BlueFire Equipment Corp (OTC:BLFR) Stock Falls After Quarterly Earnings

On Monday, there were a number of companies that had come into focus among investors for one reason or another. However, it is necessary for investors to figure out which companies are worth looking into. One of the companies that one could track today is BlueFire Equipment Corp. (OTC:BLFR), a major player in making acquisitions in emerging industries.

Yesterday, it hit the news cycle after it announced its financial results for the third fiscal quarter. It could be a good move to take a look at some of the key highlights. The company announced that it ended the quarter with a cash balance of $251,451, which reflected a year-on-year rise of as much as 9571%. At the end of the quarter, BlueFire Equipment Corp. had total assets to the tune of $10,193,317, and that worked out to a rise of 228% in comparison to the quarter ended on September 30, 2022.

The company clocked revenues of $783,637 for the quarter, which reflected a massive improvement of 3363% from the revenues posted in the prior-year period. BlueFire Equipment Corp. recorded net income of $623043 for the quarter, and that proved to be an improvement of as much as 2041% from the net income in the quarter that ended September 30, 2022.

The net cash provided by the company’s activities stood at $169,366 for the quarter, and that reflected a year-on-year rise of 989% from the prior year quarter. The considerable growth that was recorded by the company across overheads was brought about by the 90% acquisition of Screaming Eagle Partners LLC by BlueFire Equipment Corp.

One of the major highlights for the company during the quarter came about on September 27, 2023, when it emerged that BlueFire Equipment Corp. had entered into a business combination agreement with Screaming Eagle. As per the provisions of the agreement between the parties, the company was going to provide 90% of the total of 50,000,000 authorized shares of the Series A preferred stock and 90% of the 1,000,000 authorized shares of the Series B preferred stock to Screaming Eagle’members’.

In return the company would get 100% membership interests in Screaming Eagle, which would be turned into a fully owned subsidiary unit of BlueFire Equipment Corp. The securities involved in the entire process had been exchanged by the two parties on September 27. In the context of the transaction, it could be a good idea to keep in mind that in February 2022, Screaming Eagle had completed the acquisition of 100% of the operated assets located at Bedias Creek and 50% of the non-operated assets at Gin Creek South. Bedias Creek is made up of 19 wells across an area of 10,000 acres and produces 1500 BBLS per month. Both of those assets had been acquired by the company from ETX, and the acquisition had been completed for $6400000 through the use of family funds. It had been an all-cash transaction.