Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Mar. 15, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Entity Registrant Name | PEDEVCO Corp. | ||
Entity Central Index Key | 0001141197 | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well Known Seasoned Issuer | No | ||
Entity Small Business | true | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Current Reporting Status | Yes | ||
Document Period End Date | Dec. 31, 2023 | ||
Entity Filer Category | Non-accelerated Filer | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2023 | ||
Entity Common Stock Shares Outstanding | 89,355,267 | ||
Entity Public Float | $ 22,883,897 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Fin Stmt Error Correction Flag | false | ||
Entity File Number | 001-35922 | ||
Entity Incorporation State Country Code | TX | ||
Entity Tax Identification Number | 22-3755993 | ||
Entity Address Address Line 1 | 575 N. Dairy Ashford | ||
Entity Address Address Line 2 | Suite 210 | ||
Entity Address City Or Town | Houston | ||
Entity Address State Or Province | TX | ||
Entity Address Postal Zip Code | 77079 | ||
City Area Code | 713 | ||
Icfr Auditor Attestation Flag | false | ||
Auditor Name | Marcum llp | ||
Auditor Location | Houston, Texas | ||
Auditor Firm Id | 688 | ||
Local Phone Number | 221-1768 | ||
Security 12b Title | Common Stock, $0.001 Par Value Per Share | ||
Trading Symbol | PED | ||
Security Exchange Name | NYSE | ||
Entity Interactive Data Current | Yes |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 18,515 | $ 29,430 |
Accounts receivable - oil and gas | 5,790 | 2,430 |
Note receivable, current | 42 | 0 |
Prepaid expenses and other current assets | 260 | 249 |
Total current assets | 24,607 | 32,109 |
Oil and gas properties, subject to amortization, net | 79,186 | 79,372 |
Oil and gas properties, not subject to amortization, net | 12,407 | 775 |
Total oil and gas properties, net | 91,593 | 80,147 |
Note receivable | 1,099 | 0 |
Operating lease - right-of-use asset | 316 | 71 |
Other assets | 2,443 | 3,783 |
Total assets | 120,058 | 116,110 |
Current liabilities: | ||
Accounts payable | 6,580 | 1,556 |
Accrued expenses | 8,712 | 13,835 |
Revenue payable | 3,371 | 1,018 |
Operating lease liabilities - current | 89 | 81 |
Asset retirement obligations - current | 147 | 472 |
Total current liabilities | 18,899 | 16,962 |
Long-term liabilities: | ||
Operating lease liabilities, net of current portion | 227 | 0 |
Asset retirement obligations, net of current portion | 2,166 | 2,689 |
Total liabilities | 21,292 | 19,651 |
Shareholders' equity: | ||
Common stock, $0.001 par value, 200,000,000 shares authorized; 87,250,267 and 85,790,267 shares issued and outstanding, respectively | 87 | 86 |
Additional paid-in capital | 225,156 | 223,114 |
Accumulated deficit | (126,477) | (126,741) |
Total shareholders' equity | 98,766 | 96,459 |
Total liabilities and shareholders' equity | $ 120,058 | $ 116,110 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
CONSOLIDATED BALANCE SHEETS | ||
Common Stock, Par Value | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 |
Common Stock, Shares Issued | 87,250,267 | 85,790,267 |
Common Stock, Shares Outstanding | 87,250,267 | 85,790,267 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | ||
Oil and gas sales | $ 30,784 | $ 30,034 |
Operating expenses: | ||
Lease operating costs | 9,831 | 10,397 |
Selling, general and administrative expense | 6,008 | 5,854 |
Depreciation, depletion, amortization and accretion | 10,875 | 11,153 |
Total operating expenses | 26,714 | 27,404 |
Loss on sale of oil and gas properties | (4,268) | 0 |
Operating income (loss) | (198) | 2,630 |
Other income: | ||
Interest income | 422 | 117 |
Other income | 40 | 97 |
Total other income | 462 | 214 |
Net Income | $ 264 | $ 2,844 |
Loss per common share: | ||
Basic | $ 0 | $ 0.03 |
Diluted | $ 0 | $ 0.03 |
Weighted average number of common shares outstanding: | ||
Basic | 87,031,692 | 85,513,095 |
Diluted | 87,031,692 | 85,513,095 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash Flows From Operating Activities: | ||
Net income | $ 264 | $ 2,844 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, depletion and amortization | 10,875 | 11,153 |
Share-based compensation expense | 2,043 | 2,097 |
Loss on sale of oil and gas properties | 4,268 | 0 |
Amortization of right-of-use asset | 100 | 102 |
Changes in operating assets and liabilities: | ||
Accounts receivable - oil and gas | (3,360) | (648) |
Note receivable | (19) | 0 |
Prepaid expenses and other current assets | (11) | 77 |
Accounts payable | (11) | (159) |
Accrued expenses | 6,979 | 435 |
Revenue payable | 2,353 | 80 |
Net cash provided by operating activities | 23,481 | 15,981 |
Cash Flows From Investing Activities: | ||
Cash paid for drilling and completion costs | (34,951) | (12,252) |
Cash paid for other property and equipment | (45) | 0 |
Proceeds from the sale of oil and gas property | 366 | 0 |
Cash paid for issuance of note receivable | (1,122) | 0 |
Cash received (paid) for security deposit | 9 | (14) |
Net cash used in investing activities | (35,743) | (12,266) |
Cash Flows From Financing Activities: | ||
Proceeds from the issuance of common stock, net | 0 | 35 |
Net cash provided by financing activities | 0 | 35 |
Net (decrease) increase in cash and restricted cash | (12,262) | 3,750 |
Cash and restricted cash at beginning of year | 32,977 | 29,227 |
Cash and restricted cash at end of year | 20,715 | 32,977 |
Cash paid for: | ||
Interest | 0 | 0 |
Income taxes | 0 | 0 |
Noncash investing and financing activities: | ||
Change in accrued oil and gas development costs | 7,674 | 10,879 |
Change in estimates of asset retirement costs | 39 | 618 |
Issuance of restricted common stock | $ 1 | $ 2 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Deficit |
Balance, shares at Dec. 31, 2021 | 84,263,146 | |||
Balance, amount at Dec. 31, 2021 | $ 91,483 | $ 84 | $ 220,984 | $ (129,585) |
Issuance of restricted common stock, shares | 1,440,000 | |||
Issuance of restricted common stock, amount | 0 | $ 2 | (2) | 0 |
Issuance of common stock to non-affiliate, shares | 87,121 | |||
Issuance of common stock to non-affiliate, amount | 35 | $ 0 | 35 | 0 |
Stock-based compensation | 2,097 | 0 | 2,097 | 0 |
Net income | 2,844 | $ 0 | 0 | 2,844 |
Balance, shares at Dec. 31, 2022 | 85,790,267 | |||
Balance, amount at Dec. 31, 2022 | 96,459 | $ 86 | 223,114 | (126,741) |
Issuance of restricted common stock, shares | 1,460,000 | |||
Issuance of restricted common stock, amount | 0 | $ 1 | (1) | 0 |
Stock-based compensation | 2,043 | 0 | 2,043 | 0 |
Net income | 264 | $ 0 | 0 | 264 |
Balance, shares at Dec. 31, 2023 | 87,250,267 | |||
Balance, amount at Dec. 31, 2023 | $ 98,766 | $ 87 | $ 225,156 | $ (126,477) |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2023 | |
BASIS OF PRESENTATION | |
BASIS OF PRESENTATION | NOTE 1 – BASIS OF PRESENTATION The accompanying consolidated financial statements of PEDEVCO Corp. (“PEDEVCO” or the “Company”), have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and the rules of the Securities and Exchange Commission (“SEC”). The Company’s consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries and subsidiaries in which the Company has a controlling financial interest. All significant inter-company accounts and transactions have been eliminated in consolidation. |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 12 Months Ended |
Dec. 31, 2023 | |
DESCRIPTION OF BUSINESS | |
DESCRIPTION OF BUSINESS | NOTE 2 – DESCRIPTION OF BUSINESS PEDEVCO is an oil and gas company focused on the development, acquisition and production of oil and natural gas assets where the latest in modern drilling and completion techniques and technologies have yet to be applied. In particular, the Company focuses on legacy proven properties where there is a long production history, well defined geology and existing infrastructure that can be leveraged when applying modern field management technologies. The Company’s current properties are located in the San Andres formation of the Permian Basin situated in West Texas and eastern New Mexico (the “Permian Basin”) and in the Denver-Julesberg Basin (“D-J Basin”) in Colorado and Wyoming. The Company holds its Permian Basin acres located in Chaves and Roosevelt Counties, New Mexico, through its wholly-owned operating subsidiary, Pacific Energy Development Corp. (“PEDCO”), which asset the Company refers to as its “Permian Basin Asset,” and it holds its D-J Basin acres located in Weld and Morgan Counties, Colorado, and Laramie County, Wyoming, through its wholly-owned subsidiary, PRH Holdings LLC, and which asset the Company refers to as its “D-J Basin Asset.” During the current year, the Company assigned all of its oil and gas assets held in its wholly-owned subsidiary Red Hawk Petroleum LLC, to PRH Holdings LLC. The Company believes that horizontal development and exploitation of conventional assets in the Permian Basin and development of the Wattenberg and Wattenberg Extension in the D-J Basin represent among the most economic oil and natural gas plays in the United States (“U.S.”). Moving forward, the Company plans to optimize its existing assets and opportunistically seek additional acreage proximate to its currently held core acreage, as well as other attractive onshore U.S. oil and gas assets that fit the Company’s acquisition criteria, that Company management believes can be developed using its technical and operating expertise and be accretive to shareholder value. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation. Use of Estimates in Financial Statement Preparation. Cash and Cash Equivalents. Concentrations of Credit Risk. Sales to three customers comprised 42%, 35% and 18%, respectively, of the Company’s total oil and gas revenues for the year ended December 31, 2023 compared to sales to two customers comprising 63% and 20%, respectively, of the Company's total oil and gas revenues for the year ended December 31, 2022. The Company believes that, in the event that its primary customers are unable or unwilling to continue to purchase the Company’s production, there are a substantial number of alternative buyers for its production at comparable prices. Accounts Receivable. Bad Debt Expense. Equipment. Oil and Gas Properties, Successful Efforts Method. Exploratory wells in areas not requiring major capital expenditures are evaluated for economic viability within one year of completion of drilling. The related well costs are expensed as dry holes if it is determined that such economic viability is not attained. Otherwise, the related well costs are reclassified to oil and gas properties and subject to impairment review. For exploratory wells that are found to have economically viable reserves in areas where major capital expenditure will be required before production can commence, the related well costs remain capitalized only if additional drilling is under way or firmly planned. Otherwise, the related well costs are expensed as dry holes. Exploration and evaluation expenditures incurred subsequent to the acquisition of an exploration asset in a business combination are accounted for in accordance with the policy outlined above. Depreciation, depletion and amortization of capitalized oil and gas properties is calculated on a field-by-field basis using the unit of production method. Lease acquisition costs are amortized over the total estimated proved developed and undeveloped reserves and all other capitalized costs are amortized over proved developed reserves. Costs specific to developmental wells for which drilling is in progress or uncompleted are capitalized as wells in progress and not subject to amortization until completion and production commences, at which time amortization on the basis of production will begin. Impairment of Long-Lived Assets. Asset Retirement Obligations. Revenue Recognition. Contracts with customers have varying terms, including month-to-month contracts, and contracts with a finite term. The Company recognizes sales revenues for oil, natural gas, and NGLs based on the amount of each product sold to a customer when control transfers to the customer. Generally, control transfers at the time of delivery to the customer at a pipeline interconnect, the tailgate of a processing facility, or as a tanker lifting is completed. Revenue is measured based on the contract price, which may be index-based or fixed, and may include adjustments for market differentials and downstream costs incurred by the customer, including gathering, transportation, and fuel costs. Revenues are recognized for the sale of the Company’s net share of production volumes. Sales on behalf of other working interest owners and royalty interest owners are not recognized as revenues. Income Taxes. Uncertain Tax Positions. The Company is subject to ongoing tax exposures, examinations and assessments in various jurisdictions. Accordingly, the Company may incur additional tax expense based upon the outcomes of such matters. In addition, when applicable, the Company will adjust tax expense to reflect the Company’s ongoing assessments of such matters, which require judgment and can materially increase or decrease its effective rate as well as impact operating results. Stock-Based Compensation. The Company estimates volatility by considering the historical stock volatility. The Company has opted to use the simplified method for estimating expected term, which is generally equal to the midpoint between the vesting period and the contractual term. Earnings per Common Share. Recently Adopted Accounting Pronouncements. Measurement of Credit Losses on Financial Instruments Subsequent Events. |
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS | 12 Months Ended |
Dec. 31, 2023 | |
CASH AND CASH EQUIVALENTS | |
CASH AND CASH EQUIVALENTS | NOTE 4 – CASH AND CASH EQUIVALENTS The following table provides a reconciliation of cash and restricted cash reported within the balance sheets on December 31, 2023 and 2022, which sum to the total of such amounts shown in the accompanying consolidated statements of cash flows (in thousands): 2023 2022 Cash $ 18,515 $ 29,430 Restricted cash included in other assets 2,200 3,547 Total cash and restricted cash as shown in the consolidated statements of cash flows $ 20,715 $ 32,977 Total restricted cash decreased $1,347,000 during the current period due to the transfer of collateralized deposits related to plugging and abandonment bonds with the State of New Mexico to Tilloo Exploration and Production LLC (“Tilloo”) in connection with the sale of our wholly-owned subsidiary EOR and related assets to Tilloo in November 2023. See Note 6 below. |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 12 Months Ended |
Dec. 31, 2023 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | NOTE 5 – REVENUE FROM CONTRACTS WITH CUSTOMERS Disaggregation of Revenue from Contracts with Customers. 2023 2022 Oil sales $ 27,925 $ 27,669 Natural gas sales 1,438 1,577 Natural gas liquids sales 1,421 788 Total revenue from customers $ 30,784 $ 30,034 There were no significant contract liabilities or transaction price allocations to any remaining performance obligations as of December 31, 2023 or 2022, respectively. |
OIL AND GAS PROPERTIES
OIL AND GAS PROPERTIES | 12 Months Ended |
Dec. 31, 2023 | |
OIL AND GAS PROPERTIES | |
OIL AND GAS PROPERTIES | NOTE 6 – OIL AND GAS PROPERTIES The following tables summarize the Company’s oil and gas activities by classification for the years ended December 31, 2023 and 2022, respectively (in thousands): Balance at December 31, Balance at December 31, 2022 Additions Disposals Transfers 2023 Oil and gas properties, subject to amortization $ 176,253 $ 15,645 $ (6,495 ) $ - $ 185,403 Oil and gas properties, not subject to amortization 775 11,632 - - 12,407 Asset retirement costs 1,407 39 (593 ) - 853 Accumulated depreciation, depletion and impairment (98,288 ) (10,265 ) 1,483 - (107,070 ) Total oil and gas assets $ 80,147 $ 17,051 $ (5,605 ) $ - $ 91,593 Balance at December 31, Balance at December 31, 2021 Additions Disposals Transfers 2022 Oil and gas properties, subject to amortization $ 151,338 $ 22,356 $ - $ 2,559 $ 176,253 Oil and gas properties, not subject to amortization 2,559 775 - (2,559 ) 775 Asset retirement costs 789 618 - - 1,407 Accumulated depreciation, depletion and impairment (88,219 ) (10,069 ) - - (98,288 ) ) Total oil and gas assets $ 66,467 $ 13,680 $ - $ - $ 80,147 For the year ended December 31, 2023, the Company incurred $21,573,000 of capital costs primarily related to non-operated drilling and completion costs related to the Company’s participation in 13 new non-operated wells in the D-J Basin Asset in which the Company participated and the Company’s drilling of three operated wells with Evolution Petroleum Corporation (“Evolution”), noted below, together with costs related to certain workovers for lift conversions and cleanouts in the Company’s Permian Basin Asset. The Company also acquired approximately 282 net mineral acres, and 6,465 net lease acres, in and around its existing footprint in the D-J Basin through multiple transactions with total acquisition and due diligence costs of $493,000 for the net mineral acres and $5,211,000 for the net lease acres. On September 12, 2023, the Company and Evolution entered into a Participation Agreement for the joint development of approximately 16,000 gross leasehold acres divided into twelve “Development Blocks” within the Company’s Permian Basin Asset, in which the parties may jointly develop by drilling and completion of up to nine horizontal San Andres wells in each Development Block. The Company received net proceeds of $366,000 and serves as the operator. Evolution acquired a 50% working interest share in existing leases, covering the initial two Development Blocks (which equals Evolution’s share of the acreage portion for nine drilling locations therein), and upon completion of the wells in each Development Block, Evolution will have the right, but not the obligation, to acquire a 50% working interest share in the next Development Block in exchange for the payment of $450 per net acre of existing leases held by the Company in such block, and participate on a 50% working interest share basis in the drilling and completion of up to nine horizontal San Andres wells in such Development Block. On November 9, 2023, the Company entered into a Purchase and Sale Agreement and a Stock Purchase Agreement with Tilloo, pursuant to which we sold our wholly-owned subsidiary EOR and approximately 8,035 gross leasehold acres, current operated production, and all of PEDCO’s and EOR’s leases and related rights, oil and gas and other wells, equipment, easements, contract rights, and production located in the Milnesand and Sawyer Fields of the San Andres play in the Permian Basin situated in eastern New Mexico, which assets included approximately 80 legacy vertical oil and gas wells (53 producers and 27 injectors). Aggregate consideration received by the Company for the sale, which was effective August 1, 2023, was $1,122,436, subject to customary adjustments, which is to be paid by Tilloo through entry into a five-year secured promissory note (see Note 7 below). As a result of the transaction, the Company has sold all of its operated oil and gas interests in the non-core Milnesand and Sawyer Fields, including the 52 inactive legacy wells that the Company would otherwise be required to plug and abandon, thereby successfully reducing its asset retirement obligations with respect to these assets and reducing its estimated aggregate plugging and abandoning liabilities by over $3.2 million. The Company recognized a receivable of $56,000 due from Tilloo in post-closing adjustments, and as a result of the transaction, the Company recognized a $4.3 million loss on sale of oil and gas properties as reflected in the Statement of Operations for the year ended December 31, 2023. For the year ended December 31, 2022, the Company incurred $23,131,000 of capital costs primarily related to drilling operations, completion and facility construction for the two new wells started at the end of 2021 and production enhancement cleanouts in our Permian Basin Asset for approximately $8.4 million and the acquisition and development of assets in the D-J Basin, which also includes our participation in the drilling and completion of six wells by a third-party operator for approximately $12.5 million in the latter part of the period. Additionally, the Company consummated the acquisition of certain additional assets located in the D-J Basin from a third-party effective July 1, 2021, for approximately $500,000 in cash consideration. These assets include approximately 46.6 net leasehold acres and interests in 14 horizontal wells currently producing from the acreage. The Company incurred $1.2 million (included in the $23.1 million total above) in net capital costs for its working interest in these 14 new well interests during the year ended December 31, 2022. As of December 31, 2022, the Company also acquired approximately 480 net mineral acres and 787 net lease acres in and around its existing footprint in the D-J Basin through multiple transactions at total acquisition and due diligence costs of $607,000 and $688,000, respectively. The depletion recorded for production on proved properties for the year ended December 31, 2023 and 2022, amounted to $10,265,000 and $10,069,000, respectively. |
NOTE RECEIVABLE
NOTE RECEIVABLE | 12 Months Ended |
Dec. 31, 2023 | |
NOTE RECEIVABLE | |
NOTE RECEIVABLE | NOTE 7 – NOTE RECEIVABLE On November 9, 2023, in accordance with the sale of our wholly-owned subsidiary EOR to Tilloo (see Note 6 above), the Company entered into a five-year secured promissory note (the “Note”) with Tilloo, bearing interest at 10% per annum, with no payments due during the first twelve months, and fully-amortized payments due monthly over the remaining four years of the term thereafter until maturity. The Note contains customary events of default and is secured by a lien over all the assets and capital shares of EOR created under a Security Agreement, a Security Agreement (Pledge of Corporate Securities), and a Mortgage entered into by and between the Company and Tilloo. As of December 31, 2023, the Company recognized $42,000 of the Note in Current Assets, with the remaining balance of $1,099,000 (including $16,000 of accrued interest) in Other Assets on the Company’s balance sheet. |
ASSET RETIREMENT OBLIGATION
ASSET RETIREMENT OBLIGATION | 12 Months Ended |
Dec. 31, 2023 | |
ASSET RETIREMENT OBLIGATION | |
ASSET RETIREMENT OBLIGATION | NOTE 8 – ASSET RETIREMENT OBLIGATION Activity related to the Company’s asset retirement obligations is as follows for the year ended December 31, 2023 (in thousands): 2023 Balance at the beginning of the period (1) $ 3,161 Accretion expense 587 Disposition of liabilities (971 ) Liabilities settled (503 ) Changes in estimates 39 Balance at end of period (2) $ 2,313 (1) Includes $472,000 of current asset retirement obligations at December 31, 2022. (2) Includes $147,000 of current asset retirement obligations at December 31, 2023. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and contingencies | |
COMMITMENTS AND CONTINGENCIES | NOTE 9 – COMMITMENTS AND CONTINGENCIES Lease Agreements Currently, the Company has one operating sublease for office space that requires ASC Topic 842 treatment, discussed below. The Company’s leases typically do not provide an implicit rate. Accordingly, the Company is required to use its incremental borrowing rate in determining the present value of lease payments based on the information available at the commencement date. The Company’s incremental borrowing rate would reflect the estimated rate of interest that it would pay to borrow on a collateralized basis over a similar term, an amount equal to the lease payments in a similar economic environment. However, the Company currently maintains no debt, and in order to apply an appropriate discount rate, the Company used a borrowing rate obtained from a financial institution at which it maintains banking accounts. The Company had a lease for its corporate offices in Houston, Texas on approximately 5,200 square feet of office space that expired on August 31, 2023 and had a base monthly rent of approximately $10,000. In December 2022, the Company entered into a new lease agreement for its existing office space that commenced on September 1, 2023, which expires on February 28, 2027. The base monthly rent is approximately $9,200 for the first 18 months and increases to approximately $9,500 thereafter. The Company paid both a security deposit and prepaid rent for $14,700, respectively. Supplemental cash flow information related to the Company’s operating lease is included in the table below (in thousands): Year Ended December 31, 2023 Cash paid for amounts included in the measurement of lease liabilities $ 105 Supplemental balance sheet information related to operating leases is included in the table below (in thousands): December 31, 2023 Operating lease – right-of-use asset $ 316 Operating lease liabilities – current $ 89 Operating lease liabilities – long-term 227 Total lease liability $ 316 The weighted-average remaining lease term for the Company’s operating lease is 3.4 years as of December 31, 2023, with a weighted-average discount rate of 7.90%. Lease liability with enforceable contract terms that have greater than one-year terms are as follows (in thousands): 2024 $ 110 2025 112 2026 115 2027 19 Thereafter - Total lease payments 356 Less imputed interest (40 ) Total lease liability $ 316 Leasehold Drilling Commitments The Company’s oil and gas leasehold acreage is subject to expiration of leases if the Company does not drill and hold such acreage by production or otherwise exercises options to extend such leases, if available, in exchange for payment of additional cash consideration. In the D-J Basin Asset, no net acres expire during 2024 (net to our direct ownership interest only), with 1,721 and 4,108 net acres set to expire for the years ending December 31, 2025 and 2026 respectively, and 1,578 net acres thereafter, if we fail to meet drilling commitments or obtain term assignment extensions (net to our direct ownership interest only). In the Permian Basin Asset, 40, 0 and 0 net acres are set to expire for the years ending December 31, 2024, 2025, 2026, respectively, and 798 net acres thereafter, if we fail to meet drilling commitments or obtain term assignment extensions (net to our direct ownership interest only). The Company plans to hold significantly all of this acreage through a program of drilling and completing producing wells. If the Company is not able to drill and complete a well before term assignment expiration, the Company may seek to extend terms of contractual assignments. Other Commitments Although the Company may, from time to time, be involved in litigation and claims arising out of its operations in the normal course of business, the Company is not currently a party to any material legal proceeding. In addition, the Company is not aware of any material legal or governmental proceedings against it or contemplated to be brought against it. As part of its regular operations, the Company may become party to various pending or threatened claims, lawsuits and administrative proceedings seeking damages or other remedies concerning its commercial operations, products, employees and other matters. Although the Company provides no assurance about the outcome of these or any other pending legal and administrative proceedings and the effect such outcomes may have on the Company, the Company believes that any ultimate liability resulting from the outcome of such proceedings, to the extent not otherwise provided for or covered by insurance, will not have a material adverse effect on the Company’s financial condition or results of operations. |
SHAREHOLDERS EQUITY
SHAREHOLDERS EQUITY | 12 Months Ended |
Dec. 31, 2023 | |
SHAREHOLDERS EQUITY | |
SHAREHOLDERS EQUITY | NOTE 10 – SHAREHOLDERS’ EQUITY Common Stock During the year ended December 31, 2023, the Company granted an aggregate of 1,460,000 restricted stock awards to various employees and board members of the Company (see Note 11 below). During the year ended December 31, 2022, the Company granted an aggregate of 1,440,000 restricted stock awards to various employees and board members of the Company (see Note 11 below). On June 10, 2022, the Company sold 87,121 shares of common stock at a sales price of $1.66 per share via an ongoing “at the market offering” (the “ATM Offering”) for net proceeds of $141,000, which includes $4,000 in commission fees. The Company also incurred $106,000 in initial and subsequent legal and audit fees for registration and placement of the ATM Offering. The ATM Offering was made pursuant to the terms of that certain November 17, 2021, Sales Agreement (the “Sales Agreement”) with Roth Capital Partners, LLC (“Roth Capital”, or the “Agent”). Pursuant to the Sales Agreement the Company agreed to pay the sales agent a commission of 3.0% of the gross sales price of any shares sold under the Sales Agreement, less reimbursement of the first $40,000 of such gross proceeds. The Company also provided the Agent with customary indemnification rights and has agreed to reimburse the sales agent for certain specified expenses up to $25,000. Sales under the Sales Agreement were to be made under the Company’s Form S-3 shelf registration statement, which has now expired, and as such, the Company is not currently eligible to sell any additional securities under the Sales Agreement and, accordingly, was terminated by the Company effective March 15, 2024. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2023 | |
SHARE-BASED COMPENSATION | |
SHARE-BASED COMPENSATION | NOTE 11 – SHARE-BASED COMPENSATION 2021 Incentive Plan On September 1, 2021, the shareholders of the Company approved the 2021 Equity Incentive Plan (the “2021 Incentive Plan”), which was previously approved by the Board of Directors on July 11, 2021 and authorizes the issuance of various forms of stock-based awards, including incentive or non-qualified options, restricted stock awards, performance shares and other securities as described in greater detail in the 2021 Incentive Plan, to the Company’s employees, officers, directors and consultants. A total of a maximum of 8,000,000 shares of common stock are eligible to be issued under the 2021 Incentive Plan. As of December 31, 2023, 2,900,000 shares have been issued as restricted stock, and 990,000 shares are subject to issuance upon exercise of issued and outstanding options. 2012 Incentive Plan On July 27, 2012, the shareholders of the Company approved the 2012 Equity Incentive Plan (the “2012 Incentive Plan”), which was previously approved by the Board of Directors on June 27, 2012 and authorizes the issuance of various forms of stock-based awards, including incentive or non-qualified options, restricted stock awards, performance shares and other securities as described in greater detail in the 2012 Incentive Plan, to the Company’s employees, officers, directors and consultants. The 2012 Incentive Plan was amended on June 27, 2014, October 7, 2015 and December 28, 2016, December 28, 2017, September 27, 2018 and August 28, 2019 to increase by 500,000, 300,000, 500,000, 1,500,000, 3,000,000 and 2,000,000 (to 8,000,000 currently), respectively, the number of shares of common stock reserved for issuance under the 2012 Incentive Plan. As of December 31, 2023, 6,449,503 shares have been issued as restricted stock, and 642,234 shares are subject to issuance upon exercise of issued and outstanding options. The Company is not eligible to grant any additional awards under the 2012 Incentive Plan. PEDCO 2012 Equity Incentive Plan As a result of the July 27, 2012 merger by and between the Company, Blast Acquisition Corp., a wholly-owned Nevada subsidiary of the Company (“MergerCo”), and Pacific Energy Development Corp., a privately-held Nevada corporation pursuant to which MergerCo was merged with and into PEDCO, with PEDCO continuing as the surviving entity and becoming a wholly-owned subsidiary of the Company, in a transaction structured to qualify as a tax-free reorganization (the “Merger”), the Company assumed the PEDCO 2012 Equity Incentive Plan (the “PEDCO Incentive Plan”), which was adopted by PEDCO on February 9, 2012. The PEDCO Incentive Plan authorized PEDCO to issue an aggregate of 100,000 shares of common stock in the form of restricted shares, incentive stock options, non-qualified stock options, share appreciation rights, performance shares, and performance units under the PEDCO Incentive Plan. As of December 31, 2023, there were no outstanding options, and 55,168 shares of the Company’s restricted common stock have been granted under this plan (all of which were granted by PEDCO prior to the closing of the merger with the Company, with such grants being assumed by the Company and remaining subject to the PEDCO Incentive Plan following the consummation of the merger). The Company is not eligible to grant any additional awards under the PEDCO Incentive Plan. The Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award over the vesting period. Common Stock On January 23, 2023, an aggregate of 1,250,000 shares of restricted common stock were granted to officers of the Company under the Company’s 2021 Equity Incentive Plan. The grant of the 1,250,000 shares of restricted common stock vest as follows: 33.3% vest each subsequent year from the date of grant, contingent upon the recipient’s continued service with the Company. These shares had a total fair value of $1,363,000 based on the market price on the issuance date. On August 31, 2023, an aggregate of 210,000 restricted stock awards were granted to two board members under the Company’s 2021 Equity Incentive Plan. The grant of the 210,000 shares of restricted common stock vest as follows: 100% of 125,000 shares and 100% of 85,000 shares vesting on July 12, 2024 and September 27, 2024, respectively, contingent upon each recipient’s continued service with the Company. These shares have a total fair value of $200,000 based on the market price on the grant date. On January 25, 2022, an aggregate of 1,200,000 shares of restricted common stock were granted to officers of the Company, under the Company’s 2021 Equity Incentive Plan. The grant of the 1,200,000 shares of restricted common stock vest as follows: 33.3% vest each subsequent year from the date of grant, contingent upon the recipient’s continued service with the Company (of which the first tranche has fully vested). These shares have a total fair value of $1,404,000 based on the market price on the issuance date. On August 25, 2022, restricted stock awards were granted to three board members for an aggregate of 240,000 shares of the Company’s restricted common stock, under the Company’s 2021 Equity Incentive Plan. The grant of the 240,000 shares of restricted common stock vest as follows: 100% of 170,000 shares and 100% of 70,000 shares vesting on July 12, 2023 and September 27, 2023, respectively, contingent upon each recipient’s continued service with the Company (all of which have vested). These shares have a total fair value of $280,000 based on the market price on the grant date. The awarded shares above are subject to trading restrictions, and forfeiture, subject to the vesting terms described above. When such securities are vested in accordance with their terms, the trading restrictions are lifted. Stock-based compensation expense recorded related to restricted stock during the years ended December 31, 2023 and 2022 was $1,621,000 and $1,673,000, respectively. The remaining amount of unamortized stock-based compensation expense related to restricted stock at December 31, 2023 and 2022 was $819,000 and $878,000, respectively. Options On January 23, 2023, the Company granted options to purchase an aggregate of 540,000 shares of common stock to various Company employees at an exercise price of $1.09 per share under the Company’s 2021 Equity Incentive Plan. The options have a term of five years and fully vest in January 2026, with 33.3% vesting each subsequent year from the date of grant, contingent upon the recipient’s continued service with the Company. The aggregate fair value of the options on the date of grant, using the Black-Scholes model, was $429,000. Variables used in the Black-Scholes option-pricing model for the options issued include: (1) a discount rate of 3.61% based on the applicable US Treasury bill rate, (2) expected term of 3.5 years, (3) expected volatility of 113% based on the trading history of the Company, and (4) zero expected dividends. During the period ended December 31, 2023, 315,333 options expired unexercised. On January 25, 2022, the Company granted options to purchase an aggregate of 520,000 shares of common stock to various Company employees at an exercise price of $1.17 per share. The options have a term of five years and fully vest on January 2025, with 33.3% vesting each subsequent year from the date of grant, contingent upon the recipient’s continued service with the Company. The aggregate fair value of the options on the date of grant, using the Black-Scholes model, was $454,000. Variables used in the Black-Scholes option-pricing model for the options issued include: (1) a discount rate of 1.56% based on the applicable US Treasury bill rate, (2) expected term of 3.5 years, (3) expected volatility of 120% based on the trading history of the Company, and (4) zero expected dividends. During the period ended December 31, 2022, 190,000 options were rescinded due to an employee termination. As a result, these options once again became eligible for future awards under the Company’s Amended and Restated 2012 and 2021 Equity Incentive Plans. An additional 45,768 options expired unexercised. During the year ended December 31, 2023 and 2022, the Company recognized stock option-based compensation expense related to options of $422,000 and $424,000, respectively. The remaining amount of unamortized stock options expense at December 31, 2023 and 2022 was $210,000 and $206,000, respectively. There was no intrinsic value of outstanding and exercisable options at December 31, 2023 and 2022, respectively. Option activity during the years ended December 31, 2023 and 2022 was: 2023 2022 Number of Stock Options Weighted Average Grant Price Weighted Average Remaining Contract Term (Years) Number of Stock Options Weighted Average Grant Price Weighted Average Remaining Contract Term (Years) Outstanding at Beginning of Period 1,407,667 $ 1.51 2.7 1,123,435 $ 1.80 3.0 Granted 540,000 1.09 520,000 1.17 Expired/Canceled (315,333 ) 1.99 (235,768 ) 2.17 Outstanding at End of Period 1,632,334 $ 1.28 2.8 1,407,667 $ 1.51 2.7 Exercisable at End of Period 665,667 $ 1.45 1.9 575,667 $ 1.79 1.6 |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 12 Months Ended |
Dec. 31, 2023 | |
EARNINGS PER COMMON SHARE | |
EARNINGS PER COMMON SHARE | NOTE 12 – EARNINGS PER COMMON SHARE Earnings per common share-basic is calculated by dividing net income by the weighted average number of shares of common stock outstanding during the period. Net income per common share-diluted assumes the conversion of all potentially dilutive securities and is calculated by dividing net income by the sum of the weighted average number of shares of common stock, as defined above, outstanding plus potentially dilutive securities. Net income per common share-diluted considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of the potential common shares, as defined above, would have an anti-dilutive effect. The calculation of earnings per share for the years ended December 31, 2023 and December 31, 2022 were as follows (amounts in thousands, except share and per share data): Numerator: 2023 2022 Net income $ 264 $ 2,844 Denominator: Weighted average common shares – basic 87,031,692 85,513,095 Dilutive effect of common stock equivalents: Options - - Denominator: Weighted average common shares – diluted 87,031,692 85,513,095 Earnings per share – basic $ 0.00 $ 0.03 Earnings (loss) per share – diluted $ 0.00 $ 0.03 For the years ended December 31, 2023 and 2022, share equivalents related to options to purchase 1,632,334 and 1,407,667 shares of common stock, respectively, were excluded from the computation of diluted net income per share as the inclusion of such shares would be anti-dilutive. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2023 | |
INCOME TAXES | |
INCOME TAXES | NOTE 13 – INCOME TAXES Due to the Company’s net losses, there were no provisions for income taxes for the years ended December 31, 2023, and 2022. The following table reconciles the U.S. federal statutory income tax rate in effect for the years ended December 31, 2023, and 2022, and the Company’s effective tax rate: 2023 2022 U.S. federal statutory income tax 21.00 % 21.00 % State and local income tax, net of benefits 6.64 % 6.64 % Amortization of debt discount 0.00 % 0.00 % Meals & Entertainment 0.48 % 0.02 % Other Income – PPP Loan 0.00 % 0.00 % Officer life insurance and D&O insurance 23.99 % 2.49 % Stock-based compensation 0.00 % 0.00 % Tax rate changes and other 0.00 % 0.00 % Valuation allowance for deferred income tax assets (52.11 %) (30.15 %) Effective income tax rate 0.00 % 0.00 % Deferred income tax assets as of December 31, 2023, and 2022 are as follows (in thousands): Deferred Tax Assets 2023 2022 Accretion $ 588 $ 425 Difference in depreciation, depletion, and capitalization methods – oil and natural gas properties (2,844 ) 1,516 Interest Expense - PPP Loan 1 1 Impairment 5,343 5,343 Lease Liability 87 (58 ) ROU Assets (87 ) 80 Gain/Loss from sale of FA and/or O&G properties 167 (59 ) Loss on ARO 23 23 Stock options - NQ - (174 ) Stock-Based Compensation 1,356 1,507 Net operating loss – federal taxes 26,863 24,080 Net operating loss – state taxes 4,304 3,423 Total deferred tax asset $ 35,801 $ 36,106 Less valuation allowance (35,801 ) (36,106 ) Total deferred tax assets $ - $ - In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all deferred assets will not be realized. The ultimate realization of the deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Utilization of NOL and tax credit carryforwards may be subject to a substantial annual limitation due to ownership change limitations that may have occurred or that could occur in the future, as required by the Internal Revenue Code (the “Code”), as amended, as well as similar state provisions. In general, an “ownership change” as defined by the Code results from a transaction or series of transactions over a three-year period resulting in an ownership change of more than 50 percent of the outstanding return stock of a company by certain shareholders or public groups. Based on the available objective evidence, management believes it is more likely than not that the net deferred tax assets will not be fully realizable. Accordingly, management has applied a full valuation allowance against its net deferred tax assets on December 31, 2023, and 2022. The net change in the total valuation allowance from December 31, 2023, to December 31, 2022, was a decrease of $305,000. The Company’s policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. As of December 31, 2023, and 2022, the Company did not have any significant uncertain tax positions or unrecognized tax benefits. The Company did not have associated accrued interest or penalties, nor was any interest expense or penalties recognized for the years ended December 31, 2023, and 2022. Prior to the TCJA amendment, Section 174 allowed taxpayers to either immediately deduct R&E expenditures in the year paid or incurred or elect to capitalize and amortize R&E expenditures over a period of at least 60 months. Starting after December 31, 2021, TCJA’s amendment to Section 174 requires U.S.-based and non-U. S-based research and experimental (R&E) expenditures to be capitalized and amortized over a period of five or 15 years, respectively, for amounts paid in tax years. Additionally, software development costs are specifically included as R&E expenditures under Section 174(c)(3) and, therefore, will be subject to the same mandatory amortization period of five or 15 years. Currently, there are no R&E expenditure that will apply to this regulation. As of December 31, 2023, the Company has federal net operating loss carryforwards of approximately $128,000,000, which if not utilized, approximately $93,000,000 of which will begin expiring in 2024 and ending 2038, respectively, and $35,000,000 under CARES Act can be carried back up to five years but also, can be carried forward indefinitely, limited to 80% of a given years taxable income. The Company currently has tax returns open for examination by the Internal Revenue Service for all years, since 2019. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2023 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 14 – SUBSEQUENT EVENTS On January 26, 2024, the Company granted options to purchase an aggregate of 460,000 shares of common stock to various Company employees at an exercise price of $0.6675 per share under the Company’s 2021 Equity Incentive Plan. The options have a term of five years and fully vest in January 2027, with 33.3% vesting each subsequent year from the date of grant, contingent upon the recipient’s continued service with the Company. The aggregate fair value of the options on the date of grant, using the Black-Scholes model, was $216,000. Variables used in the Black-Scholes option-pricing model for the options issued include: (1) a discount rate of 4.04% based on the applicable US Treasury bill rate, (2) expected term of 3.5 years, (3) expected volatility of 104% based on the trading history of the Company, and (4) zero expected dividends. Additionally, on January 26, 2024, restricted stock awards were granted to officers and employees of the Company for an aggregate of 2,105,000 shares of the Company’s restricted common stock, under the Company’s 2021 Equity Incentive Plan. The grant for the 2,105,000 shares of restricted common stock vest as follows: 33.3% vest each subsequent year from the date of grant contingent upon the recipient’s continued service with the Company. These shares have a total fair value of $1,426,000 based on the market price on the grant date. In addition, on January 26, 2024, after recommendation by the Compensation Committee of the Company’s Board of Directors, the Board of Directors of the Company, in connection with the Company’s annual compensation review, approved: (A) a 5% increase of the annual base salaries for (i) Mr. Paul Pinkston, the Company’s Chief Accounting Officer, from $160,000 to $168,000, (ii) Mr. J. Douglas Schick, the President of the Company, from $290,000 to $304,500, and (iii) Mr. Clark R. Moore, the Executive Vice President, General Counsel and Secretary of the Company, from $280,000 to $294,000, all effective February 1, 2024 (none of the increases in salary were documented by written agreements or amendments); and (B) cash bonuses for (i) Mr. Paul Pinkston, the Company’s Chief Accounting Officer, in the amount of $35,000, (ii) Mr. J. Douglas Schick, the President of the Company, in the amount of $120,000, and (iii) Mr. Clark R. Moore, the Executive Vice President, General Counsel and Secretary of the Company in the amount of $110,000. The Company also acquired approximately 319 net lease acres in and around its existing footprint in the D-J Basin through multiple transactions in the first quarter 2024, at total acquisition costs of $138,000. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation. |
Use of Estimates in Financial Statement Preparation | Use of Estimates in Financial Statement Preparation. |
Cash and Cash Equivalents | Cash and Cash Equivalents. |
Concentrations of Credit Risk | Concentrations of Credit Risk. Sales to three customers comprised 42%, 35% and 18%, respectively, of the Company’s total oil and gas revenues for the year ended December 31, 2023 compared to sales to two customers comprising 63% and 20%, respectively, of the Company's total oil and gas revenues for the year ended December 31, 2022. The Company believes that, in the event that its primary customers are unable or unwilling to continue to purchase the Company’s production, there are a substantial number of alternative buyers for its production at comparable prices. |
Accounts Receivable | Accounts Receivable. |
Bad Debt Expense | Bad Debt Expense. |
Equipment | Equipment. |
Oil and Gas Properties, Successful Efforts Method | Oil and Gas Properties, Successful Efforts Method. Exploratory wells in areas not requiring major capital expenditures are evaluated for economic viability within one year of completion of drilling. The related well costs are expensed as dry holes if it is determined that such economic viability is not attained. Otherwise, the related well costs are reclassified to oil and gas properties and subject to impairment review. For exploratory wells that are found to have economically viable reserves in areas where major capital expenditure will be required before production can commence, the related well costs remain capitalized only if additional drilling is under way or firmly planned. Otherwise, the related well costs are expensed as dry holes. Exploration and evaluation expenditures incurred subsequent to the acquisition of an exploration asset in a business combination are accounted for in accordance with the policy outlined above. Depreciation, depletion and amortization of capitalized oil and gas properties is calculated on a field-by-field basis using the unit of production method. Lease acquisition costs are amortized over the total estimated proved developed and undeveloped reserves and all other capitalized costs are amortized over proved developed reserves. Costs specific to developmental wells for which drilling is in progress or uncompleted are capitalized as wells in progress and not subject to amortization until completion and production commences, at which time amortization on the basis of production will begin. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets. |
Asset Retirement Obligations | Asset Retirement Obligations. |
Revenue Recognition | Revenue Recognition. Contracts with customers have varying terms, including month-to-month contracts, and contracts with a finite term. The Company recognizes sales revenues for oil, natural gas, and NGLs based on the amount of each product sold to a customer when control transfers to the customer. Generally, control transfers at the time of delivery to the customer at a pipeline interconnect, the tailgate of a processing facility, or as a tanker lifting is completed. Revenue is measured based on the contract price, which may be index-based or fixed, and may include adjustments for market differentials and downstream costs incurred by the customer, including gathering, transportation, and fuel costs. Revenues are recognized for the sale of the Company’s net share of production volumes. Sales on behalf of other working interest owners and royalty interest owners are not recognized as revenues. |
Income Taxes | Income Taxes. |
Uncertain Tax Positions | Uncertain Tax Positions. The Company is subject to ongoing tax exposures, examinations and assessments in various jurisdictions. Accordingly, the Company may incur additional tax expense based upon the outcomes of such matters. In addition, when applicable, the Company will adjust tax expense to reflect the Company’s ongoing assessments of such matters, which require judgment and can materially increase or decrease its effective rate as well as impact operating results. |
Stock-Based Compensation | Stock-Based Compensation. The Company estimates volatility by considering the historical stock volatility. The Company has opted to use the simplified method for estimating expected term, which is generally equal to the midpoint between the vesting period and the contractual term. |
Earnings per Common Share | Earnings per Common Share. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements. Measurement of Credit Losses on Financial Instruments |
Subsequent Events | Subsequent Events. |
CASH AND CASH EQUIVALENTS (Tabl
CASH AND CASH EQUIVALENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
CASH AND CASH EQUIVALENTS | |
Schedule of Cash And Restricted Cash | 2023 2022 Cash $ 18,515 $ 29,430 Restricted cash included in other assets 2,200 3,547 Total cash and restricted cash as shown in the consolidated statements of cash flows $ 20,715 $ 32,977 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
Schedule of disaggregation of revenue from contract with customers | 2023 2022 Oil sales $ 27,925 $ 27,669 Natural gas sales 1,438 1,577 Natural gas liquids sales 1,421 788 Total revenue from customers $ 30,784 $ 30,034 |
OIL AND GAS PROPERTIES (Tables)
OIL AND GAS PROPERTIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
OIL AND GAS PROPERTIES | |
Schedule Oil And Gas Properties | Balance at December 31, Balance at December 31, 2022 Additions Disposals Transfers 2023 Oil and gas properties, subject to amortization $ 176,253 $ 15,645 $ (6,495 ) $ - $ 185,403 Oil and gas properties, not subject to amortization 775 11,632 - - 12,407 Asset retirement costs 1,407 39 (593 ) - 853 Accumulated depreciation, depletion and impairment (98,288 ) (10,265 ) 1,483 - (107,070 ) Total oil and gas assets $ 80,147 $ 17,051 $ (5,605 ) $ - $ 91,593 Balance at December 31, Balance at December 31, 2021 Additions Disposals Transfers 2022 Oil and gas properties, subject to amortization $ 151,338 $ 22,356 $ - $ 2,559 $ 176,253 Oil and gas properties, not subject to amortization 2,559 775 - (2,559 ) 775 Asset retirement costs 789 618 - - 1,407 Accumulated depreciation, depletion and impairment (88,219 ) (10,069 ) - - (98,288 ) ) Total oil and gas assets $ 66,467 $ 13,680 $ - $ - $ 80,147 |
ASSET RETIREMENT OBLIGATIONS (T
ASSET RETIREMENT OBLIGATIONS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
ASSET RETIREMENT OBLIGATION | |
Schedule of Asset Retirement Obligation | 2023 Balance at the beginning of the period (1) $ 3,161 Accretion expense 587 Disposition of liabilities (971 ) Liabilities settled (503 ) Changes in estimates 39 Balance at end of period (2) $ 2,313 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and contingencies | |
Schedule Of supplemental Cash flow information | Year Ended December 31, 2023 Cash paid for amounts included in the measurement of lease liabilities $ 105 |
Supplemental information related to operating lease | 2024 $ 110 2025 112 2026 115 2027 19 Thereafter - Total lease payments 356 Less imputed interest (40 ) Total lease liability $ 316 |
Schedule of supplemental balance sheet information | December 31, 2023 Operating lease – right-of-use asset $ 316 Operating lease liabilities – current $ 89 Operating lease liabilities – long-term 227 Total lease liability $ 316 |
SHAREBASED COMPENSATION (Tables
SHAREBASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
SHAREBASED COMPENSATION (Tables) | |
Schedule of Stock Option Activity | 2023 2022 Number of Stock Options Weighted Average Grant Price Weighted Average Remaining Contract Term (Years) Number of Stock Options Weighted Average Grant Price Weighted Average Remaining Contract Term (Years) Outstanding at Beginning of Period 1,407,667 $ 1.51 2.7 1,123,435 $ 1.80 3.0 Granted 540,000 1.09 520,000 1.17 Expired/Canceled (315,333 ) 1.99 (235,768 ) 2.17 Outstanding at End of Period 1,632,334 $ 1.28 2.8 1,407,667 $ 1.51 2.7 Exercisable at End of Period 665,667 $ 1.45 1.9 575,667 $ 1.79 1.6 |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
EARNINGS PER COMMON SHARE | |
Shedule of Earnings Per Share | Numerator: 2023 2022 Net income $ 264 $ 2,844 Denominator: Weighted average common shares – basic 87,031,692 85,513,095 Dilutive effect of common stock equivalents: Options - - Denominator: Weighted average common shares – diluted 87,031,692 85,513,095 Earnings per share – basic $ 0.00 $ 0.03 Earnings (loss) per share – diluted $ 0.00 $ 0.03 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
INCOME TAXES | |
Schedule of effective income tax rate reconciliation | 2023 2022 U.S. federal statutory income tax 21.00 % 21.00 % State and local income tax, net of benefits 6.64 % 6.64 % Amortization of debt discount 0.00 % 0.00 % Meals & Entertainment 0.48 % 0.02 % Other Income – PPP Loan 0.00 % 0.00 % Officer life insurance and D&O insurance 23.99 % 2.49 % Stock-based compensation 0.00 % 0.00 % Tax rate changes and other 0.00 % 0.00 % Valuation allowance for deferred income tax assets (52.11 %) (30.15 %) Effective income tax rate 0.00 % 0.00 % |
Schedule of deferred income tax | Deferred Tax Assets 2023 2022 Accretion $ 588 $ 425 Difference in depreciation, depletion, and capitalization methods – oil and natural gas properties (2,844 ) 1,516 Interest Expense - PPP Loan 1 1 Impairment 5,343 5,343 Lease Liability 87 (58 ) ROU Assets (87 ) 80 Gain/Loss from sale of FA and/or O&G properties 167 (59 ) Loss on ARO 23 23 Stock options - NQ - (174 ) Stock-Based Compensation 1,356 1,507 Net operating loss – federal taxes 26,863 24,080 Net operating loss – state taxes 4,304 3,423 Total deferred tax asset $ 35,801 $ 36,106 Less valuation allowance (35,801 ) (36,106 ) Total deferred tax assets $ - $ - |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) shares | |
Anti diluted shares | shares | 1,632,334 |
Receivables from joint interest owners | $ | $ 3.8 |
Customer One | Customer Concentration Risk [Member] | Revenue Benchmark [Member] | |
Revenue risk percentage | 42% |
Customer Two [Member] | Customer Concentration Risk [Member] | Revenue Benchmark [Member] | |
Revenue risk percentage | 35% |
Customer Three [Member] | Customer Concentration Risk [Member] | Revenue Benchmark [Member] | |
Revenue risk percentage | 18% |
Minimum | |
Estimated useful lives of the assets | 3 years |
Maximum [Member] | |
Estimated useful lives of the assets | 10 years |
CASH AND CASH EQUIVALENTS (Deta
CASH AND CASH EQUIVALENTS (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
CASH AND CASH EQUIVALENTS | ||
Cash | $ 18,515 | $ 29,430 |
Restricted Cash Included In Other Assets | 2,200 | 3,547 |
Total cash and restricted cash | $ 20,715 | $ 32,977 |
CASH AND CASH EQUIVALENTS (De_2
CASH AND CASH EQUIVALENTS (Details Narrative) $ in Thousands | Dec. 31, 2023 USD ($) |
CASH AND CASH EQUIVALENTS | |
Restricted cash decreased | $ 1,347,000 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Total revenue from customers | $ 30,034 | $ 30,784 |
Oil Sales | ||
Total revenue from customers | 27,925 | 27,669 |
Natural Gas Sales | ||
Total revenue from customers | 1,438 | 1,577 |
Natural Gas Liquids Sales | ||
Total revenue from customers | $ 1,421 | $ 788 |
OIL AND GAS PROPERTIES (Details
OIL AND GAS PROPERTIES (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Asset retirement costs | $ 853 | $ 1,407 | $ 789 |
Oil and gas properties, subject to amortization | 185,403 | 176,253 | 151,338 |
Oil and gas properties, subject to amortization | (185,403) | (176,253) | (151,338) |
Oil and gas properties, not subject to amortization | 12,407 | 775 | 2,559 |
Accumulated depreciation, depletion and impairment | (107,070) | (98,288) | (88,219) |
Total oil and gas properties, net | 91,593 | 80,147 | 66,467 |
Total oil and gas properties, net | (91,593) | (80,147) | $ (66,467) |
Additions | |||
Asset retirement costs | 39 | 618 | |
Oil and gas properties, subject to amortization | 15,645 | 22,356 | |
Oil and gas properties, subject to amortization | (15,645) | (22,356) | |
Oil and gas properties, not subject to amortization | 11,632 | 775 | |
Accumulated depreciation, depletion and impairment | (10,265) | (10,069) | |
Total oil and gas properties, net | 17,051 | 13,680 | |
Total oil and gas properties, net | (17,051) | (13,680) | |
Disposals | |||
Asset retirement costs | (593) | 0 | |
Oil and gas properties, subject to amortization | 6,495 | 0 | |
Oil and gas properties, subject to amortization | (6,495) | 0 | |
Oil and gas properties, not subject to amortization | 0 | 0 | |
Accumulated depreciation, depletion and impairment | (1,483) | 0 | |
Total oil and gas properties, net | 5,605 | 0 | |
Total oil and gas properties, net | (5,605) | 0 | |
Transfers | |||
Asset retirement costs | 0 | 0 | |
Oil and gas properties, subject to amortization | 0 | 2,559 | |
Oil and gas properties, subject to amortization | 0 | (2,559) | |
Oil and gas properties, not subject to amortization | 0 | (2,559) | |
Accumulated depreciation, depletion and impairment | 0 | 0 | |
Total oil and gas properties, net | 0 | 0 | |
Total oil and gas properties, net | $ 0 | $ 0 |
OIL AND GAS PROPERTIES (Detai_2
OIL AND GAS PROPERTIES (Details Narrative) - USD ($) | 12 Months Ended | |||
Nov. 09, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Jul. 01, 2021 | |
OIL AND GAS PROPERTIES | ||||
Capital costs for recently completed wells | $ 23,131,000 | $ 21,573,000 | ||
Acquisition and development of assets | 8,400,000 | |||
Capital cost of drilling and completion | 12,500,000 | |||
Cash consideration | $ 500,000 | |||
Net capital cost | 1,200,000 | |||
Total acquistion | 607,000 | |||
Due deligance cost | 688,000 | |||
Depletion | $ 10,265,000 | $ 10,069,000 | ||
Description of additional paid | estimated aggregate plugging and abandoning liabilities by over $3.2 million. The Company recognized a receivable of $56,000 due from Tilloo in post-closing adjustments, and as a result of the transaction, the Company recognized a $4.3 million loss on sale of oil and gas properties as reflected in the Statement of Operations for the year ended December 31, 2023 | The Company also acquired approximately 282 net mineral acres, and 6,465 net lease acres, in and around its existing footprint in the D-J Basin through multiple transactions with total acquisition and due diligence costs of $493,000 for the net mineral acres and $5,211,000 for the net lease acres |
NOTE RECEIVABLE (Details Narrat
NOTE RECEIVABLE (Details Narrative) | Dec. 31, 2023 USD ($) |
NOTE RECEIVABLE | |
Interest rate | 10% |
Note in Current Assets | $ 42,000 |
Other Assets | 1,099,000 |
Accrued interest | $ 16,000 |
ASSET RETIREMENT OBLIGATIONS (D
ASSET RETIREMENT OBLIGATIONS (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
ASSET RETIREMENT OBLIGATION | |
Balance at the beginning of the period | $ 3,161 |
Accretion expense | 587 |
Disposition of liabilities | (971) |
Liabilities settled | (503) |
Changes in estimates | 39 |
Balance at end of period | $ 2,313 |
ASSET RETIREMENT OBLIGATIONS _2
ASSET RETIREMENT OBLIGATIONS (Details Narrative) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
ASSET RETIREMENT OBLIGATION | ||
Cureent asset retirement | $ 147,000 | $ 472,000 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Commitments and contingencies | ||
Cash paid for amounts included in the measurement of lease liabilities | $ 105 | |
Operating lease - right-of-use asset | 316 | $ 71 |
Operating lease liabilities - current | 89 | |
Operating lease liabilities - long-term | 227 | 0 |
Total lease liability | $ 316 | $ 316 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Details 1) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Commitments and contingencies | ||
2024 | $ 110 | |
2025 | 112 | |
2026 | 115 | |
2027 | 19 | |
Thereafter | 0 | |
Total lease payments | 356 | |
Less imputed interest | 40 | |
Total lease liability | $ 316 | $ 316 |
COMMITMENTS AND CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES (Details Narrative) | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Commitments and contingencies | |
Rent expenses | $ 10,000 |
Expiry of lease date | Feb. 28, 2027 |
Monthly rent | $ 9,200 |
Security deposit and prepaid rent | $ 14,700 |
Weighted-average remaining lease term | 3 years 4 months 24 days |
Description of lease hold commitments | In the D-J Basin Asset, no net acres expire during 2024 (net to our direct ownership interest only), with 1,721 and 4,108 net acres set to expire for the years ending December 31, 2025 and 2026 respectively, and 1,578 net acres thereafter, if we fail to meet drilling commitments or obtain term assignment extensions (net to our direct ownership interest only). In the Permian Basin Asset, 40, 0 and 0 net acres are set to expire for the years ending December 31, 2024, 2025, 2026, respectively, and 798 net acres thereafter |
Weighted-average discount rate | 7.90% |
SHAREHOLDERS EQUITY (Details Na
SHAREHOLDERS EQUITY (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jun. 10, 2022 | Nov. 17, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Restricted stock awards granted | 1,460,000 | 1,440,000 | ||
Expenses | $ 10,000 | |||
ATM Offering [Member] | ||||
Sale of common stock | 87,121 | |||
Share sale price | $ 1.66 | |||
Net proceeds | $ 141,000 | |||
Commission fees | 4,000 | |||
Proceeds from legal and audit fee | $ 106,000 | |||
ATM Offering [Member] | Sales Agreement [Member] | ||||
Commission fee | 3% | |||
Gross proceeds | $ 40,000 | |||
Expenses | $ 25,000 |
SHAREBASED COMPENSATION (Detail
SHAREBASED COMPENSATION (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
SHAREBASED COMPENSATION (Tables) | ||
Number of options outstanding,beginning | 1,407,667 | 1,123,435 |
Number of options granted | 540,000 | 520,000 |
Number of options expired/cancelled | (315,333) | (235,768) |
Number of options outstanding, ending | 1,632,334 | 1,407,667 |
Number of options exercisable | 665,667 | 575,667 |
Weighted average exercise price outstanding, beginning | $ 1.51 | $ 1.80 |
Weighted average exercise price granted | 1.09 | 1.17 |
Weighted average exercise price expired/cancelled | 1.99 | 2.17 |
Weighted average exercise price outstanding, ending | 1.28 | 1.51 |
Weighted average exercise price exercisable | $ 1.45 | $ 1.79 |
Weighted average remaining contractual life (in years) outstanding, beginning | 2 years 8 months 12 days | 3 years |
Weighted average remaining contractual life (in years) outstanding, ending | 2 years 9 months 18 days | 2 years 8 months 12 days |
Weighted average remaining contractual life (in years) exercisable | 1 year 10 months 24 days | 1 year 7 months 6 days |
SHAREBASED COMPENSATION (Deta_2
SHAREBASED COMPENSATION (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Aug. 31, 2023 | Jan. 23, 2023 | Aug. 25, 2022 | Jan. 25, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Unamortized stock-based compensation expense, restricted stock | $ 1,621,000 | $ 1,673,000 | ||||
Unamortized stock-based compensation expense, restricted stock option | 819,000 | 878,000 | ||||
Stock-based compensation expense, stock option | $ 422,000 | $ 424,000 | ||||
Common stock shares | 540,000 | 520,000 | ||||
Common stock shares,exercise price | $ 1.09 | $ 1.17 | ||||
Aggregate fair value of the options | $ 429,000 | $ 454,000 | ||||
Fair value of the options discount rate | 3.61% | 1.56% | ||||
Fair value of the options, expexted term | 3 years 6 months | 3 years 6 months | ||||
Fair value of the options, expected volatility | 113% | 120% | ||||
Description of option term | The options have a term of five years and fully vest in January 2026, with 33.3% vesting each subsequent year from the date of grant, contingent upon the recipient’s continued service with the Company | The options have a term of five years and fully vest on January 2025, with 33.3% vesting each subsequent year from the date of grant, contingent upon the recipient’s continued service with the Company | ||||
Stock issuance on excercise of option | 665,667 | 575,667 | ||||
Common stock,total fair value | $ 0 | $ 35,000 | ||||
Option [Member] | ||||||
Unamortized stock-based compensation expense, restricted stock | $ 210,000 | $ 206,000 | ||||
options expired unexercised | 315,333 | 45,768 | ||||
options rescinded | $ 190,000 | |||||
Amended and Restated 2012 Equity Incentive Plan [Member] | ||||||
Common stock shares issued | 210,000 | 1,250,000 | 240,000 | 1,200,000 | ||
Description of restricted stock | The grant of the 210,000 shares of restricted common stock vest as follows: 100% of 125,000 shares and 100% of 85,000 shares vesting on July 12, 2024 and September 27, 2024, respectively | The grant of the 1,250,000 shares of restricted common stock vest as follows: 33.3% vest | The grant of the 240,000 shares of restricted common stock vest as follows: 100% of 170,000 shares and 100% of 70,000 shares vesting on July 12, 2023 and September 27, 2023, respectively | The grant of the 1,200,000 shares of restricted common stock vest as follows: 33.3% vest | ||
Common stock,total fair value | $ 200,000 | $ 1,363,000 | $ 280,000 | $ 1,404,000 | ||
Two Thousand Twelve Incentive Plan [Member] | ||||||
Common stock reserved for future issuance | 8,000,000 | |||||
Restricted stock issued | 6,449,503 | |||||
Stock issuance on excercise of option | 642,234 | |||||
Two Thousand Twelve Incentive Plan [Member] | Two Thousand Fourteen [Member] | ||||||
Common stock reserved for future issuance | 500,000 | |||||
Two Thousand Twelve Incentive Plan [Member] | Two Thousand Fifteen [Member] | ||||||
Common stock reserved for future issuance | 300,000 | |||||
Two Thousand Twelve Incentive Plan [Member] | Two Thousand Sixteen [Member] | ||||||
Common stock reserved for future issuance | 500,000 | |||||
Two Thousand Twelve Incentive Plan [Member] | Two Thousand Seventeen [Member] | ||||||
Common stock reserved for future issuance | 1,500,000 | |||||
Two Thousand Twelve Incentive P Lan [Member] | Two Thousand Eighteen [Member] | ||||||
Common stock reserved for future issuance | 3,000,000 | |||||
Two Thousand Twelve Incentive P Lan [Member] | Two Thousand Nineteen [Member] | ||||||
Common stock reserved for future issuance | 2,000,000 | |||||
P E D C O Two Thouusand Twelve Equity Incentive Plan [Member] | ||||||
Restricted stock issued | 55,168 | |||||
Stock authorized for issuence | 100,000 | |||||
Two Thousand Twenty One Incentive Plan [Member] | ||||||
Restricted stock issued | 2,900,000 | |||||
Stock issuance on excercise of option | 990,000 | |||||
Common stock available for issuance | 8,000,000 |
EARNINGS PER COMMON SHARE (Deta
EARNINGS PER COMMON SHARE (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
EARNINGS PER COMMON SHARE | ||
Net income | $ 264,000 | $ 2,844,000 |
Numerator | ||
Weighted average common shares - basic | 87,031,692 | 85,513,095 |
Dilutive Effect Of Common Stock Equivalents: | ||
Options And Warrants | $ 0 | $ 0 |
Denominator: | ||
Weighted average common shares - diluted | 87,031,692 | 85,513,095 |
Earnings per share - basic | $ 0 | $ 0.03 |
Earnings (loss) per share - diluted | $ 0 | $ 0.03 |
EARNINGS PER COMMON SHARE (De_2
EARNINGS PER COMMON SHARE (Details Narrative) - shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
EARNINGS PER COMMON SHARE | ||
Share Equivalents Related To Options To Purchase | 1,632,334 | 1,407,667 |
INCOME TAXES (Details)
INCOME TAXES (Details) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
INCOME TAXES | ||
U.S. federal statutory income tax (benefit) | 21% | 21% |
State and local income tax, net of benefits | 6.64% | 6.64% |
Amortization of debt discount | 0% | 0% |
Meals and entertainment | 0.48% | 0.02% |
Other income - PPP loan | 0% | 0% |
Officer life insurance and D&O insurance | 23.99% | 2.49% |
Stock-based compensation | 0% | 0% |
Tax rate changes and other | 0% | 0% |
Valuation allowance for deferred income tax assets | (52.11%) | (30.15%) |
Effective income tax rate | 0% | 0% |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred Tax Assets | ||
Accretion | $ 588,000 | $ 425,000 |
Difference in depreciation, depletion, and capitalization methods - oil and natural gas properties | (2,844,000) | 1,516,000 |
Interest expense - PPP loan | 1,000 | 1,000 |
Impairment | 5,343,000 | 5,343,000 |
Lease liability | 87,000 | (58,000) |
ROU assets | (87,000) | 80,000 |
Gain/Loss from sale of FA and/or O&G properties | 167,000 | (59,000) |
Loss on ARO | 23,000 | 23,000 |
Stock options - NQ | (174,000) | (174,000) |
Stock-based compensation | 1,356,000 | 1,507,000 |
Net operating losses - federal taxes | 26,863,000 | 24,080,000 |
Net operating losses - state taxes | 4,304,000 | 3,423,000 |
Total deferred tax asset | 35,801,000 | 36,106,000 |
Less valuation allowance | (35,801,000) | (36,106,000) |
Total deferred tax assets | $ 0 | $ 0 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
INCOME TAXES | |
Research and experimental capitalized,amortized | 15 years |
Net change in valuation allowance | $ (305,000) |
Federal net operating loss carryforwards | 128,000,000 |
Not utilized, will begin expiring in 2024 | 93,000,000 |
Not utilized, will begin expiring in 2038 | $ 35,000,000 |
Taxable income | 80% |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) | 1 Months Ended | 12 Months Ended | |||
Jan. 26, 2024 USD ($) a $ / shares shares | Jan. 23, 2023 | Jan. 25, 2022 | Dec. 31, 2023 shares | Dec. 31, 2022 shares | |
Granted options to purchase | 1,460,000 | 1,440,000 | |||
Expected term | 3 years 6 months | 3 years 6 months | |||
Expected volatility | 113% | 120% | |||
Subsequent Event [Member] | |||||
Total leasehold acres | a | 319 | ||||
Description related to company annual compensation review | approved: (A) a 5% increase of the annual base salaries for (i) Mr. Paul Pinkston, the Company’s Chief Accounting Officer, from $160,000 to $168,000, (ii) Mr. J. Douglas Schick, the President of the Company, from $290,000 to $304,500, and (iii) Mr. Clark R. Moore, the Executive Vice President, General Counsel and Secretary of the Company, from $280,000 to $294,000, all effective February 1, 2024 (none of the increases in salary were documented by written agreements or amendments); and (B) cash bonuses for (i) Mr. Paul Pinkston, the Company’s Chief Accounting Officer, in the amount of $35,000, (ii) Mr. J. Douglas Schick, the President of the Company, in the amount of $120,000, and (iii) Mr. Clark R. Moore, the Executive Vice President, General Counsel and Secretary of the Company in the amount of $110,000 | ||||
Granted options to purchase | 460,000 | ||||
Fully Vest | 33.30% | ||||
Fair value options date of grant, using the Black-Scholes model | $ | $ 216,000 | ||||
Exercise price | $ / shares | $ 0.6675 | ||||
Discount rate | 4.04% | ||||
Expected term | 3 years 6 months | ||||
Expected volatility | 104% | ||||
Restricted stock awards were granted | 2,105,000 | ||||
Grant of restricted common stock vest | 2,105,000 | ||||
vest Percent | 33.30% | ||||
fair value of issuance date | $ | $ 1,426,000 | ||||
Acquisition and due diligence costs | $ | $ 138,000 |