1Gross loss widened to -$3.1M, a 122% year-over-year deterioration, as fixed overhead costs prevented cost of goods sold from decreasing at the same rate as revenues impacted by lower volumes and pricing.
2Operating loss deepened to -$9.2M, a 23% year-over-year decline, reflecting the combined pressure from reduced revenues and ongoing operational costs during refinery shutdowns for repairs and refurbishment.
3Net loss improved to -$12.2M, a 17% reduction from the prior year, primarily driven by a decrease in interest expense following the conversion of existing debt to equity.
4Operating cash flow remained negative at -$3.3M, insufficient to cover operational costs despite efforts to increase production capacity, resulting in free cash flow of -$3.4M.
5Management plans to improve margins by increasing the volume of oil refined to create better economies of scale and decreasing transportation costs, while exploring lower-cost financing alternatives to optimize the capital structure.