GATEWAY ENERGY CORP/NE

CIK:0000040194|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended		9 Months Ended
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Operating revenues
Sales of natural gas	$ 974,360	$ 909,891	$ 3,099,657	$ 2,662,074
Transportation of natural gas and liquids	411,223	292,347	998,660	938,065
Reimbursables	19,500	129,941	100,652	422,780
Total Operating revenues	1,405,083	1,332,179	4,198,969	4,022,919
Operating costs and expenses
Cost of natural gas purchased	825,901	751,556	2,707,999	2,166,324
Operation and maintenance	88,256	79,177	281,914	247,900
Reimbursable costs	19,500	129,941	100,652	422,780
General and administrative	340,184	310,023	993,627	1,024,373
Acquisition costs	0	35,617	0	53,605
Asset impairments	0	3,075,803	250,000	3,075,803
Depreciation and amortization	69,704	118,543	209,092	351,216
Asset retirement obligation accretion	2,508	25,819	60,596	76,474
Total Operating costs and expenses	1,346,053	4,526,479	4,603,880	7,418,475
Operating income (loss)	59,030	(3,194,300)	(404,911)	(3,395,556)
Other income (expense)
Interest expense, net	(26,674)	(45,321)	(104,963)	(129,675)
Other, net	(911)	248,351	(13,083)	241,885
Other income (expense), net	(27,585)	203,030	(118,046)	112,210
Income (loss) from continuing operations before income taxes and discontinued operations	31,445	(2,991,270)	(522,957)	(3,283,346)
Income tax benefit (expense)	(4,974)	7,401	(23,135)	(3,314)
Loss from continuing operations	26,471	(2,983,869)	(546,092)	(3,286,660)
Income from discontinued operations, net of taxes	0	47,182	126,147	154,124
Net income (loss)	$ 26,471	$ (2,936,687)	$ (419,945)	$ (3,132,536)
Basic and diluted income (loss) per share:
Continuing operations	$ 0	$ (0.13)	$ (0.02)	$ (0.14)
Discontinued operations	$ 0	$ 0.01	$ 0.01	$ 0.01
Net loss	$ 0	$ (0.12)	$ (0.01)	$ (0.13)
Weighted average number of basic and
diluted common shares outstanding	30,474,664	23,859,802	29,516,460	23,744,643

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Cash flows from operating activities - continuing operations
Loss from continuing operations	$ (546,092)	$ (3,286,660)
Adjustments to reconcile loss from continuing operations
Depreciation and amortization	209,092	351,216
Asset impairment	250,000	3,075,803
Asset retirement obligation accretion	60,596	76,474
Stock based compensation expense	38,512	66,885
Amortization of deferred loan costs	19,586	13,290
Gain on sale of assets	0	(49,688)
Asset retirement obligation expenditures	(393,319)	0
Net change in operating assets and liabilities, resulting from changes in:
Accounts receivable trade	61,222	(309)
Prepaid expenses, deposits and other assets	82,668	107,685
Accounts payable	(37,423)	(8,409)
Accrued expenses and other liabilities	41,092	(304,649)
Net cash provided by (used in) operating activities	(214,066)	41,638
Cash flows from investing activities - continuing operations
Capital expenditures	(1,871)	(30,316)
Acquisitions	0	(1,000,000)
Net cash used in investing activities	(1,871)	(1,030,316)
Cash flows from financing activities - continuing operations
Issuance of common stock	250,000	0
Proceeds from borrowings	44,785	750,000
Payments on borrowings	(1,038,963)	(377,386)
Deferred financing costs	(28,873)	(8,750)
Change in restricted cash	(75,743)	0
Net cash provided by (used in) financing activities	(848,794)	363,864
Net decrease in cash and cash equivalents from continuing operations	(1,064,731)	(624,814)
Discontinued operations
Net cash provided by discontinued operations operating activity	175,379	196,350
Net cash provided by discontinued operations investing activity	1,007,287	0
Net increase in cash and cash equivalents from discontinued operations	1,182,666	196,350
Cash and cash equivalents at beginning of period	33,631	554,054
Cash and cash equivalents at end of period	151,566	125,590
Supplemental disclosures of cash flow information
Cash paid for interest	66,583	116,329
Cash paid for taxes	$ 22,800	$ 28,000

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Current Assets
Cash and cash equivalents	$ 151,566	$ 33,631
Restricted cash	75,743	0
Accounts receivable trade	582,302	643,524
Prepaid expenses and other assets	182,472	137,085
Current assets of discontinued operations	0	64,698
Total current assets	992,083	878,938
Property and Equipment, at cost
Gas distribution, transmission and gathering	14,316,836	14,066,836
Office furniture and other equipment	176,125	174,254
Total Property and Equipment, at cost	14,492,961	14,241,090
Less accumulated depreciation and amortization	(11,030,736)	(10,571,643)
Total Property and Equipment, at cost	3,462,225	3,669,447
Other Assets
Non-current assets of discontinued operations	0	1,007,287
Other	17,500	28,890
Total Other Assets	17,500	1,036,177
Total assets	4,471,808	5,584,562
Current Liabilities
Accounts payable	476,279	513,703
Accrued expenses and other liabilities	61,435	20,344
Notes payable - insurance	78,478	60,277
Asset retirement obligations	842,890	595,534
Current maturities of long-term debt	1,652,674	2,557,674
Current liabilities of discontinued operations	0	15,466
Total current liabilities	3,111,756	3,762,998
Asset retirement obligations, long-term	477,247	807,326
Total liabilities	3,589,003	4,570,324
Commitments and contingencies
Stockholders' Equity
Preferred stock, $1.00 par value, 10,000 shares authorized, no shares issued and outstanding, respectively	0	0
Common stock, $0.01 par value, 150,000,000 shares authorized, 30,508,957 and 24,082,056 shares issued and outstanding at September 30, 2013 and December 31, 2012, respectively	305,090	240,821
Additional paid-in capital	23,399,074	23,174,831
Accumulated deficit	(22,821,359)	(22,401,414)
Total stockholders' equity	882,805	1,014,238
Total liabilities and stockholders' equity	$ 4,471,808	$ 5,584,562