0001185185-18-001528.txt : 20180820 0001185185-18-001528.hdr.sgml : 20180820 20180820152654 ACCESSION NUMBER: 0001185185-18-001528 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 41 CONFORMED PERIOD OF REPORT: 20180630 FILED AS OF DATE: 20180820 DATE AS OF CHANGE: 20180820 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Royale Energy, Inc. CENTRAL INDEX KEY: 0001694617 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] IRS NUMBER: 814596368 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-55912 FILM NUMBER: 181028165 BUSINESS ADDRESS: STREET 1: 1870 CORDELL COURT, SUITE 210 CITY: EL CAJON STATE: CA ZIP: 92020 BUSINESS PHONE: 6193836600 MAIL ADDRESS: STREET 1: 1870 CORDELL COURT, SUITE 210 CITY: EL CAJON STATE: CA ZIP: 92020 FORMER COMPANY: FORMER CONFORMED NAME: Royale Energy Holdings, Inc. DATE OF NAME CHANGE: 20170112 10-Q 1 royaleinc20180630_10q.htm FORM 10-Q royaleinc20180630_10q.htm

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 June 30, 2018

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.)

 

1870 Cordell Court, Suite 210

El Cajon, CA 92020

(Address of principal executive offices) (Zip Code)

 

619-383-6600

(Registrant’s telephone number, including area code)

 

Royale Energy Holdings, Inc.

(Former name, former address and former fiscal year, if changed since last report)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 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 and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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 and post 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 (as defined in Rule 12b-2 of the Exchange Act).  Check one:

 

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 ☒

 

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

 

At August 15, 2018, a total of 48,400,371 shares of registrant’s common stock were outstanding.

 

 

 

 

TABLE OF CONTENTS

 

PART I

FINANCIAL INFORMATION

  1

Item 1.

Financial Statements

1

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

17

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

20

Item 4.

Controls and Procedures

20

 

 

 

PART II

OTHER INFORMATION

21

Item 1.

Legal Proceedings

21

Item 1A.

Risk Factors

21

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

21

Item 3.

Defaults upon Senior Securities

21

Item 4.

Mine Safety Disclosures

21

Item 5.

Other Information

21

Item 6.

Exhibits

21

 

Signatures

24

 

 

 

 

 

PART I.   FINANCIAL INFORMATION

 

Item 1.  Financial Statements

 

ROYALE ENERGY, INC.

CONSOLIDATED BALANCE SHEETS

 

   

June 30,

2018

(Unaudited)

   

December 31,

2017

 

ASSETS

               

Current Assets

               

Cash

  $ 6,673,603     $ 3,338,693  

Other Receivables, net

    2,786,227       764,015  

Revenue Receivables

    568,086       106,007  

Receivable from Affiliate

    1,389,289       -  

Prepaid Expenses

    281,502       149,367  
                 

Total Current Assets

    11,698,707       4,358,082  
                 

Investment in Joint Venture

    5,565,736       -  

Other Assets

    517,714       511,120  
                 

Oil and Gas Properties, (Successful Efforts Basis),

  Equipment and Fixtures, net

    7,585,674       1,302,242  
                 

Total Assets

  $ 25,367,831     $ 6,171,444  

 

 

See notes to unaudited consolidated financial statements.

 

 

 

ROYALE ENERGY, INC.

CONSOLIDATED BALANCE SHEETS

 

   

June 30,

2018

(Unaudited)

   

December 31,

2017

 

LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)

               
                 

Current Liabilities:

               

Accounts Payable and Accrued Expenses

  $ 6,267,702     $ 4,638,879  

Royalties Payable

    1,676,865       -  

Cash Advances on Pending Transactions

    -       1,580,000  

Dividends Payable

    233,494       -  

Deferred Drilling Obligation

    8,654,398       5,891,898  
                 

Total Current Liabilities

    16,832,459       12,110,777  
                 

Noncurrent Liabilities:

               

Accrued Liabilities – Long Term

    1,478,385       -  

Accrued Unpaid Guaranteed Payments

    1,616,205       -  

Asset Retirement Obligation

    1,931,263       1,000,908  

Total Noncurrent Liabilities

    5,025,853       1,000,908  
                 

Total Liabilities

    21,858,312       13,111,685  
                 

Stockholders’ Equity (Deficit):

               

Convertible Preferred Stock, Series B, $10 par value, 3,000,000

  Shares Authorized, 2,012,400 shares issued and outstanding

  at June 30, 2018

    20,124,000       -  

Common Stock, No Par Value, 30,000,000 Shares Authorized

  21,850,185 shares issued and outstanding at December 31, 2017

            41,265,449  

Common Stock, .001 Par Value, 280,000,000 Shares Authorized

  48,400,371 shares issued and outstanding at June 30, 2018

    48,400       -  

Additional Paid in Capital

    52,550,617          

Accumulated Deficit

    (69,213,498

)

    (48,205,690

)

                 

Total Stockholders’ Equity (Deficit)

    3,509,519       (6,940,241

)

                 

Total Liabilities and Stockholders’ Equity (Deficit)

  $ 25,367,831     $ 6,171,444  

 

See notes to unaudited consolidated financial statements.

 

 

 

ROYALE ENERGY, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE PERIODS ENDED JUNE 30, 2018 AND 2017 (UNAUDITED)

 

   

Three Months Ended June 30,

   

Six Months Ended June 30,

 
   

2018

   

2017

   

2018

   

2017

 

Revenues:

                               

    Sale of Oil and Gas

  $ 281,929     $ 163,706     $ 953,131     $ 351,049  

    Supervisory Fees, Service Agreement and Other

    512,430       81,802       564,400       168,857  
                                 

      Total Revenues

    794,359       245,508       1,517,531       519,906  
                                 

Costs and Expenses:

                               

    Lease Operating

    499,170       123,832       766,818       230,453  

    Lease Impairment

    -       99,468       -       136,837  

    Well Equipment Write Down

    9,790       -       9,790       6,000  

    General and Administrative

    608,273       450,042       1,467,630       1,015,028  

    Legal and Accounting

    364,580       188,989       1,077,302       668,283  

    Marketing

    55,210       108,084       123,693       162,232  

    Depreciation, Depletion and Amortization

    102,230       43,464       275,946       90,304  
                                 

        Total Costs and Expenses

    1,639,253       1,013,879       3,721,179       2,309,137  
                                 

Gain (Loss) on Turnkey Drilling

    -       878,533       -       878,533  
                                 

Income (Loss) From Operations

    (844,894

)

    110,162       (2,203,648

)

    (910,698

)

Other Income (Loss):

                               

    Interest Expense

    -       (39,500

)

    (169,829

)

    (79,412

)

    Gain on Settlement of Accounts Payable

    46,218       -       46,218       73,128  

    Loss on Sale of Assets

    (16,217,673

)

    -       (16,217,673

)

    -  
    Loss on Investment in Joint Venture     (684,264 )     -       (684,264 )     -  

    Loss on Derivative Instruments

    -

 

    -       (105,130

)

    -  

    Loss on Issuance of Warrants

    (1,439,990

)

    -       (1,439,990

)

    -  

Income (Loss) Before Income Tax Expense

    (19,140,603

)

    70,662       (20,774,316

)

    (916,982

)

                                 

Net Income (Loss)

  $ (19,140,603

)

  $ 70,662     $ (20,774,316

)

  $ (916,982

)

                                 

Basic Earnings (Loss) Per Share

  $ (0.40

)

  $ 0.00     $ (0.52

)

  $ (0.04

)

                                 

Diluted Earnings (Loss) Per Share

  $ (0.40

)

  $ 0.00     $ (0.52

)

  $ (0.04

)

 

See notes to unaudited financial statements.

 

 

 

ROYALE ENERGY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

FOR THE SIX MONTHS ENDED JUNE 30, 2018 AND 2017

 

   

2018

   

2017

 

CASH FLOWS FROM OPERATING ACTIVITIES

               

Net Loss

  $ (20,774,316

)

  $ (916,982

)

Adjustments to Reconcile Net Loss to Net

Cash Used in Operating Activities:

               

Depreciation, Depletion and Amortization

    275,946       90,304  

Lease Impairment

    -       136,837  

Loss on Sale of Assets

    16,217,673       -  

Gain on Turnkey Drilling Programs

    -       (878,533

)

Gain on Settlement of Accounts Payable

    (46,218

)

    (73,128

)

Loss on Investment in Joint Venture

    684,264       -  

Loss on Issuance of Warrants

    1,439,990       -  

Well Equipment Write Down

    9,790       6,000  

Loss on Derivative Instruments

    105,130       -  

Debt Issuance Costs Amortization

    144,186       -  

(Increase) Decrease in:

               

Other & Revenue Receivables

    319,805       39,323  

Prepaid Expenses and Other Assets

    (9,634

)

    (578,743

)

Due from Affiliate

    (1,083,520

)

    -  

Increase (Decrease) in:

               

Accounts Payable and Accrued Expenses

    1,757,760       1,025,590  

Royalties Payable

    (301,220

)

    -  

Other Liabilities

    50,415       -  
                 

Net Cash Used in Operating Activities

    (1,209,949

)

    (1,149,332

)

                 

CASH FLOWS FROM INVESTING ACTIVITIES

               

Expenditures for Oil and Gas Properties and Other Capital Expenditures

    (36,008

)

    (1,053,442

)

Proceeds from Turnkey Drilling Programs

    2,762,500       1,425,000  

Proceeds from Sale of Assets, net

    3,444,482       -  

Cash Acquired in Merger

    548,805       -  
                 

Net Cash Provided by Investing Activities

    6,719,779       371,558  
                 

CASH FLOWS FROM FINANCING ACTIVITIES

               

Principal Payments on Long-Term Debt

    (274,920

)

    -  

Cash Advances on Pending Transactions Settlement

    (1,900,000

)

    -  
                 

Net Cash Used by Financing Activities

    (2,174,920

)

    -  
                 

Net Increase (Decrease) in Cash and Cash Equivalents

    3,334,910       (777,774

)

                 

Cash at Beginning of Period

    3,338,693       4,994,598  
                 

Cash at End of Period

  $ 6,673,603     $ 4,216,824  
                 

SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION:

         

Cash Paid for Interest

  $ 164,829     $ 412  

Cash Paid for Taxes

  $ 2,400     $ 1,539  
                 

SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING & FINANCING TRANSACTIONS:

               

Issuance of Common Stock in Acquisition

  $ 9,546,068     $ -  

Issuance of Convertible Preferred Stock, Series B, in Acquisition

  $ 20,124,000     $ -  

Issuance of Warrants in Joint Venture

  $ 1,440,000     $ -  

Issuance of Common Stock for Cash Advances and Interest

  $ 347,500     $ -  

Asset Retirement Obligation Addition

  $ -     $ 30,000  

Issuance of Common Stock for Accrued Compensation Expense

  $ -     $ 347,500  

 

See notes to unaudited consolidated financial statements.

 

 

 

ROYALE ENERGY, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

 

NOTE 1 – In the opinion of management, the accompanying unaudited financial statements include all adjustments, consisting only of normally recurring adjustments, necessary to present fairly the Company’s financial position and the results of its operations and cash flows for the periods presented.  The results of operations for the six month period are not, in management’s opinion, indicative of the results to be expected for a full year of operations.  It is suggested that these financial statements be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s latest annual report.

 

Merger with Matrix Oil Management Corporation

 

On March 7, 2018, Royale Energy, Inc. (“Royale Energy,” formerly known as  Royale Energy Holdings, Inc., a Delaware corporation), Royale Energy Funds, Inc. (“REF,” formerly known as Royale Energy, Inc., a California corporation), and Matrix Oil Management Corporation (“Matrix”) and its affiliates were notified by the California Secretary of State of the filing and acceptance of agreements of merger by the California Secretary of State, to complete the previously announced merger between the companies (the “Merger”).  In the Merger, REF was merged into a newly formed subsidiary of Royale Energy, and Matrix was merged into a second newly formed subsidiary of Royale Energy pursuant to the Amended and Restated Agreement and Plan of Merger among REF, Royale Energy, Royale Merger Sub, Inc., (“Royale Merger Sub”), Matrix Merger Sub, Inc., (“Matrix Merger Sub”) and Matrix (the “Merger Agreement”).  Additionally, in connection with the merger, all limited partnership interest of two limited partnership affiliates of Matrix (Matrix Permian Investments, LP, and Matrix Las Cienegas Limited Partnership), were exchanged for Royale Energy common stock using conversion ratios according to the relative values of each partnership.  All Class A limited partnership interests of another Matrix affiliate, Matrix Investments, LP (“Matrix Investments”) were exchanged for Royale Energy Common stock using conversion ratios according to the relative value of the Class A limited partnership interests, and $20,124,000 of Matrix Investments preferred limited partnership interests were converted into 2,012,400 shares of Series B Convertible Preferred Stock of Royale Energy.  Another Matrix affiliate, Matrix Oil Corporation (“Matrix Operator”), was acquired by Royale Energy by exchanging Royale Energy common stock for the outstanding common stock of Matrix Oil Corporation using a conversion ratio according to the relative value of the Matrix Oil Corporation common stock.  Matrix, Matrix Oil Corporation and the three limited partnership affiliates of Matrix called the “Matrix Entities.”

 

The Merger had been previously approved by the respective holders of all outstanding capital stock of REF, Matrix, Royale Energy, Matrix Merger Sub and Royale Merger Sub on November 16, 2017, as previously reported in our Current Report on Form 8-K dated November 16, 2017.  The Merger and related transactions are described in detail in our Current Report on Form 8-K dated March 7, 2018, and in Royale Energy’s Current Report on Form 8-K dated March 7, 2018 (SEC File No. 000-55912).

 

As a result of the Merger, REF became a wholly owned subsidiary of Royale Energy, and each outstanding share common stock of REF at the time of the Merger was converted into one share of common stock of Royale Energy.  The common stock of Royale Energy is traded on the Over-The-Counter QB (OTCQB) Market System (symbol ROYL).

 

Under FASB Topic ASC 805, Business Combinations, which among other things requires the assets acquired and liabilities assumed to be measured and recorded at their fair values as of the acquisition date, the Company was determined to be the acquirer and as such, the acquisition was accounted for as a business combination.

 

The preliminary allocation of the purchase price was determined in arms’ length negotiations between the parties.  Substantially all of the value of the transaction was related to the value of the oil and gas assets acquired with minimal value ascribed to the other assets. The Company considered two valuation methods in its determination of fair value for the oil and natural gas properties; the discounted cash flow analysis and comparable transaction analysis. Assumptions for the discounted cash flow analysis include commodity price, operating costs and capital outlay for future development of the acquired properties, pricing differentials, reserve risking, and discount rates. NYMEX strip pricing, less applicable pricing differentials, was utilized in the discounted cash flow analysis. Risking levels in the discounted cash flow analysis are determined based on a variety of factors, such as existing well performance, offset production and analogue wells. Discount rates used in the discounted cash flow analysis were determined by using the estimated cost of capital, discount rates, as well as industry knowledge and experience. The comparable transaction analysis was performed to establish a range of fair values for similarly situated oil and gas properties that were recently bought or sold in arms-length, observable market transactions. The range of value observed from the Company’s analysis of recent market transactions was then utilized as a basis for evaluating the fair value determined via the discounted cash flow method. The Company’s fair value conclusion indicated that the discounted cash flow method valuation is in line with the same range as the comparable transactions reviewed, when considering the comparable transactions. Other current liabilities assumed in the acquisition, were carried over at historical carrying values because the assets and liabilities are short term in nature and their carrying values are estimated to represent the best estimate of fair value. Any changes to the estimates used in preparing this preliminary purchase price allocation could result in a corresponding change in the final purchase price allocation.

 

 

 

The following table summarizes the consideration transferred, fair value of assets acquired and liabilities assumed:

 

   

March 7, 2018

 

Consideration:

       

Value of Royale Common Stock issued

  $ 9,546,068  

Value of Series B Convertible Preferred Stock issued

    20,124,000  

Total consideration

  $ 29,670,068  

Fair Value of Liabilities Assumed:

 

Current liabilities

    19,624,592  

Other liabilities

    3,125,394  

Asset Retirement obligations

    1,419,544  

Total fair value of liabilities assumed

    24,169,530  

Total consideration plus liabilities assumed

  $ 53,839,598  

Fair Value of Assets Acquired:

 

Cash

  $ 548,805  

Current assets

    3,655,173  

Proved and unproved crude oil and gas properties

    48,632,870  

Land

    1,002,750  
    $ 53,839,598  

 

In accordance with FASB Topic ASC 805, the following unaudited supplemental pro forma condensed results of operations present combined information as though the business combination had been completed as of January 1, 2018. The unaudited supplemental pro forma financial information was derived from the historical revenues and direct operating expenses of Royale Energy, Inc. and Matrix Oil Management Corporation and its affiliates. These unaudited supplemental pro forma results of operations for the consolidated companies as of March 31, 2017, are provided for illustrative purposes only and do not purport to be indicative of the actual results that would have been achieved by the consolidated company for the periods presented or that may be achieved by the consolidated company in the future.

 

   

Three months ended March 31, 2018

   

Three months ended March 31, 2017

 
                                                 
   

Royale Energy, Inc.

   

Matrix Oil Management Corp

   

Consolidated

   

Royale Energy, Inc.

   

Matrix Oil Management Corp

   

Consolidated

 
   

(Unaudited)

 

Revenue

  $ 119,473     $ 1,798,531     $ 1,918,004     $ 274,398     $ 1,120,427     $ 1,394,825  

Net Loss

  $ (1,200,576

)

  $ (751,111

)

  $ (1,951,687

)

  $ (987,644

)

  $ (549,922

)

  $ (1,537,566

)

Net Loss available to common shareholders

  $ (1,200,576

)

  $ (751,111

)

  $ (1,951,687

)

  $ (987,644

)

  $ (549,922

)

  $ (1,537,566

)

Pro forma Loss per common share Basic and diluted

  $ (0.04

)

  $ (0.02

)

  $ (0.06

)

  $ (0.05

)

  $ (0.02

)

  $ (0.07

)

 

Formation of RMX and Asset Contribution

 

On April 13, 2018, Royale Energy, Inc., and two of Royale’s subsidiaries, Royale Energy Funds, Inc. and Matrix Oil Management Corporation (the “Royale Entities”) completed  the Subscription and Contribution Agreement (“Contribution Agreement”), in which the Royale Entities and CIC RMX LP (“CIC”) entered into the Contribution Agreement and certain other agreements providing that the Royale Entities would contribute certain assets to RMX Resources, LLC (“RMX”), a newly formed Texas limited liability company. In exchange for its contributed assets, Royale received a 20% equity interest in RMX, an equity performance incentive interest and up to $20.0 million to pay off Royale Entities senior lender, Arena Limited SPV, LLC., in full, and to pay Royale Entities trade payables and other outstanding obligations. CIC contributed an aggregate of $25.0 million in cash to RMX in exchange for (i) an 80% equity interest in RMX with preferred distributions until certain thresholds are met, (ii) a warrant (“Warrant”) to acquire up to 4,000,000 shares of Royale’s common stock at an exercise price of $.01 per share and registration rights pursuant to a Registration Rights Agreement.

 

 

The Contribution Agreement was completed in a two-step closing and funding, with the First Closing consummated on April 4, 2018 and the Second Closing consummated on April 13, 2018 with the Royale Entities. In connection with the Second Closing, the parties entered into a letter agreement related to the preliminary Settlement Statement process.  The parties agreed that, in lieu of the payment originally contemplated under Section 1.6(v) of the Contribution Agreement, the Royale Entities would receive the sum of $4,000,000, subject to adjustment. The $4,000,000 delivered at the Second Closing was an advance against amounts due the Royale Entities as Purchase Price, and the advance was subject to further adjustment in accordance with the Contribution Agreement.

 

RMX has two classes of stock and a six-member board of directors. Royale has two seats on the board giving it a third of the Board.  Royale has designated Michael McCaskey and Johnny Jordan as its members of the RMX board.  The return targets for CIC through its funding of RMX provide for a “waterfall” style return profile with the first distributions going to CIC until certain return thresholds are achieved.

 

As part of the formation of the joint venture, Royale contributed Matrix Oil Corporation (“MOC”) to RMX. MOC has the permits and licenses to operating oil and gas properties in California. It was the operating entity for the Matrix group of companies that were acquired on February 28, 2018, see NOTE 1 – Merger with Matrix Oil Management Corporation above. This allows the RMX joint venture to be the operator of record for the contributed assets.

 

Royale will account for its ownership interest in RMX following the equity method of accounting. By agreement, Royale has an initial equity value of $6.25 million or 20% of the total equity of the joint venture with CIC having an initial equity value of $25.0 million or 80% of the total equity of the joint venture.

 

The Royale Entities contributed 100% of the Sansinena Field, 100% of the Sempra Field, 50% of the Bellevue Field, 100% of the Whittier Main Field, and 50% of the Whittier Field. The result of the transfer of oil and gas properties and surface rights for cash as described above and a 20 percent working interest in RMX resulted in Royale recording a loss of approximately $16.2 million. The contribution by Royale of warrants to acquire 4,000,000 shares of Royale common stock caused Royale to record a loss of approximately $1.44 million. In addition, the Contribution Agreement called for an effective date of the property transfer of February 28, 2018 which required a purchase price adjustment of approximately $334,000 in the form of a cash contribution to RMX and an increase in the loss on the sale. The transfer of MOC to RMX as the operating company provided an amount due Royale of approximately $640,000, which was recorded as a due from affiliate during the period in 2018.

 

The RMX joint venture has a senior revolving loan facility with Legacy Bank Texas. RMX initially drew down on the line of credit in the amount of $12.5 million to complete the acquisition of the Royale Entities. The borrowing base of the facility is $17.5 million with $5.0 million remaining undrawn at June 30, 2018.

 

As part of the joint venture, RMX entered into a Master Service Agreement “MSA” calling for Royale Energy to provide land, engineering and support services for the joint venture.  For these services, Royale will receive $180,000 per month for the first year, renewable after one year at a reduced rate of $150,000 per month and subject to termination on 90 days notice.  These amounts are included in Supervisory Fees, Service Agreement and Other.

 

Listed below is the summarized information required under Rule 3-09 of regulation S-X, Article 10 for Royale’s investment in RMX:

 

   

RMX Resources, LLC at

June 30, 2018

   

Royale Energy, Inc. Share at

June 30, 2018

 
                 

Revenues for the three months ended June 30, 2018

  $ (2,480,630

)

  $ (496,126

)

Gross Profit

    1,175,286       235,057  

Income (Loss) from Continuing Operations

    (1,073,230 )     (214,646 )

Net Income (Loss)

  $ (3,421,321 )   $ (684,264 )

 

Consolidation

 

The accompanying consolidated financial statements include the accounts of Royale Energy, Inc. (sometimes called the “Company” “we,” “our,” “us,” or “Royale Energy”), REF, and Matrix Oil Management Corporation and its subsidiaries.  All entities comprising the consolidated financial statements of Royale Energy have fiscal years ending December 31.  All material intercompany accounts and transactions have been eliminated in the consolidated financial statements.

 

 

Use of Estimates

 

The accompanying 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.  As reflected in the accompanying financial statements, the Company has negative working capital, losses from operations and negative cash flows from operations.

 

Material estimates that are particularly susceptible to significant change relate to the estimate of Company oil and gas reserves prepared by an independent engineering consultant.  Such estimates are subject to numerous uncertainties inherent in the estimation of quantities of proven reserves. Estimated reserves are used in the calculation of depletion, depreciation and amortization, unevaluated property costs, impairment of oil and natural gas properties, estimated future net cash flows, taxes, and contingencies.

 

Liquidity and Going Concern

 

The primary sources of liquidity have historically been issuances of common stock and operations. We believe that the completion of the Merger with Matrix and the Contribution Agreement with CIC, which created RMX, will enable us to return to positive cash flow.  There is some doubt about the company’s ability to meet liquidity demands, and we anticipate that our primary sources of liquidity will be from the issuance of debt and/or equity, and the sale of oil and natural gas property participation interest.

 

The Company’s consolidated financial statements reflect an accumulated deficit of $69,213,498, a working capital deficiency of $5,133,752 and a stockholders’ equity of $3,509,519. These factors raise 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 the Company is unable to continue as a going concern.

 

Management’s plans to alleviate the going concern include the completion of the second step of the merger with Matrix and additional financing through issuances of common stock and the reduction of overhead costs as more fully outlined below.  There is no assurance that additional financing will be available when needed or that management will be able to obtain financing on terms acceptable to the Company and whether the Company will become profitable and generate positive operating cash flow.

 

Revenue Recognition

 

On January 1, 2018, we adopted the new ASC Topic 606, Revenue from Contracts with Customers and all the related amendments ("new revenue standard") using the modified retrospective method.

 

We evaluated the effect of transition by applying the provisions of the new revenue standard to contracts with remaining obligations as of January 1, 2018. No cumulative adjustment to retained earnings was necessary as a result of adopting this standard.

 

Results for reporting periods beginning after January 1, 2018 are presented under the new revenue standard, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting policies.

 

We concluded that the adoption of the new revenue standard did not result in any changes to our consolidated balance sheet or statement of cash flow.

 

The majority of our revenues are derived from the sale of crude oil and condensate, natural gas liquids ("NGLs") and natural gas under spot and term agreements with our customers.

 

The pricing in our hydrocarbon sales agreements are variable, 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 sheet.

 

Under our hydrocarbon sales agreements, the entire consideration amount is variable either due to pricing and/or volumes. We recognize revenue 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.

 

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, in accordance with the new revenue standard, and such reimbursements will continue to not be recorded as revenues within the scope of the new revenue standard after the first quarter of 2018.  Prior to this, such cost reimbursements were included in revenue.

 

We commonly market the share of production belonging to other working interest owners as the operator of jointly owned oil and gas properties. We concluded that 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 regards to the sale of our share of production and recognize revenue for the volumes associated with our net production.

 

The Company frequently sells a portion of the working interest in each well it drills or participates in to third party investors and retains a portion of the prospect for its own account.  The Company typically guarantees a cost to drill to the third-party drilling participants and records 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, the Company records the liability as Turnkey 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 determined 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 determined the plant tailgate is the point in time where control, as defined in the new revenue standard, is transferred to midstream entities and they are entitled to significant 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 is netted directly against revenue. 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.

 

Turnkey Drilling Obligations

 

These Turnkey Agreements are managed by the Company for the participants of the well.  The collections of pre-drilling AFE amounts are segregated by the Company and the gains and losses on the Turnkey Agreements are recorded in income or expense at the time of the casing point election in accordance with ASC 932-323-25 and 932-360.  The Company manages the performance obligation for the well participants and only records revenue or expense at the time the performance obligation of the Turnkey Agreement has been satisfied.

 

 

Oil and Gas Property and Equipment

 

Depreciation, depletion and amortization, based on cost less estimated salvage value of the asset, are primarily determined under either the unit-of-production method or the straight-line method, which is based on estimated asset service life taking obsolescence into consideration.  Maintenance and repairs, including planned major maintenance, are expensed as incurred.  Major renewals and improvements are capitalized and the assets replaced are retired.

 

The project construction phase commences with the development of the detailed engineering design and ends when the constructed assets are ready for their intended use.  Interest costs, to the extent they are incurred to finance expenditures during the construction phase, are included in property, plant and equipment and are depreciated over the service life of the related assets.

 

Royale Energy uses the “successful efforts” method to account for its exploration and production activities.  Under this method, Royale Energy accumulates its proportionate share of costs on a well-by-well basis with certain exploratory expenditures and exploratory dry holes being expensed as incurred and capitalizes expenditures for productive wells.  Royale Energy amortizes the costs of productive wells under the unit-of-production method.

 

Royale Energy carries, as an asset, exploratory well costs when the well has found a sufficient quantity of reserves to justify its completion as a producing well and where Royale Energy is making sufficient progress assessing the reserves and the economic and operating viability of the project.  Exploratory well costs not meeting these criteria are charged to expense. Other exploratory expenditures, including geophysical costs and annual lease rentals, are expensed as incurred.

 

Acquisition costs of proved properties are amortized using a unit-of-production method, computed on the basis of total proved oil and gas reserves.

 

Capitalized exploratory drilling and development costs associated with productive depletable extractive properties are amortized using unit-of-production rates based on the amount of proved developed reserves of oil and gas that are estimated to be recoverable from existing facilities using current operating methods.  Under the unit-of-production method, oil and gas volumes are considered produced once they have been measured through meters at custody transfer or sales transaction points at the outlet valve on the lease or field storage tank.

 

Production costs are expensed as incurred. Production involves lifting the oil and gas to the surface and gathering, treating, field processing and field storage of the oil and gas. The production function normally terminates at the outlet valve on the lease or field production storage tank. Production costs are those incurred to operate and maintain Royale Energy’s wells and related equipment and facilities. They become part of the cost of oil and gas produced. These costs, sometimes referred to as lifting costs, include such items as labor costs to operate the wells and related equipment; repair and maintenance costs on the wells and equipment; materials, supplies and energy costs required to operate the wells and related equipment; and administrative expenses related to the production activity. Proved oil and gas properties held and used by Royale Energy are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable.

 

Royale Energy estimates the future undiscounted cash flows of the affected properties to judge the recoverability of carrying amounts. Cash flows used in impairment evaluations are developed using annually updated evaluation assumptions for crude oil commodity prices.  Annual volumes are based on field production profiles, which are also updated annually. Prices for natural gas and other products are based on assumptions developed annually for evaluation purposes.

 

Impairment analyses are generally based on proved reserves.  An asset group would be impaired if the undiscounted cash flows were less than its carrying value.  Impairments are measured by the amount the carrying value exceeds fair value. During the six months ended June 30, 2017, impairment losses of $136,837 were recorded on various capitalized lease and land costs that were no longer viable. During the same period in 2018, no impairment losses were recorded.

 

Significant unproved properties are assessed for impairment individually, and valuation allowances against the capitalized costs are recorded based on the estimated economic chance of success and the length of time that Royale Energy expects to hold the properties.  The valuation allowances are reviewed at least annually.

 

 

 

Upon the sale or retirement of a complete field of a proved property, Royale Energy eliminates the cost from its books, and the resultant gain or loss is recorded to Royale Energy’s Statement of Operations.  Upon the sale of an entire interest in an unproved property where the property has been assessed for impairment individually, a gain or loss is recognized in Royale Energy’s Statement of Operations.  If a partial interest in an unproved property is sold, any funds received are accounted for as a recovery of the cost in the interest retained with any excess funds recognized as a gain. Should Royale Energy’s turnkey drilling agreements include unproved property, total drilling costs incurred to satisfy its obligations are recovered by the total funds received under the agreements.  Any excess funds are recorded as a Gain on Turnkey Drilling Programs, and any costs not recovered are capitalized and accounted for under the “successful efforts” method. 

 

Royale Energy sponsors turnkey drilling agreement arrangements in unproved properties as a pooling of assets in a joint undertaking, whereby proceeds from participants are reported as Deferred Drilling Obligations, and then reduced as costs to complete its obligations are incurred with any excess booked against its property account to reduce any basis in its own interest.  Gains on Turnkey Drilling Programs represent funds received from turnkey drilling participants in excess of all costs Royale incurs during the drilling programs (e.g., lease acquisition, exploration and development costs), including costs incurred on behalf of participants and costs incurred for its own account; and are recognized only upon making this determination after Royale’s obligations have been fulfilled.

 

The contracts require the participants pay Royale Energy the full contract price upon execution of the agreement.  Royale Energy completes the drilling activities typically between 10 and 30 days after drilling begins.  The participant retains an undivided or proportional beneficial interest in the property and is also responsible for its proportionate share of operating costs.  Royale Energy retains legal title to the lease.  The participants purchase a working interest directly in the well bore.

 

In these working interest arrangements, the participants are responsible for sharing in the risk of development, but also sharing in a proportional interest in rights to revenues and proportional liability for the cost of operations after drilling is completed and the interest is conveyed to the participant.

 

A certain portion of the turnkey drilling participant’s funds received are non-refundable.  The company holds all funds invested as Deferred Drilling Obligations until drilling is complete.  Occasionally, drilling is delayed for various reasons such as weather, permitting, drilling rig availability and/or contractual obligations.  At June 30, 2018 and December 31, 2017, Royale Energy had Deferred Drilling Obligations of $8,654,398 and $5,891,898, respectively.

 

If Royale Energy is unable to drill the wells, and a suitable replacement well is not found, Royale would retain the non-refundable portion of the contact and return the remaining funds to the participant.  Included in cash and cash equivalents are amounts for use in completion of turnkey drilling programs in progress.

 

Losses on properties sold are recognized when incurred or when the properties are held for sale and the fair value of the properties is less than the carrying value.

 

Other Receivables

 

Our other receivables consist of joint interest billing receivables from direct working interest investors and industry partners. We provide for uncollectible accounts receivable using the allowance method of accounting for bad debts.  Under this method of accounting, a provision for uncollectible accounts is charged directly to bad debt expense when it becomes probable the receivable will not be collected.  The allowance account is increased or decreased based on past collection history and management’s evaluation of accounts receivable.  All amounts considered uncollectible are charged against the allowance account and recoveries of previously charged off accounts are added to the allowance.  At June 30, 2018 and December 31, 2017, the Company established an allowance for uncollectable accounts of $1,965,076 and $1,975,660, respectively, for receivables from direct working interest investors whose expenses on non-producing wells were unlikely to be collected from revenue.

 

Revenue Receivables

 

Our revenue receivables consist of receivables related to the sale of our natural gas and oil.  Once a production month is completed we receive payment approximately 15 to 30 days later.

 

Receivable from Affiliate

 

Our receivable from affiliate consists of receivables related to the transactions between Royale Energy and RMX Resources, LLC and its subsidiary, MOC.

 

 

Other Assets

 

Our other assets consist of long term cash deposits or bank certificates of deposit required by county government agencies or other companies mainly due to Royale’s well operations.

 

Equipment and Fixtures

 

Equipment and fixtures are stated at cost and depreciated over the estimated useful lives of the assets, which range from three to seven years, using the straight-line method. Repairs and maintenance are charged to expense as incurred. When assets are sold or retired, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is included in income. Maintenance and repairs, which neither materially add to the value of the property nor appreciably prolong its life, are charged to expense as incurred. Gains or losses on dispositions of property and equipment, other than oil and gas, are reflected in operations.

 

Fair Value Measurements

 

According to Fair Value Measurements and Disclosures Topic of the FASB Accounting Standards Codification, assets and liabilities that are measured at fair value on a recurring and nonrecurring basis in period subsequent to initial recognition, the reporting entity shall disclose information that enable users of its financial statements to assess the inputs used to develop those measurements and for recurring fair value measurements using significant unobservable inputs, the effect of the measurements on earnings for the period.

 

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considers counterparty credit risk in its assessment of fair value. Carrying amounts of the Company’s financial instruments, including cash equivalents, accounts receivable, accounts payable and accrued liabilities, approximate their fair values as of the balance sheet dates because of their generally short maturities.

 

The fair value hierarchy distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:

 

Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities.

Level 2: Directly or indirectly observable inputs as of the reporting date through correlation with market data, including quoted prices for similar assets and liabilities in active markets and quoted prices in markets that are not active. Level 2 also includes assets and liabilities that are valued using models or other pricing methodologies that do not require significant judgment since the input assumptions used in the models, such as interest rates and volatility factors, are corroborated by readily observable data from actively quoted markets for substantially the full term of the financial instrument.

Level 3: Unobservable inputs that are supported by little or no market activity and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions.

 

At June 30, 2018 and December 31, 2017, Royale Energy did not have any financial assets measured and recognized at fair value on a recurring basis.  The Company estimates asset retirement obligations pursuant to the provisions of FASB ASC Topic 410, “Asset Retirement and Environmental Obligations” (“FASB ASC 410”). The initial measurement of asset retirement obligations at fair value is calculated using discounted cash flow techniques and based on internal estimates of future retirement costs associated with oil and gas properties. Given the unobservable nature of the inputs, including plugging costs and reserve lives, the initial measurement of the asset retirement obligation liability is deemed to use Level 3 inputs.

 

 

Accounts Payable and Accrued Expenses

 

At June 30, 2018, the components of accounts payable and accrued expenses consisted of $3,596,131 in trade accounts payable due to various vendors, $1,967,318 in payables and accruals related to direct working interest investors revenues and operating costs, $269,099 in accrued expenses related to current drilling efforts, $24,387 due to affiliates, $244,311 for accrued liabilities for amounts set aside mainly for the plugging and abandonment of certain wells, $117,676 for employee related taxes and accruals, $34,059 in deferred rent and $14,723 in federal and state income taxes payable.  At December 31, 2017, the components of accounts payable and accrued expenses consisted of $2,392,755 in trade accounts payable due to various vendors, $688,002 in payables and accruals related to direct working interest investors revenues and operating costs, $483,734 in accrued expenses related to current drilling efforts, $438,667 in legal settlement payables related to Cash Advances on Pending Transactions, $266,110 for accrued liabilities for amounts set aside mainly for the plugging and abandonment of certain wells, $93,619 for employee related taxes and accruals, $223,833 related to interest payable on cash advances on pending transactions, $35,036 in deferred rent and $17,123 in federal and state income taxes payable.

 

Secured Term Debt

 

Prior to the Merger, Matrix had an outstanding term loan agreement with Arena Limited SPV, LLC (Term Loan) for approximately $12.4 million. The original maturity date of the Term Loan was June 15, 2018, it was secured by the assets of Matrix, and contained financial covenants commencing June 30, 2016 and thereafter, as defined in the term loan agreement. The Term Loan was repaid in full in April 2018 in connection with the Contribution Agreement with CIC.  The Company recognized $164,401 in interest expense for the period ended June 30, 2018.

 

Cash Advances on Pending Transactions

 

In July 2016, we received a cash investment of $1,580,000 from two investors to purchase convertible promissory notes of $1,280,000 and $300,000, with a conversion price of $0.40 per share, with warrants to purchase one share of common stock for every three shares of common stock issuable upon conversion of the notes.  The funds from these transactions were used to continue drilling activities, fund expenses incurred in connection with the completion of Royale Energy’s merger with Matrix Oil Corporation and for general corporate purposes.  The notes originally matured on August 2, 2017, one year from the date of issuance, and carried a 10% interest rate, with a default rate of 25%.  Shortly before completion of the Merger, the $300,000 note and interest of $47,500 was converted into 750,000 shares of Royale common stock valued at $347,500, and Royale agreed to a cash settlement with the holder of the $1,280,000 note for $1,900,000, which was paid in full on April 13, 2018.

 

Commodity Derivative Financial Instruments

 

From time to time, Matrix utilized derivative financial instruments, consisting of puts and swaps, in order to manage exposure to changes in oil commodity prices. These derivative contracts require financial settlements with counterparties based on comparison of various market prices for oil and either floor or swap benchmark prices. The notional amounts of these derivative contracts are economically based on a percentage of estimated production from proved reserves.

 

The Company accounts for derivative contracts in accordance with FASB ASC Topic 815, Accounting for Derivative Instruments and Hedging Activities, which establishes accounting and reporting standards for derivative instruments, including certain derivative instruments embedded in other contracts (collectively referred to as derivatives), and for hedging activities. Currently, the Company has elected not to designate any derivative contracts as accounting hedges under the provisions of FASB ASC Topic 815.

 

As such, all derivative contracts are carried at fair value on the balance sheet and are marked-to-market at the end of each period with a related adjustment to earnings. Unrealized gains or losses are recorded as gain (loss) on derivatives in unrealized gain (loss) on derivative instruments in the consolidated statements of operations. Realized gain or losses are recorded net in oil and gas sales in the consolidated statements of operations.

 

Fair Values – Recurring

 

The Company’s derivative contracts are carried at fair value under ASC Topic 820. The fair value is based upon independently sourced market parameters. The fair value is estimated using forward-looking price curves and discounted cash flows that are observable or that can be corroborated by observable market data and, therefore, are classified within Level 2 of the valuation hierarchy. At June 30, 2018, the Company did not have any derivative contracts.

 

 

Fair Values - Non-recurring

 

The Company applies the provisions of the fair value measurement standard to its non-recurring, non-financial measurements including oil and natural gas property impairments and other long-lived asset impairments. These items are not measured at fair value on a recurring basis but are subject to fair value adjustments only in certain circumstances.

 

Recently Issued Accounting Pronouncements

 

The Company has reviewed the updates issued by the Financial Accounting Standards Board (FASB) during the six months ended June 30, 2018:

 

ASU 2018-05: Income Taxes (Topic 740) – In March 2018, the Financial Accounting Standards Board (“FASB”) issued ASU 2018-05, Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118, to add various SEC paragraphs pursuant to the issuance of SAB 118 to ASC 740. SAB 118 was issued by the SEC in December 2017 to provide immediate guidance for accounting implications of U.S. tax reform under the TCJA. The Company is currently evaluating the effects of adopting ASU 2016-02 on its consolidated financial statements, but the adoption is not expected to have a significant impact on the Company’s financial statements.

 

ASU 2017-09: Compensation - Stock Compensation (Topic 718) – Scope of Modification Accounting - In May 2017, the FASB issued ASU 2017-09, which provides guidance about which changes to the terms or conditions of a share-based payment awarded require an entity to apply modification accounting. ASU 2017-09 is effective for interim and annual reporting periods beginning after December 15, 2017, with early adoption permitted. The amendments in ASU 2017-09 are to be applied prospectively to an award modified on or after the adoption date, consequently the impact will be dependent on the modification of any share-based payment awards and the nature of such modifications.  The adoption of this guidance has no impact on our results of operations or cash flows.

 

ASU 2017-01: Business Combinations (Topic 805) – Clarifying the Definition of a Business - In January 2017, FASB issued ASU 2017-01. The objective of ASU 2017-01 is to clarify the definition of a business by adding guidance on how entities should evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. ASU 2017-01 will be effective for public business entities for fiscal years beginning after December 15, 2017, including interim periods in the year of adoption. Early adoption is permitted for any interim or annual period. The adoption of this guidance has no impact on our results of operations or cash flows.

 

ASU No. 2016-02: Leases (Topic 842). In February 2016, FASB issued ASU 2016-02 which aims to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and requiring disclosure of key information about leasing agreements. Entities are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the effects of adopting ASU 2016-02 on its consolidated financial statements, but the adoption is not expected to have a significant impact on the Company’s financial statements. 

 

ASU 2016-01: Financial Instruments – Overall – Recognition and Measurement of Financial Assets and Financial Liabilities (Subtopic 825-10) In January 2016, FASB issued ASU 2016-01 which requires an entity to: (i) measure equity investments at fair value through net income, with certain exceptions; (ii) present in Other Comprehensive Income the changes in instrument-specific credit risk for financial liabilities measured using the fair value option; (iii) present financial assets and financial liabilities by measurement category and form of financial asset; (iv) calculate the fair value of financial instruments for disclosure purposes based on an exit price and; (v) assess a valuation allowance on deferred tax assets related to unrealized losses of AFS debt securities in combination with other deferred tax assets. The Update provides an election to subsequently measure certain nonmarketable equity investments at cost less any impairment and adjusted for certain observable price changes. The Update also requires a qualitative impairment assessment of such equity investments and amends certain fair value disclosure requirements. The new standard becomes effective for fiscal years beginning after December 15, 2017. Early adoption is only permitted for the provision related to instrument-specific credit risk and the fair value disclosure exemption provided to nonpublic entities.  The adoption of this guidance has no impact on our results of operations or cash flows. 

 

 

NOTE 2  LOSS PER SHARE

 

Basic and diluted loss per share are calculated as follows:

 

   

Three Months Ended June 30,

 
   

2018

   

2017

 
   

Basic

   

Diluted

   

Basic

   

Diluted

 

Net Income (Loss)

  $ (19,140,603

)

  $ (19,140,603

)

  $ 70,662     $ 70,662  

Less:  Preferred Stock Dividend

    233,494       233,494       --       -  

Net Income (Loss) Attributable to Common Shareholders

    (19,374,097

)

    (19,374,097

)

    70,662       70,662  

Weighted average common shares outstanding 

    48,400,371       48,400,371       21,825,770       21,825,770  

Effect of dilutive securities

    --       -       --       -  

Weighted average common shares, including Dilutive effect

    48,400,371       48,400,371       21,825,770       21,825,770  

Per share:

                               

     Net Income (Loss)

  $ (0.40

)

  $ (0.40

)

  $ 0.00     $ 0.00  

 

   

Six Months Ended June 30,

 
   

2018

   

2017

 
   

Basic

   

Diluted

   

Basic

   

Diluted

 

Net Loss

  $ (20,774,316

)

  $ (20,774,316

)

  $ (916,982

)

  $ (916,982

)

Less:  Preferred Stock Dividend

    233,494       233,494       -       -  

Net Loss Attributable to Common Shareholders

    (21,007,810

)

    (21,007,810

)

    70,662       70,662  

Weighted average common shares outstanding 

    39,745,890       39,745,890       21,825,770       21,825,770  

Effect of dilutive securities

    -       -       -       -  

Weighted average common shares, including Dilutive effect

    39,745,890       39,745,890       21,825,770       21,825,770  

Per share:

 

     Net Loss

  $ (0.52

)

  $ (0.52

)

  $ (0.04

)

  $ (0.04

)

 

For the three and six month period ended June 30, 2018, Royale Energy had dilutive securities of 23,509,917 and 15,266,074, respectively.  These securities were not included in the dilutive loss per share due to their antidilutive nature.

 

NOTE 3 – OIL AND GAS PROPERTIES, EQUIPMENT AND FIXTURES

 

Oil and gas properties, equipment and fixtures consist of the following:

 

   

June 30,

2018

   

December 31,

2017

 
   

(Unaudited)

   

(Audited)

 

Oil and Gas

               

Producing properties, including drilling costs

  $ 9,581,245     $ 3,755,705  

Undeveloped properties

    11,817       1,435  

Lease and well equipment

    4,183,075       4,119,802  
      13,776,137       7,876,942  
                 

Accumulated depletion, depreciation & amortization

    (6,701,568

)

    (6,582,648

)

      7,074,569       1,294,294  

Commercial and Other

               

Land

    501,375       -  

Vehicles

    40,061       40,061  

Furniture and equipment

    1,096,139       1,092,926  
      1,637,575       1,132,987  
                 

Accumulated depreciation

    (1,126,470

)

    (1,125,039

)

      511,105       7,948  
    $ 7,585,674     $ 1,302,242  

 

 

The guidance set forth in the Continued Capitalization of Exploratory Well Costs paragraph of the Extractive Activities Topic of the FASB Accounting Standards Codification requires that we evaluate all existing capitalized exploratory well costs and disclose the extent to which any such capitalized costs have become impaired and are expensed or reclassified during a fiscal period. We did not make any additions to capitalized exploratory well costs pending a determination of proved reserves during the periods in 2018 or 2017. 

 

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 amounts used for income tax purposes.  Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.  At the end of 2015, management reviewed the reliability of the Company’s net deferred tax assets, and due to the Company’s continued cumulative losses in recent years, the Company concluded it is not “more-likely-than-not” its deferred tax assets will be realized.  As a result, the Company will continue to record a full valuation allowance against the deferred tax assets in 2018.

 

The calculation below does not consider the tax basis of the assets acquired through the merger with Matrix Oil Management Corporation as discussed in Note 1 above.  The calculation only considers the book basis of assets acquired.  Therefore, the Company cannot say with certainty that the projected tax losses shown below will be fully realized.  The Company has initiated steps to resolve this issue in the near future as further described in Item 4. – Controls and Procedures.  At this time, the Company cannot say whether it will be filing as a tax group or maintain a separate filing status.  Further, the Company has not fully identified the amount of tax carryforward balances, deferred taxes and tax basis of reported assets resulting from the merger with Matrix Oil Company.

 

A reconciliation of Royale Energy’s provision for income taxes and the amount computed by applying the statutory income tax rates at June 30, 2018 and 2017, respectively, to pretax income is as follows: 

 

   

Six Months

Ended

June 30, 2018

   

Six Months

Ended

June 30, 2017

 
                 

Tax benefit computed at statutory rate of 21% and 34% at June 30, 2018 and 2017, respectively

  $ (4,362,606

)

  $ (311,774

)

                 

Increase (decrease) in taxes resulting from:

               
                 

State tax / percentage depletion / other

               

Other non-deductible expenses

    624       205  

Change in valuation allowance

    4,361,982       311,569  

Provision (benefit)

  $ -     $ -  

 

 

 

 

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

 

Forward Looking Statements

 

In addition to historical information contained herein, this discussion contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, subject to various risks and uncertainties that could cause our actual results to differ materially from those in the “forward-looking” statements. While we believe our forward looking statements are based upon reasonable assumptions, there are factors that are difficult to predict and that are influenced by economic and other conditions beyond our control. Investors are directed to consider such risks and other uncertainties discussed in documents filed by the Company with the Securities and Exchange Commission.

 

Merger with Matrix Oil Management Corporation

 

Effective March 7, 2018, Royale Energy merged with REF and Matrix as described in Note 1 to the Unaudited Financial Statements – Merger with Matrix Oil Management Corporation, and our Current Report on Form 8-K filed with the SEC on March 12, 2018, as amended on May 17, 2018.

 

Contribution Agreement with RMX Resources, LLC

 

In April 2018, Royale Energy consummated a Subscription and Contribution Agreement with RMX Resources, LLC, and CIC RMX LP, as described in Note 1 to the Unaudited Financial Statement, and our Current Reports on Form 8-K filed with the SEC on April 4, 2018, and April 13, 2018.

 

Going Concern

 

At June 30, 2018, the Company has an accumulated deficit of $69,213,498, a working capital deficiency of $5,133,752 and a stockholders’ equity of $3,509,519. As a result, our financial statements include a “going concern qualification” reflecting substantial doubt as to our ability to continue as a going concern.  We have merged with Matrix to increase efficiency and reduce costs to both companies, thereby allowing a return to positive cash flow.  We have also entered into a joint venture with RMX which provided additional liquidity as further described in Note 1.  We are exploring commitments to provide additional financing, but there is no guarantee that we will be able to secure additional financing on acceptable terms, or at all, if needed to fully fund our 2018 drilling budget and to support future operations.

 

Results of Operations

 

The merger between Royale Energy and Matrix Oil Management was completed during the first quarter of 2018.  For the period in 2018, the consolidated amounts represented here are for the six month period for Royale Energy, Inc. and the four month period for Matrix Oil Management and its subsidiaries.

 

For the six months ended June 30, 2018, we had a net loss of $20,774,316 compared to the net loss of $916,982 during the first six months of 2017.  Our net loss for the second quarter of 2018 was $19,140,603, of which our loss from operations in the second quarter of 2018 was $844,894, versus net income from operations of $110,162 in the second quarter of 2017.  The components of the remaining $18,295,709 net loss for the second quarter of 2018 were:

 

Gain on Settlement of Accounts Payable

  $ 46,218  

Loss on Sale of Assets

    (16,217,673

)

Loss on Investment in Joint Venture

    (684,264

)

Loss on Issuance of Warrants

    (1,439,990

)

Total Other Loss

  $ (18,295,709

)

 

The loss on sale of assets of $16,217,673 was recorded upon the transfer of oil and gas properties to RMX and surface rights in exchange for cash and a 20 percent working interest in RMX under the Contribution Agreement. Under the Contribution Agreement, we also issued warrants to acquire 4,000,000 shares of Royale common stock and recorded a loss of $1,439,990.  The loss on investment in joint venture of $684,264 represents Royale’s share of RMX’s net loss from operations in the second quarter of 2018.    See Note 1 – Formation of RMX and Asset Contribution

 

Total revenues for the first half of 2018 were $1,517,531, an increase of $997,625 or 191.9% from the total revenues of $519,906 during the same period in 2017. 

 

 

 

During the first six months of 2018, revenues from oil and gas production increased $602,082 or 171.5% to $953,131 from the 2017 first half revenues of $351,049.  This increase was due to higher production volumes associated with the merger.  The net sales volume of oil and condensate for the six months ended June 30, 2018, was approximately 12,345 barrels with an average price of $64.75 per barrel, versus 90 barrels with an average price of $46.03 per barrel for the first half of 2017.  This represents an increase in net sales volume of 12,255 barrels. The net sales volume of natural gas for the six months ended June 30, 2018, was approximately 62,385 Mcf with an average price of $2.41 per Mcf, versus 117,475 Mcf with an average price of $2.95 per Mcf for the same period in 2017.  This represents a decrease in net sales volume of 55,090 Mcf or 46.9%.  The decrease in natural gas production volume was due to several of our operated wells being offline during the period in 2018 due to new pipeline equipment requirements by Pacific Gas & Electric and to the natural declines of our remaining wells. For the quarter ended June 30, 2018, revenues from oil and gas production increased $118,223 or 72.2% to $281,929 from the 2017 second quarter revenues of $163,706.  This increase was also due to higher production volumes associated with the merger.  The net sales volume of oil and condensate for the quarter ended June 30, 2018, was approximately 3,036 barrels with an average price of $70.89 per barrel, versus 45 barrels with an average price of $45.54 per barrel for the second quarter of 2017.  This represents an increase in net sales volume of 2,991 barrels for the quarter in 2018. The net sales volume of natural gas for the quarter ended June 30, 2018, was approximately 29,221 Mcf with an average price of $2.23 per Mcf, versus 58,287 Mcf with an average price of $2.77 per Mcf for the second quarter of 2017.  This represents a decrease in net sales volume of 29,066 Mcf or 49.9% for the quarter in 2018.

 

Oil and natural gas lease operating expenses increased by $536,365 or 232.7%, to $766,818 for the six months ended June 30, 2018, from $230,453 for the same period in 2017.  For the second quarter in 2018, lease operating expenses increased $375,338 or 303.1% from the same quarter in 2017. These were both higher due to the increase in the number of wells operated by the Company during the period in 2018, related to the merger.  

 

The aggregate of supervisory fees and other income was $564,400 for six months ended June 30, 2018, an increase of $395,543 or 234.3% from $168,857 during the same period in 2017.  During the second quarter 2018, supervisory fees and other income increased $430,628 or 526.4% when compared to the quarter in 2017.  These increases were mainly due to the receipt of service agreement fees through an arrangement with RMX Resources, LLC.

 

Depreciation, depletion and amortization expense increased to $275,946 from $90,304, an increase of $185,642 or 205.6% for the six months ended June 30, 2018, as compared to the same period in 2017. During the second quarter 2018, depreciation, depletion and amortization expenses increased $58,766 or 135.2%.  The depletion rate is calculated using production as a percentage of reserves.  This increase in depreciation expense was due to the increase in the number of wells and related equipment operated by the Company as a result of the merger consolidation.

 

General and administrative expenses increased by $452,602 or 44.6% from $1,015,028 for the six months ended June 30, 2017, to $1,467,630 for the same period in 2018. For the second quarter 2018, general and administrative expenses increased $158,231 or 35.2% when compared to the same period in 2017. These increases were primarily due mainly to merger related increases in employee costs and outside consulting.  Marketing expense for the six months ended June 30, 2018, decreased $38,539, or 23.8%, to $123,693, compared to $162,232 for the same period in 2017.  For the second quarter 2018, marketing expenses decreased $52,874 or 48.9% when compared to the second quarter in 2017. Marketing expense varies from period to period according to the number of marketing events attended by personnel and their associated costs.

 

Legal and accounting expense increased to $1,077,302 for the six month period in 2018, compared to $668,283 for the same period in 2017, a $409,019 or 61.2% increase.  For the second quarter 2018, legal and accounting expenses increased $175,591 or 92.9%, when compared to the second quarter in 2017.  This increase was primarily due to legal and accounting fees related to the Matrix merger.

 

During the six months ended June 30, 2018, we recorded a loss on investment in joint venture of $684,264 as our 20% share of RMX Resources, LLC’s period loss of $3,421,321, see discussion in Note 1.  During the six months ended June 30, 2018, we recorded a $105,130 loss on derivative instruments, reflecting the period end market-to market changes in the fair value positions.  During the six months ended June 30, 2018 and 2017, we recorded gains of $46,218 and $73,128, respectively on the settlement of accounts payable.  We periodically review our proved properties for impairment on a field-by-field basis and charge impairments of value to the expense. During the first six months of 2017, we recorded a lease impairment of $136,837 on various lease and land costs that were no longer viable.  There were no lease impairments recorded during the period in 2018.  During the six months ended June 30, 2018 and 2017, we recorded write downs of $9,790 and $6,000, respectively on certain well equipment that was no longer useable.

 

 

 

At June 30, 2018, Royale Energy had a Deferred Drilling Obligation of $8,654,398.  During the first half of 2018, we were unable to drill new wells due to wet weather conditions and other delays in our Northern California fields. At June 30, 2017, Royale Energy had a Deferred Drilling Obligation of $7,450,467.  During the first six months of 2017, we disposed of $1,868,534 of drilling obligations upon completing the drilling of one well, while incurring expenses of $990,001, resulting in a gain of $878,533.  

 

Interest expense increased to $169,829 for the six months ended June 30, 2018, from $79,412 for the same period in 2017, a $90,417 increase.  This increase resulted from interest accrued on the term loan agreement originated by Matrix.  Further details concerning this agreement can be found in Capital Resources and Liquidity, below.  

 

Capital Resources and Liquidity

 

At June 30, 2018, Royale Energy had current assets totaling $11,698,707 and current liabilities totaling $16,832,459 a $5,133,752 working capital deficit.  We had cash at June 30, 2018, of $6,673,603 compared to $3,338,693 at December 31, 2017.

 

Ordinarily, we fund our operations and cash needs from our available credit and cash flows generated from operations.  We believe that consummation of the Merger will enable the combined companies to meet their liquidity demands.  However, because the Merger results in different liquidity needs than Royale had before the Merger, there is doubt as to the ability to meet liquidity demands through cash flow or ongoing operations.  In that event, the Company will seek alternative capital sources through additional sales of equity or debt securities, or the sale of property.

 

At June 30, 2018, our other receivables, which consist of joint interest billing receivables from direct working interest investors and industry partners, totaled $2,786,227, compared to $764,015 at December 31, 2017, a $2,022,212 increase.  This increase was mainly due to receivables from Matrix industry partners for drilling and well operations.  At June 30, 2018, revenue receivable was $568,086, an increase of $462,079, compared to $106,007 at December 31, 2017, due to higher oil and gas production volumes on Matrix operated wells.  At June 30, 2018, our accounts payable and accrued expenses totaled $6,267,702, an increase of $1,628,823 from the accounts payable at December 31, 2017 of $4,638,879, mainly related to Matrix drilling and operations related trade accounts payable. 

 

In July 2016, we received a cash investment of $1,580,000 from two investors to purchase convertible promissory notes with principal amounts of $1,280,000 and $300,000, with a conversion price of $0.40 per share, with warrants to purchase one share of common stock for every three shares of common stock issuable upon conversion of the notes.  The notes originally matured on August 2, 2017, one year from the date of issuance, and carried a 10% interest rate, with a default rate of 25%.  Shortly before completion of the Merger, the $300,000 note and accrued interest of $47,500 was converted into 750,000 shares of Royale common stock valued at $347,500, and Royale agreed to a cash settlement with the holder of the $1,280,000 note for $1,900,000, which was paid on April 13, 2018.

 

In conjunction with the Purchase and Sale Agreement on June 15, 2016, Matrix Oil Management Corp entered into a term loan agreement with Arena Limited SPV, LLC (Term Loan) for approximately $12.4 million. The uses of the term loan were used for the approximately 50% working interest purchase of the oil and gas properties noted above in the Purchase and Sale Agreement, the payoff of the existing Credit Facility, payment of legal and other loan costs, and other working capital needs of the Company as defined in the loan agreement. The original maturity date of the Term Loan was June 15, 2018, it was secured by the assets of Matrix, and contained financial covenants commencing June 30, 2016 and thereafter, as defined in the term loan agreement. The Term Loan contained preferential payment requirements in advance of the amounts outstanding under the subordinated notes payable to partners, as defined in the term loan agreement.  The Term Loan Agreement called for interest at the rate of nine percent (9%) plus the adjusted LIBOR Rate computed on a daily basis.  The loan balance as of March 31, 2018 was $11,140,749.  The Company recognized $164,401 in interest expense for the period ended March 31, 2018.  In April 2018 pursuant to the Contribution Agreement, this loan agreement was paid in full.

 

Operating Activities.  Net cash used by operating activities totaled $1,209,949 and $1,149,332 for the six month periods ended June 30, 2018 and 2017, respectively.  This $60,617 or 5.3% increase in cash used was mainly due to increases in due from affiliates during the period in 2018 related to the sale of oil and gas assets in the formation of RMX Resources, previously discussed in Note 1.

 

Investing Activities.  Net cash provided by investing activities totaled $6,719,779 and $371,558 for the six month periods ended June 30, 2018 and 2017, respectively.  The $6,348,221 increase in cash provided during the period in 2018 was mainly due to approximately $4 million received in the merger and for the oil and gas asset sale and contribution in the formation of RMX Resources, LLC as previously discussed in Note 1.  During the period on 2018, we also received $2,762,500 in direct working interest investor turnkey drilling investments, while during the same period in 2017 we received $1,425,000. 

 

 

Financing Activities.  Net cash used by financing activities totaled $2,174,920 in the first six months of 2018, mainly due to the $1.9 million settlement payment for the cash advances on pending transactions. During the period in 2018, we also paid $274,920 for principal and fee payments on the Matrix originated term loan agreement.  No net cash was provided or used in financing activities in the first half of 2017.

 

Item 3.  Quantitative and Qualitative Disclosures About Market Risk

 

Our major market risk exposure relates to pricing of oil and gas production.  The prices we receive for oil and gas are closely related to worldwide market prices for crude oil and local spot prices paid for natural gas production.  Prices have been volatile for the last several years, and we expect that volatility to continue.  Monthly average natural gas prices ranged from a low of $2.33 per Mcf to a high of $2.95 per Mcf for the first six months of 2018. 

 

Item 4.  Controls and Procedures

 

As of June 30, 2018, an evaluation was performed under the supervision and with the participation of our management, including our CEO and CFO, of the effectiveness of the design and operation of our disclosure controls and procedures.  These controls and procedures are based on the definition of disclosure controls and procedures in Rule 13a-15(e) and Rule 15d-15(e) promulgated under the Securities Exchange Act of 1934.  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. 

 

Management identified an internal control deficiency that represents a material weakness in or internal control over financial reporting as of December 31, 2017, in that, certain legal documents, such as debt and equity financing transactions, during the fiscal year were not supported by fully executed agreements.

 

The control deficiency that gave rise to the material weakness did not result in a material misstatement of our financial statements for the fiscal year ended December 31, 2017.

 

Because of the material weakness described above, our management was unable to conclude that our internal control over financial reporting was effective as of the end of period to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external reporting purposes in accordance with generally accepted accounting principles. Management is seeking written acknowledgement of the note transactions from the note holders in order to remediate the material weakness described above and will require written acknowledgement from counterparties of all similar future transactions.

 

Management has also identified a significant deficiency that existed as of June 30, 2018, in that we did not have appropriate policies and procedures in place to properly evaluate the accuracy of certain of our financial accounts related to the determination of the tax basis of acquired assets associated with the merger of the Company with Matrix as further described in the financial Note 1 – Merger with Matrix Oil Management Corporation.  There have been no changes in our internal control over financial reporting that occurred during the three month period ended June 30, 2018, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

Remedial Action

 

We have begun our remediation plan with respect to improving and implementing our control over financial reporting and more specifically associated with determining the tax basis of the properties acquired in the merger with Matrix Oil Management Corporation.  We will be engaging an outside consulting firm to assist us in the determination of the tax basis of these properties, determination of whether or not to file as a tax group or maintain separate filing status.  Additionally, we are in the process of implementing a more robust review and increasing the supervision and monitoring of the financial reporting processes related to our material weakness in the calculation and reporting of tax carryforward balances, deferred taxes and tax basis of reported assets.

 

Except for the actions described above that were taken to address the material weaknesses, there were no changes in our internal controls during the six months ended June 30, 2018, that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

 

 

PART II.   OTHER INFORMATION

 

Item 1.  Legal Proceedings

 

None

 

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

 

In July 2016, we received a cash investment of $1,580,000 from two investors to purchase convertible promissory notes of $1,280,000 and $300,000, with a conversion price of $0.40 per share, with warrants to purchase one share of common stock for every three shares of common stock issuable upon conversion of the notes.  The funds from these transactions were used to continue drilling activities, fund expenses incurred in connection with the completion of Royale Energy’s merger with Matrix Oil Corporation and for general corporate purposes.  The notes originally matured on August 2, 2017, one year from the date of issuance, and carried a 10% interest rate, with a default rate of 25%.  Shortly before completion of the Merger, the $300,000 note and accrued interest of $47,500 was converted into 750,000 shares of Royale common stock valued at $347,500, and Royale agreed to a cash settlement with the holder of the $1,280,000 note for $1,900,000, which was paid in full on April 13, 2018.

 

Item 4.  Mine Safety Disclosures

 

Not applicable

 

Item 5.  Other Information

 

None

 

Item 6.  Exhibits

 

2.1

 

Amended and Restated Agreement and Plan of Merger among the Company, REF. Royale Merger Sub, Inc., Matrix Merger Sub, Inc., and Matrix Oil Management Corporation, filed as Exhibit 2.1, Annex A to the Company’s Form S-4/A, filed July 21, 2017

 

 

 

2.2

 

Amendment No. 7 to the Amended and Restated Agreement and Plan of Merger among the Company, REF, Royale Merger Sub, Inc., Matrix Merger Sub, Inc., and Matrix Oil Management Corporation, filed as Exhibit 2.2 to the Company’s Form 8-A filed March 8, 2018

 

 

 

2.3

 

Joint Waiver of Closing Conditions between Matrix Oil Management Corporation, on behalf of itself and as general partner of Matrix Investments, L.P., Matrix Permian Investments, LP, , Matrix Las Cienegas Limited Partnership, Matrix Oil Corporation, and all of the holders of preferred limited partnership interests of Matrix Investments (February 28, 2018), filed as Exhibit 2.6 to the Company’s Form 8-A, filed March 8, 2018

 

 

 

2.4   Subscription and Contribution Agreement by and among RMX, CIC, Royale, REF and Matrix (April 4, 2018), filed as Exhibit 2.1 to the Company’s Form 8-K filed April 10, 2018
     

3.1

 

Amendment to the Company’s Certificate of Incorporation of Royale Energy Holdings, Inc., filed with the Delaware Secretary of State, March 2, 2018, filed as Exhibit 3.2 to the Company’s Form 8-K filed March 12, 2018

 

 

 

4.1   Royale Energy Holdings, Inc., Certificate of Designation of Series B 3.5% Redeemable Convertible Preferred Stock, filed with the Delaware Secretary of State on February 27, 2018, filed as Exhibit 2.5 to the Company’s Form 8-A, filed March 8, 2018
     
10.1   Agreement and Plan of Exchange between Royale Energy, Inc., Royale Energy Holdings, Inc., and the partners of Matrix Investments, LP (February 28, 2018), filed as Exhibit 10.1 to the Company’s Form 8-K filed March 12, 2018
     

10.2

 

Agreement and Plan of Exchange between Royale Energy, Inc., Royale Energy Holdings, Inc., and the partners of Matrix Las Cienegas Limited Partnership (February 28, 2018), filed as Exhibit 10.2 to the Company’s Form 8-K filed March 12, 2018

 

 

 

10.3

 

Agreement and Plan of Exchange between Royale Energy, Inc., Royale Energy Holdings, Inc., and the partners of Matrix Permian Investments, LP (February 28, 2018), filed as Exhibit 10.3 to the Company’s Form 8-K filed March 12, 2018

 

 

 

10.4

 

Agreement and Plan of Exchange between Royale Energy, Inc., Royale Energy Holdings, Inc., Matrix Oil Corporation and the shareholders of Matrix Oil Corporation (February 28, 2018), filed as Exhibit 10.4 to the Company’s Form 8-K filed March 12, 2018

 

 

 

10.5

 

Preferred Exchange Agreement between Royale Energy, Inc., Royale Energy Holdings, Inc., and the holders of the preferred limited partnership interests of Matrix Investments, LP (February 28, 2018), filed as Exhibit 10.5 to the Company’s Form 8-K filed March 12, 2018

 

 

 

10.6

 

Consent To Merger, Joinder, Waiver And Fourth Amendment To Term Loan Agreement between Matrix Oil Corporation, Matrix Pipeline LP, Matrix Oil Management Corporation, Matrix Las Cienegas Limited Partnership, Matrix Investments, L.P., Matrix Permian Investments, LP, Matrix Royalty, LP, Royale Energy Holdings, Inc., Royale Energy, Inc., Arena Limited SPV, LLC, Arena Limited SPV, LLC, , and  Cargill Incorporated (February 28, 2018), filed as Exhibit 10.6 to the Company’s Form 8-K filed March 12, 2018

 

 

 

10.7

 

Pledge Agreement by Royale Energy, Inc., in favor of Arena Limited SPV, LLC (February 28, 2018) filed as Exhibit 10.7 to the Company’s Form 8-K filed March 12, 2018

 

 

 

10.8

 

Settlement Agreement and Release between Joseph Henry Paquette TR FBO OVE, Inc Profit Sharing Plan FBO Joseph Paquette and Royale Energy, Inc. (February 28, 2018), filed as Exhibit 10.8 to the Company’s Form 8-K filed March 12, 2018

 

 

 

10.9

 

Company Agreement of RMX (April 4, 2018), filed as Exhibit 10.1 to the Company’s Form 8-K filed April 10, 2018

 

 

 

10.10

 

Assignment and Assumption Agreement by and between Sunny Frog Oil, LLC, RMX, Royale, and SFO Production Payment LLC (April 4, 0218), filed as Exhibit 10.2 to the Company’s Form 8-K filed April 10, 2018

 

 

 

10.11

 

Conveyance of Term Overriding Royalty Interest between Sunny Frog Oil, LLC, and Royale (April 4, 2018) , filed as Exhibit 10.3 to the Company’s Form 8-K filed April 10, 2018

 

 

 

10.12

 

Executive Employment Agreement between Jonathan Gregory and Royale (April 4, 2018) , filed as Exhibit 10.4 to the Company’s Form 8-K filed April 10, 2018

 

 

 

10.14

 

Form of Management Services Agreement between Royale and RMX to be entered upon Second Closing of Contribution Agreement, filed as Exhibit 10.5 to the Company’s Form 8-K filed April 10, 2018

 

 

 

10.15

 

Purchase and Sale Agreement between Sunny Frog Oil, LCC, and REF (November 27, 2017) , filed as Exhibit 10.6 to the Company’s Form 8-K filed April 10, 2018

 

 

 

10.16

 

Letter Agreement by and among RMX, CIC< Royale, REF and Matrix (April 12, 2018), filed as Exhibit 2.1 to the Company’s Form 8-K filed April 17, 2018

 

 

 

10.17

 

Executive Employment Agreement between the Rod Eson and the Company, filed as Exhibit 5.1 to the Company’s Form 8-K filed July 6, 2018

 

 

22

 

 

31.1

 

Rule 13a-14(a)/15d-14(a) Certification

 

 

 

31.2

 

Rule 13a-14(a)/15d-14(a) Certification

 

 

 

31.3

 

Rule 13a-14(a)/15d-14(a) Certification

 

 

 

32.1

 

18 U.S.C. § 1350 Certification

 

 

 

32.2

 

18 U.S.C. § 1350 Certification

 

 

 

32.3

 

18 U.S.C. § 1350 Certification

 

 

 

101.INS

XBRL Instance Document

101.SCH

XBRL Taxonomy Extension Schema

101.CAL

XBRL Taxonomy Extension Calculation Linkbase

101.DEF

XBRL Taxonomy Extension Definition Linkbase

101.LAB

XBRL Taxonomy Extension Label Linkbase

101.PRE

XBRL Taxonomy Extension Presentation Linkbase

 

 

 

 

 

Signatures

 

Pursuant to the requirements of Section 13 or 15(d) 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 20, 2018

/s/ Rod Eson

 

 

Rod Eson, Chief Executive Officer

 

 

 

 

Date:  August 20, 2018

/s/ Johnny Jordan

 

 

Johnny Jordan, President and Chief Operating Officer

 

 

 

 

Date:  August 20, 2018

/s/ Stephen M. Hosmer

 

 

Stephen M. Hosmer, Chief Financial Officer

 

 

 

 

 

 

24
 

 

 

 

EX-31.1 2 ex_121991.htm EXHIBIT 31.1 ex_121991.htm

Exhibit 31.1

 

I, Rod Eson, certify that:

 

1. I have reviewed this report on Form 10-Q of Royale Energy, Inc.;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date:  August 20, 2018

/s/ Rod Eson

 

 

Rod Eson, Chief Executive Officer

 

 

 

 

EX-31.2 3 ex_121992.htm EXHIBIT 31.2 ex_121992.htm

Exhibit 31.2

 

I, Johnny Jordan, certify that:

 

1. I have reviewed this report on Form 10-Q of Royale Energy, Inc.;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date:  August 20, 2018

/s/ Johnny Jordan

 

 

Johnny Jordan, President and Chief Operating Officer

 

 

 

 

 

EX-31.3 4 ex_121993.htm EXHIBIT 31.3 ex_121993.htm

Exhibit 31.3

 

I, Stephen M. Hosmer, certify that:

 

1. I have reviewed this report on Form 10-Q of Royale Energy, Inc.;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions)

 

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

 

Date:  August 20, 2018

/s/ Stephen M. Hosmer

 

 

Stephen M. Hosmer, Chief Financial Officer

 

 

 

EX-32.1 5 ex_121994.htm EXHIBIT 32.1 ex_121994.htm

 

Exhibit 32.1

 

Certification Pursuant to 18 U.S.C. § 1350

 

The undersigned, Rod Eson, Chief Executive Officer of Royale Energy, Inc., a Delaware corporation (the “Company”), pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002, hereby certifies that:

 

(1) the Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2018 (the “Report”) fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and

 

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

Date:  August 20, 2018

By:

/s/ Rod Eson

 

 

 

Rod Eson, Chief Executive Officer

 

 

 

 

EX-32.2 6 ex_121995.htm EXHIBIT 32.2 ex_121995.htm

Exhibit 32.2

 

Certification Pursuant to 18 U.S.C. § 1350

 

The undersigned, Johnny Jordan, President and Chief Operating Officer of Royale Energy, Inc., a Delaware corporation (the “Company”), pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002, hereby certifies that:

 

(1) the Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2018 (the “Report”) fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and

 

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

 

Date:  August 20, 2018

By:

/s/ Johnny Jordan

 

 

 

Johnny Jordan, President and Chief Operating Officer

 

 

 

 

 

EX-32.3 7 ex_121996.htm EXHIBIT 32.3 ex_121996.htm

Exhibit 32.3

 

Certification Pursuant to 18 U.S.C. § 1350

 

The undersigned, Stephen M. Hosmer, Co-President, Co-Chief Executive Officer and Chief Financial Officer of Royale Energy, Inc., a Delaware corporation (the “Company”), pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002, hereby certifies that:

 

(1) the Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2018 (the “Report”) fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and

 

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

 

Date:  August 20, 2018

By:

/s/ Stephen M. Hosmer

 

 

 

Stephen M. Hosmer, Chief Financial Officer

 

 

 

 

EX-101.INS 8 royl-20180630.xml XBRL INSTANCE DOCUMENT 0001694617 2018-06-30 0001694617 2017-12-31 0001694617 royl:CommonStockWithParValueMember 2018-06-30 0001694617 royl:CommonStockWithParValueMember 2017-12-31 0001694617 us-gaap:OilAndGasMember 2018-04-01 2018-06-30 0001694617 us-gaap:OilAndGasMember 2017-04-01 2017-06-30 0001694617 us-gaap:OilAndGasMember 2018-01-01 2018-06-30 0001694617 us-gaap:OilAndGasMember 2017-01-01 2017-06-30 0001694617 us-gaap:ManagementServiceMember 2018-04-01 2018-06-30 0001694617 us-gaap:ManagementServiceMember 2017-04-01 2017-06-30 0001694617 us-gaap:ManagementServiceMember 2018-01-01 2018-06-30 0001694617 us-gaap:ManagementServiceMember 2017-01-01 2017-06-30 0001694617 2018-04-01 2018-06-30 0001694617 2017-04-01 2017-06-30 0001694617 2018-01-01 2018-06-30 0001694617 2017-01-01 2017-06-30 0001694617 2016-12-31 0001694617 2017-06-30 0001694617 2018-08-15 0001694617 royl:MatrixInvestmentsMember 2018-03-07 0001694617 us-gaap:SeriesBPreferredStockMember 2018-03-07 2018-03-07 0001694617 royl:RMXResourcesLLCMember 2018-04-30 0001694617 srt:MaximumMember royl:RMXResourcesLLCMember 2018-04-30 2018-04-30 0001694617 royl:RMXResourcesLLCMember 2018-04-30 2018-04-30 0001694617 royl:RMXResourcesLLCMember royl:CICRMXLPMember 2018-04-30 0001694617 royl:RMXResourcesLLCMember royl:CICRMXLPMember 2018-04-30 2018-04-30 0001694617 royl:RMXResourcesLLCMember royl:TheRoyalEntitiesMember 2018-04-30 2018-04-30 0001694617 royl:SansinenaFieldMember royl:RMXResourcesLLCMember royl:TheRoyalEntitiesMember 2018-04-30 2018-04-30 0001694617 royl:SempraFieldMember royl:RMXResourcesLLCMember royl:TheRoyalEntitiesMember 2018-04-30 2018-04-30 0001694617 royl:BellevueFieldMember royl:RMXResourcesLLCMember royl:TheRoyalEntitiesMember 2018-04-30 2018-04-30 0001694617 royl:WhittierMainFieldMember royl:RMXResourcesLLCMember royl:TheRoyalEntitiesMember 2018-04-30 2018-04-30 0001694617 royl:WhittierFieldMember royl:RMXResourcesLLCMember royl:TheRoyalEntitiesMember 2018-04-30 2018-04-30 0001694617 royl:RMXResourcesLLCMember royl:MatrixOilCorporationMOCMember 2018-04-30 2018-04-30 0001694617 royl:LegacyBankTexasMember royl:CICRMXLPMember 2018-04-30 0001694617 royl:LegacyBankTexasMember royl:CICRMXLPMember 2018-06-30 0001694617 royl:RMXResourcesLLCMember 2018-01-01 2018-06-30 0001694617 srt:MinimumMember 2018-01-01 2018-06-30 0001694617 srt:MaximumMember 2018-01-01 2018-06-30 0001694617 us-gaap:AccountsPayableMember 2018-06-30 0001694617 royl:DirectWorkingInterestInvestorLiabilitiesMember 2018-06-30 0001694617 royl:DrillingEffortLiabilitiesMember 2018-06-30 0001694617 royl:DueToAffiliatesMember 2018-06-30 0001694617 royl:LiabilitiesForPluggingAndAbandonmentMember 2018-06-30 0001694617 royl:EmployeeRelatedTaxesMember 2018-06-30 0001694617 royl:DeferredRentMember 2018-06-30 0001694617 royl:FederalAndStateIncomeTaxesMember 2018-06-30 0001694617 us-gaap:AccountsPayableMember 2017-12-31 0001694617 royl:DirectWorkingInterestInvestorLiabilitiesMember 2017-12-31 0001694617 royl:DrillingEffortLiabilitiesMember 2017-12-31 0001694617 royl:LegalSettlementPayableRelatedToCashAdvancesMember 2017-12-31 0001694617 royl:LiabilitiesForPluggingAndAbandonmentMember 2017-12-31 0001694617 royl:EmployeeRelatedTaxesMember 2017-12-31 0001694617 royl:InterestPayableOnCashAdvancesMember 2017-12-31 0001694617 royl:DeferredRentMember 2017-12-31 0001694617 royl:FederalAndStateIncomeTaxesMember 2017-12-31 0001694617 2016-06-15 0001694617 us-gaap:ConvertibleNotesPayableMember 2016-07-01 0001694617 royl:Note1EnteredIntoNegotiationsMember us-gaap:ConvertibleNotesPayableMember 2016-07-01 0001694617 royl:Note2EnteredIntoNegotiationsMember us-gaap:ConvertibleNotesPayableMember 2016-07-01 0001694617 royl:NotesEnteredIntoNegotiationsMember us-gaap:ConvertibleNotesPayableMember 2016-07-01 0001694617 royl:NotesEnteredIntoNegotiationsMember us-gaap:ConvertibleNotesPayableMember 2016-07-01 2016-07-01 0001694617 srt:MaximumMember us-gaap:ConvertibleNotesPayableMember 2016-07-01 0001694617 us-gaap:ConvertibleNotesPayableMember 2017-01-01 2017-12-31 0001694617 us-gaap:ConvertibleNotesPayableMember 2018-04-13 2018-04-13 0001694617 2018-03-07 2018-03-07 0001694617 2018-03-07 0001694617 us-gaap:ParentMember 2018-04-01 2018-06-30 0001694617 royl:MatrixOilManagementCorpMember 2018-04-01 2018-06-30 0001694617 us-gaap:ParentMember 2017-04-01 2017-06-30 0001694617 royl:MatrixOilManagementCorpMember 2017-04-01 2017-06-30 0001694617 royl:RMXResourcesLLCMember 2018-01-01 2018-06-30 0001694617 us-gaap:CorporateJointVentureMember 2018-01-01 2018-06-30 0001694617 2016-04-01 2016-06-30 0001694617 us-gaap:LandMember 2018-06-30 0001694617 us-gaap:LandMember 2017-12-31 0001694617 us-gaap:VehiclesMember 2018-06-30 0001694617 us-gaap:VehiclesMember 2017-12-31 0001694617 us-gaap:FurnitureAndFixturesMember 2018-06-30 0001694617 us-gaap:FurnitureAndFixturesMember 2017-12-31 iso4217:USD iso4217:USD xbrli:shares xbrli:shares xbrli:pure 6673603 3338693 2786227 764015 568086 106007 1389289 0 281502 149367 11698707 4358082 5565736 0 517714 511120 7585674 1302242 25367831 6171444 6267702 4638879 1676865 0 0 1580000 233494 0 8654398 5891898 16832459 12110777 1478385 0 1616205 0 1931263 1000908 5025853 1000908 21858312 13111685 20124000 0 0 41265449 48400 0 52550617 -69213498 -48205690 3509519 -6940241 25367831 6171444 10 3000000 2012400 2012400 0 30000000 21850185 21850185 48400371 48400371 280000000 0.001 281929 163706 953131 351049 512430 81802 564400 168857 794359 245508 1517531 519906 499170 123832 766818 230453 0 99468 0 136837 9790 0 9790 6000 608273 450042 1467630 1015028 364580 188989 1077302 668283 55210 108084 123693 162232 102230 43464 275946 90304 1639253 1013879 3721179 2309137 0 878533 0 878533 -844894 110162 -2203648 -910698 0 39500 169829 79412 46218 0 46218 73128 -16217673 0 -16217673 0 684264 0 684264 0 0 0 -105130 0 -1439990 0 -1439990 0 -19140603 70662 -20774316 -916982 -19140603 70662 -20774316 -916982 -0.40 0.00 -0.52 -0.04 -0.40 0.00 -0.52 -0.04 -684264 0 1439990 0 144186 0 -319805 -39323 9634 578743 1083520 0 1757760 1025590 -301220 0 50415 0 -1209949 -1149332 36008 1053442 -2762500 -1425000 3444482 0 548805 0 6719779 371558 274920 0 -1900000 0 -2174920 0 3334910 -777774 4994598 4216824 164829 412 2400 1539 9546068 0 20124000 0 1440000 0 347500 0 0 30000 0 347500 ROYALE ENERGY, INC. 10-Q --12-31 48400371 false 0001694617 Yes No Smaller Reporting Company No 2018 Q2 2018-06-30 <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>NOTE 1 &#x2013; </b>In the opinion of management, the accompanying unaudited financial statements include all adjustments, consisting only of normally recurring adjustments, necessary to present fairly the Company&#x2019;s financial position and the results of its operations and cash flows for the periods presented.&#xa0;&#xa0;The results of operations for the six month period are not, in management&#x2019;s opinion, indicative of the results to be expected for a full year of operations.&#xa0;&#xa0;It is suggested that these financial statements be read in conjunction with the&#xa0;consolidated financial statements and the notes thereto included in the Company&#x2019;s latest annual report.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>Merger with Matrix Oil Management Corporation</b></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">On March 7, 2018, Royale Energy, Inc. (&#x201c;Royale Energy,&#x201d; formerly known as&#xa0; Royale Energy Holdings, Inc., a Delaware corporation), Royale Energy Funds, Inc. (&#x201c;REF,&#x201d; formerly known as Royale Energy, Inc., a California corporation), and Matrix Oil Management Corporation (&#x201c;Matrix&#x201d;) and its affiliates were notified by the California Secretary of State of the filing and acceptance of agreements of merger by the California Secretary of State, to complete the previously announced merger between the companies (the &#x201c;Merger&#x201d;).&#xa0; In the Merger, REF was merged into a newly formed subsidiary of Royale Energy, and Matrix was merged into a second newly formed subsidiary of Royale Energy pursuant to the Amended and Restated Agreement and Plan of Merger among REF, Royale Energy, Royale Merger Sub, Inc., (&#x201c;Royale Merger Sub&#x201d;), Matrix Merger Sub, Inc., (&#x201c;Matrix Merger Sub&#x201d;) and Matrix (the &#x201c;Merger Agreement&#x201d;).&#xa0; Additionally, in connection with the merger, all limited partnership interest of two limited partnership affiliates of Matrix (Matrix Permian Investments, LP, and Matrix Las Cienegas Limited Partnership), were exchanged for Royale Energy common stock using conversion ratios according to the relative values of each partnership.&#xa0; All Class A limited partnership interests of another Matrix affiliate, Matrix Investments, LP (&#x201c;Matrix Investments&#x201d;) were exchanged for Royale Energy Common stock using conversion ratios according to the relative value of the Class A limited partnership interests, and $20,124,000 of Matrix Investments preferred limited partnership interests were converted into 2,012,400 shares of Series B Convertible Preferred Stock of Royale Energy.&#xa0; Another Matrix affiliate, Matrix Oil Corporation (&#x201c;Matrix Operator&#x201d;), was acquired by Royale Energy by exchanging Royale Energy common stock for the outstanding common stock of Matrix Oil Corporation using a conversion ratio according to the relative value of the Matrix Oil Corporation common stock.&#xa0; Matrix, Matrix Oil Corporation and the three limited partnership affiliates of Matrix called the &#x201c;Matrix Entities.&#x201d;</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The Merger had been previously approved by the respective holders of all outstanding capital stock of REF, Matrix, Royale Energy, Matrix Merger Sub and Royale Merger Sub on November 16, 2017, as previously reported in our Current Report on Form 8-K dated November 16, 2017.&#xa0; The Merger and related transactions are described in detail in our Current Report on Form 8-K dated March 7, 2018, and in Royale Energy&#x2019;s Current Report on Form 8-K dated March 7, 2018 (SEC File No. 000-55912).</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">As a result of the Merger, REF became a wholly owned subsidiary of Royale Energy, and each outstanding share common stock of REF at the time of the Merger was converted into one share of common stock of Royale Energy.&#xa0; The common stock of Royale Energy is traded on the Over-The-Counter QB (OTCQB) Market System (symbol ROYL).</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Under FASB Topic ASC 805, <i>Business Combinations, </i>which among other things requires the assets acquired and liabilities assumed to be measured and recorded at their fair values as of the acquisition date, the Company was determined to be the acquirer and as such, the acquisition was accounted for as a business combination.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The preliminary allocation of the purchase price was determined in arms&#x2019; length negotiations between the parties.&#xa0; Substantially all of the value of the transaction was related to the value of the oil and gas assets acquired with minimal value ascribed to the other assets. The Company considered two valuation methods in its determination of fair value for the oil and natural gas properties; the discounted cash flow analysis and comparable transaction analysis. Assumptions for the discounted cash flow analysis include commodity price, operating costs and capital outlay for future development of the acquired properties, pricing differentials, reserve risking, and discount rates. NYMEX strip pricing, less applicable pricing differentials, was utilized in the discounted cash flow analysis. Risking levels in the discounted cash flow analysis are determined based on a variety of factors, such as existing well performance, offset production and analogue wells. Discount rates used in the discounted cash flow analysis were determined by using the estimated cost of capital, discount rates, as well as industry knowledge and experience. The comparable transaction analysis was performed to establish a range of fair values for similarly situated oil and gas properties that were recently bought or sold in arms-length, observable market transactions. The range of value observed from the Company&#x2019;s analysis of recent market transactions was then utilized as a basis for evaluating the fair value determined via the discounted cash flow method. The Company&#x2019;s fair value conclusion indicated that the discounted cash flow method valuation is in line with the same range as the comparable transactions reviewed, when considering the comparable transactions. Other current liabilities assumed in the acquisition, were carried over at historical carrying values because the assets and liabilities are short term in nature and their carrying values are estimated to represent the best estimate of fair value. Any changes to the estimates used in preparing this preliminary purchase price allocation could result in a corresponding change in the final purchase price allocation.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The following table summarizes the consideration transferred, fair value of assets acquired and liabilities assumed:</p><br/><table border="0" cellpadding="0" cellspacing="0" class="finTable" style="margin-right: 10%; margin-left: 10%; width: 80%; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px;"> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1352" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td colspan="2" id="new_id-1353" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>March 7, 2018</b></b></p> </td> <td id="new_id-1354" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 85%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>Consideration:</b></p> </td> <td id="new_id-1355" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1356" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"><b>&#xa0;</b></td> <td id="new_id-1357" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"><b>&#xa0;</b></td> <td id="new_id-1358" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"><b>&#xa0;</b></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Value of Royale Common Stock issued</p> </td> <td id="new_id-1359" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1360" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1361" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">9,546,068</td> <td id="new_id-1362" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Value of Series B Convertible Preferred Stock issued</p> </td> <td id="new_id-1363" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1364" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-1365" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">20,124,000</td> <td id="new_id-1366" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Total consideration</p> </td> <td id="new_id-1367" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1368" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td id="new_id-1369" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">29,670,068</td> <td id="new_id-1370" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="4" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><font style="text-decoration:underline"><b>Fair Value of Liabilities Assumed:</b></font></p> </td> <td id="new_id-1371" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Current liabilities</p> </td> <td id="new_id-1372" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1373" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1374" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">19,624,592</td> <td id="new_id-1375" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Other liabilities</p> </td> <td id="new_id-1376" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1377" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1378" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">3,125,394</td> <td id="new_id-1379" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Asset Retirement obligations</p> </td> <td id="new_id-1380" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1381" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-1382" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">1,419,544</td> <td id="new_id-1383" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Total fair value of liabilities assumed</p> </td> <td id="new_id-1384" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1385" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-1386" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">24,169,530</td> <td id="new_id-1387" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Total consideration plus liabilities assumed</p> </td> <td id="new_id-1388" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1389" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td id="new_id-1390" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">53,839,598</td> <td id="new_id-1391" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="4" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><font style="text-decoration:underline"><b>Fair Value of Assets Acquired:</b></font></p> </td> <td id="new_id-1392" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Cash</p> </td> <td id="new_id-1393" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1394" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1395" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">548,805</td> <td id="new_id-1396" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Current assets</p> </td> <td id="new_id-1397" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1398" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1399" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">3,655,173</td> <td id="new_id-1400" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Proved and unproved crude oil and gas properties</p> </td> <td id="new_id-1401" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1402" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1403" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">48,632,870</td> <td id="new_id-1404" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Land</p> </td> <td id="new_id-1405" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1406" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-1407" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">1,002,750</td> <td id="new_id-1408" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1409" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1410" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td id="new_id-1411" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">53,839,598</td> <td id="new_id-1412" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> </table><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">In accordance with FASB Topic ASC 805, the following unaudited supplemental pro forma condensed results of operations present combined information as though the business combination had been completed as of January&#xa0;1, 2018. The unaudited supplemental pro forma financial information was derived from the historical revenues and direct operating expenses of Royale Energy, Inc. and Matrix Oil Management Corporation and its affiliates. These unaudited supplemental pro forma results of operations for the consolidated companies as of March 31, 2017, are provided for illustrative purposes only and do not purport to be indicative of the actual results that would have been achieved by the consolidated company for the periods presented or that may be achieved by the consolidated company in the future.</p><br/><table border="0" cellpadding="0" cellspacing="0" class="finTable" style="width: 100%; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px;"> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1413" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td colspan="10" id="new_id-1414" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>Three months ended March 31, 2018</b></b></p> </td> <td id="new_id-1415" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-1416" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td colspan="10" id="new_id-1417" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>Three months ended March 31, 2017</b></b></p> </td> <td id="new_id-1418" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> </tr> <tr style="vertical-align: bottom;"> <td>&#xa0;</td> <td id="new_id-1419">&#xa0;</td> <td id="new_id-1420">&#xa0;</td> <td id="new_id-1421">&#xa0;</td> <td id="new_id-1422">&#xa0;</td> <td id="new_id-1423">&#xa0;</td> <td id="new_id-1424">&#xa0;</td> <td id="new_id-1425">&#xa0;</td> <td id="new_id-1426">&#xa0;</td> <td id="new_id-1427">&#xa0;</td> <td id="new_id-1428">&#xa0;</td> <td id="new_id-1429">&#xa0;</td> <td id="new_id-1430">&#xa0;</td> <td id="new_id-1431">&#xa0;</td> <td id="new_id-1432">&#xa0;</td> <td id="new_id-1433">&#xa0;</td> <td id="new_id-1434">&#xa0;</td> <td id="new_id-1435">&#xa0;</td> <td id="new_id-1436">&#xa0;</td> <td id="new_id-1437">&#xa0;</td> <td id="new_id-1438">&#xa0;</td> <td id="new_id-1439">&#xa0;</td> <td id="new_id-1440">&#xa0;</td> <td id="new_id-1441">&#xa0;</td> <td id="new_id-1442">&#xa0;</td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1443" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td colspan="2" id="new_id-1444" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>Royale Energy, Inc.</b></b></p> </td> <td id="new_id-1445" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-1446" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td colspan="2" id="new_id-1447" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>Matrix Oil Management Corp</b></b></p> </td> <td id="new_id-1448" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-1449" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td colspan="2" id="new_id-1450" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>Consolidated</b></b></p> </td> <td id="new_id-1451" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-1452" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td colspan="2" id="new_id-1453" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>Royale Energy, Inc.</b></b></p> </td> <td id="new_id-1454" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-1455" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td colspan="2" id="new_id-1456" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>Matrix Oil Management Corp</b></b></p> </td> <td id="new_id-1457" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-1458" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td colspan="2" id="new_id-1459" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>Consolidated</b></b></p> </td> <td id="new_id-1460" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1461" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td colspan="22" id="new_id-1462" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">(Unaudited)</p> </td> <td id="new_id-1463" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 28%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Revenue</p> </td> <td id="new_id-1464" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1465" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1466" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">119,473</td> <td id="new_id-1467" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1468" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1469" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1470" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">1,798,531</td> <td id="new_id-1471" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1472" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1473" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1474" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">1,918,004</td> <td id="new_id-1475" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1476" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1477" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1478" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">274,398</td> <td id="new_id-1479" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1480" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1481" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1482" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">1,120,427</td> <td id="new_id-1483" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1484" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1485" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1486" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">1,394,825</td> <td id="new_id-1487" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Net Loss</p> </td> <td id="new_id-1488" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1489" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1490" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(1,200,576</td> <td id="new_id-1491" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1492" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1493" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1494" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(751,111</td> <td id="new_id-1495" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1496" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1497" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1498" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(1,951,687</td> <td id="new_id-1499" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1500" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1501" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1502" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(987,644</td> <td id="new_id-1503" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1504" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1505" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1506" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(549,922</td> <td id="new_id-1507" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1508" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1509" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1510" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(1,537,566</td> <td id="new_id-1511" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Net Loss available to common shareholders</p> </td> <td id="new_id-1512" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1513" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1514" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(1,200,576</td> <td id="new_id-1515" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1516" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1517" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1518" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(751,111</td> <td id="new_id-1519" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1520" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1521" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1522" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(1,951,687</td> <td id="new_id-1523" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1524" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1525" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1526" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(987,644</td> <td id="new_id-1527" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1528" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1529" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1530" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(549,922</td> <td id="new_id-1531" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1532" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1533" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1534" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(1,537,566</td> <td id="new_id-1535" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Pro forma Loss per common share&#xa0;Basic and diluted</p> </td> <td id="new_id-1536" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1537" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1538" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(0.04</td> <td id="new_id-1539" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1540" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1541" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1542" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(0.02</td> <td id="new_id-1543" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1544" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1545" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1546" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(0.06</td> <td id="new_id-1547" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1548" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1549" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1550" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(0.05</td> <td id="new_id-1551" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1552" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1553" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1554" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(0.02</td> <td id="new_id-1555" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1556" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1557" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1558" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(0.07</td> <td id="new_id-1559" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> </tr> </table><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 0.1pt;text-align:left;"><b>Formation of RMX and Asset Contribution</b></p><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">On April 13, 2018, Royale Energy, Inc., and two of Royale&#x2019;s subsidiaries, Royale Energy Funds, Inc. and Matrix Oil Management Corporation (the &#x201c;Royale Entities&#x201d;) completed &#xa0;the Subscription and Contribution Agreement (&#x201c;Contribution Agreement&#x201d;), in which the Royale Entities and CIC RMX LP (&#x201c;CIC&#x201d;) entered into the Contribution Agreement and certain other agreements providing that the Royale Entities would contribute certain assets to RMX Resources, LLC (&#x201c;RMX&#x201d;), a newly formed Texas limited liability company. In exchange for its contributed assets, Royale received a 20% equity interest in RMX, an equity performance incentive interest and up to $20.0 million to pay off Royale Entities senior lender, Arena Limited SPV, LLC., in full, and to pay Royale Entities trade payables and other outstanding obligations. CIC contributed an aggregate of $25.0 million in cash to RMX in exchange for (i) an 80% equity interest in RMX with preferred distributions until certain thresholds are met, (ii) a warrant (&#x201c;Warrant&#x201d;) to acquire up to 4,000,000 shares of Royale&#x2019;s common stock at an exercise price of $.01 per share and registration rights pursuant to a Registration Rights Agreement.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The Contribution Agreement was completed in a two-step closing and funding, with the First Closing consummated on April 4, 2018 and the Second Closing&#xa0;consummated on April 13, 2018 with the Royale Entities. In connection with the Second Closing, the parties entered into a letter agreement related to the preliminary Settlement Statement process.&#xa0; The parties agreed that, in lieu of the payment originally contemplated under Section 1.6(v) of the Contribution Agreement, the Royale Entities would receive the sum of $4,000,000, subject to adjustment. The $4,000,000 delivered at the Second Closing was an advance against amounts due the Royale Entities as Purchase Price, and the advance was subject to further adjustment in accordance with the Contribution Agreement.</p><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">RMX has two classes of stock and a six-member board of directors. Royale has two seats on the board giving it a third of the Board.&#xa0; Royale has designated Michael McCaskey and Johnny Jordan as its members of the RMX board.&#xa0; The return targets for CIC through its funding of RMX provide for a &#x201c;waterfall&#x201d; style return profile with the first distributions going to CIC until certain return thresholds are achieved.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">As part of the formation of the joint venture, Royale contributed Matrix Oil Corporation (&#x201c;MOC&#x201d;) to RMX. MOC has the permits and licenses to operating oil and gas properties in California. It was the operating entity for the Matrix group of companies that were acquired on February 28, 2018, see NOTE 1 &#x2013; Merger with Matrix Oil Management Corporation above. This allows the RMX joint venture to be the operator of record for the contributed assets.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Royale will account for its ownership interest in RMX following the equity method of accounting. By agreement, Royale has&#xa0;an initial equity value of $6.25 million or 20% of the total equity of the joint venture with CIC having an initial equity value of $25.0 million or 80% of the total equity of the joint venture.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The Royale Entities contributed 100% of the Sansinena Field, 100% of the Sempra Field, 50% of the Bellevue Field, 100% of the Whittier Main Field, and 50% of the Whittier Field. The result of the transfer of oil and gas properties and surface rights for cash as described above and a 20 percent working interest in RMX resulted in Royale recording a loss of approximately $16.2 million. The contribution by Royale of warrants to acquire 4,000,000 shares of Royale common stock caused Royale to record a loss of approximately $1.44 million. In addition, the Contribution Agreement called for an effective date of the property transfer of February 28, 2018 which required a purchase price adjustment of approximately $334,000 in the form of a cash contribution to RMX and an increase in the loss on the sale. The transfer of MOC to RMX as the operating company provided an amount due Royale of approximately $640,000, which was recorded as a due from affiliate during the period in 2018.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The RMX joint venture has a senior revolving loan facility with Legacy Bank Texas. RMX initially drew down on the line of credit in the amount of $12.5 million to complete the acquisition of the Royale Entities. The borrowing base of the facility is $17.5 million with $5.0 million remaining undrawn at June 30, 2018.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">As part of the joint venture, RMX entered into a Master Service Agreement &#x201c;MSA&#x201d; calling for Royale Energy to provide land, engineering and support services for the joint venture.&#xa0; For these services, Royale will receive $180,000 per month for the first year, renewable after one year at a reduced rate of $150,000 per month and subject to termination on 90 days notice.&#xa0; These amounts are included in Supervisory Fees, Service Agreement and Other.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Listed below is the summarized information required under Rule 3-09 of regulation S-X, Article 10 for Royale&#x2019;s investment in RMX:</p><br/><table border="0" cellpadding="0" cellspacing="0" class="finTable" style="margin-right: 10%; margin-left: 10%; width: 80%; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px;"> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; text-align: center;">&#xa0;</td> <td id="new_id-1560" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; text-align: center; padding-bottom: 1px;">&#xa0;</td> <td colspan="2" id="new_id-1561" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;"><b><b>RMX Resources, LLC at</b></b></p> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;"><b><b>June 30, 2018</b></b></p> </td> <td id="new_id-1562" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; text-align: center; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-1563" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; text-align: center; padding-bottom: 1px;">&#xa0;</td> <td colspan="2" id="new_id-1564" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;"><b><b>Royale Energy, Inc. Share at</b></b></p> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;"><b><b>June 30, 2018</b></b></p> </td> <td id="new_id-1565" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> </tr> <tr style="vertical-align: bottom;"> <td>&#xa0;</td> <td id="new_id-1566">&#xa0;</td> <td id="new_id-1567">&#xa0;</td> <td id="new_id-1568">&#xa0;</td> <td id="new_id-1569">&#xa0;</td> <td id="new_id-1570">&#xa0;</td> <td id="new_id-1571">&#xa0;</td> <td id="new_id-1572">&#xa0;</td> <td id="new_id-1573">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 70%;"> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Revenues for the three months ended June 30, 2018</p> </td> <td id="new_id-1574" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1575" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1576" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(2,480,630</td> <td id="new_id-1577" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1578" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1579" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1580" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(496,126</td> <td id="new_id-1581" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Gross Profit</p> </td> <td id="new_id-1582" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1583" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1584" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">1,175,286</td> <td id="new_id-1585" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1586" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1587" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1588" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">235,057</td> <td id="new_id-1589" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Income (Loss) from Continuing Operations</p> </td> <td id="new_id-1590" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1591" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1592" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(1,073,230</td> <td id="new_id-1593" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">)</td> <td id="new_id-1594" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1595" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1596" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(214,646</td> <td id="new_id-1597" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Net Income (Loss)</p> </td> <td id="new_id-1598" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1599" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1600" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(3,421,321</td> <td id="new_id-1601" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">)</td> <td id="new_id-1602" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1603" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1604" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(684,264</td> <td id="new_id-1605" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">)</td> </tr> </table><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><font style="text-decoration:underline">Consolidation</font></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The accompanying consolidated financial statements include the accounts of Royale Energy, Inc. (sometimes called the &#x201c;Company&#x201d; &#x201c;we,&#x201d; &#x201c;our,&#x201d; &#x201c;us,&#x201d; or &#x201c;Royale Energy&#x201d;), REF, and Matrix Oil Management Corporation and its subsidiaries.&#xa0; All entities comprising the consolidated financial statements of Royale Energy have fiscal years ending December 31.&#xa0; All material intercompany accounts and transactions have been eliminated in the consolidated financial statements.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><font style="text-decoration:underline">Use of Estimates</font></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The accompanying 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.&#xa0;&#xa0;As reflected in the accompanying financial statements, the Company has negative working capital, losses from operations and negative cash flows from operations.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 0.1pt;text-align:left;">Material estimates that are particularly susceptible to significant change relate to the estimate of Company oil and gas reserves prepared by an independent engineering consultant.&#xa0;&#xa0;Such estimates are subject to numerous uncertainties inherent in the estimation of quantities of proven reserves. Estimated reserves are used in the calculation of depletion, depreciation and amortization, unevaluated property costs, impairment of oil and natural gas properties, estimated future net cash flows, taxes, and contingencies.</p><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;"><font style="text-decoration:underline">Liquidity&#xa0;and Going Concern</font></p><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">The primary sources of liquidity have historically been issuances of common stock and operations. We believe that the completion of the Merger with Matrix&#xa0;and the Contribution Agreement with CIC, which created RMX, will enable us to return to positive cash flow.&#xa0; There is some doubt about the company&#x2019;s ability to meet liquidity demands, and we anticipate that our primary sources of liquidity will be from the issuance of debt and/or equity, and the sale of oil and natural gas property participation interest.</p><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">The Company&#x2019;s consolidated financial statements reflect an accumulated deficit of $69,213,498, a working capital deficiency of $5,133,752 and a stockholders&#x2019; equity of $3,509,519. These factors raise 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 the Company is unable to continue as a going concern.</p><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">Management&#x2019;s plans to alleviate the going concern include the completion of the second step of the merger with Matrix and additional financing through issuances of common stock and the reduction of overhead costs as more fully outlined below.&#xa0; There is no assurance that additional financing will be available when needed or that management will be able to obtain financing on terms acceptable to the Company and whether the Company will become profitable and generate positive operating cash flow.</p><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;"><font style="text-decoration:underline">Revenue Recognition</font></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">On January 1, 2018, we adopted the new ASC Topic 606, Revenue from Contracts with Customers and all the related amendments ("new revenue standard") using the modified retrospective method.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">We evaluated the effect of transition by applying the provisions of the new revenue standard to contracts with remaining obligations as of January 1, 2018. No cumulative adjustment to retained earnings was necessary as a result of adopting this standard.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Results for reporting periods beginning after January 1, 2018 are presented under the new revenue standard, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting policies.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">We concluded that the adoption of the new revenue standard did not result in any changes to our consolidated balance sheet or statement of cash flow.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The majority of our revenues are derived from the sale of crude oil and condensate, natural gas liquids ("NGLs") and natural gas under spot and term agreements with our customers.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The pricing in our hydrocarbon sales agreements are variable, 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.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 0.1pt;text-align:left;">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 sheet.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Under our hydrocarbon sales agreements, the entire consideration amount is variable either due to pricing and/or volumes. We recognize revenue 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.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">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, in accordance with the new revenue standard, and such reimbursements will continue to not be recorded as revenues within the scope of the new revenue standard after the first quarter of 2018.&#xa0; Prior to this, such cost reimbursements were included in revenue.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">We commonly market the share of production belonging to other working interest owners as the operator of jointly owned oil and gas properties. We concluded that 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&#x2019; share of production. Therefore, we act as a principal only in regards to the sale of our share of production and recognize revenue for the volumes associated with our net production.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The Company frequently sells a portion of the working interest in each well it drills or participates in to third party investors and retains a portion of the prospect for its own account.&#xa0; The Company typically guarantees a cost to drill to the third-party drilling participants and records a loss or gain on the difference between the guaranteed price and the actual cost to drill the well.&#xa0; When monies are received from third parties for future drilling obligations, the Company records the liability as Turnkey Drilling Obligations.&#xa0; 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 &#x201c;Casing Point Election&#x201d; or &#x201c;Logging Point&#x201d;), 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.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><i>Crude oil and condensate</i></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">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.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><i>Natural gas and NGLs</i></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">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 determined 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 determined the plant tailgate is the point in time where control, as defined in the new revenue standard, is transferred to midstream entities and they are entitled to significant risks and rewards of ownership of the natural gas and NGLs.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">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&amp;E where transportation is netted directly against revenue. 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.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><i>Turnkey Drilling Obligations</i></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">These Turnkey Agreements are managed by the Company for the participants of the well.&#xa0; The collections of pre-drilling AFE amounts are segregated by the Company and the gains and losses on the Turnkey Agreements are recorded in income or expense at the time of the casing point election in accordance with ASC 932-323-25 and 932-360.&#xa0; The Company manages the performance obligation for the well participants and only records revenue or expense at the time the performance obligation of the Turnkey Agreement has been satisfied.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><font style="text-decoration:underline">Oil and Gas Property and Equipment</font></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Depreciation, depletion and amortization, based on cost less estimated salvage value of the asset, are primarily determined under either the unit-of-production method or the straight-line method, which is based on estimated asset service life taking obsolescence into consideration.&#xa0;&#xa0;Maintenance and repairs, including planned major maintenance, are expensed as incurred.&#xa0;&#xa0;Major renewals and improvements are capitalized and the assets replaced are retired.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The project construction phase commences with the development of the detailed engineering design and ends when the constructed assets are ready for their intended use.&#xa0;&#xa0;Interest costs, to the extent they are incurred to finance expenditures during the construction phase, are included in property, plant and equipment and are depreciated over the service life of the related assets.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Royale Energy uses the &#x201c;successful efforts&#x201d; method to account for its exploration and production activities.&#xa0;&#xa0;Under this method, Royale Energy accumulates its proportionate share of costs on a well-by-well basis with certain exploratory expenditures and exploratory dry holes being expensed as incurred&#xa0;and capitalizes expenditures for productive wells.&#xa0;&#xa0;Royale Energy amortizes the costs of productive wells under the unit-of-production method.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Royale Energy carries, as an asset, exploratory well costs when the well has found a sufficient quantity of reserves to justify its completion as a producing well and where Royale Energy is making sufficient progress assessing the reserves and the economic and operating viability of the project.&#xa0;&#xa0;Exploratory well costs not meeting these criteria are charged to expense. Other exploratory expenditures, including geophysical costs and annual lease rentals, are expensed as incurred.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Acquisition costs of proved properties are amortized using a unit-of-production method, computed on the basis of total proved oil and gas reserves.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Capitalized exploratory drilling and development costs associated with productive depletable extractive properties are amortized using unit-of-production rates based on the amount of proved developed reserves of oil and gas that are estimated to be recoverable from existing facilities using current operating methods.&#xa0;&#xa0;Under the unit-of-production method, oil and gas volumes are considered produced once they have been measured through meters at custody transfer or sales transaction points at the outlet valve on the lease or field storage tank.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Production costs are expensed as incurred. Production involves lifting the oil and gas to the surface and gathering, treating, field processing and field storage of the oil and gas. The production function normally terminates at the outlet valve on the lease or field production storage tank. Production costs are those incurred to operate and maintain Royale Energy&#x2019;s wells and related equipment and facilities. They become part of the cost of oil and gas produced. These costs, sometimes referred to as lifting costs, include such items as labor costs to operate the wells and related equipment; repair and maintenance costs on the wells and equipment; materials, supplies and energy costs required to operate the wells and related equipment; and administrative expenses related to the production activity. Proved oil and gas properties held and used by Royale Energy are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Royale Energy estimates the future undiscounted cash flows of the affected properties to judge the recoverability of carrying amounts. Cash flows used in impairment evaluations are developed using annually updated evaluation assumptions for crude oil commodity prices.&#xa0;&#xa0;Annual volumes are based on field production profiles, which are also updated annually. Prices for natural gas and other products are based on assumptions developed annually for evaluation purposes.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Impairment analyses are generally based on proved reserves.&#xa0;&#xa0;An asset group would be impaired if the undiscounted cash flows were less than its carrying value.&#xa0;&#xa0;Impairments are measured by the amount the carrying value exceeds fair value. During the six months ended June 30, 2017, impairment losses of $136,837 were recorded on various capitalized lease and land costs that were no longer viable.&#xa0;During the same period in 2018, no impairment losses were recorded.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Significant unproved properties are assessed for impairment individually, and valuation allowances against the capitalized costs are recorded based on the estimated economic chance of success and the length of time that Royale Energy expects to hold the properties.&#xa0;&#xa0;The valuation allowances are reviewed at least annually.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Upon the sale or retirement of a complete field of a proved property, Royale Energy eliminates the cost from its books, and the resultant gain or loss is recorded to Royale Energy&#x2019;s Statement of Operations.&#xa0;&#xa0;Upon the sale of an entire interest in an unproved property where the property has been assessed for impairment individually, a gain or loss is recognized in Royale Energy&#x2019;s Statement of Operations.&#xa0;&#xa0;If a partial interest in an unproved property is sold, any funds received are accounted for as a recovery of the cost in the interest retained with any excess funds recognized as a gain. Should Royale Energy&#x2019;s turnkey drilling agreements include unproved property, total drilling costs incurred to satisfy its obligations are recovered by the total funds received under the agreements.&#xa0;&#xa0;Any excess funds are recorded as a Gain on Turnkey Drilling Programs, and any costs not recovered are capitalized and accounted for under the &#x201c;successful efforts&#x201d; method.&#xa0;</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Royale Energy&#xa0;sponsors turnkey drilling agreement arrangements in unproved properties as a pooling of assets in a joint undertaking, whereby proceeds from participants are reported as Deferred Drilling Obligations, and then reduced as costs to complete its obligations are incurred with any excess booked against its property account to reduce any basis in its own interest.&#xa0;&#xa0;Gains on Turnkey Drilling Programs represent funds received from turnkey drilling participants in excess of all costs Royale incurs during the drilling programs (e.g., lease acquisition, exploration and development costs), including costs incurred on behalf of participants and costs incurred for its own account; and are recognized only upon making this determination after Royale&#x2019;s obligations have been fulfilled.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The contracts require the participants pay Royale Energy the full contract price upon execution of the agreement.&#xa0;&#xa0;Royale Energy completes the drilling activities typically between 10 and 30 days after drilling begins.&#xa0;&#xa0;The participant retains an undivided or proportional beneficial interest in the property and is also responsible for its proportionate share of operating costs.&#xa0;&#xa0;Royale Energy retains legal title to the lease.&#xa0;&#xa0;The participants purchase a working interest directly in the well bore.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">In these working interest arrangements, the participants are responsible for sharing in the risk of development, but also sharing in a proportional interest in rights to revenues and proportional liability for the cost of operations after drilling is completed and the interest is conveyed to the participant.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">A certain portion of the turnkey drilling participant&#x2019;s funds received are non-refundable.&#xa0;&#xa0;The company holds all funds invested as Deferred Drilling Obligations until drilling is complete.&#xa0;&#xa0;Occasionally, drilling is delayed for various reasons such as weather, permitting, drilling rig availability and/or contractual obligations.&#xa0;&#xa0;At June 30, 2018 and December 31, 2017, Royale Energy had Deferred Drilling Obligations of $8,654,398 and $5,891,898, respectively.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">If Royale Energy is unable to drill the wells, and a suitable replacement well is not found, Royale would retain the non-refundable portion of the contact and return the remaining funds to the participant.&#xa0;&#xa0;Included in cash and cash equivalents are amounts for use in completion of turnkey drilling programs in progress.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Losses on properties sold are recognized when incurred or when the properties are held for sale and the fair value of the properties is less than the carrying value.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><font style="text-decoration:underline">Other Receivables</font></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Our other receivables consist of joint interest billing receivables from direct working interest investors and industry partners. We provide for uncollectible accounts receivable using the allowance method of accounting for bad debts.&#xa0;&#xa0;Under this method of accounting, a provision for uncollectible accounts is charged directly to bad debt expense when it becomes probable the receivable will not be collected.&#xa0;&#xa0;The allowance account is increased or decreased based on past collection history and management&#x2019;s evaluation of accounts receivable.&#xa0;&#xa0;All amounts considered uncollectible are charged against the allowance account and recoveries of previously charged off accounts are added to the allowance.&#xa0;&#xa0;At June 30, 2018 and December 31, 2017, the Company established an allowance for uncollectable accounts of $1,965,076 and $1,975,660, respectively, for receivables from direct working interest investors whose expenses on non-producing wells were unlikely to be collected from revenue.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><font style="text-decoration:underline">Revenue Receivables</font></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Our revenue receivables consist of receivables related to the sale of our natural gas and oil.&#xa0;&#xa0;Once a production month is completed we receive payment approximately&#xa0;15 to 30 days later.</p><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;"><font style="text-decoration:underline">Receivable from Affiliate</font></p><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Our receivable from affiliate consists of receivables related to the transactions between Royale Energy and RMX Resources, LLC and its subsidiary, MOC.</p><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;"><font style="text-decoration:underline">Other Assets</font></p><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Our other assets consist of long term cash deposits or bank certificates of deposit required by county government agencies or other companies mainly due to Royale&#x2019;s well operations.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><font style="text-decoration:underline">Equipment and Fixtures</font></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Equipment and fixtures are stated at cost and depreciated over the estimated useful lives of the assets, which range from three to seven years, using the straight-line method. Repairs and maintenance are charged to expense as incurred. When assets are sold or retired, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is included in income. Maintenance and repairs, which neither materially add to the value of the property nor appreciably prolong its life, are charged to expense as incurred. Gains or losses on dispositions of property and equipment, other than oil and gas, are reflected in operations.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><font style="text-decoration:underline">Fair Value Measurements</font></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">According to Fair Value Measurements and Disclosures Topic of the FASB Accounting Standards Codification, assets and liabilities that are measured at fair value on a recurring and nonrecurring basis in period subsequent to initial recognition, the reporting entity shall disclose information that enable users of its financial statements to assess the inputs used to develop those measurements and for recurring fair value measurements using significant unobservable inputs, the effect of the measurements on earnings for the period.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considers counterparty credit risk in its assessment of fair value. Carrying amounts of the Company&#x2019;s financial instruments, including cash equivalents, accounts receivable, accounts payable and accrued liabilities, approximate their fair values as of the balance sheet dates because of their generally short maturities.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The fair value hierarchy distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity&#x2019;s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Level 2: Directly or indirectly observable inputs as of the reporting date through correlation with market data, including quoted prices for similar assets and liabilities in active markets and quoted prices in markets that are not active. Level 2 also includes assets and liabilities that are valued using models or other pricing methodologies that do not require significant judgment since the input assumptions used in the models, such as interest rates and volatility factors, are corroborated by readily observable data from actively quoted markets for substantially the full term of the financial instrument.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Level 3: Unobservable inputs that are supported by little or no market activity and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management&#x2019;s estimates of market participant assumptions.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">At June 30, 2018 and December 31, 2017, Royale Energy did not have any financial assets measured and recognized at fair value on a recurring basis.&#xa0;&#xa0;The Company estimates asset retirement obligations pursuant to the provisions of FASB ASC Topic 410, &#x201c;<i>Asset Retirement and Environmental Obligations&#x201d;</i> (&#x201c;FASB ASC 410&#x201d;). The initial measurement of asset retirement obligations at fair value is calculated using discounted cash flow techniques and based on internal estimates of future retirement costs associated with oil and gas properties. Given the unobservable nature of the inputs, including plugging costs and reserve lives, the initial measurement of the asset retirement obligation liability is deemed to use Level 3 inputs.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><font style="text-decoration:underline">Accounts Payable and Accrued Expenses</font></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">At June 30, 2018, the components of accounts payable and accrued expenses consisted of $3,596,131 in trade accounts payable due to various vendors, $1,967,318 in payables and accruals related to direct working interest investors revenues and operating costs, $269,099 in accrued expenses related to current drilling efforts, $24,387 due to affiliates, $244,311 for accrued liabilities for amounts set aside mainly for the plugging and abandonment of certain wells, $117,676 for employee related taxes and accruals, $34,059 in deferred rent and $14,723 in federal and state income taxes payable.&#xa0; At December 31, 2017, the components of accounts payable and accrued expenses consisted of $2,392,755 in trade accounts payable due to various vendors, $688,002 in payables and accruals related to direct working interest investors revenues and operating costs, $483,734 in accrued expenses related to current drilling efforts, $438,667 in legal settlement payables related to Cash Advances on Pending Transactions, $266,110 for accrued liabilities for amounts set aside mainly for the plugging and abandonment of certain wells, $93,619 for employee related taxes and accruals, $223,833 related to interest payable on cash advances on pending transactions, $35,036 in deferred rent and $17,123 in federal and state income taxes payable.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><font style="text-decoration:underline">Secured Term Debt</font></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Prior to the Merger, Matrix had an outstanding term loan agreement with Arena Limited SPV, LLC (Term Loan) for approximately $12.4 million. The original maturity date of the Term Loan was June 15, 2018, it was secured by the assets of Matrix, and contained financial covenants commencing June 30, 2016 and thereafter, as defined in the term loan agreement.&#xa0;The Term Loan was repaid in full in April 2018 in connection with the Contribution Agreement with CIC.&#xa0; The Company recognized $164,401 in interest expense for the period ended June 30, 2018.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><font style="text-decoration:underline">Cash Advances on Pending Transactions</font></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">In July 2016, we received a cash investment of $1,580,000 from two investors to purchase convertible promissory notes of $1,280,000 and $300,000, with a conversion price of $0.40 per share, with warrants to purchase one share of common stock for every three shares of common stock issuable upon conversion of the notes.&#xa0; The funds from these transactions were used to continue drilling activities, fund expenses incurred in connection with the completion of Royale Energy&#x2019;s merger with Matrix Oil Corporation and for general corporate purposes.&#xa0; The notes originally matured on August 2, 2017, one year from the date of issuance, and carried a 10% interest rate, with a default rate of 25%.&#xa0; Shortly before completion of the Merger, the $300,000 note and interest of $47,500 was converted into 750,000 shares of Royale common stock valued at $347,500, and Royale agreed to a cash settlement with the holder of the $1,280,000 note for $1,900,000, which was paid in full on April 13, 2018.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><font style="text-decoration:underline">Commodity Derivative Financial Instruments</font></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">From time to time, Matrix utilized derivative financial instruments, consisting of puts and swaps, in order to manage exposure to changes in oil commodity prices. These derivative contracts require financial settlements with counterparties based on comparison of various market prices for oil and either floor or swap benchmark prices. The notional amounts of these derivative contracts are economically based on a percentage of estimated production from proved reserves.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The Company accounts for derivative contracts in accordance with FASB ASC Topic 815, <i>Accounting for Derivative Instruments and Hedging Activities</i>, which establishes accounting and reporting standards for derivative instruments, including certain derivative instruments embedded in other contracts (collectively referred to as derivatives), and for hedging activities. Currently, the Company has elected not to designate any derivative contracts as accounting hedges under the provisions of FASB ASC Topic 815.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">As such, all derivative contracts are carried at fair value on the balance sheet and are marked-to-market at the end of each period with a related adjustment to earnings. Unrealized gains or losses are recorded as gain (loss) on derivatives in unrealized gain (loss) on derivative instruments in the consolidated statements of operations. Realized gain or losses are recorded net in oil and gas sales in the consolidated statements of operations.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><font style="text-decoration:underline">Fair Values &#x2013; Recurring</font></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The Company&#x2019;s derivative contracts are carried at fair value under ASC Topic 820. The fair value is based upon independently sourced market parameters. The fair value is estimated using forward-looking price curves and discounted cash flows that are observable or that can be corroborated by observable market data and, therefore, are classified within Level 2 of the valuation hierarchy. At June 30, 2018, the Company did not have any derivative contracts.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><font style="text-decoration:underline">Fair Values - Non-recurring</font></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The Company applies the provisions of the fair value measurement standard to its non-recurring, non-financial measurements including oil and natural gas property impairments and other long-lived asset impairments. These items are not measured at fair value on a recurring basis but are subject to fair value adjustments only in certain circumstances.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><font style="text-decoration:underline">Recently Issued Accounting Pronouncements</font></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The Company has reviewed the updates issued by the Financial Accounting Standards Board (FASB) during the six months ended June 30, 2018:</p><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">ASU 2018-05: Income Taxes (Topic 740) &#x2013; In March 2018, the Financial Accounting Standards Board (&#x201c;FASB&#x201d;) issued ASU 2018-05,&#xa0;Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118, to add various SEC paragraphs pursuant to the issuance of SAB 118 to ASC 740. SAB 118 was issued by the SEC in December 2017 to provide immediate guidance for accounting implications of U.S. tax reform under the TCJA. The Company is currently evaluating the effects of adopting ASU 2016-02 on its consolidated financial statements, but the adoption is not expected to have a significant impact on the Company&#x2019;s financial statements.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">ASU 2017-09: Compensation - Stock Compensation (Topic 718) &#x2013; Scope of Modification Accounting - In May 2017, the FASB issued ASU 2017-09, which provides guidance about which changes to the terms or conditions of a share-based payment awarded require an entity to apply modification accounting. ASU 2017-09 is effective for interim and annual reporting periods beginning after December 15, 2017, with early adoption permitted. The amendments in ASU 2017-09 are to be applied prospectively to an award modified on or after the adoption date, consequently the impact will be dependent on the modification of any share-based payment awards and the nature of such modifications.&#xa0; The adoption of this guidance has no impact on our results of operations or cash flows.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">ASU 2017-01: Business Combinations (Topic 805) &#x2013; Clarifying the Definition of a Business - In January 2017, FASB issued ASU 2017-01. The objective of ASU 2017-01 is to clarify the definition of a business by adding guidance on how entities should evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. ASU 2017-01 will be effective for public business entities for fiscal years beginning after December 15, 2017, including interim periods in the year of adoption. Early adoption is permitted for any interim or annual period. The adoption of this guidance has no impact on our results of operations or cash flows.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">ASU No. 2016-02: Leases (Topic 842). In February 2016, FASB issued ASU 2016-02 which aims to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and requiring disclosure of key information about leasing agreements. Entities are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the effects of adopting ASU 2016-02 on its consolidated financial statements, but the adoption is not expected to have a significant impact on the Company&#x2019;s financial statements.&#xa0;</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">ASU 2016-01: Financial Instruments &#x2013; Overall &#x2013; Recognition and Measurement of Financial Assets and Financial Liabilities (Subtopic 825-10) In January 2016, FASB issued ASU 2016-01 which requires an entity to: (i) measure equity investments at fair value through net income, with certain exceptions; (ii) present in Other Comprehensive Income the changes in instrument-specific credit risk for financial liabilities measured using the fair value option; (iii) present financial assets and financial liabilities by measurement category and form of financial asset; (iv) calculate the fair value of financial instruments for disclosure purposes based on an exit price and; (v) assess a valuation allowance on deferred tax assets related to unrealized losses of AFS debt securities in combination with other deferred tax assets. The Update provides an election to subsequently measure certain nonmarketable equity investments at cost less any impairment and adjusted for certain observable price changes. The Update also requires a qualitative impairment assessment of such equity investments and amends certain fair value disclosure requirements. The new standard becomes effective for fiscal years beginning after December 15, 2017. Early adoption is only permitted for the provision related to instrument-specific credit risk and the fair value disclosure exemption provided to nonpublic entities.&#xa0;&#xa0;The adoption of this guidance has no impact on our results of operations or cash flows.&#xa0;</p><br/></div> <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>Merger with Matrix Oil Management Corporation</b></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">On March 7, 2018, Royale Energy, Inc. (&#x201c;Royale Energy,&#x201d; formerly known as&#xa0; Royale Energy Holdings, Inc., a Delaware corporation), Royale Energy Funds, Inc. (&#x201c;REF,&#x201d; formerly known as Royale Energy, Inc., a California corporation), and Matrix Oil Management Corporation (&#x201c;Matrix&#x201d;) and its affiliates were notified by the California Secretary of State of the filing and acceptance of agreements of merger by the California Secretary of State, to complete the previously announced merger between the companies (the &#x201c;Merger&#x201d;).&#xa0; In the Merger, REF was merged into a newly formed subsidiary of Royale Energy, and Matrix was merged into a second newly formed subsidiary of Royale Energy pursuant to the Amended and Restated Agreement and Plan of Merger among REF, Royale Energy, Royale Merger Sub, Inc., (&#x201c;Royale Merger Sub&#x201d;), Matrix Merger Sub, Inc., (&#x201c;Matrix Merger Sub&#x201d;) and Matrix (the &#x201c;Merger Agreement&#x201d;).&#xa0; Additionally, in connection with the merger, all limited partnership interest of two limited partnership affiliates of Matrix (Matrix Permian Investments, LP, and Matrix Las Cienegas Limited Partnership), were exchanged for Royale Energy common stock using conversion ratios according to the relative values of each partnership.&#xa0; All Class A limited partnership interests of another Matrix affiliate, Matrix Investments, LP (&#x201c;Matrix Investments&#x201d;) were exchanged for Royale Energy Common stock using conversion ratios according to the relative value of the Class A limited partnership interests, and $20,124,000 of Matrix Investments preferred limited partnership interests were converted into 2,012,400 shares of Series B Convertible Preferred Stock of Royale Energy.&#xa0; Another Matrix affiliate, Matrix Oil Corporation (&#x201c;Matrix Operator&#x201d;), was acquired by Royale Energy by exchanging Royale Energy common stock for the outstanding common stock of Matrix Oil Corporation using a conversion ratio according to the relative value of the Matrix Oil Corporation common stock.&#xa0; Matrix, Matrix Oil Corporation and the three limited partnership affiliates of Matrix called the &#x201c;Matrix Entities.&#x201d;</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The Merger had been previously approved by the respective holders of all outstanding capital stock of REF, Matrix, Royale Energy, Matrix Merger Sub and Royale Merger Sub on November 16, 2017, as previously reported in our Current Report on Form 8-K dated November 16, 2017.&#xa0; The Merger and related transactions are described in detail in our Current Report on Form 8-K dated March 7, 2018, and in Royale Energy&#x2019;s Current Report on Form 8-K dated March 7, 2018 (SEC File No. 000-55912).</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">As a result of the Merger, REF became a wholly owned subsidiary of Royale Energy, and each outstanding share common stock of REF at the time of the Merger was converted into one share of common stock of Royale Energy.&#xa0; The common stock of Royale Energy is traded on the Over-The-Counter QB (OTCQB) Market System (symbol ROYL).</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Under FASB Topic ASC 805, <i>Business Combinations, </i>which among other things requires the assets acquired and liabilities assumed to be measured and recorded at their fair values as of the acquisition date, the Company was determined to be the acquirer and as such, the acquisition was accounted for as a business combination.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The preliminary allocation of the purchase price was determined in arms&#x2019; length negotiations between the parties.&#xa0; Substantially all of the value of the transaction was related to the value of the oil and gas assets acquired with minimal value ascribed to the other assets. The Company considered two valuation methods in its determination of fair value for the oil and natural gas properties; the discounted cash flow analysis and comparable transaction analysis. Assumptions for the discounted cash flow analysis include commodity price, operating costs and capital outlay for future development of the acquired properties, pricing differentials, reserve risking, and discount rates. NYMEX strip pricing, less applicable pricing differentials, was utilized in the discounted cash flow analysis. Risking levels in the discounted cash flow analysis are determined based on a variety of factors, such as existing well performance, offset production and analogue wells. Discount rates used in the discounted cash flow analysis were determined by using the estimated cost of capital, discount rates, as well as industry knowledge and experience. The comparable transaction analysis was performed to establish a range of fair values for similarly situated oil and gas properties that were recently bought or sold in arms-length, observable market transactions. The range of value observed from the Company&#x2019;s analysis of recent market transactions was then utilized as a basis for evaluating the fair value determined via the discounted cash flow method. The Company&#x2019;s fair value conclusion indicated that the discounted cash flow method valuation is in line with the same range as the comparable transactions reviewed, when considering the comparable transactions. Other current liabilities assumed in the acquisition, were carried over at historical carrying values because the assets and liabilities are short term in nature and their carrying values are estimated to represent the best estimate of fair value. Any changes to the estimates used in preparing this preliminary purchase price allocation could result in a corresponding change in the final purchase price allocation.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The following table summarizes the consideration transferred, fair value of assets acquired and liabilities assumed:</p><br/><table border="0" cellpadding="0" cellspacing="0" class="finTable" style="margin-right: 10%; margin-left: 10%; width: 80%; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px;"> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1352" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td colspan="2" id="new_id-1353" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>March 7, 2018</b></b></p> </td> <td id="new_id-1354" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 85%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>Consideration:</b></p> </td> <td id="new_id-1355" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1356" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"><b>&#xa0;</b></td> <td id="new_id-1357" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"><b>&#xa0;</b></td> <td id="new_id-1358" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"><b>&#xa0;</b></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Value of Royale Common Stock issued</p> </td> <td id="new_id-1359" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1360" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1361" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">9,546,068</td> <td id="new_id-1362" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Value of Series B Convertible Preferred Stock issued</p> </td> <td id="new_id-1363" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1364" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-1365" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">20,124,000</td> <td id="new_id-1366" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Total consideration</p> </td> <td id="new_id-1367" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1368" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td id="new_id-1369" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">29,670,068</td> <td id="new_id-1370" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="4" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><font style="text-decoration:underline"><b>Fair Value of Liabilities Assumed:</b></font></p> </td> <td id="new_id-1371" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Current liabilities</p> </td> <td id="new_id-1372" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1373" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1374" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">19,624,592</td> <td id="new_id-1375" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Other liabilities</p> </td> <td id="new_id-1376" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1377" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1378" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">3,125,394</td> <td id="new_id-1379" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Asset Retirement obligations</p> </td> <td id="new_id-1380" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1381" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-1382" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">1,419,544</td> <td id="new_id-1383" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Total fair value of liabilities assumed</p> </td> <td id="new_id-1384" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1385" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-1386" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">24,169,530</td> <td id="new_id-1387" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Total consideration plus liabilities assumed</p> </td> <td id="new_id-1388" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1389" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td id="new_id-1390" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">53,839,598</td> <td id="new_id-1391" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="4" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><font style="text-decoration:underline"><b>Fair Value of Assets Acquired:</b></font></p> </td> <td id="new_id-1392" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Cash</p> </td> <td id="new_id-1393" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1394" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1395" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">548,805</td> <td id="new_id-1396" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Current assets</p> </td> <td id="new_id-1397" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1398" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1399" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">3,655,173</td> <td id="new_id-1400" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Proved and unproved crude oil and gas properties</p> </td> <td id="new_id-1401" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1402" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1403" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">48,632,870</td> <td id="new_id-1404" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Land</p> </td> <td id="new_id-1405" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1406" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-1407" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">1,002,750</td> <td id="new_id-1408" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1409" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1410" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td id="new_id-1411" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">53,839,598</td> <td id="new_id-1412" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> </table><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">In accordance with FASB Topic ASC 805, the following unaudited supplemental pro forma condensed results of operations present combined information as though the business combination had been completed as of January&#xa0;1, 2018. The unaudited supplemental pro forma financial information was derived from the historical revenues and direct operating expenses of Royale Energy, Inc. and Matrix Oil Management Corporation and its affiliates. These unaudited supplemental pro forma results of operations for the consolidated companies as of March 31, 2017, are provided for illustrative purposes only and do not purport to be indicative of the actual results that would have been achieved by the consolidated company for the periods presented or that may be achieved by the consolidated company in the future.</p><br/><table border="0" cellpadding="0" cellspacing="0" class="finTable" style="width: 100%; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px;"> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1413" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td colspan="10" id="new_id-1414" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>Three months ended March 31, 2018</b></b></p> </td> <td id="new_id-1415" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-1416" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td colspan="10" id="new_id-1417" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>Three months ended March 31, 2017</b></b></p> </td> <td id="new_id-1418" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> </tr> <tr style="vertical-align: bottom;"> <td>&#xa0;</td> <td id="new_id-1419">&#xa0;</td> <td id="new_id-1420">&#xa0;</td> <td id="new_id-1421">&#xa0;</td> <td id="new_id-1422">&#xa0;</td> <td id="new_id-1423">&#xa0;</td> <td id="new_id-1424">&#xa0;</td> <td id="new_id-1425">&#xa0;</td> <td id="new_id-1426">&#xa0;</td> <td id="new_id-1427">&#xa0;</td> <td id="new_id-1428">&#xa0;</td> <td id="new_id-1429">&#xa0;</td> <td id="new_id-1430">&#xa0;</td> <td id="new_id-1431">&#xa0;</td> <td id="new_id-1432">&#xa0;</td> <td id="new_id-1433">&#xa0;</td> <td id="new_id-1434">&#xa0;</td> <td id="new_id-1435">&#xa0;</td> <td id="new_id-1436">&#xa0;</td> <td id="new_id-1437">&#xa0;</td> <td id="new_id-1438">&#xa0;</td> <td id="new_id-1439">&#xa0;</td> <td id="new_id-1440">&#xa0;</td> <td id="new_id-1441">&#xa0;</td> <td id="new_id-1442">&#xa0;</td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1443" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td colspan="2" id="new_id-1444" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>Royale Energy, Inc.</b></b></p> </td> <td id="new_id-1445" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-1446" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td colspan="2" id="new_id-1447" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>Matrix Oil Management Corp</b></b></p> </td> <td id="new_id-1448" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-1449" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td colspan="2" id="new_id-1450" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>Consolidated</b></b></p> </td> <td id="new_id-1451" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-1452" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td colspan="2" id="new_id-1453" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>Royale Energy, Inc.</b></b></p> </td> <td id="new_id-1454" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-1455" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td colspan="2" id="new_id-1456" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>Matrix Oil Management Corp</b></b></p> </td> <td id="new_id-1457" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-1458" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td colspan="2" id="new_id-1459" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>Consolidated</b></b></p> </td> <td id="new_id-1460" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1461" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td colspan="22" id="new_id-1462" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">(Unaudited)</p> </td> <td id="new_id-1463" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 28%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Revenue</p> </td> <td id="new_id-1464" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1465" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1466" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">119,473</td> <td id="new_id-1467" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1468" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1469" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1470" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">1,798,531</td> <td id="new_id-1471" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1472" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1473" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1474" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">1,918,004</td> <td id="new_id-1475" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1476" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1477" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1478" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">274,398</td> <td id="new_id-1479" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1480" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1481" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1482" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">1,120,427</td> <td id="new_id-1483" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1484" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1485" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1486" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">1,394,825</td> <td id="new_id-1487" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Net Loss</p> </td> <td id="new_id-1488" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1489" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1490" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(1,200,576</td> <td id="new_id-1491" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1492" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1493" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1494" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(751,111</td> <td id="new_id-1495" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1496" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1497" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1498" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(1,951,687</td> <td id="new_id-1499" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1500" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1501" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1502" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(987,644</td> <td id="new_id-1503" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1504" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1505" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1506" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(549,922</td> <td id="new_id-1507" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1508" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1509" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1510" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(1,537,566</td> <td id="new_id-1511" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Net Loss available to common shareholders</p> </td> <td id="new_id-1512" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1513" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1514" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(1,200,576</td> <td id="new_id-1515" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1516" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1517" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1518" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(751,111</td> <td id="new_id-1519" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1520" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1521" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1522" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(1,951,687</td> <td id="new_id-1523" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1524" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1525" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1526" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(987,644</td> <td id="new_id-1527" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1528" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1529" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1530" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(549,922</td> <td id="new_id-1531" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1532" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1533" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1534" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(1,537,566</td> <td id="new_id-1535" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Pro forma Loss per common share&#xa0;Basic and diluted</p> </td> <td id="new_id-1536" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1537" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1538" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(0.04</td> <td id="new_id-1539" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1540" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1541" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1542" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(0.02</td> <td id="new_id-1543" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1544" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1545" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1546" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(0.06</td> <td id="new_id-1547" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1548" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1549" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1550" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(0.05</td> <td id="new_id-1551" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1552" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1553" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1554" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(0.02</td> <td id="new_id-1555" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1556" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1557" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1558" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(0.07</td> <td id="new_id-1559" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> </tr> </table><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 0.1pt;text-align:left;"><b>Formation of RMX and Asset Contribution</b></p><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">On April 13, 2018, Royale Energy, Inc., and two of Royale&#x2019;s subsidiaries, Royale Energy Funds, Inc. and Matrix Oil Management Corporation (the &#x201c;Royale Entities&#x201d;) completed &#xa0;the Subscription and Contribution Agreement (&#x201c;Contribution Agreement&#x201d;), in which the Royale Entities and CIC RMX LP (&#x201c;CIC&#x201d;) entered into the Contribution Agreement and certain other agreements providing that the Royale Entities would contribute certain assets to RMX Resources, LLC (&#x201c;RMX&#x201d;), a newly formed Texas limited liability company. In exchange for its contributed assets, Royale received a 20% equity interest in RMX, an equity performance incentive interest and up to $20.0 million to pay off Royale Entities senior lender, Arena Limited SPV, LLC., in full, and to pay Royale Entities trade payables and other outstanding obligations. CIC contributed an aggregate of $25.0 million in cash to RMX in exchange for (i) an 80% equity interest in RMX with preferred distributions until certain thresholds are met, (ii) a warrant (&#x201c;Warrant&#x201d;) to acquire up to 4,000,000 shares of Royale&#x2019;s common stock at an exercise price of $.01 per share and registration rights pursuant to a Registration Rights Agreement.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The Contribution Agreement was completed in a two-step closing and funding, with the First Closing consummated on April 4, 2018 and the Second Closing&#xa0;consummated on April 13, 2018 with the Royale Entities. In connection with the Second Closing, the parties entered into a letter agreement related to the preliminary Settlement Statement process.&#xa0; The parties agreed that, in lieu of the payment originally contemplated under Section 1.6(v) of the Contribution Agreement, the Royale Entities would receive the sum of $4,000,000, subject to adjustment. The $4,000,000 delivered at the Second Closing was an advance against amounts due the Royale Entities as Purchase Price, and the advance was subject to further adjustment in accordance with the Contribution Agreement.</p><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">RMX has two classes of stock and a six-member board of directors. Royale has two seats on the board giving it a third of the Board.&#xa0; Royale has designated Michael McCaskey and Johnny Jordan as its members of the RMX board.&#xa0; The return targets for CIC through its funding of RMX provide for a &#x201c;waterfall&#x201d; style return profile with the first distributions going to CIC until certain return thresholds are achieved.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">As part of the formation of the joint venture, Royale contributed Matrix Oil Corporation (&#x201c;MOC&#x201d;) to RMX. MOC has the permits and licenses to operating oil and gas properties in California. It was the operating entity for the Matrix group of companies that were acquired on February 28, 2018, see NOTE 1 &#x2013; Merger with Matrix Oil Management Corporation above. This allows the RMX joint venture to be the operator of record for the contributed assets.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Royale will account for its ownership interest in RMX following the equity method of accounting. By agreement, Royale has&#xa0;an initial equity value of $6.25 million or 20% of the total equity of the joint venture with CIC having an initial equity value of $25.0 million or 80% of the total equity of the joint venture.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The Royale Entities contributed 100% of the Sansinena Field, 100% of the Sempra Field, 50% of the Bellevue Field, 100% of the Whittier Main Field, and 50% of the Whittier Field. The result of the transfer of oil and gas properties and surface rights for cash as described above and a 20 percent working interest in RMX resulted in Royale recording a loss of approximately $16.2 million. The contribution by Royale of warrants to acquire 4,000,000 shares of Royale common stock caused Royale to record a loss of approximately $1.44 million. In addition, the Contribution Agreement called for an effective date of the property transfer of February 28, 2018 which required a purchase price adjustment of approximately $334,000 in the form of a cash contribution to RMX and an increase in the loss on the sale. The transfer of MOC to RMX as the operating company provided an amount due Royale of approximately $640,000, which was recorded as a due from affiliate during the period in 2018.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The RMX joint venture has a senior revolving loan facility with Legacy Bank Texas. RMX initially drew down on the line of credit in the amount of $12.5 million to complete the acquisition of the Royale Entities. The borrowing base of the facility is $17.5 million with $5.0 million remaining undrawn at June 30, 2018.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">As part of the joint venture, RMX entered into a Master Service Agreement &#x201c;MSA&#x201d; calling for Royale Energy to provide land, engineering and support services for the joint venture.&#xa0; For these services, Royale will receive $180,000 per month for the first year, renewable after one year at a reduced rate of $150,000 per month and subject to termination on 90 days notice.&#xa0; These amounts are included in Supervisory Fees, Service Agreement and Other.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Listed below is the summarized information required under Rule 3-09 of regulation S-X, Article 10 for Royale&#x2019;s investment in RMX:</p><br/><table border="0" cellpadding="0" cellspacing="0" class="finTable" style="margin-right: 10%; margin-left: 10%; width: 80%; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px;"> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; text-align: center;">&#xa0;</td> <td id="new_id-1560" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; text-align: center; padding-bottom: 1px;">&#xa0;</td> <td colspan="2" id="new_id-1561" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;"><b><b>RMX Resources, LLC at</b></b></p> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;"><b><b>June 30, 2018</b></b></p> </td> <td id="new_id-1562" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; text-align: center; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-1563" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; text-align: center; padding-bottom: 1px;">&#xa0;</td> <td colspan="2" id="new_id-1564" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;"><b><b>Royale Energy, Inc. Share at</b></b></p> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;"><b><b>June 30, 2018</b></b></p> </td> <td id="new_id-1565" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> </tr> <tr style="vertical-align: bottom;"> <td>&#xa0;</td> <td id="new_id-1566">&#xa0;</td> <td id="new_id-1567">&#xa0;</td> <td id="new_id-1568">&#xa0;</td> <td id="new_id-1569">&#xa0;</td> <td id="new_id-1570">&#xa0;</td> <td id="new_id-1571">&#xa0;</td> <td id="new_id-1572">&#xa0;</td> <td id="new_id-1573">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 70%;"> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Revenues for the three months ended June 30, 2018</p> </td> <td id="new_id-1574" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1575" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1576" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(2,480,630</td> <td id="new_id-1577" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1578" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1579" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1580" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(496,126</td> <td id="new_id-1581" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Gross Profit</p> </td> <td id="new_id-1582" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1583" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1584" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">1,175,286</td> <td id="new_id-1585" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1586" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1587" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1588" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">235,057</td> <td id="new_id-1589" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Income (Loss) from Continuing Operations</p> </td> <td id="new_id-1590" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1591" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1592" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(1,073,230</td> <td id="new_id-1593" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">)</td> <td id="new_id-1594" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1595" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1596" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(214,646</td> <td id="new_id-1597" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Net Income (Loss)</p> </td> <td id="new_id-1598" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1599" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1600" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(3,421,321</td> <td id="new_id-1601" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">)</td> <td id="new_id-1602" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1603" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1604" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(684,264</td> <td id="new_id-1605" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">)</td> </tr> </table></div> 20124000 2012400 0.20 20000000 25000000 0.80 4000000 4000000 6250000 25000000 1.00 1.00 0.50 1.00 0.50 0.20 16200000 1440000 334000 640000 12500000 17500000 5000000 180000 150000 <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><font style="text-decoration:underline">Consolidation</font></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The accompanying consolidated financial statements include the accounts of Royale Energy, Inc. (sometimes called the &#x201c;Company&#x201d; &#x201c;we,&#x201d; &#x201c;our,&#x201d; &#x201c;us,&#x201d; or &#x201c;Royale Energy&#x201d;), REF, and Matrix Oil Management Corporation and its subsidiaries.&#xa0; All entities comprising the consolidated financial statements of Royale Energy have fiscal years ending December 31.&#xa0; All material intercompany accounts and transactions have been eliminated in the consolidated financial statements.</p></div> <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><font style="text-decoration:underline">Use of Estimates</font></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The accompanying 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.&#xa0;&#xa0;As reflected in the accompanying financial statements, the Company has negative working capital, losses from operations and negative cash flows from operations.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 0.1pt;text-align:left;">Material estimates that are particularly susceptible to significant change relate to the estimate of Company oil and gas reserves prepared by an independent engineering consultant.&#xa0;&#xa0;Such estimates are subject to numerous uncertainties inherent in the estimation of quantities of proven reserves. Estimated reserves are used in the calculation of depletion, depreciation and amortization, unevaluated property costs, impairment of oil and natural gas properties, estimated future net cash flows, taxes, and contingencies.</p></div> <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;"><font style="text-decoration:underline">Liquidity&#xa0;and Going Concern</font></p><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">The primary sources of liquidity have historically been issuances of common stock and operations. We believe that the completion of the Merger with Matrix&#xa0;and the Contribution Agreement with CIC, which created RMX, will enable us to return to positive cash flow.&#xa0; There is some doubt about the company&#x2019;s ability to meet liquidity demands, and we anticipate that our primary sources of liquidity will be from the issuance of debt and/or equity, and the sale of oil and natural gas property participation interest.</p><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">The Company&#x2019;s consolidated financial statements reflect an accumulated deficit of $69,213,498, a working capital deficiency of $5,133,752 and a stockholders&#x2019; equity of $3,509,519. These factors raise 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 the Company is unable to continue as a going concern.</p><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">Management&#x2019;s plans to alleviate the going concern include the completion of the second step of the merger with Matrix and additional financing through issuances of common stock and the reduction of overhead costs as more fully outlined below.&#xa0; There is no assurance that additional financing will be available when needed or that management will be able to obtain financing on terms acceptable to the Company and whether the Company will become profitable and generate positive operating cash flow.</p></div> -5133752 <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;"><font style="text-decoration:underline">Revenue Recognition</font></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">On January 1, 2018, we adopted the new ASC Topic 606, Revenue from Contracts with Customers and all the related amendments ("new revenue standard") using the modified retrospective method.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">We evaluated the effect of transition by applying the provisions of the new revenue standard to contracts with remaining obligations as of January 1, 2018. No cumulative adjustment to retained earnings was necessary as a result of adopting this standard.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Results for reporting periods beginning after January 1, 2018 are presented under the new revenue standard, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting policies.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">We concluded that the adoption of the new revenue standard did not result in any changes to our consolidated balance sheet or statement of cash flow.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The majority of our revenues are derived from the sale of crude oil and condensate, natural gas liquids ("NGLs") and natural gas under spot and term agreements with our customers.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The pricing in our hydrocarbon sales agreements are variable, 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.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 0.1pt;text-align:left;">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 sheet.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Under our hydrocarbon sales agreements, the entire consideration amount is variable either due to pricing and/or volumes. We recognize revenue 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.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">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, in accordance with the new revenue standard, and such reimbursements will continue to not be recorded as revenues within the scope of the new revenue standard after the first quarter of 2018.&#xa0; Prior to this, such cost reimbursements were included in revenue.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">We commonly market the share of production belonging to other working interest owners as the operator of jointly owned oil and gas properties. We concluded that 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&#x2019; share of production. Therefore, we act as a principal only in regards to the sale of our share of production and recognize revenue for the volumes associated with our net production.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The Company frequently sells a portion of the working interest in each well it drills or participates in to third party investors and retains a portion of the prospect for its own account.&#xa0; The Company typically guarantees a cost to drill to the third-party drilling participants and records a loss or gain on the difference between the guaranteed price and the actual cost to drill the well.&#xa0; When monies are received from third parties for future drilling obligations, the Company records the liability as Turnkey Drilling Obligations.&#xa0; 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 &#x201c;Casing Point Election&#x201d; or &#x201c;Logging Point&#x201d;), 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.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><i>Crude oil and condensate</i></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">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.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><i>Natural gas and NGLs</i></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">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 determined 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 determined the plant tailgate is the point in time where control, as defined in the new revenue standard, is transferred to midstream entities and they are entitled to significant risks and rewards of ownership of the natural gas and NGLs.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">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&amp;E where transportation is netted directly against revenue. 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.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><i>Turnkey Drilling Obligations</i></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">These Turnkey Agreements are managed by the Company for the participants of the well.&#xa0; The collections of pre-drilling AFE amounts are segregated by the Company and the gains and losses on the Turnkey Agreements are recorded in income or expense at the time of the casing point election in accordance with ASC 932-323-25 and 932-360.&#xa0; The Company manages the performance obligation for the well participants and only records revenue or expense at the time the performance obligation of the Turnkey Agreement has been satisfied.</p></div> <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><font style="text-decoration:underline">Oil and Gas Property and Equipment</font></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Depreciation, depletion and amortization, based on cost less estimated salvage value of the asset, are primarily determined under either the unit-of-production method or the straight-line method, which is based on estimated asset service life taking obsolescence into consideration.&#xa0;&#xa0;Maintenance and repairs, including planned major maintenance, are expensed as incurred.&#xa0;&#xa0;Major renewals and improvements are capitalized and the assets replaced are retired.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The project construction phase commences with the development of the detailed engineering design and ends when the constructed assets are ready for their intended use.&#xa0;&#xa0;Interest costs, to the extent they are incurred to finance expenditures during the construction phase, are included in property, plant and equipment and are depreciated over the service life of the related assets.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Royale Energy uses the &#x201c;successful efforts&#x201d; method to account for its exploration and production activities.&#xa0;&#xa0;Under this method, Royale Energy accumulates its proportionate share of costs on a well-by-well basis with certain exploratory expenditures and exploratory dry holes being expensed as incurred&#xa0;and capitalizes expenditures for productive wells.&#xa0;&#xa0;Royale Energy amortizes the costs of productive wells under the unit-of-production method.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Royale Energy carries, as an asset, exploratory well costs when the well has found a sufficient quantity of reserves to justify its completion as a producing well and where Royale Energy is making sufficient progress assessing the reserves and the economic and operating viability of the project.&#xa0;&#xa0;Exploratory well costs not meeting these criteria are charged to expense. Other exploratory expenditures, including geophysical costs and annual lease rentals, are expensed as incurred.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Acquisition costs of proved properties are amortized using a unit-of-production method, computed on the basis of total proved oil and gas reserves.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Capitalized exploratory drilling and development costs associated with productive depletable extractive properties are amortized using unit-of-production rates based on the amount of proved developed reserves of oil and gas that are estimated to be recoverable from existing facilities using current operating methods.&#xa0;&#xa0;Under the unit-of-production method, oil and gas volumes are considered produced once they have been measured through meters at custody transfer or sales transaction points at the outlet valve on the lease or field storage tank.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Production costs are expensed as incurred. Production involves lifting the oil and gas to the surface and gathering, treating, field processing and field storage of the oil and gas. The production function normally terminates at the outlet valve on the lease or field production storage tank. Production costs are those incurred to operate and maintain Royale Energy&#x2019;s wells and related equipment and facilities. They become part of the cost of oil and gas produced. These costs, sometimes referred to as lifting costs, include such items as labor costs to operate the wells and related equipment; repair and maintenance costs on the wells and equipment; materials, supplies and energy costs required to operate the wells and related equipment; and administrative expenses related to the production activity. Proved oil and gas properties held and used by Royale Energy are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Royale Energy estimates the future undiscounted cash flows of the affected properties to judge the recoverability of carrying amounts. Cash flows used in impairment evaluations are developed using annually updated evaluation assumptions for crude oil commodity prices.&#xa0;&#xa0;Annual volumes are based on field production profiles, which are also updated annually. Prices for natural gas and other products are based on assumptions developed annually for evaluation purposes.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Impairment analyses are generally based on proved reserves.&#xa0;&#xa0;An asset group would be impaired if the undiscounted cash flows were less than its carrying value.&#xa0;&#xa0;Impairments are measured by the amount the carrying value exceeds fair value. During the six months ended June 30, 2017, impairment losses of $136,837 were recorded on various capitalized lease and land costs that were no longer viable.&#xa0;During the same period in 2018, no impairment losses were recorded.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Significant unproved properties are assessed for impairment individually, and valuation allowances against the capitalized costs are recorded based on the estimated economic chance of success and the length of time that Royale Energy expects to hold the properties.&#xa0;&#xa0;The valuation allowances are reviewed at least annually.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Upon the sale or retirement of a complete field of a proved property, Royale Energy eliminates the cost from its books, and the resultant gain or loss is recorded to Royale Energy&#x2019;s Statement of Operations.&#xa0;&#xa0;Upon the sale of an entire interest in an unproved property where the property has been assessed for impairment individually, a gain or loss is recognized in Royale Energy&#x2019;s Statement of Operations.&#xa0;&#xa0;If a partial interest in an unproved property is sold, any funds received are accounted for as a recovery of the cost in the interest retained with any excess funds recognized as a gain. Should Royale Energy&#x2019;s turnkey drilling agreements include unproved property, total drilling costs incurred to satisfy its obligations are recovered by the total funds received under the agreements.&#xa0;&#xa0;Any excess funds are recorded as a Gain on Turnkey Drilling Programs, and any costs not recovered are capitalized and accounted for under the &#x201c;successful efforts&#x201d; method.&#xa0;</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Royale Energy&#xa0;sponsors turnkey drilling agreement arrangements in unproved properties as a pooling of assets in a joint undertaking, whereby proceeds from participants are reported as Deferred Drilling Obligations, and then reduced as costs to complete its obligations are incurred with any excess booked against its property account to reduce any basis in its own interest.&#xa0;&#xa0;Gains on Turnkey Drilling Programs represent funds received from turnkey drilling participants in excess of all costs Royale incurs during the drilling programs (e.g., lease acquisition, exploration and development costs), including costs incurred on behalf of participants and costs incurred for its own account; and are recognized only upon making this determination after Royale&#x2019;s obligations have been fulfilled.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The contracts require the participants pay Royale Energy the full contract price upon execution of the agreement.&#xa0;&#xa0;Royale Energy completes the drilling activities typically between 10 and 30 days after drilling begins.&#xa0;&#xa0;The participant retains an undivided or proportional beneficial interest in the property and is also responsible for its proportionate share of operating costs.&#xa0;&#xa0;Royale Energy retains legal title to the lease.&#xa0;&#xa0;The participants purchase a working interest directly in the well bore.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">In these working interest arrangements, the participants are responsible for sharing in the risk of development, but also sharing in a proportional interest in rights to revenues and proportional liability for the cost of operations after drilling is completed and the interest is conveyed to the participant.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">A certain portion of the turnkey drilling participant&#x2019;s funds received are non-refundable.&#xa0;&#xa0;The company holds all funds invested as Deferred Drilling Obligations until drilling is complete.&#xa0;&#xa0;Occasionally, drilling is delayed for various reasons such as weather, permitting, drilling rig availability and/or contractual obligations.&#xa0;&#xa0;At June 30, 2018 and December 31, 2017, Royale Energy had Deferred Drilling Obligations of $8,654,398 and $5,891,898, respectively.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">If Royale Energy is unable to drill the wells, and a suitable replacement well is not found, Royale would retain the non-refundable portion of the contact and return the remaining funds to the participant.&#xa0;&#xa0;Included in cash and cash equivalents are amounts for use in completion of turnkey drilling programs in progress.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Losses on properties sold are recognized when incurred or when the properties are held for sale and the fair value of the properties is less than the carrying value.</p></div> 136837 <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><font style="text-decoration:underline">Other Receivables</font></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Our other receivables consist of joint interest billing receivables from direct working interest investors and industry partners. We provide for uncollectible accounts receivable using the allowance method of accounting for bad debts.&#xa0;&#xa0;Under this method of accounting, a provision for uncollectible accounts is charged directly to bad debt expense when it becomes probable the receivable will not be collected.&#xa0;&#xa0;The allowance account is increased or decreased based on past collection history and management&#x2019;s evaluation of accounts receivable.&#xa0;&#xa0;All amounts considered uncollectible are charged against the allowance account and recoveries of previously charged off accounts are added to the allowance.&#xa0;&#xa0;At June 30, 2018 and December 31, 2017, the Company established an allowance for uncollectable accounts of $1,965,076 and $1,975,660, respectively, for receivables from direct working interest investors whose expenses on non-producing wells were unlikely to be collected from revenue.</p></div> 1965076 1975660 <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><font style="text-decoration:underline">Revenue Receivables</font></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Our revenue receivables consist of receivables related to the sale of our natural gas and oil.&#xa0;&#xa0;Once a production month is completed we receive payment approximately&#xa0;15 to 30 days later.</p></div> <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;"><font style="text-decoration:underline">Receivable from Affiliate</font></p><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Our receivable from affiliate consists of receivables related to the transactions between Royale Energy and RMX Resources, LLC and its subsidiary, MOC.</p></div> <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;"><font style="text-decoration:underline">Other Assets</font></p><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Our other assets consist of long term cash deposits or bank certificates of deposit required by county government agencies or other companies mainly due to Royale&#x2019;s well operations.</p></div> <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><font style="text-decoration:underline">Equipment and Fixtures</font></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Equipment and fixtures are stated at cost and depreciated over the estimated useful lives of the assets, which range from three to seven years, using the straight-line method. Repairs and maintenance are charged to expense as incurred. When assets are sold or retired, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is included in income. Maintenance and repairs, which neither materially add to the value of the property nor appreciably prolong its life, are charged to expense as incurred. Gains or losses on dispositions of property and equipment, other than oil and gas, are reflected in operations.</p></div> P3Y P7Y <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><font style="text-decoration:underline">Fair Value Measurements</font></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">According to Fair Value Measurements and Disclosures Topic of the FASB Accounting Standards Codification, assets and liabilities that are measured at fair value on a recurring and nonrecurring basis in period subsequent to initial recognition, the reporting entity shall disclose information that enable users of its financial statements to assess the inputs used to develop those measurements and for recurring fair value measurements using significant unobservable inputs, the effect of the measurements on earnings for the period.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considers counterparty credit risk in its assessment of fair value. Carrying amounts of the Company&#x2019;s financial instruments, including cash equivalents, accounts receivable, accounts payable and accrued liabilities, approximate their fair values as of the balance sheet dates because of their generally short maturities.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The fair value hierarchy distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity&#x2019;s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Level 2: Directly or indirectly observable inputs as of the reporting date through correlation with market data, including quoted prices for similar assets and liabilities in active markets and quoted prices in markets that are not active. Level 2 also includes assets and liabilities that are valued using models or other pricing methodologies that do not require significant judgment since the input assumptions used in the models, such as interest rates and volatility factors, are corroborated by readily observable data from actively quoted markets for substantially the full term of the financial instrument.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Level 3: Unobservable inputs that are supported by little or no market activity and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management&#x2019;s estimates of market participant assumptions.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">At June 30, 2018 and December 31, 2017, Royale Energy did not have any financial assets measured and recognized at fair value on a recurring basis.&#xa0;&#xa0;The Company estimates asset retirement obligations pursuant to the provisions of FASB ASC Topic 410, &#x201c;<i>Asset Retirement and Environmental Obligations&#x201d;</i> (&#x201c;FASB ASC 410&#x201d;). The initial measurement of asset retirement obligations at fair value is calculated using discounted cash flow techniques and based on internal estimates of future retirement costs associated with oil and gas properties. Given the unobservable nature of the inputs, including plugging costs and reserve lives, the initial measurement of the asset retirement obligation liability is deemed to use Level 3 inputs.</p></div> <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><font style="text-decoration:underline">Accounts Payable and Accrued Expenses</font></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">At June 30, 2018, the components of accounts payable and accrued expenses consisted of $3,596,131 in trade accounts payable due to various vendors, $1,967,318 in payables and accruals related to direct working interest investors revenues and operating costs, $269,099 in accrued expenses related to current drilling efforts, $24,387 due to affiliates, $244,311 for accrued liabilities for amounts set aside mainly for the plugging and abandonment of certain wells, $117,676 for employee related taxes and accruals, $34,059 in deferred rent and $14,723 in federal and state income taxes payable.&#xa0; At December 31, 2017, the components of accounts payable and accrued expenses consisted of $2,392,755 in trade accounts payable due to various vendors, $688,002 in payables and accruals related to direct working interest investors revenues and operating costs, $483,734 in accrued expenses related to current drilling efforts, $438,667 in legal settlement payables related to Cash Advances on Pending Transactions, $266,110 for accrued liabilities for amounts set aside mainly for the plugging and abandonment of certain wells, $93,619 for employee related taxes and accruals, $223,833 related to interest payable on cash advances on pending transactions, $35,036 in deferred rent and $17,123 in federal and state income taxes payable.</p></div> 3596131 1967318 269099 24387 244311 117676 34059 14723 2392755 688002 483734 438667 266110 93619 223833 35036 17123 <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><font style="text-decoration:underline">Secured Term Debt</font></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Prior to the Merger, Matrix had an outstanding term loan agreement with Arena Limited SPV, LLC (Term Loan) for approximately $12.4 million. The original maturity date of the Term Loan was June 15, 2018, it was secured by the assets of Matrix, and contained financial covenants commencing June 30, 2016 and thereafter, as defined in the term loan agreement.&#xa0;The Term Loan was repaid in full in April 2018 in connection with the Contribution Agreement with CIC.&#xa0; The Company recognized $164,401 in interest expense for the period ended June 30, 2018.</p></div> 12400000 164401 <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><font style="text-decoration:underline">Cash Advances on Pending Transactions</font></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">In July 2016, we received a cash investment of $1,580,000 from two investors to purchase convertible promissory notes of $1,280,000 and $300,000, with a conversion price of $0.40 per share, with warrants to purchase one share of common stock for every three shares of common stock issuable upon conversion of the notes.&#xa0; The funds from these transactions were used to continue drilling activities, fund expenses incurred in connection with the completion of Royale Energy&#x2019;s merger with Matrix Oil Corporation and for general corporate purposes.&#xa0; The notes originally matured on August 2, 2017, one year from the date of issuance, and carried a 10% interest rate, with a default rate of 25%.&#xa0; Shortly before completion of the Merger, the $300,000 note and interest of $47,500 was converted into 750,000 shares of Royale common stock valued at $347,500, and Royale agreed to a cash settlement with the holder of the $1,280,000 note for $1,900,000, which was paid in full on April 13, 2018.</p></div> 1580000 1280000 300000 0.40 P1Y 0.10 0.25 47500 750000 347500 1900000 <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><font style="text-decoration:underline">Commodity Derivative Financial Instruments</font></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">From time to time, Matrix utilized derivative financial instruments, consisting of puts and swaps, in order to manage exposure to changes in oil commodity prices. These derivative contracts require financial settlements with counterparties based on comparison of various market prices for oil and either floor or swap benchmark prices. The notional amounts of these derivative contracts are economically based on a percentage of estimated production from proved reserves.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The Company accounts for derivative contracts in accordance with FASB ASC Topic 815, <i>Accounting for Derivative Instruments and Hedging Activities</i>, which establishes accounting and reporting standards for derivative instruments, including certain derivative instruments embedded in other contracts (collectively referred to as derivatives), and for hedging activities. Currently, the Company has elected not to designate any derivative contracts as accounting hedges under the provisions of FASB ASC Topic 815.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">As such, all derivative contracts are carried at fair value on the balance sheet and are marked-to-market at the end of each period with a related adjustment to earnings. Unrealized gains or losses are recorded as gain (loss) on derivatives in unrealized gain (loss) on derivative instruments in the consolidated statements of operations. Realized gain or losses are recorded net in oil and gas sales in the consolidated statements of operations.</p></div> <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><font style="text-decoration:underline">Fair Values &#x2013; Recurring</font></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The Company&#x2019;s derivative contracts are carried at fair value under ASC Topic 820. The fair value is based upon independently sourced market parameters. The fair value is estimated using forward-looking price curves and discounted cash flows that are observable or that can be corroborated by observable market data and, therefore, are classified within Level 2 of the valuation hierarchy. At June 30, 2018, the Company did not have any derivative contracts.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><font style="text-decoration:underline">Fair Values - Non-recurring</font></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The Company applies the provisions of the fair value measurement standard to its non-recurring, non-financial measurements including oil and natural gas property impairments and other long-lived asset impairments. These items are not measured at fair value on a recurring basis but are subject to fair value adjustments only in certain circumstances</p></div> <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><font style="text-decoration:underline">Recently Issued Accounting Pronouncements</font></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The Company has reviewed the updates issued by the Financial Accounting Standards Board (FASB) during the six months ended June 30, 2018:</p><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">ASU 2018-05: Income Taxes (Topic 740) &#x2013; In March 2018, the Financial Accounting Standards Board (&#x201c;FASB&#x201d;) issued ASU 2018-05,&#xa0;Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118, to add various SEC paragraphs pursuant to the issuance of SAB 118 to ASC 740. SAB 118 was issued by the SEC in December 2017 to provide immediate guidance for accounting implications of U.S. tax reform under the TCJA. The Company is currently evaluating the effects of adopting ASU 2016-02 on its consolidated financial statements, but the adoption is not expected to have a significant impact on the Company&#x2019;s financial statements.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">ASU 2017-09: Compensation - Stock Compensation (Topic 718) &#x2013; Scope of Modification Accounting - In May 2017, the FASB issued ASU 2017-09, which provides guidance about which changes to the terms or conditions of a share-based payment awarded require an entity to apply modification accounting. ASU 2017-09 is effective for interim and annual reporting periods beginning after December 15, 2017, with early adoption permitted. The amendments in ASU 2017-09 are to be applied prospectively to an award modified on or after the adoption date, consequently the impact will be dependent on the modification of any share-based payment awards and the nature of such modifications.&#xa0; The adoption of this guidance has no impact on our results of operations or cash flows.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">ASU 2017-01: Business Combinations (Topic 805) &#x2013; Clarifying the Definition of a Business - In January 2017, FASB issued ASU 2017-01. The objective of ASU 2017-01 is to clarify the definition of a business by adding guidance on how entities should evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. ASU 2017-01 will be effective for public business entities for fiscal years beginning after December 15, 2017, including interim periods in the year of adoption. Early adoption is permitted for any interim or annual period. The adoption of this guidance has no impact on our results of operations or cash flows.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">ASU No. 2016-02: Leases (Topic 842). In February 2016, FASB issued ASU 2016-02 which aims to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and requiring disclosure of key information about leasing agreements. Entities are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the effects of adopting ASU 2016-02 on its consolidated financial statements, but the adoption is not expected to have a significant impact on the Company&#x2019;s financial statements.&#xa0;</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">ASU 2016-01: Financial Instruments &#x2013; Overall &#x2013; Recognition and Measurement of Financial Assets and Financial Liabilities (Subtopic 825-10) In January 2016, FASB issued ASU 2016-01 which requires an entity to: (i) measure equity investments at fair value through net income, with certain exceptions; (ii) present in Other Comprehensive Income the changes in instrument-specific credit risk for financial liabilities measured using the fair value option; (iii) present financial assets and financial liabilities by measurement category and form of financial asset; (iv) calculate the fair value of financial instruments for disclosure purposes based on an exit price and; (v) assess a valuation allowance on deferred tax assets related to unrealized losses of AFS debt securities in combination with other deferred tax assets. The Update provides an election to subsequently measure certain nonmarketable equity investments at cost less any impairment and adjusted for certain observable price changes. The Update also requires a qualitative impairment assessment of such equity investments and amends certain fair value disclosure requirements. The new standard becomes effective for fiscal years beginning after December 15, 2017. Early adoption is only permitted for the provision related to instrument-specific credit risk and the fair value disclosure exemption provided to nonpublic entities.&#xa0;&#xa0;The adoption of this guidance has no impact on our results of operations or cash flows.</p></div> <div style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; "> The following table summarizes the consideration transferred, fair value of assets acquired and liabilities assumed:<br /><br /><table border="0" cellpadding="0" cellspacing="0" class="finTable" style="margin-right: 10%; margin-left: 10%; width: 80%; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px;"> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1352" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td colspan="2" id="new_id-1353" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>March 7, 2018</b></b></p> </td> <td id="new_id-1354" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 85%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>Consideration:</b></p> </td> <td id="new_id-1355" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1356" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"><b>&#xa0;</b></td> <td id="new_id-1357" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"><b>&#xa0;</b></td> <td id="new_id-1358" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"><b>&#xa0;</b></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Value of Royale Common Stock issued</p> </td> <td id="new_id-1359" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1360" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1361" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">9,546,068</td> <td id="new_id-1362" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Value of Series B Convertible Preferred Stock issued</p> </td> <td id="new_id-1363" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1364" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-1365" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">20,124,000</td> <td id="new_id-1366" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Total consideration</p> </td> <td id="new_id-1367" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1368" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td id="new_id-1369" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">29,670,068</td> <td id="new_id-1370" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="4" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><font style="text-decoration:underline"><b>Fair Value of Liabilities Assumed:</b></font></p> </td> <td id="new_id-1371" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Current liabilities</p> </td> <td id="new_id-1372" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1373" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1374" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">19,624,592</td> <td id="new_id-1375" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Other liabilities</p> </td> <td id="new_id-1376" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1377" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1378" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">3,125,394</td> <td id="new_id-1379" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Asset Retirement obligations</p> </td> <td id="new_id-1380" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1381" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-1382" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">1,419,544</td> <td id="new_id-1383" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Total fair value of liabilities assumed</p> </td> <td id="new_id-1384" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1385" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-1386" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">24,169,530</td> <td id="new_id-1387" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Total consideration plus liabilities assumed</p> </td> <td id="new_id-1388" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1389" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td id="new_id-1390" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">53,839,598</td> <td id="new_id-1391" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="4" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><font style="text-decoration:underline"><b>Fair Value of Assets Acquired:</b></font></p> </td> <td id="new_id-1392" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Cash</p> </td> <td id="new_id-1393" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1394" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1395" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">548,805</td> <td id="new_id-1396" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Current assets</p> </td> <td id="new_id-1397" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1398" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1399" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">3,655,173</td> <td id="new_id-1400" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Proved and unproved crude oil and gas properties</p> </td> <td id="new_id-1401" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1402" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1403" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">48,632,870</td> <td id="new_id-1404" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Land</p> </td> <td id="new_id-1405" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1406" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-1407" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">1,002,750</td> <td id="new_id-1408" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1409" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1410" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td id="new_id-1411" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">53,839,598</td> <td id="new_id-1412" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> </table></div> 9546068 20124000 29670068 19624592 3125394 1419544 24169530 53839598 548805 3655173 48632870 1002750 <div style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; "> These unaudited supplemental pro forma results of operations for the consolidated companies as of March 31, 2017, are provided for illustrative purposes only and do not purport to be indicative of the actual results that would have been achieved by the consolidated company for the periods presented or that may be achieved by the consolidated company in the future.<br /><br /><table border="0" cellpadding="0" cellspacing="0" class="finTable" style="width: 100%; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px;"> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1413" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td colspan="10" id="new_id-1414" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>Three months ended March 31, 2018</b></b></p> </td> <td id="new_id-1415" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-1416" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td colspan="10" id="new_id-1417" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>Three months ended March 31, 2017</b></b></p> </td> <td id="new_id-1418" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> </tr> <tr style="vertical-align: bottom;"> <td>&#xa0;</td> <td id="new_id-1419">&#xa0;</td> <td id="new_id-1420">&#xa0;</td> <td id="new_id-1421">&#xa0;</td> <td id="new_id-1422">&#xa0;</td> <td id="new_id-1423">&#xa0;</td> <td id="new_id-1424">&#xa0;</td> <td id="new_id-1425">&#xa0;</td> <td id="new_id-1426">&#xa0;</td> <td id="new_id-1427">&#xa0;</td> <td id="new_id-1428">&#xa0;</td> <td id="new_id-1429">&#xa0;</td> <td id="new_id-1430">&#xa0;</td> <td id="new_id-1431">&#xa0;</td> <td id="new_id-1432">&#xa0;</td> <td id="new_id-1433">&#xa0;</td> <td id="new_id-1434">&#xa0;</td> <td id="new_id-1435">&#xa0;</td> <td id="new_id-1436">&#xa0;</td> <td id="new_id-1437">&#xa0;</td> <td id="new_id-1438">&#xa0;</td> <td id="new_id-1439">&#xa0;</td> <td id="new_id-1440">&#xa0;</td> <td id="new_id-1441">&#xa0;</td> <td id="new_id-1442">&#xa0;</td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1443" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td colspan="2" id="new_id-1444" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>Royale Energy, Inc.</b></b></p> </td> <td id="new_id-1445" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-1446" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td colspan="2" id="new_id-1447" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>Matrix Oil Management Corp</b></b></p> </td> <td id="new_id-1448" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-1449" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td colspan="2" id="new_id-1450" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>Consolidated</b></b></p> </td> <td id="new_id-1451" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-1452" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td colspan="2" id="new_id-1453" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>Royale Energy, Inc.</b></b></p> </td> <td id="new_id-1454" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-1455" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td colspan="2" id="new_id-1456" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>Matrix Oil Management Corp</b></b></p> </td> <td id="new_id-1457" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-1458" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td colspan="2" id="new_id-1459" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>Consolidated</b></b></p> </td> <td id="new_id-1460" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1461" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td colspan="22" id="new_id-1462" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">(Unaudited)</p> </td> <td id="new_id-1463" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 28%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Revenue</p> </td> <td id="new_id-1464" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1465" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1466" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">119,473</td> <td id="new_id-1467" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1468" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1469" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1470" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">1,798,531</td> <td id="new_id-1471" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1472" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1473" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1474" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">1,918,004</td> <td id="new_id-1475" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1476" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1477" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1478" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">274,398</td> <td id="new_id-1479" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1480" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1481" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1482" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">1,120,427</td> <td id="new_id-1483" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1484" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1485" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1486" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">1,394,825</td> <td id="new_id-1487" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Net Loss</p> </td> <td id="new_id-1488" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1489" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1490" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(1,200,576</td> <td id="new_id-1491" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1492" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1493" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1494" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(751,111</td> <td id="new_id-1495" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1496" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1497" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1498" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(1,951,687</td> <td id="new_id-1499" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1500" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1501" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1502" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(987,644</td> <td id="new_id-1503" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1504" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1505" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1506" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(549,922</td> <td id="new_id-1507" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1508" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1509" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1510" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(1,537,566</td> <td id="new_id-1511" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Net Loss available to common shareholders</p> </td> <td id="new_id-1512" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1513" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1514" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(1,200,576</td> <td id="new_id-1515" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1516" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1517" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1518" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(751,111</td> <td id="new_id-1519" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1520" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1521" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1522" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(1,951,687</td> <td id="new_id-1523" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1524" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1525" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1526" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(987,644</td> <td id="new_id-1527" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1528" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1529" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1530" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(549,922</td> <td id="new_id-1531" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1532" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1533" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1534" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(1,537,566</td> <td id="new_id-1535" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Pro forma Loss per common share&#xa0;Basic and diluted</p> </td> <td id="new_id-1536" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1537" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1538" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(0.04</td> <td id="new_id-1539" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1540" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1541" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1542" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(0.02</td> <td id="new_id-1543" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1544" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1545" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1546" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(0.06</td> <td id="new_id-1547" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1548" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1549" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1550" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(0.05</td> <td id="new_id-1551" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1552" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1553" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1554" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(0.02</td> <td id="new_id-1555" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1556" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1557" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1558" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(0.07</td> <td id="new_id-1559" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> </tr> </table></div> 119473 1798531 1918004 274398 1120427 1394825 -1200576 -751111 -1951687 -987644 -549922 -1537566 -1200576 -751111 -1951687 -987644 -549922 -1537566 -0.04 -0.02 -0.06 -0.05 -0.02 -0.07 <div style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; "> Listed below is the summarized information required under Rule 3-09 of regulation S-X, Article 10 for Royale&#x2019;s investment in RMX:<br /><br /><table border="0" cellpadding="0" cellspacing="0" class="finTable" style="margin-right: 10%; margin-left: 10%; width: 80%; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px;"> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; text-align: center;">&#xa0;</td> <td id="new_id-1560" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; text-align: center; padding-bottom: 1px;">&#xa0;</td> <td colspan="2" id="new_id-1561" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;"><b><b>RMX Resources, LLC at</b></b></p> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;"><b><b>June 30, 2018</b></b></p> </td> <td id="new_id-1562" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; text-align: center; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-1563" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; text-align: center; padding-bottom: 1px;">&#xa0;</td> <td colspan="2" id="new_id-1564" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;"><b><b>Royale Energy, Inc. Share at</b></b></p> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;"><b><b>June 30, 2018</b></b></p> </td> <td id="new_id-1565" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> </tr> <tr style="vertical-align: bottom;"> <td>&#xa0;</td> <td id="new_id-1566">&#xa0;</td> <td id="new_id-1567">&#xa0;</td> <td id="new_id-1568">&#xa0;</td> <td id="new_id-1569">&#xa0;</td> <td id="new_id-1570">&#xa0;</td> <td id="new_id-1571">&#xa0;</td> <td id="new_id-1572">&#xa0;</td> <td id="new_id-1573">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 70%;"> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Revenues for the three months ended June 30, 2018</p> </td> <td id="new_id-1574" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1575" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1576" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(2,480,630</td> <td id="new_id-1577" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1578" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1579" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1580" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(496,126</td> <td id="new_id-1581" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Gross Profit</p> </td> <td id="new_id-1582" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1583" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1584" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">1,175,286</td> <td id="new_id-1585" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1586" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1587" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1588" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">235,057</td> <td id="new_id-1589" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Income (Loss) from Continuing Operations</p> </td> <td id="new_id-1590" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1591" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1592" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(1,073,230</td> <td id="new_id-1593" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">)</td> <td id="new_id-1594" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1595" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1596" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(214,646</td> <td id="new_id-1597" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Net Income (Loss)</p> </td> <td id="new_id-1598" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1599" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1600" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(3,421,321</td> <td id="new_id-1601" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">)</td> <td id="new_id-1602" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1603" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1604" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(684,264</td> <td id="new_id-1605" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">)</td> </tr> </table></div> -2480630 -496126 1175286 235057 -1073230 -214646 -3421321 -684264 <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>NOTE 2 </b>&#x2013;<b>&#xa0;</b><font style="text-decoration:underline"><b>LOSS PER SHARE</b></font></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Basic and diluted loss per share are calculated as follows:</p><br/><table border="0" cellpadding="0" cellspacing="0" class="finTable" style="width: 100%; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px;"> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1606" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td colspan="14" id="new_id-1607" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>Three Months Ended June 30,</b></b></p> </td> <td id="new_id-1608" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1609" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td colspan="6" id="new_id-1610" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>2018</b></b></p> </td> <td id="new_id-1611" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-1612" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td colspan="6" id="new_id-1613" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>2017</b></b></p> </td> <td id="new_id-1614" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1615" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td colspan="2" id="new_id-1616" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>Basic</b></b></p> </td> <td id="new_id-1617" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-1618" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td colspan="2" id="new_id-1619" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>Diluted</b></b></p> </td> <td id="new_id-1620" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-1621" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td colspan="2" id="new_id-1622" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>Basic</b></b></p> </td> <td id="new_id-1623" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-1624" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td colspan="2" id="new_id-1625" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>Diluted</b></b></p> </td> <td id="new_id-1626" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Net Income (Loss)</p> </td> <td id="new_id-1627" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1628" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1629" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(19,140,603</td> <td id="new_id-1630" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1631" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1632" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1633" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(19,140,603</td> <td id="new_id-1634" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1635" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1636" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1637" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">70,662</td> <td id="new_id-1638" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1639" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1640" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1641" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">70,662</td> <td id="new_id-1642" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Less:&#xa0; Preferred Stock Dividend</p> </td> <td id="new_id-1643" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1644" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1645" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">233,494</td> <td id="new_id-1646" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1647" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1648" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1649" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">233,494</td> <td id="new_id-1650" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1651" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1652" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1653" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">--</td> <td id="new_id-1654" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1655" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1656" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1657" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">-</td> <td id="new_id-1658" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Net Income (Loss) Attributable to Common Shareholders</p> </td> <td id="new_id-1659" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1660" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1661" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(19,374,097</td> <td id="new_id-1662" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1663" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1664" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1665" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(19,374,097</td> <td id="new_id-1666" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1667" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1668" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1669" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">70,662</td> <td id="new_id-1670" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1671" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1672" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1673" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">70,662</td> <td id="new_id-1674" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Weighted average common shares outstanding&#xa0;</p> </td> <td id="new_id-1675" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1676" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1677" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">48,400,371</td> <td id="new_id-1678" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1679" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1680" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1681" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">48,400,371</td> <td id="new_id-1682" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1683" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1684" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1685" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">21,825,770</td> <td id="new_id-1686" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1687" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1688" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1689" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">21,825,770</td> <td id="new_id-1690" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Effect of dilutive securities</p> </td> <td id="new_id-1691" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1692" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1693" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">--</td> <td id="new_id-1694" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1695" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1696" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1697" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">-</td> <td id="new_id-1698" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1699" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1700" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1701" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">--</td> <td id="new_id-1702" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1703" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1704" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1705" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">-</td> <td id="new_id-1706" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Weighted average common shares, including&#xa0;Dilutive effect</p> </td> <td id="new_id-1707" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1708" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1709" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">48,400,371</td> <td id="new_id-1710" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1711" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1712" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1713" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">48,400,371</td> <td id="new_id-1714" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1715" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1716" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1717" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">21,825,770</td> <td id="new_id-1718" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1719" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1720" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1721" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">21,825,770</td> <td id="new_id-1722" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Per share:</p> </td> <td id="new_id-1723" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1724" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1725" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1726" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1727" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1728" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1729" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1730" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1731" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1732" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1733" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1734" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1735" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1736" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1737" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1738" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&#xa0;&#xa0;&#xa0;&#xa0;&#xa0;Net Income (Loss)</p> </td> <td id="new_id-1739" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1740" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1741" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(0.40</td> <td id="new_id-1742" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1743" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1744" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1745" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(0.40</td> <td id="new_id-1746" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1747" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1748" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1749" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">0.00</td> <td id="new_id-1750" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1751" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1752" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1753" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">0.00</td> <td id="new_id-1754" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> </table><br/><table border="0" cellpadding="0" cellspacing="0" class="finTable" style="width: 100%; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px;"> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1755" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td colspan="14" id="new_id-1756" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>Six Months Ended June 30,</b></b></p> </td> <td id="new_id-1757" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1758" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td colspan="6" id="new_id-1759" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b><b>2018</b></b></b></p> </td> <td id="new_id-1760" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-1761" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td colspan="6" id="new_id-1762" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>2017</b></b></p> </td> <td id="new_id-1763" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1764" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td colspan="2" id="new_id-1765" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b><b>Basic</b></b></b></p> </td> <td id="new_id-1766" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-1767" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td colspan="2" id="new_id-1768" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b><b>Diluted</b></b></b></p> </td> <td id="new_id-1769" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-1770" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td colspan="2" id="new_id-1771" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b><b>Basic</b></b></b></p> </td> <td id="new_id-1772" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-1773" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td colspan="2" id="new_id-1774" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>Diluted</b></b></p> </td> <td id="new_id-1775" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Net Loss</p> </td> <td id="new_id-1776" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1777" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1778" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(20,774,316</td> <td id="new_id-1779" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1780" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1781" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1782" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(20,774,316</td> <td id="new_id-1783" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1784" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1785" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1786" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(916,982</td> <td id="new_id-1787" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1788" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1789" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1790" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(916,982</td> <td id="new_id-1791" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Less:&#xa0; Preferred Stock Dividend</p> </td> <td id="new_id-1792" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1793" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1794" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">233,494</td> <td id="new_id-1795" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1796" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1797" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1798" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">233,494</td> <td id="new_id-1799" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1800" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1801" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1802" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">-</td> <td id="new_id-1803" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1804" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1805" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1806" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">-</td> <td id="new_id-1807" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Net Loss Attributable to Common Shareholders</p> </td> <td id="new_id-1808" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1809" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1810" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(21,007,810</td> <td id="new_id-1811" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1812" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1813" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1814" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(21,007,810</td> <td id="new_id-1815" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1816" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1817" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1818" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">70,662</td> <td id="new_id-1819" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1820" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1821" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1822" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">70,662</td> <td id="new_id-1823" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Weighted average common shares outstanding&#xa0;</p> </td> <td id="new_id-1824" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1825" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1826" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">39,745,890</td> <td id="new_id-1827" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1828" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1829" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1830" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">39,745,890</td> <td id="new_id-1831" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1832" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1833" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1834" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">21,825,770</td> <td id="new_id-1835" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1836" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1837" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1838" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">21,825,770</td> <td id="new_id-1839" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Effect of dilutive securities</p> </td> <td id="new_id-1840" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1841" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1842" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">-</td> <td id="new_id-1843" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1844" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1845" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1846" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">-</td> <td id="new_id-1847" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1848" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1849" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1850" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">-</td> <td id="new_id-1851" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1852" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1853" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1854" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">-</td> <td id="new_id-1855" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Weighted average common shares, including&#xa0;Dilutive effect</p> </td> <td id="new_id-1856" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1857" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1858" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">39,745,890</td> <td id="new_id-1859" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1860" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1861" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1862" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">39,745,890</td> <td id="new_id-1863" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1864" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1865" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1866" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">21,825,770</td> <td id="new_id-1867" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1868" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1869" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1870" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">21,825,770</td> <td id="new_id-1871" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="16" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Per share:</p> </td> <td id="new_id-1872" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&#xa0;&#xa0;&#xa0;&#xa0;&#xa0;Net Loss</p> </td> <td id="new_id-1873" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1874" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1875" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(0.52</td> <td id="new_id-1876" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1877" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1878" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1879" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(0.52</td> <td id="new_id-1880" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1881" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1882" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1883" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(0.04</td> <td id="new_id-1884" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1885" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1886" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1887" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(0.04</td> <td id="new_id-1888" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> </tr> </table><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">For the three and six month period ended June 30, 2018, Royale Energy had dilutive securities of 23,509,917 and 15,266,074, respectively.&#xa0;&#xa0;These securities were not included in the dilutive loss per share due to their antidilutive nature.</p><br/></div> 23509917 23509917 15266074 15266074 <div style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; "> Basic and diluted loss per share are calculated as follows:<br /><br /><table border="0" cellpadding="0" cellspacing="0" class="finTable" style="width: 100%; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px;"> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1606" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td colspan="14" id="new_id-1607" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>Three Months Ended June 30,</b></b></p> </td> <td id="new_id-1608" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1609" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td colspan="6" id="new_id-1610" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>2018</b></b></p> </td> <td id="new_id-1611" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-1612" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td colspan="6" id="new_id-1613" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>2017</b></b></p> </td> <td id="new_id-1614" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1615" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td colspan="2" id="new_id-1616" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>Basic</b></b></p> </td> <td id="new_id-1617" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-1618" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td colspan="2" id="new_id-1619" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>Diluted</b></b></p> </td> <td id="new_id-1620" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-1621" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td colspan="2" id="new_id-1622" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>Basic</b></b></p> </td> <td id="new_id-1623" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-1624" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td colspan="2" id="new_id-1625" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>Diluted</b></b></p> </td> <td id="new_id-1626" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Net Income (Loss)</p> </td> <td id="new_id-1627" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1628" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1629" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(19,140,603</td> <td id="new_id-1630" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1631" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1632" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1633" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(19,140,603</td> <td id="new_id-1634" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1635" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1636" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1637" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">70,662</td> <td id="new_id-1638" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1639" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1640" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1641" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">70,662</td> <td id="new_id-1642" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Less:&#xa0; Preferred Stock Dividend</p> </td> <td id="new_id-1643" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1644" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1645" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">233,494</td> <td id="new_id-1646" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1647" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1648" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1649" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">233,494</td> <td id="new_id-1650" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1651" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1652" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1653" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">--</td> <td id="new_id-1654" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1655" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1656" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1657" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">-</td> <td id="new_id-1658" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Net Income (Loss) Attributable to Common Shareholders</p> </td> <td id="new_id-1659" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1660" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1661" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(19,374,097</td> <td id="new_id-1662" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1663" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1664" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1665" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(19,374,097</td> <td id="new_id-1666" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1667" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1668" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1669" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">70,662</td> <td id="new_id-1670" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1671" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1672" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1673" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">70,662</td> <td id="new_id-1674" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Weighted average common shares outstanding&#xa0;</p> </td> <td id="new_id-1675" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1676" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1677" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">48,400,371</td> <td id="new_id-1678" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1679" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1680" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1681" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">48,400,371</td> <td id="new_id-1682" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1683" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1684" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1685" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">21,825,770</td> <td id="new_id-1686" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1687" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1688" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1689" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">21,825,770</td> <td id="new_id-1690" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Effect of dilutive securities</p> </td> <td id="new_id-1691" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1692" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1693" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">--</td> <td id="new_id-1694" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1695" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1696" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1697" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">-</td> <td id="new_id-1698" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1699" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1700" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1701" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">--</td> <td id="new_id-1702" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1703" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1704" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1705" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">-</td> <td id="new_id-1706" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Weighted average common shares, including&#xa0;Dilutive effect</p> </td> <td id="new_id-1707" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1708" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1709" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">48,400,371</td> <td id="new_id-1710" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1711" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1712" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1713" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">48,400,371</td> <td id="new_id-1714" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1715" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1716" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1717" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">21,825,770</td> <td id="new_id-1718" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1719" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1720" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1721" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">21,825,770</td> <td id="new_id-1722" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Per share:</p> </td> <td id="new_id-1723" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1724" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1725" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1726" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1727" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1728" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1729" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1730" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1731" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1732" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1733" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1734" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1735" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1736" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1737" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1738" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&#xa0;&#xa0;&#xa0;&#xa0;&#xa0;Net Income (Loss)</p> </td> <td id="new_id-1739" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1740" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1741" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(0.40</td> <td id="new_id-1742" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1743" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1744" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1745" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(0.40</td> <td id="new_id-1746" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1747" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1748" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1749" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">0.00</td> <td id="new_id-1750" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1751" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1752" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1753" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">0.00</td> <td id="new_id-1754" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> </table><table border="0" cellpadding="0" cellspacing="0" class="finTable" style="width: 100%; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px;"> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1755" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td colspan="14" id="new_id-1756" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>Six Months Ended June 30,</b></b></p> </td> <td id="new_id-1757" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1758" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td colspan="6" id="new_id-1759" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b><b>2018</b></b></b></p> </td> <td id="new_id-1760" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-1761" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td colspan="6" id="new_id-1762" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>2017</b></b></p> </td> <td id="new_id-1763" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1764" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td colspan="2" id="new_id-1765" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b><b>Basic</b></b></b></p> </td> <td id="new_id-1766" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-1767" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td colspan="2" id="new_id-1768" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b><b>Diluted</b></b></b></p> </td> <td id="new_id-1769" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-1770" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td colspan="2" id="new_id-1771" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b><b>Basic</b></b></b></p> </td> <td id="new_id-1772" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-1773" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td colspan="2" id="new_id-1774" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>Diluted</b></b></p> </td> <td id="new_id-1775" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Net Loss</p> </td> <td id="new_id-1776" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1777" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1778" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(20,774,316</td> <td id="new_id-1779" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1780" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1781" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1782" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(20,774,316</td> <td id="new_id-1783" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1784" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1785" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1786" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(916,982</td> <td id="new_id-1787" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1788" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1789" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1790" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(916,982</td> <td id="new_id-1791" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Less:&#xa0; Preferred Stock Dividend</p> </td> <td id="new_id-1792" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1793" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1794" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">233,494</td> <td id="new_id-1795" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1796" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1797" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1798" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">233,494</td> <td id="new_id-1799" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1800" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1801" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1802" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">-</td> <td id="new_id-1803" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1804" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1805" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1806" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">-</td> <td id="new_id-1807" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Net Loss Attributable to Common Shareholders</p> </td> <td id="new_id-1808" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1809" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1810" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(21,007,810</td> <td id="new_id-1811" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1812" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1813" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1814" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(21,007,810</td> <td id="new_id-1815" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1816" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1817" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1818" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">70,662</td> <td id="new_id-1819" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1820" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1821" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1822" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">70,662</td> <td id="new_id-1823" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Weighted average common shares outstanding&#xa0;</p> </td> <td id="new_id-1824" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1825" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1826" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">39,745,890</td> <td id="new_id-1827" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1828" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1829" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1830" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">39,745,890</td> <td id="new_id-1831" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1832" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1833" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1834" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">21,825,770</td> <td id="new_id-1835" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1836" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1837" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1838" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">21,825,770</td> <td id="new_id-1839" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Effect of dilutive securities</p> </td> <td id="new_id-1840" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1841" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1842" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">-</td> <td id="new_id-1843" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1844" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1845" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1846" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">-</td> <td id="new_id-1847" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1848" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1849" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1850" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">-</td> <td id="new_id-1851" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1852" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1853" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1854" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">-</td> <td id="new_id-1855" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Weighted average common shares, including&#xa0;Dilutive effect</p> </td> <td id="new_id-1856" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1857" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1858" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">39,745,890</td> <td id="new_id-1859" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1860" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1861" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1862" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">39,745,890</td> <td id="new_id-1863" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1864" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1865" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1866" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">21,825,770</td> <td id="new_id-1867" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1868" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1869" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1870" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">21,825,770</td> <td id="new_id-1871" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="16" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Per share:</p> </td> <td id="new_id-1872" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&#xa0;&#xa0;&#xa0;&#xa0;&#xa0;Net Loss</p> </td> <td id="new_id-1873" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1874" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1875" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(0.52</td> <td id="new_id-1876" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1877" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1878" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1879" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(0.52</td> <td id="new_id-1880" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1881" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1882" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1883" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(0.04</td> <td id="new_id-1884" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1885" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1886" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1887" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(0.04</td> <td id="new_id-1888" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> </tr> </table></div> 233494 233494 0 0 -19374097 70662 48400371 48400371 21825770 21825770 0 0 0 0 48400371 21825770 233494 233494 0 0 -21007810 70662 39745890 39745890 21825770 21825770 0 0 0 0 39745890 21825770 <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>NOTE 3&#xa0;&#x2013; </b><font style="text-decoration:underline"><b>OIL AND GAS PROPERTIES, EQUIPMENT AND FIXTURES</b></font></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Oil and gas properties, equipment and fixtures consist of the following:</p><br/><table border="0" cellpadding="0" cellspacing="0" class="finTable" style="margin-right: 10%; margin-left: 10%; width: 80%; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px;"> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1889" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td colspan="2" id="new_id-1890" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>June</b><b> 3</b><b>0</b><b>,</b></b></p> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>2018</b></b></p> </td> <td id="new_id-1891" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1892" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td colspan="2" id="new_id-1893" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>December 31,</b></b></p> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>2017</b></b></p> </td> <td id="new_id-1894" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1895" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td colspan="2" id="new_id-1896" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">(Unaudited)</p> </td> <td id="new_id-1897" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-1898" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td colspan="2" id="new_id-1899" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">(Audited)</p> </td> <td id="new_id-1900" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 70%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Oil and Gas</p> </td> <td id="new_id-1901" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1902" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1903" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1904" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1905" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1906" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1907" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1908" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;text-indent:36pt;">Producing properties, including drilling costs</p> </td> <td id="new_id-1909" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1910" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1911" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">9,581,245</td> <td id="new_id-1912" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1913" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1914" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1915" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">3,755,705</td> <td id="new_id-1916" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;text-indent:36pt;">Undeveloped properties</p> </td> <td id="new_id-1917" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1918" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1919" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">11,817</td> <td id="new_id-1920" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1921" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1922" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1923" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">1,435</td> <td id="new_id-1924" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;text-indent:36pt;">Lease and well equipment</p> </td> <td id="new_id-1925" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1926" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-1927" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">4,183,075</td> <td id="new_id-1928" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1929" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1930" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-1931" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">4,119,802</td> <td id="new_id-1932" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1933" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1934" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1935" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">13,776,137</td> <td id="new_id-1936" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1937" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1938" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1939" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">7,876,942</td> <td id="new_id-1940" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td>&#xa0;</td> <td id="new_id-1941">&#xa0;</td> <td id="new_id-1942">&#xa0;</td> <td id="new_id-1943">&#xa0;</td> <td id="new_id-1944">&#xa0;</td> <td id="new_id-1945">&#xa0;</td> <td id="new_id-1946">&#xa0;</td> <td id="new_id-1947">&#xa0;</td> <td id="new_id-1948">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;text-indent:36pt;">Accumulated depletion, depreciation &amp; amortization</p> </td> <td id="new_id-1949" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1950" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-1951" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">(6,701,568</td> <td id="new_id-1952" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1953" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1954" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-1955" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">(6,582,648</td> <td id="new_id-1956" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1957" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1958" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-1959" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">7,074,569</td> <td id="new_id-1960" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1961" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1962" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-1963" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">1,294,294</td> <td id="new_id-1964" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Commercial and Other</p> </td> <td id="new_id-1965" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1966" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1967" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1968" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1969" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1970" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1971" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1972" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;text-indent:36pt;">Land</p> </td> <td id="new_id-1973" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1974" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1975" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">501,375</td> <td id="new_id-1976" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1977" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1978" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1979" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">-</td> <td id="new_id-1980" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;text-indent:36pt;">Vehicles</p> </td> <td id="new_id-1981" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1982" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1983" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">40,061</td> <td id="new_id-1984" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1985" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1986" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1987" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">40,061</td> <td id="new_id-1988" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;text-indent:36pt;">Furniture and equipment</p> </td> <td id="new_id-1989" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1990" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-1991" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">1,096,139</td> <td id="new_id-1992" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1993" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1994" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-1995" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">1,092,926</td> <td id="new_id-1996" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1997" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1998" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1999" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">1,637,575</td> <td id="new_id-2000" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2001" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2002" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2003" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">1,132,987</td> <td id="new_id-2004" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td>&#xa0;</td> <td id="new_id-2005">&#xa0;</td> <td id="new_id-2006">&#xa0;</td> <td id="new_id-2007">&#xa0;</td> <td id="new_id-2008">&#xa0;</td> <td id="new_id-2009">&#xa0;</td> <td id="new_id-2010">&#xa0;</td> <td id="new_id-2011">&#xa0;</td> <td id="new_id-2012">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;text-indent:36pt;">Accumulated depreciation</p> </td> <td id="new_id-2013" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2014" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2015" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">(1,126,470</td> <td id="new_id-2016" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-2017" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2018" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2019" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">(1,125,039</td> <td id="new_id-2020" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2021" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2022" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2023" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">511,105</td> <td id="new_id-2024" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2025" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2026" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2027" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">7,948</td> <td id="new_id-2028" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2029" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2030" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td id="new_id-2031" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">7,585,674</td> <td id="new_id-2032" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2033" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2034" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td id="new_id-2035" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">1,302,242</td> <td id="new_id-2036" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> </table><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The guidance set forth in the Continued Capitalization of Exploratory Well Costs paragraph of the Extractive Activities Topic of the FASB Accounting Standards Codification requires that we evaluate all existing capitalized exploratory well costs and disclose the extent to which any such capitalized costs have become impaired and are expensed or reclassified during a fiscal period. We did not make any additions to capitalized exploratory well costs pending a determination of proved reserves during the periods in 2018 or 2017.&#xa0;</p><br/></div> <div style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; "> Oil and gas properties, equipment and fixtures consist of the following:<br /><br /><table border="0" cellpadding="0" cellspacing="0" class="finTable" style="margin-right: 10%; margin-left: 10%; width: 80%; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px;"> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1889" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td colspan="2" id="new_id-1890" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>June</b><b> 3</b><b>0</b><b>,</b></b></p> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>2018</b></b></p> </td> <td id="new_id-1891" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1892" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td colspan="2" id="new_id-1893" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>December 31,</b></b></p> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>2017</b></b></p> </td> <td id="new_id-1894" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1895" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td colspan="2" id="new_id-1896" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">(Unaudited)</p> </td> <td id="new_id-1897" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-1898" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td colspan="2" id="new_id-1899" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">(Audited)</p> </td> <td id="new_id-1900" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 70%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Oil and Gas</p> </td> <td id="new_id-1901" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1902" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1903" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1904" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1905" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1906" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1907" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1908" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;text-indent:36pt;">Producing properties, including drilling costs</p> </td> <td id="new_id-1909" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1910" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1911" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">9,581,245</td> <td id="new_id-1912" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1913" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1914" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-1915" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">3,755,705</td> <td id="new_id-1916" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;text-indent:36pt;">Undeveloped properties</p> </td> <td id="new_id-1917" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1918" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1919" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">11,817</td> <td id="new_id-1920" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1921" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1922" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1923" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">1,435</td> <td id="new_id-1924" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;text-indent:36pt;">Lease and well equipment</p> </td> <td id="new_id-1925" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1926" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-1927" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">4,183,075</td> <td id="new_id-1928" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1929" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1930" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-1931" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">4,119,802</td> <td id="new_id-1932" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1933" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1934" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1935" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">13,776,137</td> <td id="new_id-1936" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1937" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1938" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1939" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">7,876,942</td> <td id="new_id-1940" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td>&#xa0;</td> <td id="new_id-1941">&#xa0;</td> <td id="new_id-1942">&#xa0;</td> <td id="new_id-1943">&#xa0;</td> <td id="new_id-1944">&#xa0;</td> <td id="new_id-1945">&#xa0;</td> <td id="new_id-1946">&#xa0;</td> <td id="new_id-1947">&#xa0;</td> <td id="new_id-1948">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;text-indent:36pt;">Accumulated depletion, depreciation &amp; amortization</p> </td> <td id="new_id-1949" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1950" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-1951" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">(6,701,568</td> <td id="new_id-1952" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-1953" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1954" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-1955" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">(6,582,648</td> <td id="new_id-1956" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1957" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1958" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-1959" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">7,074,569</td> <td id="new_id-1960" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1961" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1962" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-1963" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">1,294,294</td> <td id="new_id-1964" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Commercial and Other</p> </td> <td id="new_id-1965" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1966" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1967" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1968" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1969" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1970" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1971" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1972" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;text-indent:36pt;">Land</p> </td> <td id="new_id-1973" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1974" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1975" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">501,375</td> <td id="new_id-1976" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1977" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1978" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1979" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">-</td> <td id="new_id-1980" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;text-indent:36pt;">Vehicles</p> </td> <td id="new_id-1981" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1982" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1983" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">40,061</td> <td id="new_id-1984" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1985" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1986" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1987" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">40,061</td> <td id="new_id-1988" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;text-indent:36pt;">Furniture and equipment</p> </td> <td id="new_id-1989" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1990" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-1991" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">1,096,139</td> <td id="new_id-1992" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-1993" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1994" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-1995" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">1,092,926</td> <td id="new_id-1996" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1997" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1998" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-1999" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">1,637,575</td> <td id="new_id-2000" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2001" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2002" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2003" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">1,132,987</td> <td id="new_id-2004" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td>&#xa0;</td> <td id="new_id-2005">&#xa0;</td> <td id="new_id-2006">&#xa0;</td> <td id="new_id-2007">&#xa0;</td> <td id="new_id-2008">&#xa0;</td> <td id="new_id-2009">&#xa0;</td> <td id="new_id-2010">&#xa0;</td> <td id="new_id-2011">&#xa0;</td> <td id="new_id-2012">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;text-indent:36pt;">Accumulated depreciation</p> </td> <td id="new_id-2013" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2014" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2015" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">(1,126,470</td> <td id="new_id-2016" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-2017" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2018" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2019" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">(1,125,039</td> <td id="new_id-2020" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2021" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2022" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2023" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">511,105</td> <td id="new_id-2024" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2025" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2026" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2027" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">7,948</td> <td id="new_id-2028" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2029" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2030" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td id="new_id-2031" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">7,585,674</td> <td id="new_id-2032" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2033" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2034" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td id="new_id-2035" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">1,302,242</td> <td id="new_id-2036" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> </table></div> 9581245 3755705 11817 1435 4183075 4119802 13776137 7876942 6701568 6582648 7074569 1294294 501375 0 40061 40061 1096139 1092926 1637575 1132987 1126470 1125039 511105 7948 <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>NOTE&#xa0;4&#xa0;&#x2013; </b><font style="text-decoration:underline"><b>INCOME TAXES</b></font></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 0.1pt;text-align:left;">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 amounts used for income tax purposes.&#xa0;&#xa0;Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.&#xa0;&#xa0;At the end of 2015, management reviewed the reliability of the Company&#x2019;s net deferred tax assets, and due to the Company&#x2019;s continued cumulative losses in recent years, the Company concluded it is not &#x201c;more-likely-than-not&#x201d; its deferred tax assets will be realized.&#xa0;&#xa0;As a result, the Company will continue to record a full valuation allowance against the&#xa0;deferred tax assets in 2018.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 0.1pt;text-align:left;">The calculation below does not consider the tax basis of the assets acquired through the merger with Matrix Oil Management Corporation as discussed in Note 1 above.&#xa0; The calculation only considers the book basis of assets acquired.&#xa0; Therefore, the Company cannot say with certainty that the projected tax losses shown below will be fully realized.&#xa0; The Company has initiated steps to resolve this issue in the near future as further described in Item 4. &#x2013; Controls and Procedures.&#xa0; At this time, the Company cannot say whether it will be filing as a tax group or maintain a separate filing status.&#xa0; Further, the Company has not fully identified the amount of tax carryforward balances, deferred taxes and tax basis of reported assets resulting from the merger with Matrix Oil Company.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">A reconciliation of Royale Energy&#x2019;s provision for income taxes and the amount computed by applying the statutory income tax rates at June 30, 2018 and 2017, respectively, to pretax income is as follows:&#xa0;</p><br/><table border="0" cellpadding="0" cellspacing="0" class="finTable" style="margin-right: 10%; margin-left: 10%; width: 80%; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px;"> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2037" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td colspan="2" id="new_id-2038" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>Six</b><b> Months</b></b></p> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>Ended</b></b></p> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>June</b><b> 3</b><b>0</b><b>, 2018</b></b></p> </td> <td id="new_id-2039" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-2040" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td colspan="2" id="new_id-2041" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>Six</b><b> Months</b></b></p> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>Ended</b></b></p> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>June</b><b> 3</b><b>0</b><b>, 2017</b></b></p> </td> <td id="new_id-2042" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> </tr> <tr style="vertical-align: bottom;"> <td>&#xa0;</td> <td id="new_id-2043">&#xa0;</td> <td id="new_id-2044">&#xa0;</td> <td id="new_id-2045">&#xa0;</td> <td id="new_id-2046">&#xa0;</td> <td id="new_id-2047">&#xa0;</td> <td id="new_id-2048">&#xa0;</td> <td id="new_id-2049">&#xa0;</td> <td id="new_id-2050">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 70%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Tax benefit computed at statutory rate of 21%&#xa0;and 34% at June 30, 2018 and 2017, respectively</p> </td> <td id="new_id-2051" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2052" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2053" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(4,362,606</td> <td id="new_id-2054" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-2055" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2056" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2057" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(311,774</td> <td id="new_id-2058" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td>&#xa0;</td> <td id="new_id-2059">&#xa0;</td> <td id="new_id-2060">&#xa0;</td> <td id="new_id-2061">&#xa0;</td> <td id="new_id-2062">&#xa0;</td> <td id="new_id-2063">&#xa0;</td> <td id="new_id-2064">&#xa0;</td> <td id="new_id-2065">&#xa0;</td> <td id="new_id-2066">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Increase (decrease) in taxes resulting from:</p> </td> <td id="new_id-2067" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2068" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2069" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2070" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2071" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2072" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2073" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2074" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td>&#xa0;</td> <td id="new_id-2075">&#xa0;</td> <td id="new_id-2076">&#xa0;</td> <td id="new_id-2077">&#xa0;</td> <td id="new_id-2078">&#xa0;</td> <td id="new_id-2079">&#xa0;</td> <td id="new_id-2080">&#xa0;</td> <td id="new_id-2081">&#xa0;</td> <td id="new_id-2082">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">State tax / percentage depletion / other</p> </td> <td id="new_id-2083" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2084" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2085" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2086" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2087" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2088" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2089" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2090" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Other non-deductible expenses</p> </td> <td id="new_id-2091" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2092" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2093" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">624</td> <td id="new_id-2094" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2095" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2096" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2097" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">205</td> <td id="new_id-2098" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Change in valuation allowance</p> </td> <td id="new_id-2099" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2100" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2101" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">4,361,982</td> <td id="new_id-2102" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2103" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2104" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2105" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">311,569</td> <td id="new_id-2106" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Provision (benefit)</p> </td> <td id="new_id-2107" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2108" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td id="new_id-2109" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">-</td> <td id="new_id-2110" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2111" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2112" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td id="new_id-2113" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">-</td> <td id="new_id-2114" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> </table><br/></div> <div style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; "> A reconciliation of Royale Energy&#x2019;s provision for income taxes and the amount computed by applying the statutory income tax rates at June 30, 2018 and 2017, respectively, to pretax income is as follows:<br /><br /><table border="0" cellpadding="0" cellspacing="0" class="finTable" style="margin-right: 10%; margin-left: 10%; width: 80%; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px;"> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2037" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td colspan="2" id="new_id-2038" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>Six</b><b> Months</b></b></p> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>Ended</b></b></p> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>June</b><b> 3</b><b>0</b><b>, 2018</b></b></p> </td> <td id="new_id-2039" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-2040" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td colspan="2" id="new_id-2041" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>Six</b><b> Months</b></b></p> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>Ended</b></b></p> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>June</b><b> 3</b><b>0</b><b>, 2017</b></b></p> </td> <td id="new_id-2042" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> </tr> <tr style="vertical-align: bottom;"> <td>&#xa0;</td> <td id="new_id-2043">&#xa0;</td> <td id="new_id-2044">&#xa0;</td> <td id="new_id-2045">&#xa0;</td> <td id="new_id-2046">&#xa0;</td> <td id="new_id-2047">&#xa0;</td> <td id="new_id-2048">&#xa0;</td> <td id="new_id-2049">&#xa0;</td> <td id="new_id-2050">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 70%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Tax benefit computed at statutory rate of 21%&#xa0;and 34% at June 30, 2018 and 2017, respectively</p> </td> <td id="new_id-2051" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2052" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2053" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(4,362,606</td> <td id="new_id-2054" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-2055" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2056" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2057" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(311,774</td> <td id="new_id-2058" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td>&#xa0;</td> <td id="new_id-2059">&#xa0;</td> <td id="new_id-2060">&#xa0;</td> <td id="new_id-2061">&#xa0;</td> <td id="new_id-2062">&#xa0;</td> <td id="new_id-2063">&#xa0;</td> <td id="new_id-2064">&#xa0;</td> <td id="new_id-2065">&#xa0;</td> <td id="new_id-2066">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Increase (decrease) in taxes resulting from:</p> </td> <td id="new_id-2067" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2068" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2069" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2070" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2071" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2072" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2073" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2074" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td>&#xa0;</td> <td id="new_id-2075">&#xa0;</td> <td id="new_id-2076">&#xa0;</td> <td id="new_id-2077">&#xa0;</td> <td id="new_id-2078">&#xa0;</td> <td id="new_id-2079">&#xa0;</td> <td id="new_id-2080">&#xa0;</td> <td id="new_id-2081">&#xa0;</td> <td id="new_id-2082">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">State tax / percentage depletion / other</p> </td> <td id="new_id-2083" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2084" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2085" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2086" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2087" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2088" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2089" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2090" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Other non-deductible expenses</p> </td> <td id="new_id-2091" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2092" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2093" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">624</td> <td id="new_id-2094" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2095" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2096" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2097" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">205</td> <td id="new_id-2098" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Change in valuation allowance</p> </td> <td id="new_id-2099" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2100" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2101" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">4,361,982</td> <td id="new_id-2102" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2103" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2104" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2105" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">311,569</td> <td id="new_id-2106" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Provision (benefit)</p> </td> <td id="new_id-2107" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2108" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td id="new_id-2109" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">-</td> <td id="new_id-2110" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2111" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2112" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td id="new_id-2113" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">-</td> <td id="new_id-2114" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> </table></div> -4362606 -311774 0 0 624 205 4361982 311569 0 0 0.21 0.34 EX-101.SCH 9 royl-20180630.xsd XBRL TAXONOMY EXTENSION SCHEMA 001 - Statement - CONSOLIDATED BALANCE SHEETS link:presentationLink link:definitionLink link:calculationLink 002 - Statement - CONSOLIDATED BALANCE SHEETS (Parentheticals) link:presentationLink link:definitionLink link:calculationLink 003 - Statement - CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) link:presentationLink link:definitionLink link:calculationLink 004 - Statement - CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) link:presentationLink link:definitionLink link:calculationLink 005 - Disclosure - NOTE 1 link:presentationLink link:definitionLink link:calculationLink 006 - Disclosure - NOTE 2 - LOSS PER SHARE link:presentationLink link:definitionLink link:calculationLink 007 - Disclosure - NOTE 3 - OIL AND GAS PROPERTIES, EQUIPMENT AND FIXTURES link:presentationLink link:definitionLink link:calculationLink 008 - Disclosure - NOTE 4 - INCOME TAXES link:presentationLink link:definitionLink link:calculationLink 009 - Disclosure - Accounting Policies, by Policy (Policies) link:presentationLink link:definitionLink link:calculationLink 010 - Disclosure - NOTE 1 (Tables) link:presentationLink link:definitionLink link:calculationLink 011 - Disclosure - NOTE 2 - LOSS PER SHARE (Tables) link:presentationLink link:definitionLink link:calculationLink 012 - Disclosure - NOTE 3 - OIL AND GAS PROPERTIES, EQUIPMENT AND FIXTURES (Tables) link:presentationLink link:definitionLink link:calculationLink 013 - Disclosure - NOTE 4 - INCOME TAXES (Tables) link:presentationLink link:definitionLink link:calculationLink 014 - Disclosure - NOTE 1 (Details) link:presentationLink link:definitionLink link:calculationLink 015 - Disclosure - NOTE 1 (Details) - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed link:presentationLink link:definitionLink link:calculationLink 016 - Disclosure - NOTE 1 (Details) - Business Acquisition, Pro Forma Information link:presentationLink link:definitionLink link:calculationLink 017 - Disclosure - NOTE 1 (Details) - Equity Method Investments link:presentationLink link:definitionLink link:calculationLink 018 - Disclosure - NOTE 2 - LOSS PER SHARE (Details) link:presentationLink link:definitionLink link:calculationLink 019 - Disclosure - NOTE 2 - LOSS PER SHARE (Details) - Schedule of Earnings Per Share, Basic and Diluted link:presentationLink link:definitionLink link:calculationLink 020 - Disclosure - NOTE 3 - OIL AND GAS PROPERTIES, EQUIPMENT AND FIXTURES (Details) - Schedule of Oil and Gas Properties, Equipment and Fixtures link:presentationLink link:definitionLink link:calculationLink 021 - Disclosure - NOTE 4 - INCOME TAXES (Details) - Schedule of Effective Income Tax Rate Reconciliation link:presentationLink link:definitionLink link:calculationLink 022 - Disclosure - NOTE 4 - INCOME TAXES (Details) - Schedule of Effective Income Tax Rate Reconciliation (Parentheticals) link:presentationLink link:definitionLink link:calculationLink 000 - Document - Document And Entity Information link:presentationLink link:definitionLink link:calculationLink EX-101.CAL 10 royl-20180630_cal.xml XBRL TAXONOMY EXTENSION CALCULATION LINKBASE EX-101.DEF 11 royl-20180630_def.xml XBRL TAXONOMY EXTENSION DEFINITION LINKBASE EX-101.LAB 12 royl-20180630_lab.xml XBRL TAXONOMY EXTENSION LABEL LINKBASE EX-101.PRE 13 royl-20180630_pre.xml XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE XML 14 R1.htm IDEA: XBRL DOCUMENT v3.10.0.1
Document And Entity Information - shares
6 Months Ended
Jun. 30, 2018
Aug. 15, 2018
Document and Entity Information [Abstract]    
Entity Registrant Name ROYALE ENERGY, INC.  
Document Type 10-Q  
Current Fiscal Year End Date --12-31  
Entity Common Stock, Shares Outstanding   48,400,371
Amendment Flag false  
Entity Central Index Key 0001694617  
Entity Current Reporting Status Yes  
Entity Voluntary Filers No  
Entity Filer Category Smaller Reporting Company  
Entity Well-known Seasoned Issuer No  
Document Period End Date Jun. 30, 2018  
Document Fiscal Year Focus 2018  
Document Fiscal Period Focus Q2  
XML 15 R2.htm IDEA: XBRL DOCUMENT v3.10.0.1
CONSOLIDATED BALANCE SHEETS - USD ($)
Jun. 30, 2018
Dec. 31, 2017
Current Assets    
Cash $ 6,673,603 $ 3,338,693
Other Receivables, net 2,786,227 764,015
Revenue Receivables 568,086 106,007
Receivable from Affiliate 1,389,289 0
Prepaid Expenses 281,502 149,367
Total Current Assets 11,698,707 4,358,082
Investment in Joint Venture 5,565,736 0
Other Assets 517,714 511,120
Oil and Gas Properties, (Successful Efforts Basis), Equipment and Fixtures, net 7,585,674 1,302,242
Total Assets 25,367,831 6,171,444
Current Liabilities:    
Accounts Payable and Accrued Expenses 6,267,702 4,638,879
Royalties Payable 1,676,865 0
Cash Advances on Pending Transactions 0 1,580,000
Dividends Payable 233,494 0
Deferred Drilling Obligation 8,654,398 5,891,898
Total Current Liabilities 16,832,459 12,110,777
Noncurrent Liabilities:    
Accrued Liabilities – Long Term 1,478,385 0
Accrued Unpaid Guaranteed Payments 1,616,205 0
Asset Retirement Obligation 1,931,263 1,000,908
Total Noncurrent Liabilities 5,025,853 1,000,908
Total Liabilities 21,858,312 13,111,685
Stockholders’ Equity (Deficit):    
Convertible Preferred Stock, Series B, $10 par value, 3,000,000 Shares Authorized, 2,012,400 shares issued and outstanding at March 31, 2018 20,124,000 0
Common Stock 0 41,265,449
Additional Paid in Capital 52,550,617  
Accumulated Deficit (69,213,498) (48,205,690)
Total Stockholders’ Equity (Deficit) 3,509,519 (6,940,241)
Total Liabilities and Stockholders’ Equity (Deficit) 25,367,831 6,171,444
Common Stock with Par Value [Member]    
Stockholders’ Equity (Deficit):    
Common Stock $ 48,400 $ 0
XML 16 R3.htm IDEA: XBRL DOCUMENT v3.10.0.1
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares
Jun. 30, 2018
Dec. 31, 2017
Convertible Preferred Stock, Series B, par value (in Dollars per share) $ 10  
Convertible Preferred Stock, Series B, Shares Authorized 3,000,000  
Convertible Preferred Stock, Series B, shares issued 2,012,400  
Convertible Preferred Stock, Series B, shares outstanding 2,012,400  
Common stock, no par value (in Dollars per share)   $ 0
Common stock, shares authorized   30,000,000
Common stock, shares issued   21,850,185
Common Stock, shares outstanding   21,850,185
Common Stock with Par Value [Member]    
Common stock, shares authorized 280,000,000  
Common stock, shares issued 48,400,371  
Common Stock, shares outstanding 48,400,371  
Common Stock, Par Value (in Dollars per share) $ 0.001  
XML 17 R4.htm IDEA: XBRL DOCUMENT v3.10.0.1
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Revenues $ 794,359 $ 245,508 $ 1,517,531 $ 519,906
Costs and Expenses:        
Lease Operating 499,170 123,832 766,818 230,453
Lease Impairment 0 99,468 0 136,837
Well Equipment Write Down 9,790 0 9,790 6,000
General and Administrative 608,273 450,042 1,467,630 1,015,028
Legal and Accounting 364,580 188,989 1,077,302 668,283
Marketing 55,210 108,084 123,693 162,232
Depreciation, Depletion and Amortization 102,230 43,464 275,946 90,304
Total Costs and Expenses 1,639,253 1,013,879 3,721,179 2,309,137
Gain (Loss) on Turnkey Drilling 0 878,533 0 878,533
Income (Loss) From Operations (844,894) 110,162 (2,203,648) (910,698)
Other Income (Loss):        
Interest Expense 0 (39,500) (169,829) (79,412)
Gain on Settlement of Accounts Payable 46,218 0 46,218 73,128
Loss on Sale of Assets (16,217,673) 0 (16,217,673) 0
Loss on Investment in Joint Venture (684,264) 0 (684,264) 0
Loss on Derivative Instruments 0 0 (105,130) 0
Loss on Issuance of Warrants (1,439,990) 0 (1,439,990) 0
Income (Loss) Before Income Tax Expense (19,140,603) 70,662 (20,774,316) (916,982)
Net Income (Loss) $ (19,140,603) $ 70,662 $ (20,774,316) $ (916,982)
Basic Earnings (Loss) Per Share (in Dollars per share) $ (0.40) $ 0.00 $ (0.52) $ (0.04)
Diluted Earnings (Loss) Per Share (in Dollars per share) $ (0.40) $ 0.00 $ (0.52) $ (0.04)
Oil and Gas [Member]        
Revenues $ 281,929 $ 163,706 $ 953,131 $ 351,049
Management Service [Member]        
Revenues $ 512,430 $ 81,802 $ 564,400 $ 168,857
XML 18 R5.htm IDEA: XBRL DOCUMENT v3.10.0.1
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)
6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES    
Net Loss $ (20,774,316) $ (916,982)
Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities:    
Depreciation, Depletion and Amortization 275,946 90,304
Lease Impairment 0 136,837
Loss on Sale of Assets 16,217,673 0
Gain on Turnkey Drilling Programs 0 (878,533)
Gain on Settlement of Accounts Payable (46,218) (73,128)
Loss on Investment in Joint Venture 684,264 0
Loss on Issuance of Warrants 1,439,990 0
Well Equipment Write Down 9,790 6,000
Loss on Derivative Instruments 105,130 0
Debt Issuance Costs Amortization 144,186 0
(Increase) Decrease in:    
Other & Revenue Receivables 319,805 39,323
Prepaid Expenses and Other Assets (9,634) (578,743)
Due from Affiliate (1,083,520) 0
Increase (Decrease) in:    
Accounts Payable and Accrued Expenses 1,757,760 1,025,590
Royalties Payable (301,220) 0
Other Liabilities 50,415 0
Net Cash Used in Operating Activities (1,209,949) (1,149,332)
CASH FLOWS FROM INVESTING ACTIVITIES    
Expenditures for Oil and Gas Properties and Other Capital Expenditures (36,008) (1,053,442)
Proceeds from Turnkey Drilling Programs 2,762,500 1,425,000
Proceeds from Sale of Assets, net 3,444,482 0
Cash Acquired in Merger 548,805 0
Net Cash Provided by Investing Activities 6,719,779 371,558
CASH FLOWS FROM FINANCING ACTIVITIES    
Principal Payments on Long-Term Debt (274,920) 0
Cash Advances on Pending Transactions Settlement (1,900,000) 0
Net Cash Used by Financing Activities (2,174,920) 0
Net Increase (Decrease) in Cash and Cash Equivalents 3,334,910 (777,774)
Cash at Beginning of Period 3,338,693 4,994,598
Cash at End of Period 6,673,603 4,216,824
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION:    
Cash Paid for Interest 164,829 412
Cash Paid for Taxes 2,400 1,539
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING & FINANCING TRANSACTIONS:    
Issuance of Common Stock in Acquisition $ 9,546,068 $ 0
Issuance of Convertible Preferred Stock, Series B, in Acquisition (in Shares) 20,124,000 0
Issuance of Warrants in Joint Venture $ 1,440,000 $ 0
Issuance of Common Stock for Cash Advances and Interest 347,500 0
Asset Retirement Obligation Addition 0 30,000
Issuance of Common Stock for Accrued Compensation Expense $ 0 $ 347,500
XML 19 R6.htm IDEA: XBRL DOCUMENT v3.10.0.1
NOTE 1
6 Months Ended
Jun. 30, 2018
Accounting Policies [Abstract]  
Significant Accounting Policies [Text Block]

NOTE 1 – In the opinion of management, the accompanying unaudited financial statements include all adjustments, consisting only of normally recurring adjustments, necessary to present fairly the Company’s financial position and the results of its operations and cash flows for the periods presented.  The results of operations for the six month period are not, in management’s opinion, indicative of the results to be expected for a full year of operations.  It is suggested that these financial statements be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s latest annual report.


Merger with Matrix Oil Management Corporation


On March 7, 2018, Royale Energy, Inc. (“Royale Energy,” formerly known as  Royale Energy Holdings, Inc., a Delaware corporation), Royale Energy Funds, Inc. (“REF,” formerly known as Royale Energy, Inc., a California corporation), and Matrix Oil Management Corporation (“Matrix”) and its affiliates were notified by the California Secretary of State of the filing and acceptance of agreements of merger by the California Secretary of State, to complete the previously announced merger between the companies (the “Merger”).  In the Merger, REF was merged into a newly formed subsidiary of Royale Energy, and Matrix was merged into a second newly formed subsidiary of Royale Energy pursuant to the Amended and Restated Agreement and Plan of Merger among REF, Royale Energy, Royale Merger Sub, Inc., (“Royale Merger Sub”), Matrix Merger Sub, Inc., (“Matrix Merger Sub”) and Matrix (the “Merger Agreement”).  Additionally, in connection with the merger, all limited partnership interest of two limited partnership affiliates of Matrix (Matrix Permian Investments, LP, and Matrix Las Cienegas Limited Partnership), were exchanged for Royale Energy common stock using conversion ratios according to the relative values of each partnership.  All Class A limited partnership interests of another Matrix affiliate, Matrix Investments, LP (“Matrix Investments”) were exchanged for Royale Energy Common stock using conversion ratios according to the relative value of the Class A limited partnership interests, and $20,124,000 of Matrix Investments preferred limited partnership interests were converted into 2,012,400 shares of Series B Convertible Preferred Stock of Royale Energy.  Another Matrix affiliate, Matrix Oil Corporation (“Matrix Operator”), was acquired by Royale Energy by exchanging Royale Energy common stock for the outstanding common stock of Matrix Oil Corporation using a conversion ratio according to the relative value of the Matrix Oil Corporation common stock.  Matrix, Matrix Oil Corporation and the three limited partnership affiliates of Matrix called the “Matrix Entities.”


The Merger had been previously approved by the respective holders of all outstanding capital stock of REF, Matrix, Royale Energy, Matrix Merger Sub and Royale Merger Sub on November 16, 2017, as previously reported in our Current Report on Form 8-K dated November 16, 2017.  The Merger and related transactions are described in detail in our Current Report on Form 8-K dated March 7, 2018, and in Royale Energy’s Current Report on Form 8-K dated March 7, 2018 (SEC File No. 000-55912).


As a result of the Merger, REF became a wholly owned subsidiary of Royale Energy, and each outstanding share common stock of REF at the time of the Merger was converted into one share of common stock of Royale Energy.  The common stock of Royale Energy is traded on the Over-The-Counter QB (OTCQB) Market System (symbol ROYL).


Under FASB Topic ASC 805, Business Combinations, which among other things requires the assets acquired and liabilities assumed to be measured and recorded at their fair values as of the acquisition date, the Company was determined to be the acquirer and as such, the acquisition was accounted for as a business combination.


The preliminary allocation of the purchase price was determined in arms’ length negotiations between the parties.  Substantially all of the value of the transaction was related to the value of the oil and gas assets acquired with minimal value ascribed to the other assets. The Company considered two valuation methods in its determination of fair value for the oil and natural gas properties; the discounted cash flow analysis and comparable transaction analysis. Assumptions for the discounted cash flow analysis include commodity price, operating costs and capital outlay for future development of the acquired properties, pricing differentials, reserve risking, and discount rates. NYMEX strip pricing, less applicable pricing differentials, was utilized in the discounted cash flow analysis. Risking levels in the discounted cash flow analysis are determined based on a variety of factors, such as existing well performance, offset production and analogue wells. Discount rates used in the discounted cash flow analysis were determined by using the estimated cost of capital, discount rates, as well as industry knowledge and experience. The comparable transaction analysis was performed to establish a range of fair values for similarly situated oil and gas properties that were recently bought or sold in arms-length, observable market transactions. The range of value observed from the Company’s analysis of recent market transactions was then utilized as a basis for evaluating the fair value determined via the discounted cash flow method. The Company’s fair value conclusion indicated that the discounted cash flow method valuation is in line with the same range as the comparable transactions reviewed, when considering the comparable transactions. Other current liabilities assumed in the acquisition, were carried over at historical carrying values because the assets and liabilities are short term in nature and their carrying values are estimated to represent the best estimate of fair value. Any changes to the estimates used in preparing this preliminary purchase price allocation could result in a corresponding change in the final purchase price allocation.


The following table summarizes the consideration transferred, fair value of assets acquired and liabilities assumed:


   

March 7, 2018

 

Consideration:

       

Value of Royale Common Stock issued

  $ 9,546,068  

Value of Series B Convertible Preferred Stock issued

    20,124,000  

Total consideration

  $ 29,670,068  

Fair Value of Liabilities Assumed:

 

Current liabilities

    19,624,592  

Other liabilities

    3,125,394  

Asset Retirement obligations

    1,419,544  

Total fair value of liabilities assumed

    24,169,530  

Total consideration plus liabilities assumed

  $ 53,839,598  

Fair Value of Assets Acquired:

 

Cash

  $ 548,805  

Current assets

    3,655,173  

Proved and unproved crude oil and gas properties

    48,632,870  

Land

    1,002,750  
    $ 53,839,598  

In accordance with FASB Topic ASC 805, the following unaudited supplemental pro forma condensed results of operations present combined information as though the business combination had been completed as of January 1, 2018. The unaudited supplemental pro forma financial information was derived from the historical revenues and direct operating expenses of Royale Energy, Inc. and Matrix Oil Management Corporation and its affiliates. These unaudited supplemental pro forma results of operations for the consolidated companies as of March 31, 2017, are provided for illustrative purposes only and do not purport to be indicative of the actual results that would have been achieved by the consolidated company for the periods presented or that may be achieved by the consolidated company in the future.


   

Three months ended March 31, 2018

   

Three months ended March 31, 2017

 
                                                 
   

Royale Energy, Inc.

   

Matrix Oil Management Corp

   

Consolidated

   

Royale Energy, Inc.

   

Matrix Oil Management Corp

   

Consolidated

 
   

(Unaudited)

 

Revenue

  $ 119,473     $ 1,798,531     $ 1,918,004     $ 274,398     $ 1,120,427     $ 1,394,825  

Net Loss

  $ (1,200,576

)

  $ (751,111

)

  $ (1,951,687

)

  $ (987,644

)

  $ (549,922

)

  $ (1,537,566

)

Net Loss available to common shareholders

  $ (1,200,576

)

  $ (751,111

)

  $ (1,951,687

)

  $ (987,644

)

  $ (549,922

)

  $ (1,537,566

)

Pro forma Loss per common share Basic and diluted

  $ (0.04

)

  $ (0.02

)

  $ (0.06

)

  $ (0.05

)

  $ (0.02

)

  $ (0.07

)


Formation of RMX and Asset Contribution


On April 13, 2018, Royale Energy, Inc., and two of Royale’s subsidiaries, Royale Energy Funds, Inc. and Matrix Oil Management Corporation (the “Royale Entities”) completed  the Subscription and Contribution Agreement (“Contribution Agreement”), in which the Royale Entities and CIC RMX LP (“CIC”) entered into the Contribution Agreement and certain other agreements providing that the Royale Entities would contribute certain assets to RMX Resources, LLC (“RMX”), a newly formed Texas limited liability company. In exchange for its contributed assets, Royale received a 20% equity interest in RMX, an equity performance incentive interest and up to $20.0 million to pay off Royale Entities senior lender, Arena Limited SPV, LLC., in full, and to pay Royale Entities trade payables and other outstanding obligations. CIC contributed an aggregate of $25.0 million in cash to RMX in exchange for (i) an 80% equity interest in RMX with preferred distributions until certain thresholds are met, (ii) a warrant (“Warrant”) to acquire up to 4,000,000 shares of Royale’s common stock at an exercise price of $.01 per share and registration rights pursuant to a Registration Rights Agreement.


The Contribution Agreement was completed in a two-step closing and funding, with the First Closing consummated on April 4, 2018 and the Second Closing consummated on April 13, 2018 with the Royale Entities. In connection with the Second Closing, the parties entered into a letter agreement related to the preliminary Settlement Statement process.  The parties agreed that, in lieu of the payment originally contemplated under Section 1.6(v) of the Contribution Agreement, the Royale Entities would receive the sum of $4,000,000, subject to adjustment. The $4,000,000 delivered at the Second Closing was an advance against amounts due the Royale Entities as Purchase Price, and the advance was subject to further adjustment in accordance with the Contribution Agreement.


RMX has two classes of stock and a six-member board of directors. Royale has two seats on the board giving it a third of the Board.  Royale has designated Michael McCaskey and Johnny Jordan as its members of the RMX board.  The return targets for CIC through its funding of RMX provide for a “waterfall” style return profile with the first distributions going to CIC until certain return thresholds are achieved.


As part of the formation of the joint venture, Royale contributed Matrix Oil Corporation (“MOC”) to RMX. MOC has the permits and licenses to operating oil and gas properties in California. It was the operating entity for the Matrix group of companies that were acquired on February 28, 2018, see NOTE 1 – Merger with Matrix Oil Management Corporation above. This allows the RMX joint venture to be the operator of record for the contributed assets.


Royale will account for its ownership interest in RMX following the equity method of accounting. By agreement, Royale has an initial equity value of $6.25 million or 20% of the total equity of the joint venture with CIC having an initial equity value of $25.0 million or 80% of the total equity of the joint venture.


The Royale Entities contributed 100% of the Sansinena Field, 100% of the Sempra Field, 50% of the Bellevue Field, 100% of the Whittier Main Field, and 50% of the Whittier Field. The result of the transfer of oil and gas properties and surface rights for cash as described above and a 20 percent working interest in RMX resulted in Royale recording a loss of approximately $16.2 million. The contribution by Royale of warrants to acquire 4,000,000 shares of Royale common stock caused Royale to record a loss of approximately $1.44 million. In addition, the Contribution Agreement called for an effective date of the property transfer of February 28, 2018 which required a purchase price adjustment of approximately $334,000 in the form of a cash contribution to RMX and an increase in the loss on the sale. The transfer of MOC to RMX as the operating company provided an amount due Royale of approximately $640,000, which was recorded as a due from affiliate during the period in 2018.


The RMX joint venture has a senior revolving loan facility with Legacy Bank Texas. RMX initially drew down on the line of credit in the amount of $12.5 million to complete the acquisition of the Royale Entities. The borrowing base of the facility is $17.5 million with $5.0 million remaining undrawn at June 30, 2018.


As part of the joint venture, RMX entered into a Master Service Agreement “MSA” calling for Royale Energy to provide land, engineering and support services for the joint venture.  For these services, Royale will receive $180,000 per month for the first year, renewable after one year at a reduced rate of $150,000 per month and subject to termination on 90 days notice.  These amounts are included in Supervisory Fees, Service Agreement and Other.


Listed below is the summarized information required under Rule 3-09 of regulation S-X, Article 10 for Royale’s investment in RMX:


   

RMX Resources, LLC at

June 30, 2018

   

Royale Energy, Inc. Share at

June 30, 2018

 
                 

Revenues for the three months ended June 30, 2018

  $ (2,480,630

)

  $ (496,126

)

Gross Profit

    1,175,286       235,057  

Income (Loss) from Continuing Operations

    (1,073,230 )     (214,646 )

Net Income (Loss)

  $ (3,421,321 )   $ (684,264 )

Consolidation


The accompanying consolidated financial statements include the accounts of Royale Energy, Inc. (sometimes called the “Company” “we,” “our,” “us,” or “Royale Energy”), REF, and Matrix Oil Management Corporation and its subsidiaries.  All entities comprising the consolidated financial statements of Royale Energy have fiscal years ending December 31.  All material intercompany accounts and transactions have been eliminated in the consolidated financial statements.


Use of Estimates


The accompanying 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.  As reflected in the accompanying financial statements, the Company has negative working capital, losses from operations and negative cash flows from operations.


Material estimates that are particularly susceptible to significant change relate to the estimate of Company oil and gas reserves prepared by an independent engineering consultant.  Such estimates are subject to numerous uncertainties inherent in the estimation of quantities of proven reserves. Estimated reserves are used in the calculation of depletion, depreciation and amortization, unevaluated property costs, impairment of oil and natural gas properties, estimated future net cash flows, taxes, and contingencies.


Liquidity and Going Concern


The primary sources of liquidity have historically been issuances of common stock and operations. We believe that the completion of the Merger with Matrix and the Contribution Agreement with CIC, which created RMX, will enable us to return to positive cash flow.  There is some doubt about the company’s ability to meet liquidity demands, and we anticipate that our primary sources of liquidity will be from the issuance of debt and/or equity, and the sale of oil and natural gas property participation interest.


The Company’s consolidated financial statements reflect an accumulated deficit of $69,213,498, a working capital deficiency of $5,133,752 and a stockholders’ equity of $3,509,519. These factors raise 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 the Company is unable to continue as a going concern.


Management’s plans to alleviate the going concern include the completion of the second step of the merger with Matrix and additional financing through issuances of common stock and the reduction of overhead costs as more fully outlined below.  There is no assurance that additional financing will be available when needed or that management will be able to obtain financing on terms acceptable to the Company and whether the Company will become profitable and generate positive operating cash flow.


Revenue Recognition


On January 1, 2018, we adopted the new ASC Topic 606, Revenue from Contracts with Customers and all the related amendments ("new revenue standard") using the modified retrospective method.


We evaluated the effect of transition by applying the provisions of the new revenue standard to contracts with remaining obligations as of January 1, 2018. No cumulative adjustment to retained earnings was necessary as a result of adopting this standard.


Results for reporting periods beginning after January 1, 2018 are presented under the new revenue standard, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting policies.


We concluded that the adoption of the new revenue standard did not result in any changes to our consolidated balance sheet or statement of cash flow.


The majority of our revenues are derived from the sale of crude oil and condensate, natural gas liquids ("NGLs") and natural gas under spot and term agreements with our customers.


The pricing in our hydrocarbon sales agreements are variable, 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 sheet.


Under our hydrocarbon sales agreements, the entire consideration amount is variable either due to pricing and/or volumes. We recognize revenue 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.


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, in accordance with the new revenue standard, and such reimbursements will continue to not be recorded as revenues within the scope of the new revenue standard after the first quarter of 2018.  Prior to this, such cost reimbursements were included in revenue.


We commonly market the share of production belonging to other working interest owners as the operator of jointly owned oil and gas properties. We concluded that 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 regards to the sale of our share of production and recognize revenue for the volumes associated with our net production.


The Company frequently sells a portion of the working interest in each well it drills or participates in to third party investors and retains a portion of the prospect for its own account.  The Company typically guarantees a cost to drill to the third-party drilling participants and records 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, the Company records the liability as Turnkey 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 determined 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 determined the plant tailgate is the point in time where control, as defined in the new revenue standard, is transferred to midstream entities and they are entitled to significant 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 is netted directly against revenue. 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.


Turnkey Drilling Obligations


These Turnkey Agreements are managed by the Company for the participants of the well.  The collections of pre-drilling AFE amounts are segregated by the Company and the gains and losses on the Turnkey Agreements are recorded in income or expense at the time of the casing point election in accordance with ASC 932-323-25 and 932-360.  The Company manages the performance obligation for the well participants and only records revenue or expense at the time the performance obligation of the Turnkey Agreement has been satisfied.


Oil and Gas Property and Equipment


Depreciation, depletion and amortization, based on cost less estimated salvage value of the asset, are primarily determined under either the unit-of-production method or the straight-line method, which is based on estimated asset service life taking obsolescence into consideration.  Maintenance and repairs, including planned major maintenance, are expensed as incurred.  Major renewals and improvements are capitalized and the assets replaced are retired.


The project construction phase commences with the development of the detailed engineering design and ends when the constructed assets are ready for their intended use.  Interest costs, to the extent they are incurred to finance expenditures during the construction phase, are included in property, plant and equipment and are depreciated over the service life of the related assets.


Royale Energy uses the “successful efforts” method to account for its exploration and production activities.  Under this method, Royale Energy accumulates its proportionate share of costs on a well-by-well basis with certain exploratory expenditures and exploratory dry holes being expensed as incurred and capitalizes expenditures for productive wells.  Royale Energy amortizes the costs of productive wells under the unit-of-production method.


Royale Energy carries, as an asset, exploratory well costs when the well has found a sufficient quantity of reserves to justify its completion as a producing well and where Royale Energy is making sufficient progress assessing the reserves and the economic and operating viability of the project.  Exploratory well costs not meeting these criteria are charged to expense. Other exploratory expenditures, including geophysical costs and annual lease rentals, are expensed as incurred.


Acquisition costs of proved properties are amortized using a unit-of-production method, computed on the basis of total proved oil and gas reserves.


Capitalized exploratory drilling and development costs associated with productive depletable extractive properties are amortized using unit-of-production rates based on the amount of proved developed reserves of oil and gas that are estimated to be recoverable from existing facilities using current operating methods.  Under the unit-of-production method, oil and gas volumes are considered produced once they have been measured through meters at custody transfer or sales transaction points at the outlet valve on the lease or field storage tank.


Production costs are expensed as incurred. Production involves lifting the oil and gas to the surface and gathering, treating, field processing and field storage of the oil and gas. The production function normally terminates at the outlet valve on the lease or field production storage tank. Production costs are those incurred to operate and maintain Royale Energy’s wells and related equipment and facilities. They become part of the cost of oil and gas produced. These costs, sometimes referred to as lifting costs, include such items as labor costs to operate the wells and related equipment; repair and maintenance costs on the wells and equipment; materials, supplies and energy costs required to operate the wells and related equipment; and administrative expenses related to the production activity. Proved oil and gas properties held and used by Royale Energy are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable.


Royale Energy estimates the future undiscounted cash flows of the affected properties to judge the recoverability of carrying amounts. Cash flows used in impairment evaluations are developed using annually updated evaluation assumptions for crude oil commodity prices.  Annual volumes are based on field production profiles, which are also updated annually. Prices for natural gas and other products are based on assumptions developed annually for evaluation purposes.


Impairment analyses are generally based on proved reserves.  An asset group would be impaired if the undiscounted cash flows were less than its carrying value.  Impairments are measured by the amount the carrying value exceeds fair value. During the six months ended June 30, 2017, impairment losses of $136,837 were recorded on various capitalized lease and land costs that were no longer viable. During the same period in 2018, no impairment losses were recorded.


Significant unproved properties are assessed for impairment individually, and valuation allowances against the capitalized costs are recorded based on the estimated economic chance of success and the length of time that Royale Energy expects to hold the properties.  The valuation allowances are reviewed at least annually.


Upon the sale or retirement of a complete field of a proved property, Royale Energy eliminates the cost from its books, and the resultant gain or loss is recorded to Royale Energy’s Statement of Operations.  Upon the sale of an entire interest in an unproved property where the property has been assessed for impairment individually, a gain or loss is recognized in Royale Energy’s Statement of Operations.  If a partial interest in an unproved property is sold, any funds received are accounted for as a recovery of the cost in the interest retained with any excess funds recognized as a gain. Should Royale Energy’s turnkey drilling agreements include unproved property, total drilling costs incurred to satisfy its obligations are recovered by the total funds received under the agreements.  Any excess funds are recorded as a Gain on Turnkey Drilling Programs, and any costs not recovered are capitalized and accounted for under the “successful efforts” method. 


Royale Energy sponsors turnkey drilling agreement arrangements in unproved properties as a pooling of assets in a joint undertaking, whereby proceeds from participants are reported as Deferred Drilling Obligations, and then reduced as costs to complete its obligations are incurred with any excess booked against its property account to reduce any basis in its own interest.  Gains on Turnkey Drilling Programs represent funds received from turnkey drilling participants in excess of all costs Royale incurs during the drilling programs (e.g., lease acquisition, exploration and development costs), including costs incurred on behalf of participants and costs incurred for its own account; and are recognized only upon making this determination after Royale’s obligations have been fulfilled.


The contracts require the participants pay Royale Energy the full contract price upon execution of the agreement.  Royale Energy completes the drilling activities typically between 10 and 30 days after drilling begins.  The participant retains an undivided or proportional beneficial interest in the property and is also responsible for its proportionate share of operating costs.  Royale Energy retains legal title to the lease.  The participants purchase a working interest directly in the well bore.


In these working interest arrangements, the participants are responsible for sharing in the risk of development, but also sharing in a proportional interest in rights to revenues and proportional liability for the cost of operations after drilling is completed and the interest is conveyed to the participant.


A certain portion of the turnkey drilling participant’s funds received are non-refundable.  The company holds all funds invested as Deferred Drilling Obligations until drilling is complete.  Occasionally, drilling is delayed for various reasons such as weather, permitting, drilling rig availability and/or contractual obligations.  At June 30, 2018 and December 31, 2017, Royale Energy had Deferred Drilling Obligations of $8,654,398 and $5,891,898, respectively.


If Royale Energy is unable to drill the wells, and a suitable replacement well is not found, Royale would retain the non-refundable portion of the contact and return the remaining funds to the participant.  Included in cash and cash equivalents are amounts for use in completion of turnkey drilling programs in progress.


Losses on properties sold are recognized when incurred or when the properties are held for sale and the fair value of the properties is less than the carrying value.


Other Receivables


Our other receivables consist of joint interest billing receivables from direct working interest investors and industry partners. We provide for uncollectible accounts receivable using the allowance method of accounting for bad debts.  Under this method of accounting, a provision for uncollectible accounts is charged directly to bad debt expense when it becomes probable the receivable will not be collected.  The allowance account is increased or decreased based on past collection history and management’s evaluation of accounts receivable.  All amounts considered uncollectible are charged against the allowance account and recoveries of previously charged off accounts are added to the allowance.  At June 30, 2018 and December 31, 2017, the Company established an allowance for uncollectable accounts of $1,965,076 and $1,975,660, respectively, for receivables from direct working interest investors whose expenses on non-producing wells were unlikely to be collected from revenue.


Revenue Receivables


Our revenue receivables consist of receivables related to the sale of our natural gas and oil.  Once a production month is completed we receive payment approximately 15 to 30 days later.


Receivable from Affiliate


Our receivable from affiliate consists of receivables related to the transactions between Royale Energy and RMX Resources, LLC and its subsidiary, MOC.


Other Assets


Our other assets consist of long term cash deposits or bank certificates of deposit required by county government agencies or other companies mainly due to Royale’s well operations.


Equipment and Fixtures


Equipment and fixtures are stated at cost and depreciated over the estimated useful lives of the assets, which range from three to seven years, using the straight-line method. Repairs and maintenance are charged to expense as incurred. When assets are sold or retired, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is included in income. Maintenance and repairs, which neither materially add to the value of the property nor appreciably prolong its life, are charged to expense as incurred. Gains or losses on dispositions of property and equipment, other than oil and gas, are reflected in operations.


Fair Value Measurements


According to Fair Value Measurements and Disclosures Topic of the FASB Accounting Standards Codification, assets and liabilities that are measured at fair value on a recurring and nonrecurring basis in period subsequent to initial recognition, the reporting entity shall disclose information that enable users of its financial statements to assess the inputs used to develop those measurements and for recurring fair value measurements using significant unobservable inputs, the effect of the measurements on earnings for the period.


Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considers counterparty credit risk in its assessment of fair value. Carrying amounts of the Company’s financial instruments, including cash equivalents, accounts receivable, accounts payable and accrued liabilities, approximate their fair values as of the balance sheet dates because of their generally short maturities.


The fair value hierarchy distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:


Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities.


Level 2: Directly or indirectly observable inputs as of the reporting date through correlation with market data, including quoted prices for similar assets and liabilities in active markets and quoted prices in markets that are not active. Level 2 also includes assets and liabilities that are valued using models or other pricing methodologies that do not require significant judgment since the input assumptions used in the models, such as interest rates and volatility factors, are corroborated by readily observable data from actively quoted markets for substantially the full term of the financial instrument.


Level 3: Unobservable inputs that are supported by little or no market activity and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions.


At June 30, 2018 and December 31, 2017, Royale Energy did not have any financial assets measured and recognized at fair value on a recurring basis.  The Company estimates asset retirement obligations pursuant to the provisions of FASB ASC Topic 410, “Asset Retirement and Environmental Obligations” (“FASB ASC 410”). The initial measurement of asset retirement obligations at fair value is calculated using discounted cash flow techniques and based on internal estimates of future retirement costs associated with oil and gas properties. Given the unobservable nature of the inputs, including plugging costs and reserve lives, the initial measurement of the asset retirement obligation liability is deemed to use Level 3 inputs.


Accounts Payable and Accrued Expenses


At June 30, 2018, the components of accounts payable and accrued expenses consisted of $3,596,131 in trade accounts payable due to various vendors, $1,967,318 in payables and accruals related to direct working interest investors revenues and operating costs, $269,099 in accrued expenses related to current drilling efforts, $24,387 due to affiliates, $244,311 for accrued liabilities for amounts set aside mainly for the plugging and abandonment of certain wells, $117,676 for employee related taxes and accruals, $34,059 in deferred rent and $14,723 in federal and state income taxes payable.  At December 31, 2017, the components of accounts payable and accrued expenses consisted of $2,392,755 in trade accounts payable due to various vendors, $688,002 in payables and accruals related to direct working interest investors revenues and operating costs, $483,734 in accrued expenses related to current drilling efforts, $438,667 in legal settlement payables related to Cash Advances on Pending Transactions, $266,110 for accrued liabilities for amounts set aside mainly for the plugging and abandonment of certain wells, $93,619 for employee related taxes and accruals, $223,833 related to interest payable on cash advances on pending transactions, $35,036 in deferred rent and $17,123 in federal and state income taxes payable.


Secured Term Debt


Prior to the Merger, Matrix had an outstanding term loan agreement with Arena Limited SPV, LLC (Term Loan) for approximately $12.4 million. The original maturity date of the Term Loan was June 15, 2018, it was secured by the assets of Matrix, and contained financial covenants commencing June 30, 2016 and thereafter, as defined in the term loan agreement. The Term Loan was repaid in full in April 2018 in connection with the Contribution Agreement with CIC.  The Company recognized $164,401 in interest expense for the period ended June 30, 2018.


Cash Advances on Pending Transactions


In July 2016, we received a cash investment of $1,580,000 from two investors to purchase convertible promissory notes of $1,280,000 and $300,000, with a conversion price of $0.40 per share, with warrants to purchase one share of common stock for every three shares of common stock issuable upon conversion of the notes.  The funds from these transactions were used to continue drilling activities, fund expenses incurred in connection with the completion of Royale Energy’s merger with Matrix Oil Corporation and for general corporate purposes.  The notes originally matured on August 2, 2017, one year from the date of issuance, and carried a 10% interest rate, with a default rate of 25%.  Shortly before completion of the Merger, the $300,000 note and interest of $47,500 was converted into 750,000 shares of Royale common stock valued at $347,500, and Royale agreed to a cash settlement with the holder of the $1,280,000 note for $1,900,000, which was paid in full on April 13, 2018.


Commodity Derivative Financial Instruments


From time to time, Matrix utilized derivative financial instruments, consisting of puts and swaps, in order to manage exposure to changes in oil commodity prices. These derivative contracts require financial settlements with counterparties based on comparison of various market prices for oil and either floor or swap benchmark prices. The notional amounts of these derivative contracts are economically based on a percentage of estimated production from proved reserves.


The Company accounts for derivative contracts in accordance with FASB ASC Topic 815, Accounting for Derivative Instruments and Hedging Activities, which establishes accounting and reporting standards for derivative instruments, including certain derivative instruments embedded in other contracts (collectively referred to as derivatives), and for hedging activities. Currently, the Company has elected not to designate any derivative contracts as accounting hedges under the provisions of FASB ASC Topic 815.


As such, all derivative contracts are carried at fair value on the balance sheet and are marked-to-market at the end of each period with a related adjustment to earnings. Unrealized gains or losses are recorded as gain (loss) on derivatives in unrealized gain (loss) on derivative instruments in the consolidated statements of operations. Realized gain or losses are recorded net in oil and gas sales in the consolidated statements of operations.


Fair Values – Recurring


The Company’s derivative contracts are carried at fair value under ASC Topic 820. The fair value is based upon independently sourced market parameters. The fair value is estimated using forward-looking price curves and discounted cash flows that are observable or that can be corroborated by observable market data and, therefore, are classified within Level 2 of the valuation hierarchy. At June 30, 2018, the Company did not have any derivative contracts.


Fair Values - Non-recurring


The Company applies the provisions of the fair value measurement standard to its non-recurring, non-financial measurements including oil and natural gas property impairments and other long-lived asset impairments. These items are not measured at fair value on a recurring basis but are subject to fair value adjustments only in certain circumstances.


Recently Issued Accounting Pronouncements


The Company has reviewed the updates issued by the Financial Accounting Standards Board (FASB) during the six months ended June 30, 2018:


ASU 2018-05: Income Taxes (Topic 740) – In March 2018, the Financial Accounting Standards Board (“FASB”) issued ASU 2018-05, Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118, to add various SEC paragraphs pursuant to the issuance of SAB 118 to ASC 740. SAB 118 was issued by the SEC in December 2017 to provide immediate guidance for accounting implications of U.S. tax reform under the TCJA. The Company is currently evaluating the effects of adopting ASU 2016-02 on its consolidated financial statements, but the adoption is not expected to have a significant impact on the Company’s financial statements.


ASU 2017-09: Compensation - Stock Compensation (Topic 718) – Scope of Modification Accounting - In May 2017, the FASB issued ASU 2017-09, which provides guidance about which changes to the terms or conditions of a share-based payment awarded require an entity to apply modification accounting. ASU 2017-09 is effective for interim and annual reporting periods beginning after December 15, 2017, with early adoption permitted. The amendments in ASU 2017-09 are to be applied prospectively to an award modified on or after the adoption date, consequently the impact will be dependent on the modification of any share-based payment awards and the nature of such modifications.  The adoption of this guidance has no impact on our results of operations or cash flows.


ASU 2017-01: Business Combinations (Topic 805) – Clarifying the Definition of a Business - In January 2017, FASB issued ASU 2017-01. The objective of ASU 2017-01 is to clarify the definition of a business by adding guidance on how entities should evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. ASU 2017-01 will be effective for public business entities for fiscal years beginning after December 15, 2017, including interim periods in the year of adoption. Early adoption is permitted for any interim or annual period. The adoption of this guidance has no impact on our results of operations or cash flows.


ASU No. 2016-02: Leases (Topic 842). In February 2016, FASB issued ASU 2016-02 which aims to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and requiring disclosure of key information about leasing agreements. Entities are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the effects of adopting ASU 2016-02 on its consolidated financial statements, but the adoption is not expected to have a significant impact on the Company’s financial statements. 


ASU 2016-01: Financial Instruments – Overall – Recognition and Measurement of Financial Assets and Financial Liabilities (Subtopic 825-10) In January 2016, FASB issued ASU 2016-01 which requires an entity to: (i) measure equity investments at fair value through net income, with certain exceptions; (ii) present in Other Comprehensive Income the changes in instrument-specific credit risk for financial liabilities measured using the fair value option; (iii) present financial assets and financial liabilities by measurement category and form of financial asset; (iv) calculate the fair value of financial instruments for disclosure purposes based on an exit price and; (v) assess a valuation allowance on deferred tax assets related to unrealized losses of AFS debt securities in combination with other deferred tax assets. The Update provides an election to subsequently measure certain nonmarketable equity investments at cost less any impairment and adjusted for certain observable price changes. The Update also requires a qualitative impairment assessment of such equity investments and amends certain fair value disclosure requirements. The new standard becomes effective for fiscal years beginning after December 15, 2017. Early adoption is only permitted for the provision related to instrument-specific credit risk and the fair value disclosure exemption provided to nonpublic entities.  The adoption of this guidance has no impact on our results of operations or cash flows. 


XML 20 R7.htm IDEA: XBRL DOCUMENT v3.10.0.1
NOTE 2 - LOSS PER SHARE
6 Months Ended
Jun. 30, 2018
Earnings Per Share [Abstract]  
Earnings Per Share [Text Block]

NOTE 2  LOSS PER SHARE


Basic and diluted loss per share are calculated as follows:


   

Three Months Ended June 30,

 
   

2018

   

2017

 
   

Basic

   

Diluted

   

Basic

   

Diluted

 

Net Income (Loss)

  $ (19,140,603

)

  $ (19,140,603

)

  $ 70,662     $ 70,662  

Less:  Preferred Stock Dividend

    233,494       233,494       --       -  

Net Income (Loss) Attributable to Common Shareholders

    (19,374,097

)

    (19,374,097

)

    70,662       70,662  

Weighted average common shares outstanding 

    48,400,371       48,400,371       21,825,770       21,825,770  

Effect of dilutive securities

    --       -       --       -  

Weighted average common shares, including Dilutive effect

    48,400,371       48,400,371       21,825,770       21,825,770  

Per share:

                               

     Net Income (Loss)

  $ (0.40

)

  $ (0.40

)

  $ 0.00     $ 0.00  

   

Six Months Ended June 30,

 
   

2018

   

2017

 
   

Basic

   

Diluted

   

Basic

   

Diluted

 

Net Loss

  $ (20,774,316

)

  $ (20,774,316

)

  $ (916,982

)

  $ (916,982

)

Less:  Preferred Stock Dividend

    233,494       233,494       -       -  

Net Loss Attributable to Common Shareholders

    (21,007,810

)

    (21,007,810

)

    70,662       70,662  

Weighted average common shares outstanding 

    39,745,890       39,745,890       21,825,770       21,825,770  

Effect of dilutive securities

    -       -       -       -  

Weighted average common shares, including Dilutive effect

    39,745,890       39,745,890       21,825,770       21,825,770  

Per share:

 

     Net Loss

  $ (0.52

)

  $ (0.52

)

  $ (0.04

)

  $ (0.04

)


For the three and six month period ended June 30, 2018, Royale Energy had dilutive securities of 23,509,917 and 15,266,074, respectively.  These securities were not included in the dilutive loss per share due to their antidilutive nature.


XML 21 R8.htm IDEA: XBRL DOCUMENT v3.10.0.1
NOTE 3 - OIL AND GAS PROPERTIES, EQUIPMENT AND FIXTURES
6 Months Ended
Jun. 30, 2018
Oil and Gas Exploration and Production Industries Disclosures [Abstract]  
Oil and Gas Exploration and Production Industries Disclosures [Text Block]

NOTE 3 – OIL AND GAS PROPERTIES, EQUIPMENT AND FIXTURES


Oil and gas properties, equipment and fixtures consist of the following:


   

June 30,

2018

   

December 31,

2017

 
   

(Unaudited)

   

(Audited)

 

Oil and Gas

               

Producing properties, including drilling costs

  $ 9,581,245     $ 3,755,705  

Undeveloped properties

    11,817       1,435  

Lease and well equipment

    4,183,075       4,119,802  
      13,776,137       7,876,942  
                 

Accumulated depletion, depreciation & amortization

    (6,701,568

)

    (6,582,648

)

      7,074,569       1,294,294  

Commercial and Other

               

Land

    501,375       -  

Vehicles

    40,061       40,061  

Furniture and equipment

    1,096,139       1,092,926  
      1,637,575       1,132,987  
                 

Accumulated depreciation

    (1,126,470

)

    (1,125,039

)

      511,105       7,948  
    $ 7,585,674     $ 1,302,242  

The guidance set forth in the Continued Capitalization of Exploratory Well Costs paragraph of the Extractive Activities Topic of the FASB Accounting Standards Codification requires that we evaluate all existing capitalized exploratory well costs and disclose the extent to which any such capitalized costs have become impaired and are expensed or reclassified during a fiscal period. We did not make any additions to capitalized exploratory well costs pending a determination of proved reserves during the periods in 2018 or 2017. 


XML 22 R9.htm IDEA: XBRL DOCUMENT v3.10.0.1
NOTE 4 - INCOME TAXES
6 Months Ended
Jun. 30, 2018
Income Tax Disclosure [Abstract]  
Income Tax Disclosure [Text Block]

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 amounts used for income tax purposes.  Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.  At the end of 2015, management reviewed the reliability of the Company’s net deferred tax assets, and due to the Company’s continued cumulative losses in recent years, the Company concluded it is not “more-likely-than-not” its deferred tax assets will be realized.  As a result, the Company will continue to record a full valuation allowance against the deferred tax assets in 2018.


The calculation below does not consider the tax basis of the assets acquired through the merger with Matrix Oil Management Corporation as discussed in Note 1 above.  The calculation only considers the book basis of assets acquired.  Therefore, the Company cannot say with certainty that the projected tax losses shown below will be fully realized.  The Company has initiated steps to resolve this issue in the near future as further described in Item 4. – Controls and Procedures.  At this time, the Company cannot say whether it will be filing as a tax group or maintain a separate filing status.  Further, the Company has not fully identified the amount of tax carryforward balances, deferred taxes and tax basis of reported assets resulting from the merger with Matrix Oil Company.


A reconciliation of Royale Energy’s provision for income taxes and the amount computed by applying the statutory income tax rates at June 30, 2018 and 2017, respectively, to pretax income is as follows: 


   

Six Months

Ended

June 30, 2018

   

Six Months

Ended

June 30, 2017

 
                 

Tax benefit computed at statutory rate of 21% and 34% at June 30, 2018 and 2017, respectively

  $ (4,362,606

)

  $ (311,774

)

                 

Increase (decrease) in taxes resulting from:

               
                 

State tax / percentage depletion / other

               

Other non-deductible expenses

    624       205  

Change in valuation allowance

    4,361,982       311,569  

Provision (benefit)

  $ -     $ -  

XML 23 R10.htm IDEA: XBRL DOCUMENT v3.10.0.1
Accounting Policies, by Policy (Policies)
6 Months Ended
Jun. 30, 2018
Accounting Policies [Abstract]  
Basis of Accounting, Policy [Policy Text Block]

Merger with Matrix Oil Management Corporation


On March 7, 2018, Royale Energy, Inc. (“Royale Energy,” formerly known as  Royale Energy Holdings, Inc., a Delaware corporation), Royale Energy Funds, Inc. (“REF,” formerly known as Royale Energy, Inc., a California corporation), and Matrix Oil Management Corporation (“Matrix”) and its affiliates were notified by the California Secretary of State of the filing and acceptance of agreements of merger by the California Secretary of State, to complete the previously announced merger between the companies (the “Merger”).  In the Merger, REF was merged into a newly formed subsidiary of Royale Energy, and Matrix was merged into a second newly formed subsidiary of Royale Energy pursuant to the Amended and Restated Agreement and Plan of Merger among REF, Royale Energy, Royale Merger Sub, Inc., (“Royale Merger Sub”), Matrix Merger Sub, Inc., (“Matrix Merger Sub”) and Matrix (the “Merger Agreement”).  Additionally, in connection with the merger, all limited partnership interest of two limited partnership affiliates of Matrix (Matrix Permian Investments, LP, and Matrix Las Cienegas Limited Partnership), were exchanged for Royale Energy common stock using conversion ratios according to the relative values of each partnership.  All Class A limited partnership interests of another Matrix affiliate, Matrix Investments, LP (“Matrix Investments”) were exchanged for Royale Energy Common stock using conversion ratios according to the relative value of the Class A limited partnership interests, and $20,124,000 of Matrix Investments preferred limited partnership interests were converted into 2,012,400 shares of Series B Convertible Preferred Stock of Royale Energy.  Another Matrix affiliate, Matrix Oil Corporation (“Matrix Operator”), was acquired by Royale Energy by exchanging Royale Energy common stock for the outstanding common stock of Matrix Oil Corporation using a conversion ratio according to the relative value of the Matrix Oil Corporation common stock.  Matrix, Matrix Oil Corporation and the three limited partnership affiliates of Matrix called the “Matrix Entities.”


The Merger had been previously approved by the respective holders of all outstanding capital stock of REF, Matrix, Royale Energy, Matrix Merger Sub and Royale Merger Sub on November 16, 2017, as previously reported in our Current Report on Form 8-K dated November 16, 2017.  The Merger and related transactions are described in detail in our Current Report on Form 8-K dated March 7, 2018, and in Royale Energy’s Current Report on Form 8-K dated March 7, 2018 (SEC File No. 000-55912).


As a result of the Merger, REF became a wholly owned subsidiary of Royale Energy, and each outstanding share common stock of REF at the time of the Merger was converted into one share of common stock of Royale Energy.  The common stock of Royale Energy is traded on the Over-The-Counter QB (OTCQB) Market System (symbol ROYL).


Under FASB Topic ASC 805, Business Combinations, which among other things requires the assets acquired and liabilities assumed to be measured and recorded at their fair values as of the acquisition date, the Company was determined to be the acquirer and as such, the acquisition was accounted for as a business combination.


The preliminary allocation of the purchase price was determined in arms’ length negotiations between the parties.  Substantially all of the value of the transaction was related to the value of the oil and gas assets acquired with minimal value ascribed to the other assets. The Company considered two valuation methods in its determination of fair value for the oil and natural gas properties; the discounted cash flow analysis and comparable transaction analysis. Assumptions for the discounted cash flow analysis include commodity price, operating costs and capital outlay for future development of the acquired properties, pricing differentials, reserve risking, and discount rates. NYMEX strip pricing, less applicable pricing differentials, was utilized in the discounted cash flow analysis. Risking levels in the discounted cash flow analysis are determined based on a variety of factors, such as existing well performance, offset production and analogue wells. Discount rates used in the discounted cash flow analysis were determined by using the estimated cost of capital, discount rates, as well as industry knowledge and experience. The comparable transaction analysis was performed to establish a range of fair values for similarly situated oil and gas properties that were recently bought or sold in arms-length, observable market transactions. The range of value observed from the Company’s analysis of recent market transactions was then utilized as a basis for evaluating the fair value determined via the discounted cash flow method. The Company’s fair value conclusion indicated that the discounted cash flow method valuation is in line with the same range as the comparable transactions reviewed, when considering the comparable transactions. Other current liabilities assumed in the acquisition, were carried over at historical carrying values because the assets and liabilities are short term in nature and their carrying values are estimated to represent the best estimate of fair value. Any changes to the estimates used in preparing this preliminary purchase price allocation could result in a corresponding change in the final purchase price allocation.


The following table summarizes the consideration transferred, fair value of assets acquired and liabilities assumed:


   

March 7, 2018

 

Consideration:

       

Value of Royale Common Stock issued

  $ 9,546,068  

Value of Series B Convertible Preferred Stock issued

    20,124,000  

Total consideration

  $ 29,670,068  

Fair Value of Liabilities Assumed:

 

Current liabilities

    19,624,592  

Other liabilities

    3,125,394  

Asset Retirement obligations

    1,419,544  

Total fair value of liabilities assumed

    24,169,530  

Total consideration plus liabilities assumed

  $ 53,839,598  

Fair Value of Assets Acquired:

 

Cash

  $ 548,805  

Current assets

    3,655,173  

Proved and unproved crude oil and gas properties

    48,632,870  

Land

    1,002,750  
    $ 53,839,598  

In accordance with FASB Topic ASC 805, the following unaudited supplemental pro forma condensed results of operations present combined information as though the business combination had been completed as of January 1, 2018. The unaudited supplemental pro forma financial information was derived from the historical revenues and direct operating expenses of Royale Energy, Inc. and Matrix Oil Management Corporation and its affiliates. These unaudited supplemental pro forma results of operations for the consolidated companies as of March 31, 2017, are provided for illustrative purposes only and do not purport to be indicative of the actual results that would have been achieved by the consolidated company for the periods presented or that may be achieved by the consolidated company in the future.


   

Three months ended March 31, 2018

   

Three months ended March 31, 2017

 
                                                 
   

Royale Energy, Inc.

   

Matrix Oil Management Corp

   

Consolidated

   

Royale Energy, Inc.

   

Matrix Oil Management Corp

   

Consolidated

 
   

(Unaudited)

 

Revenue

  $ 119,473     $ 1,798,531     $ 1,918,004     $ 274,398     $ 1,120,427     $ 1,394,825  

Net Loss

  $ (1,200,576

)

  $ (751,111

)

  $ (1,951,687

)

  $ (987,644

)

  $ (549,922

)

  $ (1,537,566

)

Net Loss available to common shareholders

  $ (1,200,576

)

  $ (751,111

)

  $ (1,951,687

)

  $ (987,644

)

  $ (549,922

)

  $ (1,537,566

)

Pro forma Loss per common share Basic and diluted

  $ (0.04

)

  $ (0.02

)

  $ (0.06

)

  $ (0.05

)

  $ (0.02

)

  $ (0.07

)


Formation of RMX and Asset Contribution


On April 13, 2018, Royale Energy, Inc., and two of Royale’s subsidiaries, Royale Energy Funds, Inc. and Matrix Oil Management Corporation (the “Royale Entities”) completed  the Subscription and Contribution Agreement (“Contribution Agreement”), in which the Royale Entities and CIC RMX LP (“CIC”) entered into the Contribution Agreement and certain other agreements providing that the Royale Entities would contribute certain assets to RMX Resources, LLC (“RMX”), a newly formed Texas limited liability company. In exchange for its contributed assets, Royale received a 20% equity interest in RMX, an equity performance incentive interest and up to $20.0 million to pay off Royale Entities senior lender, Arena Limited SPV, LLC., in full, and to pay Royale Entities trade payables and other outstanding obligations. CIC contributed an aggregate of $25.0 million in cash to RMX in exchange for (i) an 80% equity interest in RMX with preferred distributions until certain thresholds are met, (ii) a warrant (“Warrant”) to acquire up to 4,000,000 shares of Royale’s common stock at an exercise price of $.01 per share and registration rights pursuant to a Registration Rights Agreement.


The Contribution Agreement was completed in a two-step closing and funding, with the First Closing consummated on April 4, 2018 and the Second Closing consummated on April 13, 2018 with the Royale Entities. In connection with the Second Closing, the parties entered into a letter agreement related to the preliminary Settlement Statement process.  The parties agreed that, in lieu of the payment originally contemplated under Section 1.6(v) of the Contribution Agreement, the Royale Entities would receive the sum of $4,000,000, subject to adjustment. The $4,000,000 delivered at the Second Closing was an advance against amounts due the Royale Entities as Purchase Price, and the advance was subject to further adjustment in accordance with the Contribution Agreement.


RMX has two classes of stock and a six-member board of directors. Royale has two seats on the board giving it a third of the Board.  Royale has designated Michael McCaskey and Johnny Jordan as its members of the RMX board.  The return targets for CIC through its funding of RMX provide for a “waterfall” style return profile with the first distributions going to CIC until certain return thresholds are achieved.


As part of the formation of the joint venture, Royale contributed Matrix Oil Corporation (“MOC”) to RMX. MOC has the permits and licenses to operating oil and gas properties in California. It was the operating entity for the Matrix group of companies that were acquired on February 28, 2018, see NOTE 1 – Merger with Matrix Oil Management Corporation above. This allows the RMX joint venture to be the operator of record for the contributed assets.


Royale will account for its ownership interest in RMX following the equity method of accounting. By agreement, Royale has an initial equity value of $6.25 million or 20% of the total equity of the joint venture with CIC having an initial equity value of $25.0 million or 80% of the total equity of the joint venture.


The Royale Entities contributed 100% of the Sansinena Field, 100% of the Sempra Field, 50% of the Bellevue Field, 100% of the Whittier Main Field, and 50% of the Whittier Field. The result of the transfer of oil and gas properties and surface rights for cash as described above and a 20 percent working interest in RMX resulted in Royale recording a loss of approximately $16.2 million. The contribution by Royale of warrants to acquire 4,000,000 shares of Royale common stock caused Royale to record a loss of approximately $1.44 million. In addition, the Contribution Agreement called for an effective date of the property transfer of February 28, 2018 which required a purchase price adjustment of approximately $334,000 in the form of a cash contribution to RMX and an increase in the loss on the sale. The transfer of MOC to RMX as the operating company provided an amount due Royale of approximately $640,000, which was recorded as a due from affiliate during the period in 2018.


The RMX joint venture has a senior revolving loan facility with Legacy Bank Texas. RMX initially drew down on the line of credit in the amount of $12.5 million to complete the acquisition of the Royale Entities. The borrowing base of the facility is $17.5 million with $5.0 million remaining undrawn at June 30, 2018.


As part of the joint venture, RMX entered into a Master Service Agreement “MSA” calling for Royale Energy to provide land, engineering and support services for the joint venture.  For these services, Royale will receive $180,000 per month for the first year, renewable after one year at a reduced rate of $150,000 per month and subject to termination on 90 days notice.  These amounts are included in Supervisory Fees, Service Agreement and Other.


Listed below is the summarized information required under Rule 3-09 of regulation S-X, Article 10 for Royale’s investment in RMX:


   

RMX Resources, LLC at

June 30, 2018

   

Royale Energy, Inc. Share at

June 30, 2018

 
                 

Revenues for the three months ended June 30, 2018

  $ (2,480,630

)

  $ (496,126

)

Gross Profit

    1,175,286       235,057  

Income (Loss) from Continuing Operations

    (1,073,230 )     (214,646 )

Net Income (Loss)

  $ (3,421,321 )   $ (684,264 )
Consolidation, Policy [Policy Text Block]

Consolidation


The accompanying consolidated financial statements include the accounts of Royale Energy, Inc. (sometimes called the “Company” “we,” “our,” “us,” or “Royale Energy”), REF, and Matrix Oil Management Corporation and its subsidiaries.  All entities comprising the consolidated financial statements of Royale Energy have fiscal years ending December 31.  All material intercompany accounts and transactions have been eliminated in the consolidated financial statements.

Use of Estimates, Policy [Policy Text Block]

Use of Estimates


The accompanying 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.  As reflected in the accompanying financial statements, the Company has negative working capital, losses from operations and negative cash flows from operations.


Material estimates that are particularly susceptible to significant change relate to the estimate of Company oil and gas reserves prepared by an independent engineering consultant.  Such estimates are subject to numerous uncertainties inherent in the estimation of quantities of proven reserves. Estimated reserves are used in the calculation of depletion, depreciation and amortization, unevaluated property costs, impairment of oil and natural gas properties, estimated future net cash flows, taxes, and contingencies.

Liquidity and Going Concern [Policy Text Block]

Liquidity and Going Concern


The primary sources of liquidity have historically been issuances of common stock and operations. We believe that the completion of the Merger with Matrix and the Contribution Agreement with CIC, which created RMX, will enable us to return to positive cash flow.  There is some doubt about the company’s ability to meet liquidity demands, and we anticipate that our primary sources of liquidity will be from the issuance of debt and/or equity, and the sale of oil and natural gas property participation interest.


The Company’s consolidated financial statements reflect an accumulated deficit of $69,213,498, a working capital deficiency of $5,133,752 and a stockholders’ equity of $3,509,519. These factors raise 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 the Company is unable to continue as a going concern.


Management’s plans to alleviate the going concern include the completion of the second step of the merger with Matrix and additional financing through issuances of common stock and the reduction of overhead costs as more fully outlined below.  There is no assurance that additional financing will be available when needed or that management will be able to obtain financing on terms acceptable to the Company and whether the Company will become profitable and generate positive operating cash flow.

Revenue Recognition, Policy [Policy Text Block]

Revenue Recognition


On January 1, 2018, we adopted the new ASC Topic 606, Revenue from Contracts with Customers and all the related amendments ("new revenue standard") using the modified retrospective method.


We evaluated the effect of transition by applying the provisions of the new revenue standard to contracts with remaining obligations as of January 1, 2018. No cumulative adjustment to retained earnings was necessary as a result of adopting this standard.


Results for reporting periods beginning after January 1, 2018 are presented under the new revenue standard, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting policies.


We concluded that the adoption of the new revenue standard did not result in any changes to our consolidated balance sheet or statement of cash flow.


The majority of our revenues are derived from the sale of crude oil and condensate, natural gas liquids ("NGLs") and natural gas under spot and term agreements with our customers.


The pricing in our hydrocarbon sales agreements are variable, 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 sheet.


Under our hydrocarbon sales agreements, the entire consideration amount is variable either due to pricing and/or volumes. We recognize revenue 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.


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, in accordance with the new revenue standard, and such reimbursements will continue to not be recorded as revenues within the scope of the new revenue standard after the first quarter of 2018.  Prior to this, such cost reimbursements were included in revenue.


We commonly market the share of production belonging to other working interest owners as the operator of jointly owned oil and gas properties. We concluded that 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 regards to the sale of our share of production and recognize revenue for the volumes associated with our net production.


The Company frequently sells a portion of the working interest in each well it drills or participates in to third party investors and retains a portion of the prospect for its own account.  The Company typically guarantees a cost to drill to the third-party drilling participants and records 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, the Company records the liability as Turnkey 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 determined 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 determined the plant tailgate is the point in time where control, as defined in the new revenue standard, is transferred to midstream entities and they are entitled to significant 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 is netted directly against revenue. 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.


Turnkey Drilling Obligations


These Turnkey Agreements are managed by the Company for the participants of the well.  The collections of pre-drilling AFE amounts are segregated by the Company and the gains and losses on the Turnkey Agreements are recorded in income or expense at the time of the casing point election in accordance with ASC 932-323-25 and 932-360.  The Company manages the performance obligation for the well participants and only records revenue or expense at the time the performance obligation of the Turnkey Agreement has been satisfied.

Oil and Gas Properties Policy [Policy Text Block]

Oil and Gas Property and Equipment


Depreciation, depletion and amortization, based on cost less estimated salvage value of the asset, are primarily determined under either the unit-of-production method or the straight-line method, which is based on estimated asset service life taking obsolescence into consideration.  Maintenance and repairs, including planned major maintenance, are expensed as incurred.  Major renewals and improvements are capitalized and the assets replaced are retired.


The project construction phase commences with the development of the detailed engineering design and ends when the constructed assets are ready for their intended use.  Interest costs, to the extent they are incurred to finance expenditures during the construction phase, are included in property, plant and equipment and are depreciated over the service life of the related assets.


Royale Energy uses the “successful efforts” method to account for its exploration and production activities.  Under this method, Royale Energy accumulates its proportionate share of costs on a well-by-well basis with certain exploratory expenditures and exploratory dry holes being expensed as incurred and capitalizes expenditures for productive wells.  Royale Energy amortizes the costs of productive wells under the unit-of-production method.


Royale Energy carries, as an asset, exploratory well costs when the well has found a sufficient quantity of reserves to justify its completion as a producing well and where Royale Energy is making sufficient progress assessing the reserves and the economic and operating viability of the project.  Exploratory well costs not meeting these criteria are charged to expense. Other exploratory expenditures, including geophysical costs and annual lease rentals, are expensed as incurred.


Acquisition costs of proved properties are amortized using a unit-of-production method, computed on the basis of total proved oil and gas reserves.


Capitalized exploratory drilling and development costs associated with productive depletable extractive properties are amortized using unit-of-production rates based on the amount of proved developed reserves of oil and gas that are estimated to be recoverable from existing facilities using current operating methods.  Under the unit-of-production method, oil and gas volumes are considered produced once they have been measured through meters at custody transfer or sales transaction points at the outlet valve on the lease or field storage tank.


Production costs are expensed as incurred. Production involves lifting the oil and gas to the surface and gathering, treating, field processing and field storage of the oil and gas. The production function normally terminates at the outlet valve on the lease or field production storage tank. Production costs are those incurred to operate and maintain Royale Energy’s wells and related equipment and facilities. They become part of the cost of oil and gas produced. These costs, sometimes referred to as lifting costs, include such items as labor costs to operate the wells and related equipment; repair and maintenance costs on the wells and equipment; materials, supplies and energy costs required to operate the wells and related equipment; and administrative expenses related to the production activity. Proved oil and gas properties held and used by Royale Energy are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable.


Royale Energy estimates the future undiscounted cash flows of the affected properties to judge the recoverability of carrying amounts. Cash flows used in impairment evaluations are developed using annually updated evaluation assumptions for crude oil commodity prices.  Annual volumes are based on field production profiles, which are also updated annually. Prices for natural gas and other products are based on assumptions developed annually for evaluation purposes.


Impairment analyses are generally based on proved reserves.  An asset group would be impaired if the undiscounted cash flows were less than its carrying value.  Impairments are measured by the amount the carrying value exceeds fair value. During the six months ended June 30, 2017, impairment losses of $136,837 were recorded on various capitalized lease and land costs that were no longer viable. During the same period in 2018, no impairment losses were recorded.


Significant unproved properties are assessed for impairment individually, and valuation allowances against the capitalized costs are recorded based on the estimated economic chance of success and the length of time that Royale Energy expects to hold the properties.  The valuation allowances are reviewed at least annually.


Upon the sale or retirement of a complete field of a proved property, Royale Energy eliminates the cost from its books, and the resultant gain or loss is recorded to Royale Energy’s Statement of Operations.  Upon the sale of an entire interest in an unproved property where the property has been assessed for impairment individually, a gain or loss is recognized in Royale Energy’s Statement of Operations.  If a partial interest in an unproved property is sold, any funds received are accounted for as a recovery of the cost in the interest retained with any excess funds recognized as a gain. Should Royale Energy’s turnkey drilling agreements include unproved property, total drilling costs incurred to satisfy its obligations are recovered by the total funds received under the agreements.  Any excess funds are recorded as a Gain on Turnkey Drilling Programs, and any costs not recovered are capitalized and accounted for under the “successful efforts” method. 


Royale Energy sponsors turnkey drilling agreement arrangements in unproved properties as a pooling of assets in a joint undertaking, whereby proceeds from participants are reported as Deferred Drilling Obligations, and then reduced as costs to complete its obligations are incurred with any excess booked against its property account to reduce any basis in its own interest.  Gains on Turnkey Drilling Programs represent funds received from turnkey drilling participants in excess of all costs Royale incurs during the drilling programs (e.g., lease acquisition, exploration and development costs), including costs incurred on behalf of participants and costs incurred for its own account; and are recognized only upon making this determination after Royale’s obligations have been fulfilled.


The contracts require the participants pay Royale Energy the full contract price upon execution of the agreement.  Royale Energy completes the drilling activities typically between 10 and 30 days after drilling begins.  The participant retains an undivided or proportional beneficial interest in the property and is also responsible for its proportionate share of operating costs.  Royale Energy retains legal title to the lease.  The participants purchase a working interest directly in the well bore.


In these working interest arrangements, the participants are responsible for sharing in the risk of development, but also sharing in a proportional interest in rights to revenues and proportional liability for the cost of operations after drilling is completed and the interest is conveyed to the participant.


A certain portion of the turnkey drilling participant’s funds received are non-refundable.  The company holds all funds invested as Deferred Drilling Obligations until drilling is complete.  Occasionally, drilling is delayed for various reasons such as weather, permitting, drilling rig availability and/or contractual obligations.  At June 30, 2018 and December 31, 2017, Royale Energy had Deferred Drilling Obligations of $8,654,398 and $5,891,898, respectively.


If Royale Energy is unable to drill the wells, and a suitable replacement well is not found, Royale would retain the non-refundable portion of the contact and return the remaining funds to the participant.  Included in cash and cash equivalents are amounts for use in completion of turnkey drilling programs in progress.


Losses on properties sold are recognized when incurred or when the properties are held for sale and the fair value of the properties is less than the carrying value.

Receivables, Policy [Policy Text Block]

Other Receivables


Our other receivables consist of joint interest billing receivables from direct working interest investors and industry partners. We provide for uncollectible accounts receivable using the allowance method of accounting for bad debts.  Under this method of accounting, a provision for uncollectible accounts is charged directly to bad debt expense when it becomes probable the receivable will not be collected.  The allowance account is increased or decreased based on past collection history and management’s evaluation of accounts receivable.  All amounts considered uncollectible are charged against the allowance account and recoveries of previously charged off accounts are added to the allowance.  At June 30, 2018 and December 31, 2017, the Company established an allowance for uncollectable accounts of $1,965,076 and $1,975,660, respectively, for receivables from direct working interest investors whose expenses on non-producing wells were unlikely to be collected from revenue.

Trade and Other Accounts Receivable, Policy [Policy Text Block]

Revenue Receivables


Our revenue receivables consist of receivables related to the sale of our natural gas and oil.  Once a production month is completed we receive payment approximately 15 to 30 days later.

Receivable from Affiliate, Policy [Policy Text Block]

Receivable from Affiliate


Our receivable from affiliate consists of receivables related to the transactions between Royale Energy and RMX Resources, LLC and its subsidiary, MOC.

Other Assets, Policy [Policy Text Block]

Other Assets


Our other assets consist of long term cash deposits or bank certificates of deposit required by county government agencies or other companies mainly due to Royale’s well operations.

Property, Plant and Equipment, Policy [Policy Text Block]

Equipment and Fixtures


Equipment and fixtures are stated at cost and depreciated over the estimated useful lives of the assets, which range from three to seven years, using the straight-line method. Repairs and maintenance are charged to expense as incurred. When assets are sold or retired, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is included in income. Maintenance and repairs, which neither materially add to the value of the property nor appreciably prolong its life, are charged to expense as incurred. Gains or losses on dispositions of property and equipment, other than oil and gas, are reflected in operations.

Fair Value Measurement, Policy [Policy Text Block]

Fair Value Measurements


According to Fair Value Measurements and Disclosures Topic of the FASB Accounting Standards Codification, assets and liabilities that are measured at fair value on a recurring and nonrecurring basis in period subsequent to initial recognition, the reporting entity shall disclose information that enable users of its financial statements to assess the inputs used to develop those measurements and for recurring fair value measurements using significant unobservable inputs, the effect of the measurements on earnings for the period.


Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considers counterparty credit risk in its assessment of fair value. Carrying amounts of the Company’s financial instruments, including cash equivalents, accounts receivable, accounts payable and accrued liabilities, approximate their fair values as of the balance sheet dates because of their generally short maturities.


The fair value hierarchy distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:


Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities.


Level 2: Directly or indirectly observable inputs as of the reporting date through correlation with market data, including quoted prices for similar assets and liabilities in active markets and quoted prices in markets that are not active. Level 2 also includes assets and liabilities that are valued using models or other pricing methodologies that do not require significant judgment since the input assumptions used in the models, such as interest rates and volatility factors, are corroborated by readily observable data from actively quoted markets for substantially the full term of the financial instrument.


Level 3: Unobservable inputs that are supported by little or no market activity and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions.


At June 30, 2018 and December 31, 2017, Royale Energy did not have any financial assets measured and recognized at fair value on a recurring basis.  The Company estimates asset retirement obligations pursuant to the provisions of FASB ASC Topic 410, “Asset Retirement and Environmental Obligations” (“FASB ASC 410”). The initial measurement of asset retirement obligations at fair value is calculated using discounted cash flow techniques and based on internal estimates of future retirement costs associated with oil and gas properties. Given the unobservable nature of the inputs, including plugging costs and reserve lives, the initial measurement of the asset retirement obligation liability is deemed to use Level 3 inputs.

Accounts Payable and Accrued Expenses [Policy Text Block]

Accounts Payable and Accrued Expenses


At June 30, 2018, the components of accounts payable and accrued expenses consisted of $3,596,131 in trade accounts payable due to various vendors, $1,967,318 in payables and accruals related to direct working interest investors revenues and operating costs, $269,099 in accrued expenses related to current drilling efforts, $24,387 due to affiliates, $244,311 for accrued liabilities for amounts set aside mainly for the plugging and abandonment of certain wells, $117,676 for employee related taxes and accruals, $34,059 in deferred rent and $14,723 in federal and state income taxes payable.  At December 31, 2017, the components of accounts payable and accrued expenses consisted of $2,392,755 in trade accounts payable due to various vendors, $688,002 in payables and accruals related to direct working interest investors revenues and operating costs, $483,734 in accrued expenses related to current drilling efforts, $438,667 in legal settlement payables related to Cash Advances on Pending Transactions, $266,110 for accrued liabilities for amounts set aside mainly for the plugging and abandonment of certain wells, $93,619 for employee related taxes and accruals, $223,833 related to interest payable on cash advances on pending transactions, $35,036 in deferred rent and $17,123 in federal and state income taxes payable.

Debt, Policy [Policy Text Block]

Secured Term Debt


Prior to the Merger, Matrix had an outstanding term loan agreement with Arena Limited SPV, LLC (Term Loan) for approximately $12.4 million. The original maturity date of the Term Loan was June 15, 2018, it was secured by the assets of Matrix, and contained financial covenants commencing June 30, 2016 and thereafter, as defined in the term loan agreement. The Term Loan was repaid in full in April 2018 in connection with the Contribution Agreement with CIC.  The Company recognized $164,401 in interest expense for the period ended June 30, 2018.

Other Current Liabilities [Policy Text Block]

Cash Advances on Pending Transactions


In July 2016, we received a cash investment of $1,580,000 from two investors to purchase convertible promissory notes of $1,280,000 and $300,000, with a conversion price of $0.40 per share, with warrants to purchase one share of common stock for every three shares of common stock issuable upon conversion of the notes.  The funds from these transactions were used to continue drilling activities, fund expenses incurred in connection with the completion of Royale Energy’s merger with Matrix Oil Corporation and for general corporate purposes.  The notes originally matured on August 2, 2017, one year from the date of issuance, and carried a 10% interest rate, with a default rate of 25%.  Shortly before completion of the Merger, the $300,000 note and interest of $47,500 was converted into 750,000 shares of Royale common stock valued at $347,500, and Royale agreed to a cash settlement with the holder of the $1,280,000 note for $1,900,000, which was paid in full on April 13, 2018.

Derivatives, Policy [Policy Text Block]

Commodity Derivative Financial Instruments


From time to time, Matrix utilized derivative financial instruments, consisting of puts and swaps, in order to manage exposure to changes in oil commodity prices. These derivative contracts require financial settlements with counterparties based on comparison of various market prices for oil and either floor or swap benchmark prices. The notional amounts of these derivative contracts are economically based on a percentage of estimated production from proved reserves.


The Company accounts for derivative contracts in accordance with FASB ASC Topic 815, Accounting for Derivative Instruments and Hedging Activities, which establishes accounting and reporting standards for derivative instruments, including certain derivative instruments embedded in other contracts (collectively referred to as derivatives), and for hedging activities. Currently, the Company has elected not to designate any derivative contracts as accounting hedges under the provisions of FASB ASC Topic 815.


As such, all derivative contracts are carried at fair value on the balance sheet and are marked-to-market at the end of each period with a related adjustment to earnings. Unrealized gains or losses are recorded as gain (loss) on derivatives in unrealized gain (loss) on derivative instruments in the consolidated statements of operations. Realized gain or losses are recorded net in oil and gas sales in the consolidated statements of operations.

Fair Value of Financial Instruments, Policy [Policy Text Block]

Fair Values – Recurring


The Company’s derivative contracts are carried at fair value under ASC Topic 820. The fair value is based upon independently sourced market parameters. The fair value is estimated using forward-looking price curves and discounted cash flows that are observable or that can be corroborated by observable market data and, therefore, are classified within Level 2 of the valuation hierarchy. At June 30, 2018, the Company did not have any derivative contracts.


Fair Values - Non-recurring


The Company applies the provisions of the fair value measurement standard to its non-recurring, non-financial measurements including oil and natural gas property impairments and other long-lived asset impairments. These items are not measured at fair value on a recurring basis but are subject to fair value adjustments only in certain circumstances

New Accounting Pronouncements, Policy [Policy Text Block]

Recently Issued Accounting Pronouncements


The Company has reviewed the updates issued by the Financial Accounting Standards Board (FASB) during the six months ended June 30, 2018:


ASU 2018-05: Income Taxes (Topic 740) – In March 2018, the Financial Accounting Standards Board (“FASB”) issued ASU 2018-05, Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118, to add various SEC paragraphs pursuant to the issuance of SAB 118 to ASC 740. SAB 118 was issued by the SEC in December 2017 to provide immediate guidance for accounting implications of U.S. tax reform under the TCJA. The Company is currently evaluating the effects of adopting ASU 2016-02 on its consolidated financial statements, but the adoption is not expected to have a significant impact on the Company’s financial statements.


ASU 2017-09: Compensation - Stock Compensation (Topic 718) – Scope of Modification Accounting - In May 2017, the FASB issued ASU 2017-09, which provides guidance about which changes to the terms or conditions of a share-based payment awarded require an entity to apply modification accounting. ASU 2017-09 is effective for interim and annual reporting periods beginning after December 15, 2017, with early adoption permitted. The amendments in ASU 2017-09 are to be applied prospectively to an award modified on or after the adoption date, consequently the impact will be dependent on the modification of any share-based payment awards and the nature of such modifications.  The adoption of this guidance has no impact on our results of operations or cash flows.


ASU 2017-01: Business Combinations (Topic 805) – Clarifying the Definition of a Business - In January 2017, FASB issued ASU 2017-01. The objective of ASU 2017-01 is to clarify the definition of a business by adding guidance on how entities should evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. ASU 2017-01 will be effective for public business entities for fiscal years beginning after December 15, 2017, including interim periods in the year of adoption. Early adoption is permitted for any interim or annual period. The adoption of this guidance has no impact on our results of operations or cash flows.


ASU No. 2016-02: Leases (Topic 842). In February 2016, FASB issued ASU 2016-02 which aims to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and requiring disclosure of key information about leasing agreements. Entities are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the effects of adopting ASU 2016-02 on its consolidated financial statements, but the adoption is not expected to have a significant impact on the Company’s financial statements. 


ASU 2016-01: Financial Instruments – Overall – Recognition and Measurement of Financial Assets and Financial Liabilities (Subtopic 825-10) In January 2016, FASB issued ASU 2016-01 which requires an entity to: (i) measure equity investments at fair value through net income, with certain exceptions; (ii) present in Other Comprehensive Income the changes in instrument-specific credit risk for financial liabilities measured using the fair value option; (iii) present financial assets and financial liabilities by measurement category and form of financial asset; (iv) calculate the fair value of financial instruments for disclosure purposes based on an exit price and; (v) assess a valuation allowance on deferred tax assets related to unrealized losses of AFS debt securities in combination with other deferred tax assets. The Update provides an election to subsequently measure certain nonmarketable equity investments at cost less any impairment and adjusted for certain observable price changes. The Update also requires a qualitative impairment assessment of such equity investments and amends certain fair value disclosure requirements. The new standard becomes effective for fiscal years beginning after December 15, 2017. Early adoption is only permitted for the provision related to instrument-specific credit risk and the fair value disclosure exemption provided to nonpublic entities.  The adoption of this guidance has no impact on our results of operations or cash flows.

XML 24 R11.htm IDEA: XBRL DOCUMENT v3.10.0.1
NOTE 1 (Tables)
6 Months Ended
Jun. 30, 2018
Accounting Policies [Abstract]  
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]
The following table summarizes the consideration transferred, fair value of assets acquired and liabilities assumed:

   

March 7, 2018

 

Consideration:

       

Value of Royale Common Stock issued

  $ 9,546,068  

Value of Series B Convertible Preferred Stock issued

    20,124,000  

Total consideration

  $ 29,670,068  

Fair Value of Liabilities Assumed:

 

Current liabilities

    19,624,592  

Other liabilities

    3,125,394  

Asset Retirement obligations

    1,419,544  

Total fair value of liabilities assumed

    24,169,530  

Total consideration plus liabilities assumed

  $ 53,839,598  

Fair Value of Assets Acquired:

 

Cash

  $ 548,805  

Current assets

    3,655,173  

Proved and unproved crude oil and gas properties

    48,632,870  

Land

    1,002,750  
    $ 53,839,598  
Business Acquisition, Pro Forma Information [Table Text Block]
These unaudited supplemental pro forma results of operations for the consolidated companies as of March 31, 2017, are provided for illustrative purposes only and do not purport to be indicative of the actual results that would have been achieved by the consolidated company for the periods presented or that may be achieved by the consolidated company in the future.

   

Three months ended March 31, 2018

   

Three months ended March 31, 2017

 
                                                 
   

Royale Energy, Inc.

   

Matrix Oil Management Corp

   

Consolidated

   

Royale Energy, Inc.

   

Matrix Oil Management Corp

   

Consolidated

 
   

(Unaudited)

 

Revenue

  $ 119,473     $ 1,798,531     $ 1,918,004     $ 274,398     $ 1,120,427     $ 1,394,825  

Net Loss

  $ (1,200,576

)

  $ (751,111

)

  $ (1,951,687

)

  $ (987,644

)

  $ (549,922

)

  $ (1,537,566

)

Net Loss available to common shareholders

  $ (1,200,576

)

  $ (751,111

)

  $ (1,951,687

)

  $ (987,644

)

  $ (549,922

)

  $ (1,537,566

)

Pro forma Loss per common share Basic and diluted

  $ (0.04

)

  $ (0.02

)

  $ (0.06

)

  $ (0.05

)

  $ (0.02

)

  $ (0.07

)

Equity Method Investments [Table Text Block]
Listed below is the summarized information required under Rule 3-09 of regulation S-X, Article 10 for Royale’s investment in RMX:

   

RMX Resources, LLC at

June 30, 2018

   

Royale Energy, Inc. Share at

June 30, 2018

 
                 

Revenues for the three months ended June 30, 2018

  $ (2,480,630

)

  $ (496,126

)

Gross Profit

    1,175,286       235,057  

Income (Loss) from Continuing Operations

    (1,073,230 )     (214,646 )

Net Income (Loss)

  $ (3,421,321 )   $ (684,264 )
XML 25 R12.htm IDEA: XBRL DOCUMENT v3.10.0.1
NOTE 2 - LOSS PER SHARE (Tables)
6 Months Ended
Jun. 30, 2018
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]
Basic and diluted loss per share are calculated as follows:

   

Three Months Ended June 30,

 
   

2018

   

2017

 
   

Basic

   

Diluted

   

Basic

   

Diluted

 

Net Income (Loss)

  $ (19,140,603

)

  $ (19,140,603

)

  $ 70,662     $ 70,662  

Less:  Preferred Stock Dividend

    233,494       233,494       --       -  

Net Income (Loss) Attributable to Common Shareholders

    (19,374,097

)

    (19,374,097

)

    70,662       70,662  

Weighted average common shares outstanding 

    48,400,371       48,400,371       21,825,770       21,825,770  

Effect of dilutive securities

    --       -       --       -  

Weighted average common shares, including Dilutive effect

    48,400,371       48,400,371       21,825,770       21,825,770  

Per share:

                               

     Net Income (Loss)

  $ (0.40

)

  $ (0.40

)

  $ 0.00     $ 0.00  
   

Six Months Ended June 30,

 
   

2018

   

2017

 
   

Basic

   

Diluted

   

Basic

   

Diluted

 

Net Loss

  $ (20,774,316

)

  $ (20,774,316

)

  $ (916,982

)

  $ (916,982

)

Less:  Preferred Stock Dividend

    233,494       233,494       -       -  

Net Loss Attributable to Common Shareholders

    (21,007,810

)

    (21,007,810

)

    70,662       70,662  

Weighted average common shares outstanding 

    39,745,890       39,745,890       21,825,770       21,825,770  

Effect of dilutive securities

    -       -       -       -  

Weighted average common shares, including Dilutive effect

    39,745,890       39,745,890       21,825,770       21,825,770  

Per share:

 

     Net Loss

  $ (0.52

)

  $ (0.52

)

  $ (0.04

)

  $ (0.04

)

XML 26 R13.htm IDEA: XBRL DOCUMENT v3.10.0.1
NOTE 3 - OIL AND GAS PROPERTIES, EQUIPMENT AND FIXTURES (Tables)
6 Months Ended
Jun. 30, 2018
Oil and Gas Exploration and Production Industries Disclosures [Abstract]  
Property, Plant and Equipment [Table Text Block]
Oil and gas properties, equipment and fixtures consist of the following:

   

June 30,

2018

   

December 31,

2017

 
   

(Unaudited)

   

(Audited)

 

Oil and Gas

               

Producing properties, including drilling costs

  $ 9,581,245     $ 3,755,705  

Undeveloped properties

    11,817       1,435  

Lease and well equipment

    4,183,075       4,119,802  
      13,776,137       7,876,942  
                 

Accumulated depletion, depreciation & amortization

    (6,701,568

)

    (6,582,648

)

      7,074,569       1,294,294  

Commercial and Other

               

Land

    501,375       -  

Vehicles

    40,061       40,061  

Furniture and equipment

    1,096,139       1,092,926  
      1,637,575       1,132,987  
                 

Accumulated depreciation

    (1,126,470

)

    (1,125,039

)

      511,105       7,948  
    $ 7,585,674     $ 1,302,242  
XML 27 R14.htm IDEA: XBRL DOCUMENT v3.10.0.1
NOTE 4 - INCOME TAXES (Tables)
6 Months Ended
Jun. 30, 2018
Income Tax Disclosure [Abstract]  
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]
A reconciliation of Royale Energy’s provision for income taxes and the amount computed by applying the statutory income tax rates at June 30, 2018 and 2017, respectively, to pretax income is as follows:

   

Six Months

Ended

June 30, 2018

   

Six Months

Ended

June 30, 2017

 
                 

Tax benefit computed at statutory rate of 21% and 34% at June 30, 2018 and 2017, respectively

  $ (4,362,606

)

  $ (311,774

)

                 

Increase (decrease) in taxes resulting from:

               
                 

State tax / percentage depletion / other

               

Other non-deductible expenses

    624       205  

Change in valuation allowance

    4,361,982       311,569  

Provision (benefit)

  $ -     $ -  
XML 28 R15.htm IDEA: XBRL DOCUMENT v3.10.0.1
NOTE 1 (Details) - USD ($)
3 Months Ended 6 Months Ended 12 Months Ended
Apr. 30, 2018
Apr. 13, 2018
Mar. 07, 2018
Jul. 01, 2016
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Dec. 31, 2017
Jun. 15, 2016
NOTE 1 (Details) [Line Items]                    
Cash Acquired from Acquisition             $ 548,805 $ 0    
Business Combination, Consideration Transferred     $ 29,670,068              
        $ (1,439,990) $ 0 (1,439,990) 0    
Retained Earnings (Accumulated Deficit)         (69,213,498)   (69,213,498)   $ (48,205,690)  
Working Capital (Deficit)         (5,133,752)   (5,133,752)      
Stockholders' Equity Attributable to Parent         3,509,519   3,509,519   (6,940,241)  
Impairment of Oil and Gas Properties               136,837    
Customer Deposits, Current         8,654,398   8,654,398   5,891,898  
Allowance for Doubtful Accounts Receivable         1,965,076   1,965,076   1,975,660  
Accounts Payable and Accrued Liabilities, Current         6,267,702   6,267,702   4,638,879  
Debt Instrument, Face Amount                   $ 12,400,000
Interest Expense, Debt             164,401      
Debt Conversion, Original Debt, Amount             $ 347,500 $ 0    
Convertible Notes Payable [Member]                    
NOTE 1 (Details) [Line Items]                    
Debt Instrument, Face Amount       $ 1,580,000            
Debt Conversion, Original Debt, Amount                 $ 47,500  
Debt Conversion, Converted Instrument, Shares Issued (in Shares)                 750,000  
Stock Issued During Period, Value, Conversion of Convertible Securities                 $ 347,500  
Repayments of Debt   $ 1,900,000                
Maximum [Member]                    
NOTE 1 (Details) [Line Items]                    
Property, Plant and Equipment, Useful Life             7 years      
Maximum [Member] | Convertible Notes Payable [Member]                    
NOTE 1 (Details) [Line Items]                    
Debt Instrument, Interest Rate, Stated Percentage       25.00%            
Minimum [Member]                    
NOTE 1 (Details) [Line Items]                    
Property, Plant and Equipment, Useful Life             3 years      
Series B Preferred Stock [Member]                    
NOTE 1 (Details) [Line Items]                    
Stock Issued During Period, Shares, New Issues (in Shares)     2,012,400              
Matrix Investments [Member]                    
NOTE 1 (Details) [Line Items]                    
Limited Partners' Capital Account     $ 20,124,000              
CIC RMX LP [Member] | Legacy Bank Texas [Member]                    
NOTE 1 (Details) [Line Items]                    
Long-term Line of Credit $ 12,500,000                  
Line of Credit Facility, Maximum Borrowing Capacity $ 17,500,000                  
Line of Credit Facility, Remaining Borrowing Capacity         5,000,000   $ 5,000,000      
Note #1 Entered into Negotiations [Member] | Convertible Notes Payable [Member]                    
NOTE 1 (Details) [Line Items]                    
Debt Instrument, Face Amount       $ 1,280,000            
Note #2 Entered into Negotiations [Member] | Convertible Notes Payable [Member]                    
NOTE 1 (Details) [Line Items]                    
Debt Instrument, Face Amount       $ 300,000            
Notes Entered into Negotiations [Member] | Convertible Notes Payable [Member]                    
NOTE 1 (Details) [Line Items]                    
Debt Instrument, Convertible, Conversion Price (in Dollars per share)       $ 0.40            
Debt Instrument, Term       1 year            
Debt Instrument, Interest Rate, Stated Percentage       10.00%            
Accounts Payable [Member]                    
NOTE 1 (Details) [Line Items]                    
Accounts Payable and Accrued Liabilities, Current         3,596,131   3,596,131   2,392,755  
Direct Working Interest Investor Liabilities [Member]                    
NOTE 1 (Details) [Line Items]                    
Accounts Payable and Accrued Liabilities, Current         1,967,318   1,967,318   688,002  
Drilling Effort Liabilities [Member]                    
NOTE 1 (Details) [Line Items]                    
Accounts Payable and Accrued Liabilities, Current         269,099   269,099   483,734  
Due to Affiliates [Member]                    
NOTE 1 (Details) [Line Items]                    
Accounts Payable and Accrued Liabilities, Current         24,387   24,387      
Liabilities for Plugging and Abandonment [Member]                    
NOTE 1 (Details) [Line Items]                    
Accounts Payable and Accrued Liabilities, Current         244,311   244,311   266,110  
Employee Related Taxes [Member]                    
NOTE 1 (Details) [Line Items]                    
Accounts Payable and Accrued Liabilities, Current         117,676   117,676   93,619  
Deferred Rent [Member]                    
NOTE 1 (Details) [Line Items]                    
Accounts Payable and Accrued Liabilities, Current         34,059   34,059   35,036  
Federal and State Income Taxes [Member]                    
NOTE 1 (Details) [Line Items]                    
Accounts Payable and Accrued Liabilities, Current         $ 14,723   14,723   17,123  
Legal Settlement Payable related to Cash Advances [Member]                    
NOTE 1 (Details) [Line Items]                    
Accounts Payable and Accrued Liabilities, Current                 438,667  
Interest Payable on Cash Advances [Member]                    
NOTE 1 (Details) [Line Items]                    
Accounts Payable and Accrued Liabilities, Current                 $ 223,833  
RMX Resources, LLC [Member]                    
NOTE 1 (Details) [Line Items]                    
Equity Method Investment, Ownership Percentage 20.00%                  
Payments to Acquire Businesses, Gross $ 25,000,000                  
Equity Method Investments 6,250,000                  
Gain (Loss) on Investments 16,200,000                  
1,440,000                  
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Consideration Transferred 334,000                  
Supervisory Fees, Service Agreements, and Other             180,000      
Supervisory Fees, Service Agreements, and Other, Renewal Reduced Rate             $ 150,000      
RMX Resources, LLC [Member] | Matrix Oil Corporation (“MOC”) [Member]                    
NOTE 1 (Details) [Line Items]                    
Gain (Loss) on Disposition of Business 640,000                  
RMX Resources, LLC [Member] | Maximum [Member]                    
NOTE 1 (Details) [Line Items]                    
Cash Acquired from Acquisition $ 20,000,000                  
RMX Resources, LLC [Member] | CIC RMX LP [Member]                    
NOTE 1 (Details) [Line Items]                    
Equity Method Investment, Ownership Percentage 80.00%                  
Class of Warrant or Rights, Granted (in Shares) 4,000,000                  
Equity Method Investments $ 25,000,000                  
RMX Resources, LLC [Member] | The Royal Entities [Member]                    
NOTE 1 (Details) [Line Items]                    
Business Combination, Consideration Transferred $ 4,000,000                  
Working Interest 20.00%                  
RMX Resources, LLC [Member] | The Royal Entities [Member] | Sansinena Field [Member]                    
NOTE 1 (Details) [Line Items]                    
Contribution of Property, Percentage 100.00%                  
RMX Resources, LLC [Member] | The Royal Entities [Member] | Sempra Field [Member]                    
NOTE 1 (Details) [Line Items]                    
Contribution of Property, Percentage 100.00%                  
RMX Resources, LLC [Member] | The Royal Entities [Member] | Bellevue Field [Member]                    
NOTE 1 (Details) [Line Items]                    
Contribution of Property, Percentage 50.00%                  
RMX Resources, LLC [Member] | The Royal Entities [Member] | Whittier Main Field [Member]                    
NOTE 1 (Details) [Line Items]                    
Contribution of Property, Percentage 100.00%                  
RMX Resources, LLC [Member] | The Royal Entities [Member] | Whittier Field [Member]                    
NOTE 1 (Details) [Line Items]                    
Contribution of Property, Percentage 50.00%                  
XML 29 R16.htm IDEA: XBRL DOCUMENT v3.10.0.1
NOTE 1 (Details) - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed
Mar. 07, 2018
USD ($)
Consideration:  
Value of Stock issued $ 9,546,068
Total consideration 29,670,068
Current liabilities 19,624,592
Other liabilities 3,125,394
Asset Retirement obligations 1,419,544
Total fair value of liabilities assumed 24,169,530
Total consideration plus liabilities assumed 53,839,598
Cash 548,805
Current assets 3,655,173
Proved and unproved crude oil and gas properties 48,632,870
Land 1,002,750
Series B Preferred Stock [Member]  
Consideration:  
Value of Stock issued $ 20,124,000
XML 30 R17.htm IDEA: XBRL DOCUMENT v3.10.0.1
NOTE 1 (Details) - Business Acquisition, Pro Forma Information - USD ($)
3 Months Ended
Jun. 30, 2018
Jun. 30, 2017
NOTE 1 (Details) - Business Acquisition, Pro Forma Information [Line Items]    
Revenue $ 1,918,004 $ 1,394,825
Net Loss (1,951,687) (1,537,566)
Net Loss available to common shareholders $ (1,951,687) $ (1,537,566)
Pro forma Loss per common share Basic and diluted (in Dollars per share) $ (0.06) $ (0.07)
Matrix Oil Management Corp [Member]    
NOTE 1 (Details) - Business Acquisition, Pro Forma Information [Line Items]    
Revenue $ 1,798,531 $ 1,120,427
Net Loss (751,111) (549,922)
Net Loss available to common shareholders $ (751,111) $ (549,922)
Pro forma Loss per common share Basic and diluted (in Dollars per share) $ (0.02) $ (0.02)
Parent [Member]    
NOTE 1 (Details) - Business Acquisition, Pro Forma Information [Line Items]    
Revenue $ 119,473 $ 274,398
Net Loss (1,200,576) (987,644)
Net Loss available to common shareholders $ (1,200,576) $ (987,644)
Pro forma Loss per common share Basic and diluted (in Dollars per share) $ (0.04) $ (0.05)
XML 31 R18.htm IDEA: XBRL DOCUMENT v3.10.0.1
NOTE 1 (Details) - Equity Method Investments
6 Months Ended
Jun. 30, 2018
USD ($)
Corporate Joint Venture [Member]  
Schedule of Equity Method Investments [Line Items]  
Revenues for the three months ended June 30, 2018 $ (496,126)
Gross Profit 235,057
Income (Loss) from Continuing Operations (214,646)
Net Income (Loss) (684,264)
RMX Resources, LLC [Member]  
Schedule of Equity Method Investments [Line Items]  
Revenues for the three months ended June 30, 2018 (2,480,630)
Gross Profit 1,175,286
Income (Loss) from Continuing Operations (1,073,230)
Net Income (Loss) $ (3,421,321)
XML 32 R19.htm IDEA: XBRL DOCUMENT v3.10.0.1
NOTE 2 - LOSS PER SHARE (Details) - shares
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2016
Jun. 30, 2018
Jun. 30, 2017
Earnings Per Share [Abstract]        
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount 23,509,917 15,266,074 23,509,917 15,266,074
XML 33 R20.htm IDEA: XBRL DOCUMENT v3.10.0.1
NOTE 2 - LOSS PER SHARE (Details) - Schedule of Earnings Per Share, Basic and Diluted - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Schedule of Earnings Per Share, Basic and Diluted [Abstract]        
Net loss available to common stock $ (19,140,603) $ 70,662 $ (20,774,316) $ (916,982)
Less: Preferred Stock Dividend 233,494 0 233,494 0
Less: Preferred Stock Dividend 233,494 0 233,494 0
Net Income (Loss) Attributable to Common Shareholders $ (19,374,097) $ 70,662 $ (21,007,810) $ 70,662
Weighted average common shares outstanding (in Shares) 48,400,371 21,825,770 39,745,890 21,825,770
Weighted average common shares outstanding (in Shares) 48,400,371 21,825,770 39,745,890 21,825,770
Effect of dilutive securities and stock options $ 0 $ 0 $ 0 $ 0
Effect of dilutive securities and stock options (in Shares) 0 0 0 0
Weighted average common shares, including Dilutive effect (in Shares) 48,400,371 21,825,770 39,745,890 21,825,770
Net Income (Loss) (in Dollars per share) $ (0.40) $ 0.00 $ (0.52) $ (0.04)
Net Income (Loss) (in Dollars per share) $ (0.40) $ 0.00 $ (0.52) $ (0.04)
XML 34 R21.htm IDEA: XBRL DOCUMENT v3.10.0.1
NOTE 3 - OIL AND GAS PROPERTIES, EQUIPMENT AND FIXTURES (Details) - Schedule of Oil and Gas Properties, Equipment and Fixtures - USD ($)
Jun. 30, 2018
Dec. 31, 2017
Oil and Gas    
Producing properties, including drilling costs $ 9,581,245 $ 3,755,705
Undeveloped properties 11,817 1,435
Lease and well equipment 4,183,075 4,119,802
Oil and Gas, Gross 13,776,137 7,876,942
Accumulated depletion, depreciation & amortization (6,701,568) (6,582,648)
Oil and Gas, net 7,074,569 1,294,294
Commercial and Other    
Property, Plant and Equipment, Gross 1,637,575 1,132,987
Accumulated depreciation (1,126,470) (1,125,039)
Property, Plant and Equipment, Net 511,105 7,948
Oil and Gas, Property, Plant and Equipment, Net 7,585,674 1,302,242
Land [Member]    
Commercial and Other    
Property, Plant and Equipment, Gross 501,375 0
Vehicles [Member]    
Commercial and Other    
Property, Plant and Equipment, Gross 40,061 40,061
Furniture and Fixtures [Member]    
Commercial and Other    
Property, Plant and Equipment, Gross $ 1,096,139 $ 1,092,926
XML 35 R22.htm IDEA: XBRL DOCUMENT v3.10.0.1
NOTE 4 - INCOME TAXES (Details) - Schedule of Effective Income Tax Rate Reconciliation - USD ($)
6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Schedule of Effective Income Tax Rate Reconciliation [Abstract]    
Tax benefit computed at statutory rate of 21% and 34% at June 30, 2018 and 2017, respectively $ (4,362,606) $ (311,774)
Increase (decrease) in taxes resulting from:    
State tax / percentage depletion / other 0 0
Other non-deductible expenses 624 205
Change in valuation allowance 4,361,982 311,569
Provision (benefit) $ 0 $ 0
XML 36 R23.htm IDEA: XBRL DOCUMENT v3.10.0.1
NOTE 4 - INCOME TAXES (Details) - Schedule of Effective Income Tax Rate Reconciliation (Parentheticals)
6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Schedule of Effective Income Tax Rate Reconciliation [Abstract]    
Statutory rate 21.00% 34.00%
EXCEL 37 Financial_Report.xlsx IDEA: XBRL DOCUMENT begin 644 Financial_Report.xlsx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end XML 38 Show.js IDEA: XBRL DOCUMENT /** * Rivet Software Inc. * * @copyright Copyright (c) 2006-2011 Rivet Software, Inc. All rights reserved. * Version 2.4.0.3 * */ var Show = {}; Show.LastAR = null, Show.hideAR = function(){ Show.LastAR.style.display = 'none'; }; Show.showAR = function ( link, id, win ){ if( Show.LastAR ){ Show.hideAR(); } var ref = link; do { ref = ref.nextSibling; } while (ref && ref.nodeName != 'TABLE'); if (!ref || ref.nodeName != 'TABLE') { var tmp = win ? win.document.getElementById(id) : document.getElementById(id); if( tmp ){ ref = tmp.cloneNode(true); ref.id = ''; link.parentNode.appendChild(ref); } } if( ref ){ ref.style.display = 'block'; Show.LastAR = ref; } }; Show.toggleNext = function( link ){ var ref = link; do{ ref = ref.nextSibling; }while( ref.nodeName != 'DIV' ); if( ref.style && ref.style.display && ref.style.display == 'none' ){ ref.style.display = 'block'; if( link.textContent ){ link.textContent = link.textContent.replace( '+', '-' ); }else{ link.innerText = link.innerText.replace( '+', '-' ); } }else{ ref.style.display = 'none'; if( link.textContent ){ link.textContent = link.textContent.replace( '-', '+' ); }else{ link.innerText = link.innerText.replace( '-', '+' ); } } }; XML 39 report.css IDEA: XBRL DOCUMENT /* Updated 2009-11-04 */ /* v2.2.0.24 */ /* DefRef Styles */ ..report table.authRefData{ background-color: #def; border: 2px solid #2F4497; font-size: 1em; position: absolute; } ..report table.authRefData a { display: block; font-weight: bold; } ..report table.authRefData p { margin-top: 0px; } ..report table.authRefData .hide { background-color: #2F4497; padding: 1px 3px 0px 0px; text-align: right; } ..report table.authRefData .hide a:hover { background-color: #2F4497; } ..report table.authRefData .body { height: 150px; overflow: auto; width: 400px; } ..report table.authRefData table{ font-size: 1em; } /* Report Styles */ ..pl a, .pl a:visited { color: black; text-decoration: none; } /* table */ ..report { background-color: white; border: 2px solid #acf; clear: both; color: black; font: normal 8pt Helvetica, Arial, san-serif; margin-bottom: 2em; } ..report hr { border: 1px solid #acf; } /* Top labels */ ..report th { background-color: #acf; color: black; font-weight: bold; text-align: center; } ..report th.void { background-color: transparent; color: #000000; font: bold 10pt Helvetica, Arial, san-serif; text-align: left; } ..report .pl { text-align: left; vertical-align: top; white-space: normal; width: 200px; white-space: normal; /* word-wrap: break-word; */ } ..report td.pl a.a { cursor: pointer; display: block; width: 200px; overflow: hidden; } ..report td.pl div.a { width: 200px; } ..report td.pl a:hover { background-color: #ffc; } /* Header rows... */ ..report tr.rh { background-color: #acf; color: black; font-weight: bold; } /* Calendars... */ ..report .rc { background-color: #f0f0f0; } /* Even rows... */ ..report .re, .report .reu { background-color: #def; } ..report .reu td { border-bottom: 1px solid black; } /* Odd rows... */ ..report .ro, .report .rou { background-color: white; } ..report .rou td { border-bottom: 1px solid black; } ..report .rou table td, .report .reu table td { border-bottom: 0px solid black; } /* styles for footnote marker */ ..report .fn { white-space: nowrap; } /* styles for numeric types */ ..report .num, .report .nump { text-align: right; white-space: nowrap; } ..report .nump { padding-left: 2em; } ..report .nump { padding: 0px 0.4em 0px 2em; } /* styles for text types */ ..report .text { text-align: left; white-space: normal; } ..report .text .big { margin-bottom: 1em; width: 17em; } ..report .text .more { display: none; } ..report .text .note { font-style: italic; font-weight: bold; } ..report .text .small { width: 10em; } ..report sup { font-style: italic; } ..report .outerFootnotes { font-size: 1em; } XML 41 FilingSummary.xml IDEA: XBRL DOCUMENT 3.10.0.1 html 79 196 1 false 38 0 false 4 false false R1.htm 000 - Document - Document And Entity Information Sheet http://www.royl.com/role/DocumentAndEntityInformation Document And Entity Information Cover 1 false false R2.htm 001 - Statement - CONSOLIDATED BALANCE SHEETS Sheet http://www.royl.com/role/ConsolidatedBalanceSheet CONSOLIDATED BALANCE SHEETS Statements 2 false false R3.htm 002 - Statement - CONSOLIDATED BALANCE SHEETS (Parentheticals) Sheet http://www.royl.com/role/ConsolidatedBalanceSheet_Parentheticals CONSOLIDATED BALANCE SHEETS (Parentheticals) Statements 3 false false R4.htm 003 - Statement - CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Sheet http://www.royl.com/role/ConsolidatedIncomeStatement CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Statements 4 false false R5.htm 004 - Statement - CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Sheet http://www.royl.com/role/ConsolidatedCashFlow CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Statements 5 false false R6.htm 005 - Disclosure - NOTE 1 Sheet http://www.royl.com/role/NOTE1 NOTE 1 Notes 6 false false R7.htm 006 - Disclosure - NOTE 2 - LOSS PER SHARE Sheet http://www.royl.com/role/NOTE2LOSSPERSHARE NOTE 2 - LOSS PER SHARE Notes 7 false false R8.htm 007 - Disclosure - NOTE 3 - OIL AND GAS PROPERTIES, EQUIPMENT AND FIXTURES Sheet http://www.royl.com/role/NOTE3OILANDGASPROPERTIESEQUIPMENTANDFIXTURES NOTE 3 - OIL AND GAS PROPERTIES, EQUIPMENT AND FIXTURES Notes 8 false false R9.htm 008 - Disclosure - NOTE 4 - INCOME TAXES Sheet http://www.royl.com/role/NOTE4INCOMETAXES NOTE 4 - INCOME TAXES Notes 9 false false R10.htm 009 - Disclosure - Accounting Policies, by Policy (Policies) Sheet http://www.royl.com/role/AccountingPoliciesByPolicy Accounting Policies, by Policy (Policies) Policies 10 false false R11.htm 010 - Disclosure - NOTE 1 (Tables) Sheet http://www.royl.com/role/NOTE1Tables NOTE 1 (Tables) Tables http://www.royl.com/role/NOTE1 11 false false R12.htm 011 - Disclosure - NOTE 2 - LOSS PER SHARE (Tables) Sheet http://www.royl.com/role/NOTE2LOSSPERSHARETables NOTE 2 - LOSS PER SHARE (Tables) Tables http://www.royl.com/role/NOTE2LOSSPERSHARE 12 false false R13.htm 012 - Disclosure - NOTE 3 - OIL AND GAS PROPERTIES, EQUIPMENT AND FIXTURES (Tables) Sheet http://www.royl.com/role/NOTE3OILANDGASPROPERTIESEQUIPMENTANDFIXTURESTables NOTE 3 - OIL AND GAS PROPERTIES, EQUIPMENT AND FIXTURES (Tables) Tables http://www.royl.com/role/NOTE3OILANDGASPROPERTIESEQUIPMENTANDFIXTURES 13 false false R14.htm 013 - Disclosure - NOTE 4 - INCOME TAXES (Tables) Sheet http://www.royl.com/role/NOTE4INCOMETAXESTables NOTE 4 - INCOME TAXES (Tables) Tables http://www.royl.com/role/NOTE4INCOMETAXES 14 false false R15.htm 014 - Disclosure - NOTE 1 (Details) Sheet http://www.royl.com/role/NOTE1Details NOTE 1 (Details) Details http://www.royl.com/role/NOTE1Tables 15 false false R16.htm 015 - Disclosure - NOTE 1 (Details) - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed Sheet http://www.royl.com/role/ScheduleofRecognizedIdentifiedAssetsAcquiredandLiabilitiesAssumedTable NOTE 1 (Details) - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed Details http://www.royl.com/role/NOTE1Tables 16 false false R17.htm 016 - Disclosure - NOTE 1 (Details) - Business Acquisition, Pro Forma Information Sheet http://www.royl.com/role/BusinessAcquisitionProFormaInformationTable NOTE 1 (Details) - Business Acquisition, Pro Forma Information Details http://www.royl.com/role/NOTE1Tables 17 false false R18.htm 017 - Disclosure - NOTE 1 (Details) - Equity Method Investments Sheet http://www.royl.com/role/EquityMethodInvestmentsTable NOTE 1 (Details) - Equity Method Investments Details http://www.royl.com/role/NOTE1Tables 18 false false R19.htm 018 - Disclosure - NOTE 2 - LOSS PER SHARE (Details) Sheet http://www.royl.com/role/NOTE2LOSSPERSHAREDetails NOTE 2 - LOSS PER SHARE (Details) Details http://www.royl.com/role/NOTE2LOSSPERSHARETables 19 false false R20.htm 019 - Disclosure - NOTE 2 - LOSS PER SHARE (Details) - Schedule of Earnings Per Share, Basic and Diluted Sheet http://www.royl.com/role/ScheduleofEarningsPerShareBasicandDilutedTable NOTE 2 - LOSS PER SHARE (Details) - Schedule of Earnings Per Share, Basic and Diluted Details http://www.royl.com/role/NOTE2LOSSPERSHARETables 20 false false R21.htm 020 - Disclosure - NOTE 3 - OIL AND GAS PROPERTIES, EQUIPMENT AND FIXTURES (Details) - Schedule of Oil and Gas Properties, Equipment and Fixtures Sheet http://www.royl.com/role/ScheduleofOilandGasPropertiesEquipmentandFixturesTable NOTE 3 - OIL AND GAS PROPERTIES, EQUIPMENT AND FIXTURES (Details) - Schedule of Oil and Gas Properties, Equipment and Fixtures Details http://www.royl.com/role/NOTE3OILANDGASPROPERTIESEQUIPMENTANDFIXTURESTables 21 false false R22.htm 021 - Disclosure - NOTE 4 - INCOME TAXES (Details) - Schedule of Effective Income Tax Rate Reconciliation Sheet http://www.royl.com/role/ScheduleofEffectiveIncomeTaxRateReconciliationTable NOTE 4 - INCOME TAXES (Details) - Schedule of Effective Income Tax Rate Reconciliation Details http://www.royl.com/role/NOTE4INCOMETAXESTables 22 false false R23.htm 022 - Disclosure - NOTE 4 - INCOME TAXES (Details) - Schedule of Effective Income Tax Rate Reconciliation (Parentheticals) Sheet http://www.royl.com/role/ScheduleofEffectiveIncomeTaxRateReconciliationTable_Parentheticals NOTE 4 - INCOME TAXES (Details) - Schedule of Effective Income Tax Rate Reconciliation (Parentheticals) Details http://www.royl.com/role/NOTE4INCOMETAXESTables 23 false false All Reports Book All Reports royl-20180630.xml royl-20180630.xsd royl-20180630_cal.xml royl-20180630_def.xml royl-20180630_lab.xml royl-20180630_pre.xml http://fasb.org/us-gaap/2018-01-31 http://fasb.org/srt/2018-01-31 http://xbrl.sec.gov/dei/2018-01-31 true true ZIP 43 0001185185-18-001528-xbrl.zip IDEA: XBRL DOCUMENT begin 644 0001185185-18-001528-xbrl.zip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end