CoJax Oil & Gas Corp 10-Q

Item 1. Financial Statements COJAX OIL AND GAS CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS March 31, 2026 December 31, 2025 (Unaudited) ASSETS Current Assets Cash $ 91,056 $ 77,219 Accounts receivable, net 129,388 109,953 Prepaid expenses 20,500 20,584 Total Current Assets 240,944 207,756 Properties and Equipment Oil and natural gas properties at cost — Proved Properties 8,112,476 8,105,480 Unproved Properties 2,169,812 2,169,812 Less: Accumulated depletion ( 955,957 ) ( 900,012 ) Total Properties and Equipment, net 9,326,331 9,375,280 Total Assets 9,567,275 9,583,036 LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities Accounts payable 305,438 131,365 Workover expense payable — 2,205 Accrued salaries and payroll taxes 1,005,609 937,065 Current portion of notes payable 8,469 10,190 Notes payable – related party 103,001 103,001 Total Current Liabilities 1,422,517 1,183,826 Long-term Liabilities Asset retirement obligations 556,980 544,656 Note payable, net of current portion — 817 Total Long-term Liabilities 556,980 545,473 Total Liabilities 1,979,497 1,729,299 Commitments and contingencies (Note 10) — Stockholders’ Equity Preferred stock, $ 0.10 par value, 50,000,000 current shares authorized, 0 and 0 Series A shares, $ 0.01 par value issued and outstanding at March 31, 2026 and December 31, 2025, respectively. — — Common stock, $ 0.01 par value, 300,000,000 current shares authorized, 14,168,755 and 14,168,755 shares issued and outstanding, at March 31, 2026 and December 31, 2025 respectively. 141,687 141,687 Subscription payable 10,000 10,000 Additional paid-in capital 21,185,146 21,185,146 Accumulated deficit ( 13,749,055 ) ( 13,483,096 ) Total Stockholders’ Equity 7,587,778 7,853,737 Total Liabilities and Stockholders’ Equity $ $ 9,567,275 $ 9,583,036 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 3 COJAX OIL AND GAS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) For the Three Months Ended March 31, 2026 2025 Revenues $ 112,076 $ 338,222 Operating costs and expenses: Lease operating expenses 115,345 97,240 General and administrative expenses 193,971 274,330 Depletion and accretion on discounted liabilities 68,269 110,975 Total operating costs and expenses 377,585 482,545 Loss from Operations ( 265,509 ) ( 144,323 ) Other expense: Other income and expense 83 — Interest expense, net ( 533 ) ( 483 ) Total other expense ( 450 ) ( 483 ) Net Loss $ ( 265,959 ) $ ( 144,806 ) Net loss per common share - basic and diluted $ ( 0.02 ) $ ( 0.01 ) Weighted average number of common shares outstanding during the period - basic and diluted 14,173,755 14,003,639 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 4 COJAX OIL AND GAS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED) Additional Total Preferred stock Common stock Subscriptions paid-in Accumulated Stockholder’s Shares Amount Shares Amount Payable capital deficit equity Balance, December 31, 2024 — $ — 13,998,639 $ 139,986 $ 10,000 $ 20,846,615 $ ( 12,373,887 ) $ 8,622,714 Net loss for the three months ending March 31, 2025 — — — — — — ( 144,806 ) ( 144,806 ) Balance, March 31, 2025 — $ — 13,998,639 $ 139,986 $ 10,000 $ 20,846,615 $ ( 12,518,693 ) $ 8,477,908 Balance, December 31, 2025 — $ — 14,168,755 $ 141,687 $ 10,000 $ 21,185,146 $ ( 13,483,096 ) $ 7,853,737 Net loss for the three months ending March 31, 2026 — — — — — — ( 265,959 ) ( 265,959 ) Balance, March 31, 2026 — $ — 14,168,755 $ 141,687 $ 10,000 $ 21,185,146 $ ( 13,749,055 ) 7,587,778 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 5 COJAX OIL AND GAS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) For the Three Months Ended March 31, 2026 2025 Cash flows from operating activities: Net loss $ ( 265,959 ) $ ( 144,806 ) Adjustments to reconcile Net loss to net cash provided by operations: Depletion expense 55,945 100,514 Accretion of asset retirement obligation 12,324 10,461 Changes in operating assets and liabilities: Accounts receivable ( 19,435 ) ( 32,248 ) Prepaid expense 84 15,833 Accounts payable and accrued liabilities 233,416 83,042 Net cash provided by operating activities 16,375 32,796 Cash flows from investing activities: Net cash provided by investing activities — — Cash flows from financing activities: Payments of loan payable - SBA PPP loan ( 2,538 ) ( 2,513 ) Net cash used in financing activities ( 2,538 ) ( 2,513 ) Net change in cash 13,837 30,283 Cash at beginning of period 77,219 46,738 Cash at end of period $ 91,056 $ 77,021 Supplemental disclosure of non-cash operating activities: Cash paid for interest and taxes $ 26 $ 298 Supplemental disclosure of non-cash investing activities: Capital expenditures on oil and natural gas properties included in accounts payable $ 6,996 $ — The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 6 COJAX OIL AND GAS CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) NOTE 1 – ORGANIZATION, NATURE OF OPERATIONS AND BASIS OF PRESENTATION Organization CoJax Oil & Gas Corporation, a Virginia corporation (“Company”), was incorporated on November 13, 2017. The Company is based in Arlington, Virginia, with a wholly owned subsidiary, Barrister Energy LLC (‘Barrister Energy’), registered in Mississippi and based in Laurel, Mississippi. Nature of Operations The Company is a growing U.S. energy company engaged in the acquisition and development of lower-risk onshore oil and gas-producing properties within the Southeastern U.S. The Company’s focused growth strategy relies primarily on leveraging management’s expertise to acquire both operated and non-operated interests in producing properties with the goal of assembling a large oil and gas portfolio. Through this strategy of acquisition of operated and non-operated properties, the Company has the unique ability to benefit from the technical and scientific expertise of world-class exploration and production (“E&P”) companies operating in the area. Since its inception, the Company has been engaged primarily in organizational activities and had limited revenue-generating operations before the period covered by this quarterly report. The Company has begun to acquire assignments of hydrocarbon revenues and underlying oil and gas exploration and production rights as covered by this quarterly report. The Company runs all operations of its current acquisitions through Barrister Energy LLC, its operational wholly-owned subsidiary. The Company focuses on the acquisition of and exploitation of upstream energy assets, specifically targeting select oil and gas mineral interests. These acquisitions are structured primarily as acquisitions of leases, working interests, real property interests and mineral rights and royalties and are generally not regarded as the acquisition of securities, but rather real property interests. As an owner, the Company has the right to receive a portion of the production from the leased acreage (or of the proceeds of the sale thereof). As an owner, the Company also has an obligation for its share of lease operating costs. Condensed Consolidated Financial Statements The accompanying condensed consolidated financial statements prepared by CoJax Oil and Gas Corporation (the “Company” or “CoJax”) have not been audited by an independent registered public accounting firm. In the opinion of the Company’s management, the accompanying unaudited financial statements contain all adjustments necessary for a fair presentation of the results of operations for the periods presented, which adjustments were of a normal recurring nature, except as disclosed herein. The results of operations for the three months ended March 31, 2026, are not necessarily indicative of the results to be expected for the full year ending December 31, 2026, for various reasons, including as a result of the impact of fluctuations in prices received for oil and natural gas, natural production declines, the uncertainty of exploration and development drilling results, fluctuations in the fair value of derivative instruments, the impacts of other factors. These unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information, and, accordingly, do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. Therefore, these financial statements should be read in conjunction with the Company’s annual report on Form 10-K for the year ended December 31, 2025. 7 NOTE 2 – GOING CONCERN DISCLOSURE The Company’s condensed consolidated financial statements are prepared using U.S. GAAP applicable to a going concern that contemplates the realization of assets and liquidation of liabilities in the normal course of business. There can be no assurance that the Company will be able to achieve its business plan, raise any additional capital, or secure the additional financing necessary to implement its current operating plan. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. The Company has yet to achieve profitable operations, expects to incur further losses in the development of its business, and is dependent upon future issuances of equity or other financings to fund ongoing operations, all of which raises substantial doubt about the Company’s ability to continue as a going concern for a period of twelve months from the issuance of these financial statements. The Company’s ability to continue as a going concern is dependent upon its ability to generate future profitable operations and/or to obtain the necessary financing from stockholders or other sources to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management has no formal plan in place to address this concern but considers that the Company will be able to obtain additional funds by equity financing and/or related party advances, however, there is no assurance of additional funding being available or on acceptable terms, if at all. NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of consolidation The accompanying condensed consolidated financial statements include the accounts of the Company and of its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant areas of estimate include the impairment of assets and rates for amortization, accrued liabilities, future income tax obligations, and the inputs used in calculating stock-based compensation. Actual results could differ from those estimates and would affect future results of operations and cash flows. Cash and Cash Equivalents The Company considers all highly liquid temporary cash investments with an original maturity of three months or less to be cash equivalents. At March 31, 2026 and December 31, 2025, the Company had no cash equivalents. Oil and Gas Producing Activities The Company uses the successful efforts method of accounting for oil and gas activities. Under this method, the costs of productive exploratory wells, all development wells, related asset retirement obligation assets, and productive leases are capitalized and amortized, principally by field, on a units-of-production basis over the life of the remaining proved reserves. Exploration costs, including personnel costs, geological and geophysical expenses, and delay rentals for oil and gas leases are charged to expense as incurred. Exploratory drilling costs are initially capitalized but charged to expense if and when the well is determined not to have found reserves in commercial quantities. Estimates of oil and gas reserves, as determined by independent petroleum engineers, are continually subject to revision based on price, production history and other factors. Depletion expense, which is computed based on the units of production method, could be significantly impacted by changes in such estimates. Additionally, US GAAP requires that if the expected future undiscounted cash flows from an asset are less than its carrying cost, that asset must be written down to its fair market value. As the fair market value of an oil and gas property will usually be significantly less than the total undiscounted future net revenues expected from that asset, slight changes in the estimates used to determine future net revenues from an asset could lead to the necessity of recording a significant impairment of that asset. 8 Unproved oil and gas properties will be assessed annually to determine whether they have been impaired by the drilling of dry holes on or near the related acreage or other circumstances, which may indicate a decline in value. When impairment occurs, a loss will be recognized. When leases for unproved properties expire, the costs thereof, net of any related allowance for impairment, will be removed from the accounts and charged to expense. The Company will review its proved oil and natural gas properties for impairment whenever events and circumstances indicate that a decline in the recoverability of its carrying value may have occurred. It estimates the undiscounted future net cash flows of its oil and natural gas properties and compares such undiscounted future cash flows to the carrying amount of the oil and natural gas properties to determine if the carrying amount is recoverable. If the carrying amount exceeds the estimated undiscounted future cash flows, the Company will adjust the carrying amount of the oil and natural gas properties to fair value. During the year ended December 31, 2025, the Company recorded impairments of $ 402,152 on oil and gas properties. There were no impairments recorded during the three months ended March 31, 2026 and 2025. Long-Lived Assets The Company accounts for the impairment or disposal of long-lived assets according to the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) 360 “Property, Plant and Equipment”. ASC 360 clarifies the accounting for the impairment of long-lived assets and for long-lived assets to be disposed of, including the disposal of business segments and major lines of business. Long-lived assets are reviewed when facts and circumstances indicate that the carrying value of the asset may not be recoverable. When necessary, impaired assets are written down to estimated fair value based on the best information available. Estimated fair value is generally based on either appraised value or measured by discounting estimated future cash flows. Considerable management judgment is necessary to estimate discounted future cash flows. Accordingly, actual results could vary significantly from such estimates. The Company did not recognize any impairment losses on long-lived assets during the three months ended March 31, 2026 and 2025. Fair Value of Financial Instruments The Company had no financial instruments for the three months ended March 31, 2026, or for the year ended December 31, 2025. ASC 820 “Fair Value Measurements and Disclosures” defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) a reporting entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which give the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below: Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means; and Level 3 – Fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs). Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of March 31, 2026, and December 31, 2025. The respective carrying values of certain on-balance-sheet financial instruments approximated their fair values due to the short-term nature of these instruments. 9 Revenue Recognition The Company accounts for revenue under ASC 606 “Revenue from Contracts with Customers.” Under ASC 606, oil and natural gas sales revenues are recognized when control of the product is transferred to the customer, the performance obligations under the terms of the contracts with customers are satisfied and collectability is reasonably assured. All the Company’s oil and natural gas sales are made under contracts with customers. The performance obligations for the Company’s contracts with customers are satisfied at a point in time through the delivery of oil and natural gas to its customers. Accordingly, the Company’s contracts do not give rise to contract assets or liabilities. The Company typically receives payment within 90 days of the month of delivery. The Company’s contracts for oil and natural gas sales are standard industry contracts that include variable consideration based on the monthly index price and adjustments that may include counterparty-specific provisions related to volumes, price differentials, discounts, and other adjustments and deductions. The following table presents revenues disaggregated by product for the three months ended March 31, 2026, and 2025: For the Three Months Ended March 31, 2026 2025 Crude oil revenues $ 112,076 $ 338,222 Gas revenues — — Total revenues $ 112,076 $ 338,222 Accounts Receivable Accounts receivable consists of oil and natural gas receivables. Ongoing evaluations of collectability are performed and an allowance for potential credit losses is provided against the portion of accounts receivable that is estimated to be uncollectible. During the three months ended March 31, 2026, the Company recorded write-offs of certain accounts receivable primarily related to the net settlement and true-up of receivable and payable balances with counterparties, which represent amounts that were not expected to be collected independently outside of such settlements. These write-offs were recorded against accounts receivable and did not relate to a deterioration in the overall credit quality of the Company’s customers. At both March 31, 2026, and December 31, 2025, the allowance for expected credit losses was $ 0 . Stock-Based Compensation The Company accounts for Stock-Based Compensation under ASC 718 “Compensation – Stock Compensation”, which addresses the accounting for transactions in which an entity exchanges its equity instruments for goods or services, with a primary focus on transactions in which an entity obtains employee services in share-based payment transactions. Generally accepted accounting principles require measurement of the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. Incremental compensation costs arising from subsequent modifications of awards after the grant date must be recognized. The Company issues stock to consultants for various services. The costs for these transactions are measured at the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. The value of the common stock is measured at the earlier of (i) the date at which a firm commitment for performance by the counterparty to earn the equity instruments is reached or (ii) the date at which the counterparty’s performance is complete. The Company recognized consulting expense and a corresponding increase to additional paid-in-capital related to stock issued for services. Income Taxes Income taxes are accounted for under ASC 740 using the liability method of accounting for income taxes. Under the liability method, future tax liabilities and assets are recognized for the estimated future tax consequences attributable to differences between the amounts reported in the financial statement carrying amounts of assets and liabilities and their respective tax bases. Future tax assets and liabilities are measured using enacted or substantially enacted income tax rates expected to apply when the asset is realized, or the liability settled. The effect of a change in income tax rates on future income tax liabilities and assets is recognized in income in the period that the change occurs. Future income tax assets are recognized to the extent that they are considered more likely than not to be realized. 10 ASC 740 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements. This standard requires a company to determine whether it is more likely than not that a tax position will be sustained upon examination based on the technical merits of the position. If the more-likely-than-not threshold is met, a company must measure the tax position to determine the amount to recognize in the financial statements. Because of the implementation of this standard, the Company performed a review of its material tax positions in accordance with recognition and measurement standards established by ASC 740 and concluded that it had no uncertain tax positions as of March 31, 2026, or as of December 31, 2025. Basic and Diluted Earnings per Share The Company computes income per share in accordance with ASC 260, “Earnings per Share”, which requires the presentation of both basic and diluted earnings per share (“EPS”) on the face of the condensed consolidated statement of operations. Basic EPS is computed by dividing income available to common stockholders by the weighted average number of shares outstanding during the period. Diluted EPS gives effect to all dilutive potential shares of common stock outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive. As of March 31, 2026 and December 31, 2025, the Company had 0 potentially dilutive common shares outstanding, respectively. Asset Retirement Obligations The Company records the estimated fair value of obligations associated with the retirement of tangible, long-lived assets in the period in which they are incurred. When a liability is initially recorded, the Company capitalizes the cost by increasing the carrying amount of the related long-lived asset. Over time, the liability is accreted to its present value, and the capitalized cost is depleted over the useful life of the related asset. Revisions to estimated asset retirement obligations will result in an adjustment to the related capitalized asset and corresponding liability. Upon settlement of the liability, the Company either settles the obligation for its recorded amount or incurs a gain or loss. The Company’s asset retirement obligation relates to the plugging, dismantling, removal, site reclamation, and similar activities of its oil and gas properties. Asset retirement obligations are estimated at the present value of expected future net cash flows and are discounted using the Company’s credit adjusted risk free rate. The Company uses unobservable inputs in the estimation of asset retirement obligations that include, but are not limited to: costs of labor, costs of materials, profits on costs of labor and materials, the effect of inflation on estimated costs, and discount rate. Due to the subjectivity of assumptions and the relative long lives of the Company’s leases, the costs to ultimately retire the Company’s obligations may vary significantly from prior estimates. Assumptions used in determining estimates are reviewed annually. Concentration of Credit Risk Our revenue can be materially affected by current economic conditions and the price of oil and natural gas. However, based on the current demand for crude oil and natural gas and the fact that alternative purchasers are readily available, we believe that the loss of our marketing agents and/or any of the purchasers identified by our marketing agents would not have a long-term material adverse effect on our financial position or results of international operations. The continued economic disruption resulting from Russia’s invasion of Ukraine, a potential global recession, and other varying macroeconomic conditions could materially impact the Company’s business in future periods. Any potential disruption will depend on the duration and intensity of these events, which are highly uncertain and cannot be predicted at this time. Segment Information The Company operates in one reportable segment engaged in the acquisition, exploration, and production of oil and natural gas properties in the Gulf States Drilling Region. The Company’s chief operating decision maker (“CODM”) is the President and Chief Executive Officer as he maintains responsibility for assessment of the Company’s performance and decision making regarding resource allocation. Condensed Consolidated net income (loss) is the performance measure used by the CODM to evaluate the segment’s performance and allocate capital and to monitor budget versus actual results. The information regularly provided to the CODM on the segment’s revenues and significant expenses aligns with the categories presented in the Condensed Consolidated Statements of Income. Furthermore, the segment’s assets are reported on the Condensed Consolidated Balance Sheets as total assets. 11 NOTE 4 – RECENT ACCOUNTING PRONOUNCEMENTS New and Recently Adopted Accounting Pronouncements In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The ASU requires enhanced disclosures about significant segment expenses that are regularly provided to the Chief Operating Decision Maker and included in each reported measure of segment profit or loss. Additionally, the ASU expanded interim disclosure segments. The ASU was adopted by the Company during the year ended December 31, 2025 and did not have a material impact on the consolidated financial statements. See Segment Information as disclosed with Note 3 for additional information regarding the updates made. Management does not believe any other recently issued accounting pronouncements, if adopted, would have a material effect on the Company’s present or future financial statements. NOTE 5 – ROYALTY INTERESTS IN OIL AND GAS PROPERTIES The Company did not execute any acquisitions during the three months ended March 31, 2026. At March 31, 2026, the Company had leased oil and gas properties assets valued at $ 9,326,331 . During the year ended December 31, 2025 due to diminishing operating margins the Company elected to dispose of its interests in the NONOP Assets. On July 1, 2025, the Board of Directors of CoJax Oil and Gas Corporation approved a Reassignment Agreement by which the Company assigned and conveyed 100% of its interest in the NONOP Assets back to Taxodium Energy, LLC and its affiliates. On October 22, 2025, pursuant to the Reassignment Agreement, the Company transferred to Taxodium 100% ownership, right, title and interests in the aforementioned NONOP Assets in exchange for full release from all outstanding payables related to the NONOP assets. To recognize the reassignment the Company removed the following balances: accounts receivable of $ 214,392 , oil and gas properties at cost of $ 397,207 accumulated depletion of $ 219,859 , accounts payable of $ 249,855 , workover payable of $ 10,625 , and asset retirement obligations of $ 52,934 . No cash was transferred due to the reassignment. The Company accounted for this transaction as an asset disposal and recognized a loss of $ 78,326 on the disposal. Scheduled leased oil and gas properties assets Beginning balance, December 31, 2025 $ 9,375,280 Depletion expense ( 55,945 ) Capital expenditures on oil and gas properties 6,996 Balance, March 31, 2026 $ 9,326,331 We recorded depletion expense of $ 55,945 and $ 100,514 for the three months ended March 31, 2026 and 2025, respectively. NOTE 6 – ASSET RETIREMENT OBLIGATION The Company records the obligation to plug and abandon oil and gas wells at the dates the properties are either acquired or the wells are drilled. The asset retirement obligation is adjusted each quarter for any liabilities incurred or settled during the period, accretion expense, and any revisions made to the costs or timing estimates. The asset retirement obligation is incurred using an annual credit-adjusted risk-free discount rate at the applicable dates. Changes in the asset retirement obligation were as follows: Balance, December 31, 2025 $ 544,656 Accretion expense 12,324 Balance, March 31, 2026 $ 556,980 12 NOTE 7 – NOTES PAYABLE Notes payable consisted of the following: March 31, 2026 December 31, 2025 SBA PPP Loan $ 8,469 $ 21,095 Notes payable – related party 103,001 103,001 Total notes payable 111,470 124,096 Less: current portion ( 111,470 ) ( 113,089 ) Notes payable net of current portion $ — $ 11,007 SBA PPP Loan On May 7, 2020, the Company applied for a Small Business Association (SBA) loan under the Paycheck Protection Program (PPP). The Company met all the necessary qualifications to apply for a $ 49,992 loan. On June 10, 2020, the SBA PPP loan was approved and transferred to the Company to be used for payment of accrued payroll and related payroll taxes. On November 29, 2021, the Company was notified that the request for forgiveness was denied. The note was converted to a five -year loan bearing interest at 1 % per annum beginning on January 1, 2022. Related Party The Company has issued several unsecured promissory notes to a related party, the CFO of the Company. The related party notes bear interest at 2 % per annum. Principal and accrued interest on all notes mature on December 31, 2026. NOTE 8 – RELATED PARTY TRANSACTIONS For the three months ending March 31, 2026 and the year ending 2025, the following related party transactions occurred between any of the Company’s directors or executive officers or any person nominated or chosen by the Company to become a director or executive officer: On April 10, 2025, the Company issued 170,116 shares at the price of $ 2.00 per share to Wm. Barrett Wellman for settlement of accrued compensation expenses. There was no related party activity recorded for the quarter ended March 31, 2026. NOTE 9 – STOCKHOLDER’S EQUITY Authorized Capital The Company has 300,000,000 authorized shares of Common Stock at $ 0.01 par value and 50,000,000 authorized shares of Preferred Stock at a par value of $ 0.10 , and Series A convertible shares at a par value of $ 0.01 . The Company had 14,168,755 and 14,168,755 shares of Common Stock issued and outstanding as of March 31, 2026 and December 31, 2025, respectively. The Company had 0 shares of Preferred Stock issued and outstanding as of March 31, 2026 and December 31, 2025. Preferred Stock The holders of Preferred Stock are entitled to receive dividends equal to the amount of the dividend or distribution per share of common stock payable multiplied by the number of shares of common stock the shares of Series A preferred shares held by such holder are convertible into. Each Series A preferred share is convertible into ten common shares. The Company classified the Series A Preferred Stock as permanent equity in the condensed consolidated financial statements as the terms do not provide for an obligation to buy back the shares in exchange for cash or other assets of the Company. The shares are not considered debt under ASC 480 “Distinguishing Liabilities from Equity” as the shares do not represent an obligation that must or may be settled with a variable number of shares. No other redemption features exist within the terms of the instrument. 13 Refer to Note 8 for details on convertible preferred stock issuances to the Company’s officers. Common Stock Refer to Note 8 for details on common share issuances to the Company’s officers. Refer to Note 5 for details on common share issuances for acquired interests in oil and gas properties. During the three months ended March 31, 2026, there has been no common share activity. The above shares of capital stock are restricted securities under Rule 144 and were issued in reliance on an exemption from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”). Capital Contributions During the periods ending March 31, 2026, and March 31, 2025, the Company did not receive any capital contributions. NOTE 10 – COMMITMENTS AND CONTINGENCIES Operating Lease Commitments The Company has no lease obligations at March 31, 2026, and December 31, 2025. Additionally, the Company has no known contingencies as of March 31, 2026, and December 31, 2025. Purchase Commitments The Company has no purchase obligations at March 31, 2026 and December 31, 2025. Significant Risks and Uncertainties Concentration of Credit Risk – Cash – The Company maintains cash and cash equivalent balances at a single financial institution that are insured by the Federal Deposit Insurance Corporation (FDIC) up to $ 250,000 . At March 31, 2026, and December 31, 2025, the Company had no exposure in excess of insurance. Concentration of Credit Risk – Accounts Receivable – All of the Company’s outstanding accounts receivable was with two parties, Taxodium Energy, LLC and Liberty Operating Company. NOTE 11 – SUBSEQUENT EVENTS In connection with the issuance of the condensed consolidated financial statements of Cojax Oil and Gas, Company has evaluated subsequent events and transactions for potential recognition and/or disclosure through May 13, 2026 the date the financial statements were issued. Management determined that there were no reportable subsequent events that occurred during such period to be disclosed as of and for the three months ended March 31, 2026. 14