249				3,237,624
Lease and well equipment			3,298,441				3,298,441
Total Oil and Gas Properties			13,981,468				13,765,832
Accumulated depletion, depreciation & amortization			(8,091,106	)			(7,995,503	)
Net capitalized costs – Oil and Gas			5,890,362				5,770,329
Real Property and Equipment and Fixtures
Vehicles			40,061				40,061
Furniture and equipment			1,103,362				1,103,362
Total Real Property and Equipment and Fixtures			1,143,423				1,143,423
Accumulated depreciation			(1,140,069	)			(1,139,574	)
Net capitalized costs – Real Property and Equipment and Fixtures			3,354				3,849
Net capitalized costs Total		$	5,893,716			$	5,774,178

We use the “successful efforts” method to account for our exploration and production activities. Under this method, we accumulate our proportionate share of costs on a well-by-well basis, expense costs of unsuccessful exploratory wells, and capitalize costs of successful wells and development activities. Acquisition costs of proved properties are amortized using a unit-of-production method, computed on the basis of total proved oil and gas reserves. Production costs are expensed as incurred. We estimate the future undiscounted cash flows of the affected properties to judge the recoverability of carrying amounts.

NOTE 3 – LOSS PER SHARE

Basic and diluted loss per share are calculated as follows:

		Three Months Ended March 31, 2026				Three Months Ended March 31, 2025
Net Loss		$	(819,629	)		$	(681,951	)
Weighted average common shares outstanding – Basic and Diluted			96,600,302				96,600,302
Net Loss per share – Basic and Diluted		$	(0.01	)		$	(0.01	)

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NOTE 4 – INCOME TAXES

Deferred tax assets and liabilities reflect the net tax effect of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. A valuation allowance has been established to reduce deferred tax assets to the amount expected to be realized. There was no material change in the Company’s income tax position during the three months ended March 31, 2026.

NOTE 5 – ISSUANCE OF COMMON STOCK

During the three months ended March 31, 2026 and 2025, no common stock was issued in lieu of cash payments for salaries and board fees.

NOTE 6 – ALLOWANCE FOR CREDIT LOSSES

We measure our allowance for losses on other receivables under ASC 326. The following table summarizes the activity in the balance of allowance for credit losses on other receivables for the periods indicated:

Balance at December 31, 2024		$	2,194,552
Provision for credit loss			13,126
Write-offs charged against the allowance			(25,254	)
Balance at March 31, 2025		$	2,182,424
Balance at December 31, 2025		$	2,302,873
Provision for credit loss			32,906
Write-offs charged against the allowance			(16,184	)
Balance at March 31, 2026		$	2,319,595

NOTE 7 – RELATED PARTY NOTES PAYABLE

On February 7, 2024, the board of directors approved a debt facility of up to $3 million. On February 9, 2024, Royale Energy, Inc. entered into a Secured Term Loan Note with Walou Investments, LP, a Texas limited partnership under the control of Johnny Jordan, the Company’s Chief Executive Officer and a member of the Company’s Board of Directors. The initial loan to the Company was $1,400,000, received on February 9, 2024. The loan is secured by a deed of trust recorded in Ector County, Texas covering certain oil and gas assets.

On November 1, 2024, the maturity date of the loan was extended from August 1, 2025, to January 1, 2026. Subsequently, on August 29, 2025, the loan was further extended to April 1, 2027, and the Company executed an additional advance of $500,000, increasing the total outstanding principal balance to $1,900,000. Effective September 1, 2025, the interest rate on the outstanding principal was reduced from 18.0% to 15.0% per annum. Except as modified by these amendments, all other original terms and conditions of the Secured Term Loan Note remain in full force and effect. As of March 31, 2026, the outstanding principal balance was $1,900,000.

NOTE 8 – SEGMENT REPORTING

The Company has one reportable segment, which encompasses the ownership and investment in onshore oil and natural gas properties in the United States and turnkey drilling programs. The segment’s revenues are derived from the Company’s interests in the sales of crude oil, natural gas, and NGL production.

The Company’s chief executive officer, chief operating officer, and chief financial officer together function as the chief operating decision maker (“CODM”) and manage the Company’s business activities as a single operating segment. The CODM uses net income (loss), as reported in the condensed consolidated statements of operations, to measure segment profitability, assess performance, and manage strategic capital resource allocations.

The accounting policies of the one reportable segment are identical to those described for the consolidated Company. The significant expense categories regularly provided to and reviewed by the CODM are those presented in the condensed consolidated statements of operations, and the measure of segment assets is reported as “Total assets” on the condensed consolidated balance sheets.

NOTE 9 – SUBSEQUENT EVENTS

On August 14, 2026, the Company and Walou Investments, LP executed a Third Amendment to Secured Term Loan Note, effective as of March 31, 2026, which extended the maturity date of the loan from April 1, 2027 to October 1, 2027. The outstanding principal amount of $1,900,000 and the interest rate of 15.0% per annum were unchanged by the Third Amendment.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

FORWARD-LOOKING STATEMENTS

In addition to historical information contained herein, certain information contained in this Quarterly Report on Form 10-Q, as well as other written and oral statements made or incorporated by reference from time to time by the Company and its representatives in other reports, filings with the SEC, press releases, conferences or otherwise, may be deemed to be “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). This information includes, without limitation, statements concerning the Company’s future financial position and results of operations, planned capital expenditures, sources and availability of financing, business strategy and other plans for future operations. While we believe our forward-looking statements are based upon reasonable assumptions, we can give no assurance that such expectations will prove to have been correct. We undertake no obligation to publicly update or revise any forward-looking statements. Actual results could differ materially from the results described in the forward-looking statements due to the risks and uncertainties set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, and those described from time to time in our future reports filed with the SEC.

The following discussion is qualified in its entirety by, and should be read in conjunction with, the Company’s financial statements, including the notes thereto, included in this Quarterly Report on Form 10-Q and in our Annual Report on Form 10-K for the year ended December 31, 2025.

OVERVIEW

Royale is an independent oil and natural gas producer. Royale’s principal lines of business are the production and sale of oil and natural gas, acquisition of oil and gas lease interests and proved reserves, drilling of both exploratory and development wells, and sales of fractional working interests in wells to be drilled by Royale. Since 1993, Royale has primarily acquired and developed producing and non-producing natural gas properties in California. In December 2018, Royale became the operator of a newly acquired oil and gas property in Texas. The most significant factors affecting our results of operations are (i) changes in oil and natural gas prices, production levels and reserves, (ii) turnkey drilling activities, and (iii) the increase in future costs associated with abandonment of wells.

RESULTS OF OPERATIONS

For the three months ended March 31, 2026 and 2025, we incurred a net loss of $819,629 and $681,951, respectively. The difference was primarily due to a settlement recorded during the period in 2025 of approximately $105,000 from a vendor for an equipment failure during a workover.

During the first three months of 2026, revenues from oil and gas production increased $88,971 or 18.8%, to $563,119 from revenues of $474,148 during the first three months of 2025. This increase was mainly due to higher oil production volumes during the quarter in 2026. The net sales volume of oil and condensate for the three months ended March 31, 2026, was approximately 7,200 barrels with an average price of $72.14 per barrel, versus 5,688 barrels with an average price of $71.99 per barrel for the first three months of 2025. This represents an increase in net sales volume of 1,512 barrels or 26.6%. The higher production volumes were due to wells brought online and our additional interests acquired in existing wells in 2025. The net sales volume of natural gas for the three months ended March 31, 2026, was approximately 34,326 Mcf with an average price of $1.03 per Mcf, versus 22,767 Mcf with an average price of $2.79 per Mcf for the same period in 2025. This represents an increase in net sales volume of 11,559 Mcf or 50.8%.

Oil and natural gas lease operating expenses increased by $216,936 or 118.3%, to $400,281 for the three months ended March 31, 2026, from $183,345 for the same period in 2025. This increase was partially due to a settlement recorded during the period in 2025 of $105,494 with a vendor due to an equipment failure which occurred during a workover. During the first three months of 2026, we also had higher surface use fees and higher outside operated lease operating expenses when compared to the same period in 2025.

The aggregate of supervisory fees and other income was $239 and $13,088 for the three months ended March 31, 2026 and 2025, respectively, a decrease of $12,849 mainly due to higher rental income during the first quarter of 2025.

Depreciation, depletion and amortization expense was $99,561 for the three months ended March 31, 2026, compared to $73,218 for the same period in 2025. The depletion rate is calculated using production as a percentage of reserves. The increase in depletion expense was due to a decrease in expected recoverable reserves which increased the depletion rate.

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At March 31, 2026, Royale Energy had a Deferred Drilling Obligation of $14,799,496. During the first three months of 2026, we participated in the drilling of and completion of a well in the Texas Permian basin, and we did not book turnkey gains or losses as we waited for final costs to be determined. At March 31, 2025, Royale Energy had a Deferred Drilling Obligation of $12,032,996. During the first 3 months of 2025, although we participated in the drilling and completion of a well in the Texas Permian basin, we did not book turnkey gains or losses as we waited for final costs to be determined.

General and administrative expenses were $474,055 for the three months ended March 31, 2026, compared to $466,418 for the same period in 2025, a change of $7,637 or 1.6%. For the first three months of 2026, marketing expenses increased $35,619 or 51.6% to $104,654, compared to $69,035 for the first three months of 2025. Marketing expense varies from period to period according to the number of marketing events attended by personnel and their associated exhibition and travel costs.

Legal and accounting expense decreased to $124,238 for the three-month period in 2026, compared to $245,506 for the same period in 2025, a $121,268 or 49.4% decrease. This decrease was primarily due to lower auditing fees related to the 2025 audit which didn’t conclude until the second quarter 2026.

During the three months ended March 31, 2026 and 2025, we recorded Credit Loss expenses of $32,906 and $13,126, respectively, which arose from identified uncollectable receivables relating to our oil and natural gas properties either plugged and abandoned or scheduled for plugging and abandonment (“P&A”) and our period end oil and natural gas reserve values. We periodically review our accounts receivable from working interest owners to determine whether collection of any of these charges appears doubtful. During the three months ended March 31, 2026 and 2025, we recorded gains on settlement of asset retirement liability of $5,676 and $5,353, respectively, due to quarterly reconciliations of our asset retirement obligation. During the three months ended March 31, 2025, we recorded lease impairments of $27,250 on various lease and land costs in our California natural gas fields where the carrying value exceeded the fair value.

Interest income for the three months ended March 31, 2026 and 2025, was $10,882 and $18,579, respectively. The higher 2025 interest income was due to higher bank balances during the period in 2025. Interest expense for the three months ended March 31, 2026 and 2025, was $140,981 and $97,179, respectively. The higher 2026 interest expense was due to the increase in notes payable, and the commencement of interest on notes related to the 2024 debt restructuring.

CAPITAL RESOURCES AND LIQUIDITY

At March 31, 2026, we had current assets totaling $10,257,782 and current liabilities totaling $22,653,845, resulting in a $12,396,063 working capital deficit. We had $758,615 in cash and $6,736,325 in restricted cash at March 31, 2026, compared to $1,099,044 in cash and $7,175,950 in restricted cash at December 31, 2025.

At March 31, 2026, our other receivables, which consist of joint interest billing receivables from direct working interest investors and industry partners, totaled $743,671 compared to $793,608 at December 31, 2025. At March 31, 2026, revenue receivable was $784,531, compared to $694,729 at December 31, 2025, due to higher production volumes and commodity prices during the period in 2026 when compared to the fourth quarter of 2025. At March 31, 2026, our accounts payable and accrued expenses totaled $6,126,592, compared to $6,033,878 at December 31, 2025, which was mainly due to higher drilling and liability accruals during the period in 2026.

We have had recurring operating and net losses and cash used in operations, and the financial statements reflect a working capital deficiency of $12,396,063 and an accumulated deficit of $95,385,998. These factors raise substantial doubt about our ability to continue as a going concern. We anticipate that our primary sources of liquidity will be from the sale of oil and gas in the course of normal operations, the sale of oil and gas property, sales of participation interests, and the possible issuance of debt and/or equity. Management has plans to continue to increase revenues by making commitments to participate with industry partners in drilling wells in the Permian basin and will also continue to drill and workover wells in our Texas Jameson field. Although there are no assurances, Management believes that expected increases in revenue together with reduced capital expenditures for drilling will allow the Company to meet its liquidity needs through the remainder of 2026.

Operating Activities. Net cash used by operating activities totaled $1,051,755 and $617,612 for the three months ended March 31, 2026 and 2025, respectively, a $434,143 or 70.3% increase. This increase in cash used was mainly due to increases in other and revenue receivables during the three-month period in 2026 when compared to the same period in 2025.

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Investing Activities. Net cash provided by investing activities totaled $274,836 and $569,051 for the three months ended March 31, 2026 and 2025, respectively, a $294,215 or 51.7% decrease. During the three-month period in 2026, we received $522,000 in drilling funds, we also used $200,000 in the acquisition of direct working interests, while our drilling and lease expenditures were approximately $47,000. During the three-month period in 2025, we received $575,000 in drilling funds while our drilling and lease expenditures were approximately $6,000.

Financing Activities. Net cash used in financing activities totaled $3,135 and $2,771 for the three months ended March 31, 2026 and 2025, respectively, and the funds were used for principal payments on our financing lease payments.

Critical Accounting Estimates

Our critical accounting policies are further disclosed in Note 1 to the consolidated financial statements included in our 2025 Annual Report on Form 10-K.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Not applicable.

Item 4. Controls and Procedures

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

Disclosure controls and procedures are controls and other procedures of a registrant designed to ensure that information required to be disclosed by the registrant in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms.

As of March 31, 2026, our management, including our Chief Executive and Chief Financial Officers, evaluated the effectiveness of the design and operation of our disclosure controls and procedures, as required by Rule 13a-15 of the Exchange Act. Based on that evaluation, management concluded that our disclosure controls and procedures were not effective due to the identified material weakness. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis.

As a result of the review by the CFO and CEO, the material weakness was identified as follows:

● As previously disclosed in our Annual Report on Form 10-K for the period ended December 31, 2025, Management identified a material weakness that existed because we lack sufficient financial reporting personnel, proper review controls and proper segregation of duties, including within our financial reporting systems, to produce accurate and complete financial records in accordance with SEC and US GAAP requirements. The material weakness continued to exist as of March 31, 2026. Management is in the process of developing a remediation plan designed to improve its internal control over financial reporting.

Notwithstanding the material weakness described above, our management, including our Chief Executive Officer and Chief Financial Officer, believes that the condensed consolidated financial statements included in this Quarterly Report on Form 10-Q fairly present, in all material respects, our financial condition, results of operations and cash flows for the periods presented.

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

There were no changes in our internal control over financial reporting during the quarter ended March 31, 2026 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

Item 1. Legal Proceedings

From time to time, the Company may be involved in various legal proceedings or may be subject to claims that arise in the ordinary course of business. The outcome of any such claims or proceedings cannot be predicted with certainty. As of the date of this filing, management is not aware of any such claims against the Company.

Item 1A. Risk Factors

Not applicable to smaller reporting companies.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

During the period covered by this report, we have not issued any unregistered shares.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

Item 6. Exhibits

31.1		Rule 13a-14(a)/15d-14(a) Certification
31.2		Rule 13a-14(a)/15d-14(a) Certification
32.1		18 U.S.C. § 1350 Certification
32.2		18 U.S.C. § 1350 Certification
101.INS		Inline XBRL Instance Document
101.SCH		Inline XBRL Taxonomy Extension Schema
101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase
101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase
101.LAB		Inline XBRL Taxonomy Extension Label Linkbase
101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase
104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

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Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	ROYALE ENERGY, INC.
Date: August 28, 2026	/s/ Johnny Jordan
	Johnny Jordan, Chief Executive Officer
Date: August 28, 2026	/s/ Ronald Lipnick
	Ronald Lipnick, Chief Financial Officer

18

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