A North American oil and gas producer with a focus on unconventional assets, currently reporting negative net income but maintaining significant gross profit margins before interest expenses.
Investors might consider the stock as a distressed turnaround play given the substantial asset base of $10.5M in total assets and significant paid-in capital that could be revalued if oil prices rebound. The company's gross profit margin is healthy relative to revenue, implying that operational efficiency is intact despite high fixed cost structures. A potential restructuring or successful exploration success could unlock value hidden within the current balance sheet.
The stock carries extreme risk due to a deep accumulated deficit of -$12.4M and consistent negative net income over the last two years with no path to profitability visible. The massive interest expense of $3.6M against minimal operating cash flow creates an imminent threat of bankruptcy or forced asset liquidation. Trading on OTC markets with limited liquidity and no significant debt repayment capacity makes this a highly speculative investment unsuitable for risk-averse portfolios.
CoJax Oil & Gas Corp engages in the exploration, development, and production of crude oil and natural gas, primarily serving markets across North America with a focus on unconventional resource plays. The company leverages its asset base to generate revenue through commodity sales while managing significant operational leverage inherent in the upstream energy sector. With substantial non-cash adjustments and high depreciation figures, the financial profile reflects an asset-heavy capital structure typical of mature or distressed oil and gas operators.
Recent financial performance shows a persistent net loss of -$1.6M in 2024, mirroring the previous year's results, which highlights structural challenges rather than transient market volatility. While gross profit reached $971k, this was nearly entirely consumed by operating expenses totaling $2.6M and massive interest costs, leaving no room for net income generation. The cash flow from operations turned negative despite a slight increase in revenue, suggesting deteriorating unit economics or increased working capital requirements.
The oil and gas industry is characterized by high capital intensity, cyclical commodity pricing, and significant exposure to geopolitical risks that impact global supply chains. Companies in this sector often report volatile earnings where non-cash charges like depreciation dominate expenses, masking the true cash-generating ability of production assets. The current market environment favors operators with low debt loads and flexible cost structures, making high-interest burdened entities particularly vulnerable.
| Metric | 2023 | 2024 |
|---|---|---|
| Revenue | $928.0K | $971.7K |
| Cost of Revenue | $0 | $0 |
| Gross Profit | $928.0K | $971.7K |
| Operating Expenses | $2.6M | $2.6M |
| Operating Income | $-1.6M | $-1.6M |
| G&A | $1.0M | $920.0K |
| D&A | $380.6K | $346.7K |
| Other OpEx | $1.5M | $1.7M |
| Non-Operating Income | $1.6M | $1.6M |
| Interest Expense | $2.1K | $3.6M |
| Pre-Tax Income | $-1.9K | $-901 |
| Income Tax | $1.6M | $0 |
| Continuing Ops | $-1.6M | $-901 |
| Discontinued Ops | $0 | $-1.6M |
| Net Income | $-1.6M | $-1.6M |
| Minority Interest | $0 | $0 |
| Net to Common | $-1.6M | $-1.6M |
| Metric | 2023 | 2024 |
|---|---|---|
| Current Assets | $281.2K | $215.0K |
| Accounts Receivable | $205.3K | $147.1K |
| Other Current Assets | $75.9K | $67.9K |
| Long-Term Assets | $4.1M | $10.3M |
| PP&E (Net) | $4.1M | $10.3M |
| Other LT Assets | $0 | $0 |
| Total Assets | $4.4M | $10.5M |
| Current Liabilities | $1.2M | $1.3M |
| Accounts Payable | $121.8K | $113.5K |
| Current Debt | $10.0K | $10.1K |
| Current Leases | $10.0K | — |
| Other Current Liab | $1.0M | $1.2M |
| Long-Term Liabilities | $126.2K | $564.5K |
| Long-Term Debt | $21.1K | $11.0K |
| Other LT Liab | $105.1K | $553.5K |
| Total Liabilities | $1.3M | $1.9M |
| Shareholders' Equity | $3.1M | $8.6M |
| Paid-In Capital | $13.7M | $20.8M |
| Retained Earnings | $-10.8M | $-12.4M |
| Total L&E | $4.4M | $10.5M |
| Metric | 2023 | 2024 |
|---|---|---|
| Net Income (CFO) | $-1.6M | $-1.6M |
| Non-Cash Adjustments | $866.3K | $6.3M |
| Working Capital Changes | $811.6K | $-4.7M |
| Cash from Operations | $48.0K | $-19.2K |
| Cash from Investing | $0 | $0 |
| Cash from Financing | $-9.9K | $-10.0K |
| FX Effect | $0 | $0 |
| Net Change in Cash | $38.2K | $-29.2K |
| Beginning Cash | $37.8K | $75.9K |
| Ending Cash | $75.9K | $46.7K |
The company operates primarily through upstream exploration and production activities generating crude oil and natural gas revenues. Financials indicate a single dominant revenue stream driven by commodity sales, with operating expenses heavily weighted towards general and administrative costs alongside other operating expenditures that consumed the majority of gross profit in 2024.
The company faces severe financial distress evidenced by a net profit deficit of -$1.6M and a retained earnings deficit of -$12.4M which threatens solvency. High interest expense totaling $3.6M significantly erodes operational cash flow, creating a risk of default if commodity prices do not sustainably increase. The negative operating cash flow of -$19k combined with non-operating losses of -$2.0M indicates potential liquidity constraints and limited ability to fund capital expenditures without external financing.
The company benefits from significant accumulated capitalized assets represented by $10.3M in net fixed assets which serve as a long-term production base. Its balance sheet includes substantial paid-in capital of $20.8M, suggesting potential for future growth or asset revitalization if market conditions improve. The entity maintains liquidity with $46k in ending cash and low current portion of debt relative to total liabilities, though interest expense remains a critical drag.
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.