Empire Diversified Energy : 2022 Q1 Financials

EMPIRE DIVERSIFIED ENERGY, INC.

Consolidated Financial Statements

(Unaudited)

For the three months ended March 31, 2022

EMPIRE DIVERSIFIED ENERGY, INC.

Consolidated Financial Statements

(Unaudited)

Table of Contents

Consolidated Balance Sheets (Unaudited)	3
Consolidated Statements of Operations (Unaudited)	4
Consolidated Statement of Changes in Stockholders' Equity (Deficit) - (Unaudited)	5
Consolidated Statements of Cash Flows (Unaudited)	6
Notes to Consolidated Financial Statements (Unaudited)	7

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EMPIRE DIVERSIFIED ENERGY, INC.

Consolidated Financial Statements

(Unaudited)

Consolidated Balance Sheets

										March 31,				December 31,
ASSETS		2022				2021
Current assets
Cash	$	641,058	$	1,140,463
Restricted cash		11,046,460				5,072,124
Accounts receivable		1,450,302				712,781
Inventory		827,385				832,661
Prepaid expenses		85,804				105,040
Total Current Assets				14,051,009				7,863,069
Property, plant and equipment, net		59,914,678				42,459,258
Deposits		160,446				160,446
Operating lease right-of-use assets		569,995				603,461
Intangible assets, net		2,874,666				2,913,166
Other assets		408,502				408,502
Total other assets				4,013,609				4,085,575
Total assets		$	77,979,296			$	54,407,902
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities
Accounts payable	$	4,450,398	$	1,801,588
Accrued liabilities		234,951				629,357
Accrued payroll		312,603				364,637
Interest payable		2,735,574				2,430,189
Related party payable		2,412,475				2,411,749
Convertible notes payable, net of discounts		-				4,000,000
Notes payable, current		9,113,897				7,384,124
Customer deposits		50,321				53,321
Operating lease liability, current		166,274				199,740
Warrants		636,064				492,064
Other current liabilities, current		122,070				155,288
Total current liabilities			20,234,627				19,922,057
Long term liabilities
Operating lease liability, net of current portion		403,721				403,721
Notes payable, net of current portion		69,500,792				44,436,475
Total long term liabilities			69,904,513				44,840,196
Total liabilities				90,139,140				64,762,253
Stockholders' equity (deficit)
Common stock, $0.00001 par value, 1,000,000,000 authorized;
262,679,400 and 258,679,400 issued and outstanding at March 31, 2022
and December 31, 2021, respectively		2,648				2,588
Preferred Stock, $0.00001 par value, 500,000,000 authorized of which
65,000,000 is authorized for Series A Convertible Preferred Stock;
4,600,000 and 3,400,000 issued and outstanding at March 31, 2022
and December 31, 2021, respectively		46				34
Additional paid in capital		22,606,306				21,810,118
Treasury stock, at cost, 2,000,000 shares		(200,000)				(200,000)
Accumulated deficit		(34,568,844)				(31,967,091)
Total stockholders' equity (deficit)			(12,159,844)				(10,354,351)
Total liabilities and stockholders' equity (deficit)		$	77,979,296		$	54,407,902
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The accompanying notes are an integral part of these consolidated financial statements

EMPIRE DIVERSIFIED ENERGY, INC.

Consolidated Financial Statements

(Unaudited)

Consolidated Statements of Operations
						Quarter Ended March 31,
Revenue		2022				2021
$	3,375,386			$	1,579,980
Cost of goods sold		188,257				359,738
Gro Gross profit				3,187,129				1,220,242
Operating expenses
Sel Selling, general and administrative		3,427,032				1,602,277
Dep Depreciation and amortization		650,847				402,617
Total operating expenses				4,077,879				2,004,894
Loss from operations			(890,750)				(784,652)
Other income (expense)
Inte Interest expense		(2,083,391)				(1,532,787)
Ga Gain on extinguishment		400,000				(10,000)
Total other income (expense)				(1,683,391)				(1,542,787)
Net loss before income taxes			(2,574,141)				(2,327,439)
Inc Income tax		-				-
Net loss
	$	(2,574,141)			$	(2,327,439)
Net loss per common share, basic and diluted	$	(0.01)	$	(0.01)
Weighted average shares outstanding, basic and diluted		260,190,511				229,607,140

The accompanying notes are an integral part of these consolidated financial statements

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EMPIRE DIVERSIFIED ENERGY, INC.

Consolidated Financial Statements

(Unaudited)

Consolidated Statement of Changes in Stockholders' Equity (Deficit)

	Common Stock		Treasury Stock		Series A Preferred Stock			Additional Paid in	Accumulated Deficit				Total
	Shares			Amount		Shares			Amount		Shares			Amount				Capital
Balance, December 31, 2020	221,861,629	$	2,219	(2,000,000)	$	(200,000)	-	$	-		$	20,466,435	$	(15,463,600)	$	4,805,054
Shares issued for equipment	300,000			3	-			-	-			-				(3)							-
Shares issued for services	10,500,000			105	-			-	-			-				199,895							200,000
Shares issued for cash	4,350,000			44	-			-	-			-				487,456							487,500
Shares issued with promissory notes	3,350,000			33	-			-	-			-				84,958							84,991
Shares issued for compensation	10,362,500			104	-			-	-			-				47,667							47,771
Shares issued for acquisition	5,000,000			50	-			-	-			-				(50)							-
Shares issued in settlement	100,000			1	-			-	-			-				33,999							34,000
Shares for debt extinguishment	70,000			1	-			-	-			-				(1)							-
Shares for converting notes payable and accrued interest	2,785,271			28	-			-	-			-				167,796							167,824
Preferred shares issued for cash	-			-	-			-	3,400,000				34			321,966							322,000
Net loss																					(16,503,491)				(16,503,491)
Balance, December 31, 2021	258,679,400	$	2,588	(2,000,000)	$	(200,000)	3,400,000	$		34	$	21,810,118	$	(31,967,091)	$	(10,354,351)
Shares issued for compensation	-			-	-			-	-			-				26,454			-				26,454
Cash dividends payable on preferred shares	-			-	-			-	-			-				-			(13,806)				(13,806)
Common stock dividends payable on preferred shares	-			-	-			-	-			-				13,806			(13,806)				-
Shares for converting notes payable and accrued interest	4,000,000			60	-			-	-			-				599,940			-				600,000
Preferred shares issued for cash	-			-	-			-	1,200,000				12			155,988			-				156,000
Net loss	-			-	-			-	-			-				-			(2,574,141)				(2,574,141)
Balance, March 31, 2022	262,679,400	$	2,648	(2,000,000)	$	(200,000)	4,600,000	$		46	$	22,606,306	$	(34,568,844)	$	(12,159,844)

The accompanying notes are an integral part of these consolidated financial statements

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