Houston American Energy Reports $1.79 Million Net Loss in Q2 2025

Houston American Energy Corp. reported its financial results for the second quarter of 2025, revealing a net loss of $1.79 million, or $1.11 per share, compared to a net loss of $89,085, or $0.08 per share, in the same period of 2024. For the first half of 2025, the company recorded a net loss of $2.83 million, significantly higher than the $104,785 loss reported in the first half of 2024. Total oil and gas revenue for the second quarter decreased by 5% to $110,557, while revenue for the first half fell by 19% to $212,902, primarily due to a well being shut down during the first quarter, which impacted production levels.

The company’s operational expenses saw a substantial increase, with general and administrative expenses rising to $1.66 million in the second quarter from $355,747 in the prior year, largely due to professional fees associated with the acquisition of Abundia Global Impact Group, LLC (AGIG). Lease operating expenses also increased by 60% to $228,226 in the second quarter, reflecting costs related to repairs for the shut well. Despite these challenges, the company’s cash position improved, with cash balances rising to $6.95 million as of June 30, 2025, compared to $2.96 million at the end of 2024.

In terms of strategic developments, Houston American Energy completed a significant share exchange with AGIG on July 1, 2025, acquiring all outstanding units of AGIG in exchange for 31.78 million shares of common stock, resulting in a change of control. This acquisition is part of the company's strategy to diversify its portfolio and explore opportunities in renewable energy. Following the transaction, the company appointed a new management team, including Edward Gillespie as CEO and Lucie Harwood as CFO, to lead its expanded operations.

The company also entered into a common stock purchase agreement on July 10, 2025, providing for a 24-month equity financing facility of up to $100 million. This agreement is intended to support the company’s working capital needs and future growth initiatives. Additionally, the company issued a senior secured convertible note for $5.43 million, which will help finance the acquisition of a 25-acre site in Baytown, Texas.

Looking ahead, Houston American Energy faces challenges related to its ongoing losses and the need for additional capital to fund its operations and growth plans. The company has expressed uncertainty about its ability to continue as a going concern without securing sufficient funding. The management is focused on leveraging its recent acquisitions and financing arrangements to stabilize its financial position and enhance operational performance in the coming quarters.