Financial Summary
The Company reported net income of
Conference Call Information
The earnings conference call to review the second quarter 2008 results
will be today at
Universal Energy Corp. is a publicly traded (OTCBB: UVSE - News) energy
company engaged in the acquisition and development of crude oil and natural
gas leases in
Forward Looking Statements - The information contained herein regarding risks and uncertainties, which may differ materially from those set forth in these statements, in addition to the economic, competitive, governmental, technological and other factors, constitutes a "forward-looking statement" within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995 and is subject to the safe harbors created thereby. While the company believes that the assumptions underlying such forward-looking information are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance that the forward-looking information will prove to be accurate. Accordingly, there may be differences between the actual results and the predicted results, and actual results may be materially higher or lower than those indicated in the forward-looking information contained herein.
UNIVERSAL ENERGY CORP. AND SUBSIDIARIES Consolidated Statements of Operations (Expressed in U.S. dollars) Three Months Ended June 30, Six Months Ended June 30, 2008 2007 2008 2007 (unaudited) (unaudited) (unaudited) (unaudited) Revenue $328,476 $- $415,005 $- Cost of revenue 154,074 - 167,819 - Gross profit 174,402 - 247,186 - Operating expenses General and administrative expenses 736,572 720,822 1,450,718 1,361,740 Investor awareness and public relations 11,310 1,286,427 118,760 1,300,918 Impairment loss on oil and gas properties 32,792 - 59,698 - Total operating expenses 780,674 2,007,249 1,629,176 2,662,658 Loss from continuing operations (606,272) (2,007,249) (1,381,990) (2,662,658) Other income (expense) Accretion of discounts on convertible debentures (230,117) - (480,879) - Change in fair value of embedded derivatives 15,168,285 - 17,907,174 - Charges relating to repricing the 2007 Debentures (9,404,508) - (9,404,508) - Charges related to the issuance of the May 2008 Debentures and Warrants (753,649) - (753,649) - Excess embedded derivative value (818,919) - (1,711,656) - Loss on conversion of derivatives (88,618) - (88,618) - Interest expense, net (327,865) (23,976) (552,696) (23,976) Total other income (expense) 3,544,608 (23,976) 4,915,168 (23,976) Net income (loss) before discontinued operations 2,938,337 (2,031,225) 3,533,178 (2,686,634) Discontinued operations Income (loss) from operations of discontinued operations - - - (34,186) Loss from discontinued operations - - - (34,186) Net income (loss) $ 2,938,337 $(2,031,225) $ 3,553,178 $(2,720,820) Net income per share from continuing operations - basic $0.09 $(0.07) $0.11 $(0.10) - diluted $0.00 $(0.07) $0.01 $(0.10) Net loss per share from discontinued operations - basic $0.00 $0.00 $0.00 $0.00 - diluted $0.00 $0.00 $0.00 $0.00 Total Net income (loss) per share - basic $0.09 $(0.07) $0.11 $(0.10) - diluted $0.00 $(0.07) $0.01 $(0.10) Weighted average shares used in computation of loss per share - basic 32,519,178 28,954,696 31,202,178 28,011,088 - diluted 681,398,048 28,954,696 680,081,048 28,011,088 UNIVERSAL ENERGY CORP. AND SUBSIDIARIES Consolidated Balance Sheets (Expressed in U.S. dollars) June 30, December 31, Assets 2008 2007 (unaudited) Current assets: Cash and cash equivalents $55,253 $234,987 Funds held in escrow 325,550 - Accounts receivable 219,915 963 Prepaid expenses 6,928 64,228 Total current assets 607,646 300,178 Prepaid drilling and completion costs 725,447 414,377 Oil and gas properties, unproven 2,991,591 2,248,771 Debt issuance costs, net of accumulated amortization of $280,021 and $70,926 492,218 578,368 Property and equipment, net of accumulated depreciation of $4,159 and $2,409 9,377 7,731 Security deposit 1,545 1,545 Total assets $4,827,824 $3,550,970 Liabilities and Stockholders' Deficit Current liabilities: Accounts payable $930,421 $209,536 Accrued expenses 219,489 143,031 Accrued interest 132,355 - Promissory notes - 250,000 Promissory notes to stockholders, net of discounts of $0 and $80,162 924,587 1,019,838 September 2007 Convertible Debentures, net of discounts of $2,267,822 and $4,146,443 2,340,608 963,851 November 2007 Convertible Debentures, net of discounts of $1,035,570 and $1,643,775 626,377 98,872 May 2008 Convertible Debentures, net of discounts of $1,253,656 and $0 2,962 - Embedded derivative liabilities 3,985,456 10,915,752 Total current liabilities 9,162,255 13,600,880 Long term liabilities: Promissory notes to stockholders, net of discounts of $252,341 147,659 - Total liabilities 9,309,914 13,600,880 Commitments and contingencies Stockholders' deficit: Common stock, $0.0001 par value, 250,000,000 shares authorized, 71,077,959 and 29,847,733 shares issued and outstanding 7,108 2,985 Additional paid-in capital 7,396,075 5,365,556 Accumulated deficit (11,885,273) (15,418,451) Total stockholders' deficit (4,482,090) (10,049,910) Total liabilities and stockholders' deficit $4,827,824 $3,550,970 CONTACT: Universal Energy Corp. Billy Raley, CEO, (800) 975-2076 braley@universalenergycorp.info
SOURCE Universal Energy Corp.