NOTE 6 – OIL AND GAS REVENUE

 

The following table disaggregates revenue by significant product type for the years ended December 31, 2025, and 2024:

 

 SCHEDULE OF REVENUE BY MAJOR CUSTOMERS BY REPORTING SEGMENTS

       
  

Year Ended

December 31,

 
   2025   2024 
Oil sales  $217,674   $- 
Natural gas sales   103,795    - 
Natural gas liquids sales   89,163    - 
Total revenue from customers  $410,632   $- 

 

Oil and gas revenues for the legacy HUSA business have been included in the statement of operations from July 1, 2025. See Note 4 – Acquisition above.

 

There were no significant contract liabilities or transaction price allocations to any remaining performance obligations as of December 31, 2025, or 2024.

 

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Historical Timeline

Fiscal YearFiled
2025Mar 23, 2026Showing above
2024Feb 24, 2025
2023Apr 2, 2024
2022Mar 31, 2023
2021Mar 31, 2022
2020Apr 1, 2021
2019Mar 30, 2020
2018Apr 1, 2019

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.