Revenue Revenues
Nine-months ended
$
May 31, 2022
(336,638) (116,415) (39,709)
- 12,020
19,493 409,921
(1,197,632)
$
May 31, 2021
517,966 25,326
(24,719) -
11,983
11,815 (85,813)
(349,029)
For the third quarter ended May 31, 2022 gross revenues totalled $462,152, increasing $90,871 over the comparative quarter ended May 31, 2021 that recognized revenues of $371,281. Revenues related to Powerwave stimulations for the third quarter 2022 totalled $419,620, an increase of $65,541 over the comparative quarter that recorded revenues of $354,079. Powerwave stimulation revenues for the reporting quarter for the Middle East totalled $251,992 (2021 - $335,862). Powerwave revenues in the Middle East were impacted by the reduced aggregate minimum consideration from the Distributor in the State of Kuwait (see above), which resulted in the reduction of the transaction price that necessitated a cumulative retrospective adjustment.
Additionally, Powerwave stimulations revenues in the Middle East were negatively impacted with the termination of a distribution agreement wherein the former Saudi Arabian distributor guaranteed a minimum number of Powerwave stimulations, and an overall lower number of Powerwave stimulations occurring due to a budgetary refocus, and due to the change of distributors in Saudi Arabia.
North American Powerwave stimulation revenues totalled $167,628, an increase of $149,711 or 821.8% over the comparative quarter that recorded revenues of $18,217.
Geographically, $181,940 (2021 – $35,419) in revenue was generated in North America, $251,992 (2021 - $335,862) in the Middle East, and $28,220 (2021 - $ nil) in other international geographic regions. The geographic revenues are more specifically described as follows:
North America: Revenues in North America increased by $146,521 or 413.7% to $181,940 compared to $35,419 in the comparative quarter. Powerwave stimulation revenues in North America totalled $167,628 (2021 - $18,217). Revenues in the reporting quarter were positively impacted by the commencement of individual Powerwave stimulations related to the Powerwave stimulation packages as announced in the fourth quarter 2021 and the first quarter 2022. During the reporting quarter individual stimulations amounting to 15.7% of the announce Powerwave stimulation package were completed allowing the Company to record US $92,083 in revenues.
Subsequent to the third quarter ending May 31, 2022, additional individual stimulations amounting to 11.0% of the announces Powerwave stimulation packages individual Powerwave stimulations totalling US $55,705 were also completed.
Despite the aforementioned Powerwave stimulation activity in North America, activities and revenues remain below expectations in part due to the unrecognized revenues related to the GSA noted above. Despite strengthening commodity prices, 73.3% of the announced Powerwave stimulations have been delayed due to the COVID-19 and Omicron variant, indirect E&P supply chain issues, and various E&P decisions to reduce or delay both operating and capital expenditures. The time as to when this backlog of stimulation jobs will be completed is not certain as it is dependent on the E&P customers.
Other Technology revenues totalled $14,312 (2021 - $17,202).
Middle East: Revenues in the Middle East totalled $251,992 (2021 - $335,862), all of which us related to Powerwave stimulation revenues in both the current and comparative reporting quarters. Given the delays in activity in the State of Kuwait, and faced with the potential early termination of the Exclusivity Agreement, the Company agreed to amend of the guaranteed minimum aggregate consideration from US $75,000 to US $50,000 per month, which in addition, resulted in a reduction of the transaction prices and a cumulative adjustment (i.e., revenue reduction) of US $76,923 (translated CDN $97,292) in the reporting quarter. The Company, however, was able to complete Powerwave stimulation jobs in the UAE for total revenues of $111,167 (2021 - $nil).
Other International: Revenues outside of North America and the Middle East totalled $28,220 (2021 - $ nil). All revenue generating activities in Other International regions relate for Other Technology.