MIDLAND, Texas, June 20, 2014 /PRNewswire/ -- STW Resources Holding Corp. (OTC QB: STWS) announced today that its financial results for 2013 have been filed on its Form 10-K Annual Report with the Securities and Exchange Commission (SEC). A detailed Form 10-K is available on the company web site.
STWS revenues increased to $1,945,631 in 2013 from no revenues in 2012. Revenues from our proprietary water desalination technology were $536,745. Revenues from our oilfield services business segment were $1,408,896, all of which were realized from July to December 2013. As we describe in detail in the full regulatory filing, the improved results were primarily attributable to (1) transition from a development stage to a fully operational business enterprise, (2) launching of oil & gas services business operating subsidiaries, and (3) improved demand for our services due to continually improving market conditions in the oil & gas exploration industry. Our rapid growth during 2013 with our focus on market share and expansion of services offerings has resulted in increased operating expenses that contributed to our reported net loss of $7,032,955. However, our net loss includes $2,561,918 of non-cash charges relating to the change in our derivative liability that is attributable to securities issued in prior years. As such, our net loss on a non-GAAP basis, exclusive of these non-cash charges, was $4,471,037.
In 2014 STW continued its rapid growth strategy. Revenues in the first quarter exceeded those in 2013. As of May 2014 the company is operating at an annual run rate of approximately $30,000,000. STW has been working to improve their balance sheet and capitalization table in many ways, the assets increased significantly year to date, once again exceeding last year's growth. Convertible debt has been reduced by $1.7 million and the derivative liability was reduced by $1 million, both reductions through equity conversion. Since January 1, 2014, the Company has raised equity capital from accredited investors of $702,500. During 2014, 4.3 million warrants expired and throughout the balance of this year many additional warrants will expire thereby reducing total common share dilution. STW's divisions have turned the corner and have begun to post monthly positive net cash flow.
STW has expanded their services and customer base significantly. The company has over 200 employees and operates in West and South Texas as well as New Mexico. STW has significantly expanded the accounting department with highly trained professionals. STW is well positioned with experienced personnel and support staff to continue a path of aggressive growth.
Bob Miranda, STW Resources' CFO stated, "We are pleased to have filed our 2013 annual report with the SEC. We plan to file our first quarter 2014 report on our Form 10-Q with the SEC to bring us back to current filer status. During the year ended December 31, 2013, the Company exited the development stage and became a fully operational company. We grew from a few employees in 2012 to over 200 employees today. We have added four (4) new operating subsidiaries and our leadership team continues to grow our sales backlog and explore new market opportunities."
STW Resources Holdings Corp. consults and provides customized water analysis, reclamation and remediation services to a variety of complex oil and gas produced and flowback water, brackish water, industrial, and municipal applications throughout several geographic locations. As an independent solutions provider, STW utilizes proven technologies from various well-known manufacturers. These technologies are available as fixed or mobile units with varying capabilities. STW's process ensures that the most effective and efficient technologies are implemented. Current potential project locations include the Eagle Ford Shale (TX), the west Texas Delaware and Permian Basins (TX), and eastern New Mexico. STW is also involved in the oilfield dirt construction business providing roads, pits, locations, and water pond construction. It also offers evaporation covers for the elimination of evaporation on frac ponds used throughout the oilfield. Evaporation causes the operators millions of dollars in losses annually. Covering the ponds is a conservational and economic method of preserving one of our natural resources and can be floated on to existing ponds or installed during construction. It also eliminates algae growth, doubles as a bird net, and reduces erosion of pond infrastructure. High quality liners with fusion-welded seams, quality control testing including air tests of seams and destruction testing are also standard. STW Energy, a subsidiary of STW Holding Corp, offers a turnkey rig washing service and STW Holdings offers the ability and technology to process drilling waste fluids, tank bottoms, and oil based cuttings that will completely eliminate any potential future liabilities (Cradle-to-Grave) to the operators after they dispose of them. STW services include roustabout services for several major oil and gas producers too. STW's Pipeline Maintenance & Construction division aids oil & gas companies in connecting new wells so the oil & gas can be sold to market and helps maintain the integrity of their existing pipeline infrastructure.
This news release contains forward-looking statements about our business, or financial condition and prospects that reflect our assumptions and beliefs based on information currently available. We can give no assurance that the expectations indicated by such forward-looking statements will be realized. There may be other risks and circumstances that we are unable to predict. When used in this news release, words such as "believes," "expects," "intends," "plans," "anticipates," "estimates" and similar expressions are intended to identify forward-looking statements, although there may be certain forward-looking statements not accompanied by such expressions. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including risks discussed in the company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (www.sec.gov). All forward-looking statements attributable to the Company or to persons acting on its behalf are expressly qualified in their entirety by these factors other than as required under the securities laws. The Company does not assume a duty to update these forward-looking statements.
SOURCE STW Resources Holding Corp.