Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2022 | May 10, 2022 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2022 | |
Entity File Number | 001-36057 | |
Entity Registrant Name | RING ENERGY, INC. | |
Entity Incorporation, State or Country Code | NV | |
Entity Tax Identification Number | 90-0406406 | |
Entity Address, Address Line One | 1725 Hughes Landing, Suite 900 | |
Entity Address, City or Town | The Woodlands, | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77380 | |
City Area Code | (281) | |
Local Phone Number | 397-3699 | |
Title of 12(b) Security | Common Stock, $0.001 par value | |
Trading Symbol | REI | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001384195 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 106,700,836 |
CONDENSED BALANCE SHEETS
CONDENSED BALANCE SHEETS - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Current Assets | ||
Cash and cash equivalents | $ 2,139,211 | $ 2,408,316 |
Accounts receivable | 35,249,566 | 24,026,807 |
Joint interest billing receivable | 1,285,459 | 2,433,811 |
Prepaid expenses and retainers | 735,144 | 938,029 |
Total Current Assets | 39,409,380 | 29,806,963 |
Properties and Equipment | ||
Oil and natural gas properties, full cost method | 903,632,896 | 883,844,745 |
Financing lease asset subject to depreciation | 1,422,487 | 1,422,487 |
Fixed assets subject to depreciation | 2,089,163 | 2,089,722 |
Total Properties and Equipment | 907,144,546 | 887,356,954 |
Accumulated depreciation, depletion and amortization | (245,223,053) | (235,997,307) |
Net Properties and Equipment | 661,921,493 | 651,359,647 |
Operating lease asset | 1,209,473 | 1,277,253 |
Deferred financing costs | 1,514,192 | 1,713,466 |
Total Assets | 704,054,538 | 684,157,329 |
Current Liabilities | ||
Accounts payable | 54,262,245 | 46,233,452 |
State current income tax expense | 12,813 | |
Financing lease liability | 247,848 | 316,514 |
Operating lease liability | 296,023 | 290,766 |
Derivative liabilities | 42,722,228 | 29,241,588 |
Notes payable | 219,029 | 586,410 |
Total Current Liabilities | 97,760,186 | 76,668,730 |
Noncurrent Liabilities | ||
Deferred income taxes | 156,231 | 90,292 |
Revolving line of credit | 280,000,000 | 290,000,000 |
Financing lease liability, less current portion | 293,615 | 343,727 |
Operating lease liability, less current portion | 1,061,591 | 1,138,319 |
Asset retirement obligations | 15,524,755 | 15,292,054 |
Total Liabilities | 394,796,378 | 383,533,122 |
Stockholders' Equity | ||
Common stock - $0.001 par value; 225,000,000 shares authorized; 100,192,562 shares and 100,192,562 shares issued and outstanding, respectively | 100,193 | 100,193 |
Additional paid-in capital | 554,994,202 | 553,472,292 |
Accumulated deficit | (245,836,235) | (252,948,278) |
Total Stockholders' Equity | 309,258,160 | 300,624,207 |
Total Liabilities and Stockholders' Equity | $ 704,054,538 | $ 684,157,329 |
CONDENSED BALANCE SHEETS (Paren
CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
CONDENSED BALANCE SHEETS | ||
Preferred Stock, par value | $ 0.001 | $ 0.001 |
Preferred Stock, Shares Authorized | 50,000,000 | 50,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, par value | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 225,000,000 | 225,000,000 |
Common Stock, Shares, Issued | 100,192,562 | 100,192,562 |
Common Stock, Shares, Outstanding | 100,192,562 | 100,192,562 |
CONDENSED STATEMENTS OF OPERATI
CONDENSED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
CONDENSED STATEMENTS OF OPERATIONS | ||
Oil and Natural Gas Revenues | $ 68,181,032 | $ 39,502,532 |
Costs and Operating Expenses | ||
Lease operating expenses | 8,953,165 | 8,226,575 |
Gathering, transportation and processing costs | 1,296,858 | 935,019 |
Ad valorem taxes | 951,954 | 737,251 |
Oil and natural gas production taxes | 3,218,362 | 1,852,762 |
Depreciation, depletion and amortization | 9,781,287 | 8,108,158 |
Asset retirement obligation accretion | 188,242 | 193,744 |
Operating lease expense | 83,590 | 271,517 |
General and administrative expense | 5,522,277 | 2,912,991 |
Total Costs and Operating Expenses | 29,995,735 | 23,238,017 |
Income (Loss) from Operations | 38,185,297 | 16,264,515 |
Other Income (Expense) | ||
Interest (expense) | (3,398,361) | (3,741,969) |
(Loss) on derivative contracts | (27,596,141) | (31,588,639) |
Net Other Income (Expense) | (30,994,502) | (35,330,608) |
Income (Loss) Before Provision for Income Taxes | 7,190,795 | (19,066,093) |
Benefit from (Provision for) Income Taxes | (78,752) | 0 |
Net Income (Loss) | $ 7,112,043 | $ (19,066,093) |
Basic Earnings (Loss) per share | $ 0.07 | $ (0.19) |
Diluted Earnings (Loss) per share | $ 0.06 | $ (0.19) |
CONDENSED STATEMENTS OF STOCKHO
CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) | Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Total |
Balance at Dec. 31, 2020 | $ 85,568 | $ 550,951,415 | $ (256,271,170) | $ 294,765,813 |
Balance (in shares) at Dec. 31, 2020 | 85,568,287 | |||
Common stock and warrants issued for cash, net | $ 0 | (65,000) | 0 | (65,000) |
Common stock and warrants issued for cash, net (in shares) | 0 | |||
Exercise of pre-funded warrants issued in offering | $ 13,429 | 0 | 0 | 13,429 |
Exercise of pre-funded warrants issued in offering (in shares) | 13,428,500 | |||
Exercise of Common warrants issued in offering | $ 185 | 147,655 | 0 | 147,840 |
Exercise of Common warrants issued in offering (in shares) | 184,800 | |||
Restricted stock vested | $ 94 | (94) | 0 | 0 |
Restricted stock vested (in shares) | 94,350 | |||
Share-based compensation | $ 0 | 355,494 | 0 | 355,494 |
Net income | 0 | 0 | (19,066,093) | (19,066,093) |
Balance at Mar. 31, 2021 | $ 99,276 | 551,389,470 | (275,337,263) | 276,151,483 |
Balance (in shares) at Mar. 31, 2021 | 99,275,937 | |||
Balance at Dec. 31, 2021 | $ 100,193 | 553,472,292 | (252,948,278) | 300,624,207 |
Balance (in shares) at Dec. 31, 2021 | 100,192,562 | |||
Share-based compensation | $ 0 | 1,521,910 | 0 | 1,521,910 |
Net income | 0 | 0 | 7,112,043 | 7,112,043 |
Balance at Mar. 31, 2022 | $ 100,193 | $ 554,994,202 | $ (245,836,235) | $ 309,258,160 |
Balance (in shares) at Mar. 31, 2022 | 100,192,562 |
CONDENSED STATEMENTS OF CASH FL
CONDENSED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash Flows From Operating Activities | ||
Net income (loss) | $ 7,112,043 | $ (19,066,093) |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation, depletion and amortization | 9,781,287 | 8,108,158 |
Asset retirement obligation accretion | 188,242 | 193,744 |
Amortization of deferred financing costs | 199,274 | 183,027 |
Share-based compensation | 1,521,910 | 355,494 |
Deferred income tax expense (benefit) | 65,939 | (1,792,142) |
Excess tax expense (benefit) related to share-based compensation | 0 | 1,792,142 |
Loss on derivative contracts | 27,596,141 | 31,588,639 |
Cash (paid) for derivative settlements, net | (14,115,501) | (5,920,791) |
Changes in assets and liabilities: | ||
Accounts receivable | (10,078,098) | (5,968,739) |
Prepaid expenses and retainers | 202,885 | 165,200 |
Accounts payable | 2,519,011 | 6,293,506 |
Settlement of asset retirement obligation | (553,368) | (244,461) |
Net Cash Provided by Operating Activities | 24,439,765 | 15,687,684 |
Cash Flows From Investing Activities | ||
Payments to purchase oil and natural gas properties | (360,848) | (258,970) |
Payments to develop oil and natural gas properties | (13,860,249) | (11,898,939) |
Purchase of fixed assets subject to depreciation | (10,114) | (19,461) |
Sale of fixed assets subject to depreciation | 8,500 | 0 |
Proceeds from divestiture of oil and natural gas properties | 0 | 2,000,000 |
Net Cash (Used in) Investing Activities | (14,222,711) | (10,177,370) |
Cash Flows From Financing Activities | ||
Proceeds from revolving line of credit | 10,000,000 | 13,000,000 |
Payments on revolving line of credit | (20,000,000) | (20,500,000) |
Proceeds from issuance of common stock and warrants | 0 | 161,269 |
Payments on notes payable | (367,381) | 0 |
Reduction of financing lease liabilities | (118,778) | (49,707) |
Net Cash (Used in) Financing Activities | (10,486,159) | (7,388,438) |
Net Change in Cash | (269,105) | (1,878,124) |
Cash at Beginning of Period | 2,408,316 | 3,578,634 |
Cash at End of Period | 2,139,211 | 1,700,510 |
Supplemental Cash Flow Information | ||
Cash paid for interest | 3,155,943 | 3,709,232 |
Noncash Investing and Financing Activities | ||
Asset retirement obligation incurred during development | (44,458) | (32,206) |
Asset retirement obligation acquired | 662,705 | |
Asset retirement obligation revisions | 153,475 | |
Asset retirement obligation sold | (2,934,126) | (2,934,126) |
Capitalized expenditures attributable to drilling projects financed through current liabilities | $ 5,522,595 | 3,847,599 |
Operating lease assets obtained in exchange for new operating lease liability | $ 839,536 |
BASIS OF PRESENTATION AND SIGNI
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2022 | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | |
ORGANIZATION, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 – BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Condensed Financial Statements These unaudited condensed financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) applicable to interim financial information, and, accordingly, do not include all of the information and footnotes required by GAAP for complete financial statements. Therefore, these financial statements should be read in conjunction with the financial statement and notes included in the Company’s annual report on Form 10-K for the year ended December 31, 2021. Organization and Nature of Operations – COVID-19 – Liquidity and Capital Considerations While changes in oil and natural gas prices affect the Company’s liquidity, the Company has put in place hedges to protect, to some extent, its cash flows from such price declines; however, if oil or natural gas prices rapidly deteriorate due to unanticipated economic conditions, this could have a material adverse effect on the Company’s cash flows. The Company expects ongoing oil price volatility over the short term. Extended depressed oil prices have historically had and could have a material adverse impact on the Company’s oil revenue, which is mitigated to some extent by the Company’s hedge contracts. The Company is always mindful of oil price volatility and its impact on our liquidity. The Company believes that it has the ability to continue to fund its operations and service its debt by using cash on hand and cash flows from operations. Use of Estimates Fair Value Measurements Fair Values of Financial Instruments Derivative Instruments and Commodity Risk Activities Any gains or losses resulting from changes in fair value of outstanding derivative financial instruments and from the settlement of derivative financial instruments are recognized in earnings and included as a component of other income (expense) in the Statements of Operations. When applicable, the Company records all derivative instruments, other than those that meet the normal purchases and sales exception, on the balance sheet as either an asset or liability measured at fair value. Changes in fair value are recognized currently in earnings unless specific hedge accounting criteria are met. The change in fair value resulted in the recognition of an unrealized loss of $13,480,640 for the three months ended March 31, 2022. During the three months ended March 31, 2021, the change in fair value resulted in the recognition of unrealized loss of $25,667,848 on derivative contracts. During the three months ended March 31, 2022, the Company had a realized loss of $14,115,501 on derivatives . During the three months ended March 31, 2021, the Company had a realized loss of $5,920,791 on derivatives, net of a realized gain of $743,178 on the Company’s gas derivatives for that period. Concentration of Credit Risk and Major Customers Approximately 96% of the Company’s accounts receivables and joint interest billing receivables are from purchasers of oil and gas. Oil and gas sales are generally unsecured. The Company also has joint interest billing receivables which are collateralized by the pro rata revenue attributable to the joint interest holders and further by the interest itself. Accounts receivable from joint interest owners or purchasers outstanding longer than the contractual payment terms are considered past due.The Company has not had any significant credit losses in the past and believes its accounts and joint interest billing receivables are collectable. Accordingly, no material allowance for credit losses has been provided at March 31, 2022. Oil and Gas Properties All capitalized costs of oil and gas properties, plus estimated future costs to develop proved reserves, are amortized on the unit-of-production method using estimates of proved reserves as determined by the Company’s independent petroleum engineers. The Company evaluates oil and gas properties for impairment quarterly. The Company did not incur a write down of oil and natural gas properties as a result of the ceiling test for the three months ended March 31, 2022 or for the three months ended March 31, 2021. Depreciation, depletion and amortization expense for the three months ended March 31, 2022 was $9,781,287, based on depletion at the rate of $12.06 per barrel of oil equivalent compared to $8,108,158, based on depletion at the rate of $11.24 per barrel of oil equivalent for the three months ended March 31, 2021. These amounts include $156,670 of depreciation and amortization for the three months ended March 31, 2022, compared to $60,970 of depreciation and amortization for the three months ended March 31, 2021. Equipment, Vehicles and Leasehold Improvements Asset Retirement Obligation Share-Based Employee Compensation Share-Based Compensation to Non-Employees Income Taxes For the three months ended March 31, 2022, the Company recorded no federal income tax expense or benefit due to the Company having a full valuation allowance against its net federal deferred tax assets. Since December 31, 2020, the Company has determined that a full valuation allowance is necessary due to the Company assessment that it is more likely than not that it will be unable to obtain the benefits of its deferred tax assets due to the Company’s history of taxable losses. The Company reviews its Deferred Tax Assets (“DTAs”) and valuation allowance on a quarterly basis. The Company anticipates that it will continue to record a valuation allowance against its federal DTAs until such time it is able to determine it is more likely than not that its DTAs will be realized. The Company recorded state current income tax expense of $12,813 and state deferred income tax expense of $65,939 for the three months ended March 31, 2022. The Company has immaterial operations in certain other states which are in a net deferred tax asset position for which a full valuation allowance is still recorded. Recently Adopted Accounting Pronouncements Income Taxes (Topic 740) – Simplifying the Accounting for Income Taxes In October 2020, the FASB issued ASU 2020-10, Codification Improvements In August 2020, the FASB issued ASU 2020-06, “ Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40)” Recent Accounting Pronouncements Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” Reference Rate Reform (Topic 848): Scope In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805) - Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.” Basic and Diluted Earnings per Share |
REVENUE RECOGNITION
REVENUE RECOGNITION | 3 Months Ended |
Mar. 31, 2022 | |
REVENUE RECOGNITION | |
REVENUE RECOGNITION | NOTE 2 – REVENUE RECOGNITION The Company predominantly derives its revenue from the sale of produced crude oil and natural gas. The contractual performance obligation is satisfied when the product is delivered to the customer. Revenue is recorded in the month the product is delivered to the purchaser. The Company receives payment from one to three months after delivery. The Company has utilized the practical expedient in ASC (Accounting Standards Codification) 606-10-50-14, which states an entity is not required to disclose the transaction price allocated to remaining performance obligations if the variable consideration is allocated entirely to a wholly unsatisfied performance obligation. Under the Company’s sales contracts, each unit of production delivered to a customer represents a separate performance obligation, therefore, future volumes to be delivered are wholly unsatisfied and disclosure of transaction price allocated to remaining performance obligation is not required. The transaction price includes variable consideration as product pricing is based on published market prices and reduced for contract specified differentials such as quality, energy content and transportation. The guidance does not require that the transaction price be fixed or stated in the contract. Estimating the variable consideration does not require significant judgment and the Company engages third party sources to validate the estimates. Revenue is recognized net of royalties due to third parties in an amount that reflects the consideration the Company expects to receive in exchange for those products. Oil sales Under the Company’s oil sales contracts, the Company sells oil production at the point of delivery and collects an agreed upon index price, net of pricing differentials. The Company recognizes revenue at the net price received when control transfers to the purchaser at the point of delivery and it is probable the Company will collect the consideration it is entitled to receive. Natural gas sales Under the Company’s natural gas sales processing contracts for its Central Basin Platform properties, Delaware Basin properties and part of its Northwest Shelf assets, the Company delivers unprocessed natural gas to a midstream processing entity at the wellhead. The midstream processing entity obtains control of the natural gas at the wellhead. The midstream processing entity gathers and processes the natural gas and remits proceeds to the Company for the resulting sale of natural gas. Under these processing agreements, the Company recognizes revenue when control transfers to the purchaser at the point of delivery and it is probable the Company will collect the consideration it is entitled to receive. As such, the Company accounts for any fees and deductions as a reduction of the transaction price. Under the Company’s natural gas sales processing contracts for the bulk of its Northwest Shelf assets, the Company delivers unprocessed natural gas to a midstream processing entity at the well head. However, the Company maintains ownership of the gas through processing and receives proceeds from the marketing of the resulting products. Under this processing agreement, the Company recognizes the fees associated with the processing as an expense rather than netting these costs against Oil and Natural Gas Revenues in the Statements of Operations. Disaggregation of Revenue. For The Three Months Ended March 31, 2022 2021 Operating Revenues Oil $ 63,430,627 $ 35,384,581 Natural gas 4,750,405 4,117,951 Total operating revenues $ 68,181,032 $ 39,502,532 All revenues are from production from the Permian Basin in Texas and New Mexico. |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2022 | |
LEASES | |
LEASES | NOTE 3 – LEASES Effective January 1, 2019, the Company adopted ASU 2016-02, Leases The Company made accounting policy elections to not capitalize leases with a lease term of twelve months or less and to not separate lease and non-lease components for all asset classes. The Company has also elected to adopt the package of practical expedients within ASU 2016-02 that allows an entity to not reassess prior to the effective date not elect the practical expedient of hindsight The Company has operating leases for its offices in The Woodlands, Texas and Midland, Texas. The Midland office is under a five-year lease which began January 1, 2021. Also beginning January 15, 2021, the Company entered into a five-and-a-half-year sub-lease for office space in The Woodlands, Texas. The future payments associated with these operating leases are reflected below. The Company also has month to month leases for office equipment and compressors used in our operations on which the Company has elected to apply ASU 2016-02(i.e not capitalize). The office equipment and compressors are not subject to ASU 2016-02 based on the agreement and nature of use. These leases are for terms that are less than 12 months and the Company does not intend to continue to lease this equipment for more than 12 months. The lease costs associated with these leases is reflected in the short-term lease costs within Lease operating expenses, shown below. The Company has financing leases for vehicles. These leases have a term of 36 months at the end of which the Company owns the vehicles. These vehicles are generally sold at the end of their term and the proceeds applied to new vehicles. Future lease payments associated with these operating and financing leases as of March 31, 2022 are as follows: 2022 2023 2024 2025 2026 Operating lease payments (1) $ 261,845 $ 356,991 $ 376,855 $ 384,719 $ 110,096 Financing lease payments (2) 210,916 213,530 142,354 — — (1) The weighted average discount rate as of March 31, 2022 for operating leases was 4.50%. Based on this rate, the future lease payments above include imputed interest of $132,892. The weighted average remaining term of operating leases was 4.05 years. (2) The weighted average discount rate as of March 31, 2022 for financing leases was 4.11%. Based on this rate, the future lease payments above include imputed interest of $25,337. The weighted average remaining term of financing leases was 2.18 years. The following table provides supplemental information regarding cash flows from operations for the three months ended: Three months ended March 31, 2022 2021 Operating lease costs $ 83,590 $ 271,517 Short term lease costs (1) 715,803 892,489 Financing lease costs: Amortization of financing lease assets (2) 116,615 35,839 Interest on lease liabilities (3) 6,513 4,928 (1) Amount included in Lease operating expenses (2) Amount included in Depreciation, depletion and amortization (3) Amount included in Interest expense |
EARNINGS (LOSS) PER SHARE INFOR
EARNINGS (LOSS) PER SHARE INFORMATION | 3 Months Ended |
Mar. 31, 2022 | |
EARNINGS (LOSS) PER SHARE INFORMATION | |
EARNINGS (LOSS) PER SHARE INFORMATION | NOTE 4 – EARNINGS (LOSS) PER SHARE INFORMATION For the Three Months Ended March 31, 2022 2021 Net Income (Loss) $ 7,112,043 $ (19,066,093) Basic Weighted-Average Shares Outstanding 100,192,562 99,092,715 Effect of dilutive securities: Stock options 102,737 — Restricted stock units 1,890,508 — Performance stock units 107,928 — Common warrants 21,710,443 — Diluted Weighted-Average Shares Outstanding 124,004,178 99,092,715 Basic Earnings (Loss) per Share $ 0.07 $ (0.19) Diluted Earnings (Loss) per Share $ 0.06 $ (0.19) Stock options to purchase 70,500 shares of common stock, 4,420 shares of unvested restricted stock units, and 673,833 shares of unvested performance stock units were excluded from the computation of diluted earnings per share during the three months ended March 31, 2022, as their effect would have been anti-dilutive. Stock options to purchase 465,500 shares of common stock, 1,902,947 shares of unvested restricted stock and unexercised common warrants of 29,619,500 were excluded from the computation of diluted earnings per share during the three months ended March 31, 2021, as their effect would have been anti-dilutive. |
ACQUISITIONS & DIVESTITURES
ACQUISITIONS & DIVESTITURES | 3 Months Ended |
Mar. 31, 2022 | |
ACQUISITIONS & DIVESTITURES | |
ACQUISITIONS & DIVESTITURES | NOTE 5 – ACQUISITIONS & DIVESTITURES The Company entered into a Purchase, Sale and Exchange Agreement dated February 1, 2021, effective January 1, 2021, with an unrelated party, covering the sale and exchange of certain oil and gas interests in Andrews County, Texas. Upon the sale and transfer of wells and leases between the two parties, the Company received a net value consideration in cash of $2,000,000 and reduced the Company’s asset retirement obligations by $2,934,126 for the properties sold and added $662,705 of asset retirement obligations for the wells acquired. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2022 | |
DERIVATIVE FINANCIAL INSTRUMENTS | |
DERIVATIVE FINANCIAL INSTRUMENTS | NOTE 6 – DERIVATIVE FINANCIAL INSTRUMENTS The Company is exposed to fluctuations in crude oil and natural gas prices on its production. It utilizes derivative strategies that consist of either a single derivative instrument or a combination of instruments to manage the variability in cash flows associated with the forecasted sale of its future domestic oil and natural gas production. While the use of derivative instruments may limit or partially reduce the downside risk of adverse commodity price movements, the use also may limit future income from favorable commodity price movements. The Company’s derivative financial instruments are recorded at fair value and included as either assets or liabilities in the accompanying balance sheets. The Company has not designated its derivative financial instruments as hedges for accounting purposes, and, as a result, any gains or losses resulting from changes in fair value of outstanding derivative financial instruments and from the settlement of derivative financial instruments are recognized in earnings and included as a component of “Other income (expense)” under the heading “Gain (loss) on derivative contracts” in the accompanying Statements of Operations. The use of derivative transactions involves the risk that the counterparties, which generally are financial institutions, will be unable to meet the financial terms of such transactions. At March 31, 2022, 100% of the Company’s volumes subject to derivative instruments are with lenders under its Credit Facility (as defined in Note 8). The Company is not subject to master netting agreements and classifies the fair value of its derivative positions on a gross basis in its corresponding balance sheets. The following presents the impact of the Company’s contracts on its balance sheets for the periods indicated. As of March 31, 2022 December 31, 2021 Commodity derivative instruments $ 42,722,228 $ 29,241,588 Derivative liabilities, current $ 42,722,228 $ 29,241,588 The components of “(Loss) on derivative contracts” are as follows for the respective periods: Three Months Ended March 31, 2022 2021 (Loss) on oil derivative $ (27,596,141) $ (31,389,950) (Loss) on natural gas derivatives — (198,689) (Loss) on derivative contracts $ (27,596,141) $ (31,588,639) The components of “Cash (paid) for derivative settlements” are as follows for the respective periods: Three Months Ended March 31, 2022 2021 Cash flows from operating activites: Cash (paid) on oil derivatives $ (14,115,501) $ (6,663,969) Cash received on natural gas derivatives — 743,178 Cash (paid) for derivative settlements, net $ (14,115,501) $ (5,920,791) During 2020, 2021, and early 2022, the Company entered into additional derivative contracts in the form of swaps for the 2022 calendar period for oil. The following tables reflect the details of current contracts as of March 31, 2022: Date entered into Period covered Barrels per day Swap price Oil derivative contracts: 2022 swaps 12/4/2020 Calendar year 2022 500 $ 44.22 12/7/2020 Calendar year 2022 500 44.75 12/10/2020 Calendar year 2022 500 44.97 12/17/2020 Calendar year 2022 250 45.98 1/4/2021 Calendar year 2022 250 47.00 2/4/2021 Calendar year 2022 250 50.05 5/11/2021 Calendar year 2022 879 (1) 49.03 2/1/2022 Balance of calendar year 2022 1,000 83.47 (1) The notional quantity per the swap contract entered into on May 11, 2021 is for 26,750 barrels of oil per month. The 879 represents the daily amount on an annual basis . |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2022 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | NOTE 7 – FAIR VALUE MEASUREMENTS Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The authoritative guidance requires disclosure of the framework for measuring fair value and requires that fair value measurements be classified and disclosed in one of the following categories: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. We consider active markets as those in which transactions for the assets or liabilities occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2: Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability. This category includes those derivative instruments that we value using observable market data. Substantially all inputs are observable in the marketplace throughout the full term of the derivative instrument, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. Level 3: Measured based on prices or valuation models that require inputs that are both significant to the fair value measurement and less observable from objective sources (i.e., supported by little or no market activity). Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy. We continue to evaluate our inputs to ensure the fair value level classification is appropriate. When transfers between levels occur, it is our policy to assume that the transfer occurred at the date of the event or change in circumstances that caused the transfer. The fair values of the Company’s derivatives are not actively quoted in the open market. The Company uses a market approach to estimate the fair values of its derivative instruments on a recurring basis, utilizing commodity futures pricing for the underlying commodities provided by a reputable third party, a Level 2 fair value measurement. Other financial instruments include cash, accounts receivable and accounts payable. The carrying amount of these instruments approximates fair value because of their short-term nature. The Company’s long-term debt obligation bears interest at floating market rates, therefore the carrying amounts and fair value are approximately equal. The Company applies the provisions of the fair value measurement standard on a non-recurring basis to its non-financial assets and liabilities. These assets and liabilities are not measured at fair value on an ongoing basis but are subject to fair value adjustments if events or changes in certain circumstances indicate that adjustments may be necessary. The following table summarizes the valuation of our assets and liabilities that are measured at fair value on a recurring basis(further detail in Note 6). Fair Value Measurement Classification Quoted prices in Active Markets for Identical Significant Assets Other Significant or Observable Unobservable (Liabilities) Inputs Inputs (Level 1) (Level 2) (Level 3) Total As of December 31, 2021 Commodity Derivatives - Liabilities $ — $ (29,241,588) $ — $ (29,241,588) Total $ — $ (29,241,588) $ — $ (29,241,588) Fair Value Measurement Classification Quoted prices in Active Markets for Identical Significant Assets Other Significant or Observable Unobservable (Liabilities) Inputs Inputs (Level 1) (Level 2) (Level 3) Total As of March 31, 2022 Commodity Derivatives - Liabilities $ — $ (42,722,228) $ — $ (42,722,228) Total $ — $ (42,722,228) $ — $ (42,722,228) |
REVOLVING LINE OF CREDIT
REVOLVING LINE OF CREDIT | 3 Months Ended |
Mar. 31, 2022 | |
REVOLVING LINE OF CREDIT | |
REVOLVING LINE OF CREDIT | NOTE 8 – REVOLVING LINE OF CREDIT In April 2019, the Company amended and restated its Credit Agreement with the Administrative Agent (as amended and restated, the “Credit Facility”). The amendment and restatement of the Credit Facility, among other things, increased the maximum borrowing amount to $1 billion, extended the maturity date through April 2024 and made other modifications to the terms of the Credit Facility. The fourth amendment on June 10, 2021, among other things, reaffirmed the borrowing base at $350 million and modified the definition for “Fall 2020 Borrowing Base Hedges,” from 4,000 barrels of oil per day to 3,100 barrels of oil per day for calendar year 2022. The fifth amendment on June 25, 2021 incorporates contractual fallback language for US dollar LIBOR denominated syndicated loans, which language provides for the transition away from LIBOR to an alternative reference rate, and incorporates certain provisions that clarify the rights of agents to recover from lenders erroneous payments made to such lenders. The Credit Facility is secured by a first lien on substantially all of the Company’s assets. The borrowing base is subject to periodic redeterminations, mandatory reductions, and further adjustments from time to time. The borrowing base is redetermined semi-annually in May and November and was most recently affirmed at $350 million in December 2021. The Credit Facility allows for Eurodollar Loans and Base Rate Loans (as respectively defined in the Credit Facility). The interest rate on each Eurodollar Loan will be the adjusted LIBOR for the applicable interest period plus a margin between 2.5% and 3.5% (depending on the then-current level of borrowing base usage). The annual interest rate on each Base Rate Loan is (a) the greatest of (i) the Administrative Agent’s prime lending rate, (ii) the Federal Funds Rate (as defined in the Credit Facility) plus 0.5% per annum, (iii) the adjusted LIBOR determined on a daily basis for an interest period of one-month, plus 1.00% per annum and (iv) 0.00% per annum, plus (b) a margin between 1.5% and 2.5% (depending on the then-current level of borrowing base usage). The Credit Facility contains certain covenants, which, among other things, require the maintenance of (i) a total Leverage Ratio (outstanding debt to adjusted earnings before interest, taxes, depreciation and amortization) of not more than 4.0 to 1.0 and (ii) a minimum ratio of Current Assets to Current Liabilities (as such terms are defined in the Credit Facility) of 1.0 to 1.0. The Credit Facility also contains other customary affirmative and negative covenants and events of default. As of March 31, 2022, $280,000,000 was outstanding on the Credit Facility. The Company is in compliance with all covenants contained in the Credit Facility as of March 31, 2022. |
ASSET RETIREMENT OBLIGATION
ASSET RETIREMENT OBLIGATION | 3 Months Ended |
Mar. 31, 2022 | |
ASSET RETIREMENT OBLIGATION. | |
ASSET RETIREMENT OBLIGATION | NOTE 9 – ASSET RETIREMENT OBLIGATION The Company records the obligation to plug and abandon oil and gas wells at the dates 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, 2021 $ 15,292,054 Liabilities incurred 44,458 Accretion expense 188,243 Balance, March 31, 2022 $ 15,524,755 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 3 Months Ended |
Mar. 31, 2022 | |
STOCKHOLDERS' EQUITY | |
STOCKHOLDERS' EQUITY | NOTE 10 – STOCKHOLDERS’ EQUITY During the year ended December 31, 2021, the remaining 13,428,500 pre-funded warrants and 442,600 of common warrants were exercised. Gross proceeds from these transactions were $367,509. At March 31, 2022, there remained 29,361,700 unexercised common warrants. |
EMPLOYEE STOCK OPTIONS AND REST
EMPLOYEE STOCK OPTIONS AND RESTRICTED STOCK AWARD PLAN | 3 Months Ended |
Mar. 31, 2022 | |
EMPLOYEE STOCK OPTIONS AND RESTRICTED STOCK AWARD PLAN | |
EMPLOYEE STOCK OPTIONS AND RESTRICTED STOCK AWARD PLAN | NOTE 11 – EMPLOYEE STOCK OPTIONS AND RESTRICTED STOCK AWARD PLAN Compensation expense charged against income for share-based awards during the three months ended March 31, 2022 was $1,521,910, compared to $355,494 for the three months ended March 31, 2021. These amounts are included in general and administrative expense in the accompanying financial statements. In 2011, the Company’s board of directors and stockholders approved and adopted a long-term incentive plan which allowed for the issuance of up to 2,500,000 shares of common stock through the grant of qualified stock options, non-qualified stock options and restricted stock. In 2013, the Company’s board of directors and stockholders approved an amendment to the long-term incentive plan, increasing the number of shares eligible under the plan to 5,000,000 shares. There were 341,155 shares remaining eligible for grant, either as stock options or as restricted stock, as of March 31, 2022. In May 2021, the Company’s board of directors and stockholders approved and adopted a long-term incentive plan which allowed for the issuance of up to 9,900,000 shares, including 341,155 shares that are reserved but unissued under the prior plan, of common stock subject to the grant of qualified stock options, non-qualified stock options and restricted stock. There were 5,706,851 shares eligible for grant, either as stock options or as restricted stock, as of March 31, 2022. Stock Options A summary of the stock option activity as of March 31, 2022 and 2021, respectively, and changes during the three months then ended is as follows: Weighted- Weighted- Average Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Term Value Outstanding, December 31, 2020 465,500 $ 3.26 Granted — — Forfeited or rescinded — — Exercised — — Outstanding, March 31, 2021 465,500 $ 3.26 3.00 Years $ 134,850 Exercisable, March 31, 2021 460,700 $ 3.11 2.95 Years Outstanding, December 31, 2021 365,500 $ 3.61 Granted — — Forfeited or rescinded — — Exercised — — Outstanding, March 31, 2022 365,500 $ 3.61 2.21 Years $ 536,900 Exercisable, March 31, 2022 365,500 $ 3.61 2.21 Years The intrinsic values were calculated using the closing price on March 31, 2022 of $3.82 and the closing price on March 31, 2021 of $2.31. As of March 31, 2022, there was $0 of unrecognized compensation cost related to stock options. Restricted Stock A summary of the restricted stock activity as of March 31, 2022 and 2021, and changes during the three months then ended is as follows: Weighted- Average Grant Restricted stock Date Fair Value Outstanding, December 31, 2020 2,132,297 $ 1.03 Granted — — Forfeited or rescinded — — Vested (94,350) 4.95 Outstanding, March 31, 2021 2,037,947 $ 0.85 Outstanding, December 31, 2021 2,572,596 $ 1.75 Granted 1,247,061 2.79 Forfeited or rescinded — — Vested — — Outstanding, March 31, 2022 3,819,657 $ 2.09 As of March 31, 2022 there was $5,203,807 of unrecognized compensation cost related to restricted stock grants that will be recognized over a weighted average period of 2.17 years. Grant activity for the three months ended March 31, 2022 was primarily restricted shares for the annual long-term incentive plan awards for employees. Performance Stock Units A summary of the performance stock unit activity as of March 31, 2022 and 2021, and changes during the three months then ended is as follows: Weighted- Performance Average Grant Stock Units Date Fair Value Outstanding, December 31, 2020 — $ — Granted — — Forfeited or rescinded — — Vested — — Outstanding, March 31, 2021 — $ — Outstanding, December 31, 2021 860,216 $ 3.87 Granted 860,216 3.65 Forfeited or rescinded — — Vested — — Outstanding, March 31, 2022 1,720,432 $ 3.76 As of March 31, 2022, there was $5,964,071 of unrecognized compensation cost related to performance stock units that will be recognized over a weighted average period of 2.26 years. |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 3 Months Ended |
Mar. 31, 2022 | |
COMMITMENTS AND CONTINGENT LIABILITIES | |
COMMITMENTS AND CONTINGENT LIABILITIES | NOTE 12 – CONTINGENCIES AND COMMITMENTS Standby Letters of Credit Surety Bonds |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2022 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 13 – SUBSEQUENT EVENTS On April 5, April 6, and April 7, 2022, a total of 6,453,907 of the pre-funded common warrants were exercised at a price of $0.80 per share. Accordingly, 6,453,907 shares of common stock were issued, and 22,907,793 common warrants remained unexercised. In accordance with ASC Topic 855, Subsequent Events, the Company has evaluated all events subsequent to the balance sheet date of March 31, 2022, through the date of this report. Other than the item discussed above, the Company has determined that there were no material subsequent events required to be reported. |
BASIS OF PRESENTATION AND SIG_2
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | |
Condensed Financial Statements | Condensed Financial Statements These unaudited condensed financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) applicable to interim financial information, and, accordingly, do not include all of the information and footnotes required by GAAP for complete financial statements. Therefore, these financial statements should be read in conjunction with the financial statement and notes included in the Company’s annual report on Form 10-K for the year ended December 31, 2021. |
Organization and Nature of Operations | Organization and Nature of Operations – |
COVID - 19 | COVID-19 – |
Liquidity and Capital Considerations | Liquidity and Capital Considerations While changes in oil and natural gas prices affect the Company’s liquidity, the Company has put in place hedges to protect, to some extent, its cash flows from such price declines; however, if oil or natural gas prices rapidly deteriorate due to unanticipated economic conditions, this could have a material adverse effect on the Company’s cash flows. The Company expects ongoing oil price volatility over the short term. Extended depressed oil prices have historically had and could have a material adverse impact on the Company’s oil revenue, which is mitigated to some extent by the Company’s hedge contracts. The Company is always mindful of oil price volatility and its impact on our liquidity. The Company believes that it has the ability to continue to fund its operations and service its debt by using cash on hand and cash flows from operations. |
Use of Estimates | Use of Estimates |
Fair Value Measurements | Fair Value Measurements |
Fair Value of Financial Instruments | Fair Values of Financial Instruments |
Derivative Instruments and Commodity Risk Activities | Derivative Instruments and Commodity Risk Activities Any gains or losses resulting from changes in fair value of outstanding derivative financial instruments and from the settlement of derivative financial instruments are recognized in earnings and included as a component of other income (expense) in the Statements of Operations. When applicable, the Company records all derivative instruments, other than those that meet the normal purchases and sales exception, on the balance sheet as either an asset or liability measured at fair value. Changes in fair value are recognized currently in earnings unless specific hedge accounting criteria are met. The change in fair value resulted in the recognition of an unrealized loss of $13,480,640 for the three months ended March 31, 2022. During the three months ended March 31, 2021, the change in fair value resulted in the recognition of unrealized loss of $25,667,848 on derivative contracts. During the three months ended March 31, 2022, the Company had a realized loss of $14,115,501 on derivatives . During the three months ended March 31, 2021, the Company had a realized loss of $5,920,791 on derivatives, net of a realized gain of $743,178 on the Company’s gas derivatives for that period. |
Concentration of Credit Risk and Major Customers | Concentration of Credit Risk and Major Customers Approximately 96% of the Company’s accounts receivables and joint interest billing receivables are from purchasers of oil and gas. Oil and gas sales are generally unsecured. The Company also has joint interest billing receivables which are collateralized by the pro rata revenue attributable to the joint interest holders and further by the interest itself. Accounts receivable from joint interest owners or purchasers outstanding longer than the contractual payment terms are considered past due.The Company has not had any significant credit losses in the past and believes its accounts and joint interest billing receivables are collectable. Accordingly, no material allowance for credit losses has been provided at March 31, 2022. |
Oil and Gas Properties | Oil and Gas Properties All capitalized costs of oil and gas properties, plus estimated future costs to develop proved reserves, are amortized on the unit-of-production method using estimates of proved reserves as determined by the Company’s independent petroleum engineers. The Company evaluates oil and gas properties for impairment quarterly. The Company did not incur a write down of oil and natural gas properties as a result of the ceiling test for the three months ended March 31, 2022 or for the three months ended March 31, 2021. Depreciation, depletion and amortization expense for the three months ended March 31, 2022 was $9,781,287, based on depletion at the rate of $12.06 per barrel of oil equivalent compared to $8,108,158, based on depletion at the rate of $11.24 per barrel of oil equivalent for the three months ended March 31, 2021. These amounts include $156,670 of depreciation and amortization for the three months ended March 31, 2022, compared to $60,970 of depreciation and amortization for the three months ended March 31, 2021. |
Equipment, Vehicles and Leasehold Improvements | Equipment, Vehicles and Leasehold Improvements |
Asset Retirement Obligation | Asset Retirement Obligation |
Stock-Based Employee Compensation | Share-Based Employee Compensation |
Share-Based Compensation to Non-Employees | Share-Based Compensation to Non-Employees |
Income Taxes | Income Taxes For the three months ended March 31, 2022, the Company recorded no federal income tax expense or benefit due to the Company having a full valuation allowance against its net federal deferred tax assets. Since December 31, 2020, the Company has determined that a full valuation allowance is necessary due to the Company assessment that it is more likely than not that it will be unable to obtain the benefits of its deferred tax assets due to the Company’s history of taxable losses. The Company reviews its Deferred Tax Assets (“DTAs”) and valuation allowance on a quarterly basis. The Company anticipates that it will continue to record a valuation allowance against its federal DTAs until such time it is able to determine it is more likely than not that its DTAs will be realized. The Company recorded state current income tax expense of $12,813 and state deferred income tax expense of $65,939 for the three months ended March 31, 2022. The Company has immaterial operations in certain other states which are in a net deferred tax asset position for which a full valuation allowance is still recorded. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements Income Taxes (Topic 740) – Simplifying the Accounting for Income Taxes In October 2020, the FASB issued ASU 2020-10, Codification Improvements In August 2020, the FASB issued ASU 2020-06, “ Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40)” Recent Accounting Pronouncements Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” Reference Rate Reform (Topic 848): Scope In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805) - Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.” |
Basic and Diluted Earnings per Share | Basic and Diluted Earnings per Share |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
REVENUE RECOGNITION | |
Schedule of disaggregation of revenue | For The Three Months Ended March 31, 2022 2021 Operating Revenues Oil $ 63,430,627 $ 35,384,581 Natural gas 4,750,405 4,117,951 Total operating revenues $ 68,181,032 $ 39,502,532 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
LEASES | |
Schedule of future lease payments of operating lease and finance lease | 2022 2023 2024 2025 2026 Operating lease payments (1) $ 261,845 $ 356,991 $ 376,855 $ 384,719 $ 110,096 Financing lease payments (2) 210,916 213,530 142,354 — — (1) The weighted average discount rate as of March 31, 2022 for operating leases was 4.50%. Based on this rate, the future lease payments above include imputed interest of $132,892. The weighted average remaining term of operating leases was 4.05 years. (2) The weighted average discount rate as of March 31, 2022 for financing leases was 4.11%. Based on this rate, the future lease payments above include imputed interest of $25,337. The weighted average remaining term of financing leases was 2.18 years. |
Schedule of lease cost | Three months ended March 31, 2022 2021 Operating lease costs $ 83,590 $ 271,517 Short term lease costs (1) 715,803 892,489 Financing lease costs: Amortization of financing lease assets (2) 116,615 35,839 Interest on lease liabilities (3) 6,513 4,928 (1) Amount included in Lease operating expenses (2) Amount included in Depreciation, depletion and amortization (3) Amount included in Interest expense |
EARNINGS (LOSS) PER SHARE INF_2
EARNINGS (LOSS) PER SHARE INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
EARNINGS (LOSS) PER SHARE INFORMATION | |
Schedule of earnings per share, Basic and Diluted | For the Three Months Ended March 31, 2022 2021 Net Income (Loss) $ 7,112,043 $ (19,066,093) Basic Weighted-Average Shares Outstanding 100,192,562 99,092,715 Effect of dilutive securities: Stock options 102,737 — Restricted stock units 1,890,508 — Performance stock units 107,928 — Common warrants 21,710,443 — Diluted Weighted-Average Shares Outstanding 124,004,178 99,092,715 Basic Earnings (Loss) per Share $ 0.07 $ (0.19) Diluted Earnings (Loss) per Share $ 0.06 $ (0.19) |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
DERIVATIVE FINANCIAL INSTRUMENTS | |
Schedule of contracts on the balance sheet | As of March 31, 2022 December 31, 2021 Commodity derivative instruments $ 42,722,228 $ 29,241,588 Derivative liabilities, current $ 42,722,228 $ 29,241,588 |
Schedule of components of (Loss) on derivative contracts | Three Months Ended March 31, 2022 2021 (Loss) on oil derivative $ (27,596,141) $ (31,389,950) (Loss) on natural gas derivatives — (198,689) (Loss) on derivative contracts $ (27,596,141) $ (31,588,639) |
Schedule of components of Cash (paid) received for commodity derivative settlements | Three Months Ended March 31, 2022 2021 Cash flows from operating activites: Cash (paid) on oil derivatives $ (14,115,501) $ (6,663,969) Cash received on natural gas derivatives — 743,178 Cash (paid) for derivative settlements, net $ (14,115,501) $ (5,920,791) |
Schedule of put and call prices of those contracts | During 2020, 2021, and early 2022, the Company entered into additional derivative contracts in the form of swaps for the 2022 calendar period for oil. The following tables reflect the details of current contracts as of March 31, 2022: Date entered into Period covered Barrels per day Swap price Oil derivative contracts: 2022 swaps 12/4/2020 Calendar year 2022 500 $ 44.22 12/7/2020 Calendar year 2022 500 44.75 12/10/2020 Calendar year 2022 500 44.97 12/17/2020 Calendar year 2022 250 45.98 1/4/2021 Calendar year 2022 250 47.00 2/4/2021 Calendar year 2022 250 50.05 5/11/2021 Calendar year 2022 879 (1) 49.03 2/1/2022 Balance of calendar year 2022 1,000 83.47 (1) The notional quantity per the swap contract entered into on May 11, 2021 is for 26,750 barrels of oil per month. The 879 represents the daily amount on an annual basis . |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
FAIR VALUE MEASUREMENTS | |
Schedule of valuation of assets and liabilities that are measured at fair value on a recurring basis | Fair Value Measurement Classification Quoted prices in Active Markets for Identical Significant Assets Other Significant or Observable Unobservable (Liabilities) Inputs Inputs (Level 1) (Level 2) (Level 3) Total As of December 31, 2021 Commodity Derivatives - Liabilities $ — $ (29,241,588) $ — $ (29,241,588) Total $ — $ (29,241,588) $ — $ (29,241,588) Fair Value Measurement Classification Quoted prices in Active Markets for Identical Significant Assets Other Significant or Observable Unobservable (Liabilities) Inputs Inputs (Level 1) (Level 2) (Level 3) Total As of March 31, 2022 Commodity Derivatives - Liabilities $ — $ (42,722,228) $ — $ (42,722,228) Total $ — $ (42,722,228) $ — $ (42,722,228) |
ASSET RETIREMENT OBLIGATION (Ta
ASSET RETIREMENT OBLIGATION (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
ASSET RETIREMENT OBLIGATION. | |
Schedule of asset retirement obligation | Balance, December 31, 2021 $ 15,292,054 Liabilities incurred 44,458 Accretion expense 188,243 Balance, March 31, 2022 $ 15,524,755 |
EMPLOYEE STOCK OPTIONS AND RE_2
EMPLOYEE STOCK OPTIONS AND RESTRICTED STOCK AWARD PLAN (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
EMPLOYEE STOCK OPTIONS AND RESTRICTED STOCK AWARD PLAN | |
Schedule of Stock Options Activity | Weighted- Weighted- Average Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Term Value Outstanding, December 31, 2020 465,500 $ 3.26 Granted — — Forfeited or rescinded — — Exercised — — Outstanding, March 31, 2021 465,500 $ 3.26 3.00 Years $ 134,850 Exercisable, March 31, 2021 460,700 $ 3.11 2.95 Years Outstanding, December 31, 2021 365,500 $ 3.61 Granted — — Forfeited or rescinded — — Exercised — — Outstanding, March 31, 2022 365,500 $ 3.61 2.21 Years $ 536,900 Exercisable, March 31, 2022 365,500 $ 3.61 2.21 Years |
Schedule of Restricted Stock Grants | Weighted- Average Grant Restricted stock Date Fair Value Outstanding, December 31, 2020 2,132,297 $ 1.03 Granted — — Forfeited or rescinded — — Vested (94,350) 4.95 Outstanding, March 31, 2021 2,037,947 $ 0.85 Outstanding, December 31, 2021 2,572,596 $ 1.75 Granted 1,247,061 2.79 Forfeited or rescinded — — Vested — — Outstanding, March 31, 2022 3,819,657 $ 2.09 |
Schedule of performance stock units | Weighted- Performance Average Grant Stock Units Date Fair Value Outstanding, December 31, 2020 — $ — Granted — — Forfeited or rescinded — — Vested — — Outstanding, March 31, 2021 — $ — Outstanding, December 31, 2021 860,216 $ 3.87 Granted 860,216 3.65 Forfeited or rescinded — — Vested — — Outstanding, March 31, 2022 1,720,432 $ 3.76 |
BASIS OF PRESENTATION AND SIG_3
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES- Total depletion and depletion per barrel (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Unrealized Gain (Loss) on Derivatives | $ (27,596,141) | $ (31,588,639) | |
Cash received (paid) for derivative settlements, net | (14,115,501) | (5,920,791) | |
Cash, Uninsured Amount | $ 1,685,484 | $ 1,936,805 | |
Percentage Of Accounts Receivables | 96.00% | ||
Amortization Expense 1 | $ 9,781,287 | 8,108,158 | |
Depletion At Rate Per Barrel | 12.06 | 11.24 | |
Deferred Federal Income Tax Expense (Benefit) | 0 | ||
State current income tax expense | 12,813 | ||
Deferred State and Local Income Tax Expense (Benefit) | 65,939 | ||
Unrealized loss of derivative contracts | $ (13,480,640) | $ (25,667,848) | |
Minimum | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Maximum | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Property, Plant and Equipment, Useful Life | 10 years | ||
Accounts Receivable | Customer One | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Percentage Of Accounts Receivables | 70.00% | ||
Accounts Receivable | Customer Two | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Percentage Of Accounts Receivables | 14.00% | ||
Accounts Receivable | Customer Three | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Percentage Of Accounts Receivables | 4.00% |
BASIS OF PRESENTATION AND SIG_4
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - Disaggregation of Revenue (Details) | 3 Months Ended |
Mar. 31, 2022 | |
Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
BASIS OF PRESENTATION AND SIG_5
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - Additional information (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Depreciation | $ 156,670 | $ 60,970 | ||
Net realized gain of derivative | 743,178 | |||
Share-based Compensation | 1,521,910 | 355,494 | ||
Cumulative Effect on Retained Earnings, Net Of Tax | $ 309,258,160 | $ 276,151,483 | $ 300,624,207 | $ 294,765,813 |
Sales Revenue, Net | Customer Concentration Risk | Customer One | ||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration Risk, Percentage | 70.00% | |||
Sales Revenue, Net | Customer Concentration Risk | Customer Two | ||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration Risk, Percentage | 13.00% | |||
Sales Revenue, Net | Customer Concentration Risk | Customer Three | ||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration Risk, Percentage | 5.00% |
REVENUE RECOGNITION (Details)
REVENUE RECOGNITION (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
REVENUE RECOGNITION | ||
Oil | $ 63,430,627 | $ 35,384,581 |
Natural gas | 4,750,405 | 4,117,951 |
Total operating revenues | $ 68,181,032 | $ 39,502,532 |
LEASES - Future lease payments
LEASES - Future lease payments (Details) | 3 Months Ended |
Mar. 31, 2022USD ($) | |
LEASES | |
Lease, Practical Expedients, Package [true false] | true |
Lease, Practical Expedient, Use of Hindsight [true false] | false |
Lease term of financing leases for vehicles | 36 months |
Operating lease payments | |
2022 | $ 261,845 |
2023 | 356,991 |
2024 | 376,855 |
2025 | 384,719 |
2026 | $ 110,096 |
Weighted average discount rate | 4.50% |
Imputed interest | $ 132,892 |
Weighted average remaining term | 4 years 18 days |
Financing lease payments | |
2022 | $ 210,916 |
2023 | 213,530 |
2024 | $ 142,354 |
Weighted average discount rate | 4.11% |
Imputed interest | $ 25,337 |
Weighted average remaining term | 2 years 2 months 4 days |
LEASES - Supplemental informati
LEASES - Supplemental information regarding cash flows from operations (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
LEASES | ||
Operating lease costs | $ 83,590 | $ 271,517 |
Short term lease costs (1) | 715,803 | 892,489 |
Financing lease costs: | ||
Amortization of financing lease assets (2) | 116,615 | 35,839 |
Interest on lease liabilities (3) | $ 6,513 | $ 4,928 |
EARNINGS (LOSS) PER SHARE INF_3
EARNINGS (LOSS) PER SHARE INFORMATION (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Net income (loss) | $ 7,112,043 | $ (19,066,093) |
Basic Weighted-Average Shares Outstanding | 100,192,562 | 99,092,715 |
Effect of dilutive securities: | ||
Diluted Weighted-Average Shares Outstanding | 124,004,178 | 99,092,715 |
Basic Earnings (Loss) per share | $ 0.07 | $ (0.19) |
Diluted Earnings (Loss) per share | $ 0.06 | $ (0.19) |
Common warrants | ||
Effect of dilutive securities: | ||
Weighted Average Number Diluted Shares Outstanding Adjustment | 21,710,443 | |
Restricted Stock | ||
Effect of dilutive securities: | ||
Weighted Average Number Diluted Shares Outstanding Adjustment | 1,890,508 | |
Performance Shares | ||
Effect of dilutive securities: | ||
Weighted Average Number Diluted Shares Outstanding Adjustment | 107,928 | |
Stock options | ||
Effect of dilutive securities: | ||
Weighted Average Number Diluted Shares Outstanding Adjustment | 102,737 |
EARNINGS (LOSS) PER SHARE INF_4
EARNINGS (LOSS) PER SHARE INFORMATION - Additional information (Details) - shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Restricted Stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Number of shares were excluded from the computation of diluted earnings per share | 4,420 | 1,902,947 |
Weighted Average Number Diluted Shares Outstanding Adjustment | 1,890,508 | |
Performance stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Number of shares were excluded from the computation of diluted earnings per share | 673,833 | |
Common Stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Number of shares were excluded from the computation of diluted earnings per share | 70,500 | 465,500 |
Common warrants | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Number of shares were excluded from the computation of diluted earnings per share | 29,619,500 | |
Weighted Average Number Diluted Shares Outstanding Adjustment | 21,710,443 |
ACQUISITIONS & DIVESTITURES (De
ACQUISITIONS & DIVESTITURES (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Business Acquisition [Line Items] | ||
Asset retirement obligation sold | $ 2,934,126 | $ 2,934,126 |
Vin Fisher Operating Inc [Member] | ||
Business Acquisition [Line Items] | ||
Cash Consideration | 2,000,000 | |
Asset retirement obligations for wells acquired | $ 662,705 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of contracts on the balance sheet (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Liabilities | ||
Commodity derivative instruments | $ 42,722,228 | $ 29,241,588 |
Derivative liabilities, current | $ 42,722,228 | $ 29,241,588 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of components of Gain (loss) on derivative contracts (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
(Loss) on derivative contracts | $ (27,596,141) | $ (31,588,639) |
Oil | ||
(Loss) on derivative contracts | $ (27,596,141) | (31,389,950) |
Natural Gas | ||
(Loss) on derivative contracts | $ (198,689) |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of components of Cash (paid) for derivative settlements (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities | ||
Cash (paid) for derivative settlements, net | $ (14,115,501) | $ (5,920,791) |
Oil | ||
Cash flows from operating activities | ||
Cash (paid) for derivative settlements, net | $ (14,115,501) | (6,663,969) |
Natural Gas | ||
Cash flows from operating activities | ||
Cash (paid) for derivative settlements, net | $ 743,178 |
DERIVATIVE FINANCIAL INSTRUME_6
DERIVATIVE FINANCIAL INSTRUMENTS - Additional information (Details) - Oil - Commodity Contract G - January 2022 through December 2022 - bbl | Mar. 31, 2022 | May 11, 2021 |
Barrels of oil per month | 26,750 | |
Barrels per day | 879 |
DERIVATIVE FINANCIAL INSTRUME_7
DERIVATIVE FINANCIAL INSTRUMENTS - Current contracts (Details) - Oil - January 2022 through December 2022 | Mar. 31, 2022bbl$ / bbl |
Commodity Contract A | |
Barrels per day | bbl | 500 |
Swap Price | $ / bbl | 44.22 |
Commodity Contract B | |
Barrels per day | bbl | 500 |
Swap Price | $ / bbl | 44.75 |
Commodity Contract C | |
Barrels per day | bbl | 500 |
Swap Price | $ / bbl | 44.97 |
Commodity Contract D | |
Barrels per day | bbl | 250 |
Swap Price | $ / bbl | 45.98 |
Commodity Contract E | |
Barrels per day | bbl | 250 |
Swap Price | $ / bbl | 47 |
Commodity Contract F | |
Barrels per day | bbl | 250 |
Swap Price | $ / bbl | 50.05 |
Commodity Contract G | |
Barrels per day | bbl | 879 |
Swap Price | $ / bbl | 49.03 |
Commodity Contract H | |
Barrels per day | bbl | 1,000 |
Swap Price | $ / bbl | 83.47 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - Fair Value Measurement Classification - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Commodity Derivatives - Liabilities | $ (42,722,228) | $ (29,241,588) |
Total | (42,722,228) | (29,241,588) |
Quoted prices in Active Markets for Identical Assets or (Liabilities) (Level 1) | ||
Commodity Derivatives - Liabilities | 0 | 0 |
Total | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Commodity Derivatives - Liabilities | (42,722,228) | (29,241,588) |
Total | (42,722,228) | (29,241,588) |
Significant Unobservable Inputs (Level 3) | ||
Commodity Derivatives - Liabilities | 0 | 0 |
Total | $ 0 | $ 0 |
REVOLVING LINE OF CREDIT (Detai
REVOLVING LINE OF CREDIT (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2022 | Dec. 31, 2021 | Jun. 10, 2021 | Apr. 30, 2019 | |
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000,000,000 | |||
Line of Credit Facility, Current Borrowing Capacity | $ 350,000,000 | $ 350,000,000 | ||
Debt Instrument, Basis Spread on Variable Rate | 0.00% | |||
Long-term Line of Credit | $ 280,000,000 | $ 290,000,000 | ||
Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Number of barrels per day | 3,100 | |||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |||
Leverage Ratio, Total | 1 | |||
Current Ratio | 1 | |||
Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Number of barrels per day | 4,000 | |||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | |||
Leverage Ratio, Total | 4 | |||
Current Ratio | 1 | |||
Federal Funds Purchased | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |||
London Interbank Offered Rate (LIBOR) | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |||
London Interbank Offered Rate (LIBOR) | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | |||
London Interbank Offered Rate (LIBOR) | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 3.50% |
ASSET RETIREMENT OBLIGATION (De
ASSET RETIREMENT OBLIGATION (Details) | 3 Months Ended |
Mar. 31, 2022USD ($) | |
ASSET RETIREMENT OBLIGATION. | |
Balance | $ 15,292,054 |
Liabilities incurred | 44,458 |
Accretion expense | 188,243 |
Balance | $ 15,524,755 |
STOCKHOLDERS' EQUITY - Addition
STOCKHOLDERS' EQUITY - Additional information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Class of Stock [Line Items] | |||
Common Stock, Shares Authorized | 225,000,000 | 225,000,000 | |
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | |
Preferred Stock, Shares Authorized | 50,000,000 | 50,000,000 | |
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | |
Proceeds From Issuance Of Common Stock Gross | $ 367,509 | ||
Proceeds from issuance of common stock, net of offering costs | $ 0 | $ 161,269 | |
Pre-funded warrants | |||
Class of Stock [Line Items] | |||
Stock Issued During Period, Shares, New Issues | 13,428,500 | ||
Common warrants | |||
Class of Stock [Line Items] | |||
Stock Issued During Period, Shares, New Issues | 442,600 | ||
Class of Warrant or Right, Outstanding | 29,361,700 |
EMPLOYEE STOCK OPTIONS AND RE_3
EMPLOYEE STOCK OPTIONS AND RESTRICTED STOCK AWARD PLAN - Status of the Stock Options (Details) - Employee Stock Options. - USD ($) | 3 Months Ended | ||
Mar. 31, 2022 | Sep. 30, 2021 | Mar. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options Outstanding at beginning of the year | 365,500 | 465,500 | |
Granted | 0 | ||
Options Outstanding at end of year | 365,500 | 465,500 | |
Options Exercisable at end of year | 365,500 | 460,700 | |
Weighted Average Exercise Price, Outstanding at beginning of the year | $ 3.61 | $ 3.26 | |
Weighted Average Exercise Price, Granted | 0 | ||
Weighted Average Exercise Price, Outstanding at end of year | 3.61 | 3.26 | |
Weighted Average Exercise Price, Exercisable at end of year | $ 3.61 | $ 3.11 | |
Options Outstanding - Weighted-Average Remaining Contractual Life (in years) | 2 years 2 months 15 days | 3 years | |
Options Exercisable - Weighted-Average Remaining Contractual Life (in years) | 2 years 2 months 15 days | 2 years 11 months 12 days | |
Aggregate Intrinsic Value, Outstanding at end of year | $ 536,900 | $ 134,850 |
EMPLOYEE STOCK OPTIONS AND RE_4
EMPLOYEE STOCK OPTIONS AND RESTRICTED STOCK AWARD PLAN - Status of Restricted Stock Grants (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock, Outstanding at beginning of the year | 860,216 | |
Restricted stock, Granted | 860,216 | |
Restricted stock, Outstanding at end of year | 1,720,432 | |
Weighted-Average Grant Date Fair Value, Outstanding at beginning of the year | $ 3.87 | |
Weighted-Average Grant Date Fair Value, Granted | 3.65 | |
Weighted-Average Grant Date Fair Value, Outstanding at end of year | $ 3.76 | |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock, Outstanding at beginning of the year | 2,572,596 | 2,132,297 |
Restricted stock, Granted | 1,247,061 | 0 |
Restricted stock, Forfeited or rescinded | 0 | |
Restricted stock, Vested | 0 | (94,350) |
Restricted stock, Outstanding at end of year | 3,819,657 | 2,037,947 |
Weighted-Average Grant Date Fair Value, Outstanding at beginning of the year | $ 1.75 | $ 1.03 |
Weighted-Average Grant Date Fair Value, Granted | 2.79 | 0 |
Weighted-Average Grant Date Fair Value, Forfeited or rescinded | 0 | |
Weighted-Average Grant Date Fair Value, Vested | 0 | 4.95 |
Weighted-Average Grant Date Fair Value, Outstanding at end of year | $ 2.09 | $ 0.85 |
EMPLOYEE STOCK OPTIONS AND RE_5
EMPLOYEE STOCK OPTIONS AND RESTRICTED STOCK AWARD PLAN - Performance Stock Units (Details) | 3 Months Ended |
Mar. 31, 2022USD ($)$ / sharesshares | |
Summary of the status of the performance stock grants | |
Restricted stock, Outstanding at beginning of the year | shares | 860,216 |
Restricted stock, Granted | shares | 860,216 |
Restricted stock, Outstanding at end of year | shares | 1,720,432 |
Weighted-Average Grant Date Fair Value, Outstanding at beginning of the year | $ / shares | $ 3.87 |
Weighted-Average Grant Date Fair Value, Granted | $ / shares | 3.65 |
Weighted-Average Grant Date Fair Value, Outstanding at end of year | $ / shares | $ 3.76 |
Performance Shares | |
Summary of the status of the performance stock grants | |
Unrecognized compensation cost related to PSU | $ | $ 5,964,071 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 3 months 3 days |
EMPLOYEE STOCK OPTIONS AND RE_6
EMPLOYEE STOCK OPTIONS AND RESTRICTED STOCK AWARD PLAN - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
May 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2013 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation Expenses Charged Against Income For Share Based Awards Included In General And Administrative Expenses | $ 1,521,910 | $ 355,494 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 9,900,000 | 2,500,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 341,155 | 5,000,000 | |||
Share-based Compensation | $ 1,521,910 | $ 355,494 | |||
Number of shares granted | 860,216 | ||||
Stock options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Per Share Weighted Average Price of Shares Purchased | $ 3.82 | $ 2.31 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 0 | ||||
Number of shares granted | 5,706,851 | ||||
Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted | 341,155 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 5,203,807 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 2 months 1 day | ||||
Number of shares granted | 1,247,061 | 0 | |||
Performance Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 3 months 3 days | ||||
Performance stock units | $ 5,964,071 |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES - Additional Information (Details) - USD ($) | 3 Months Ended | |||||
Mar. 31, 2022 | Mar. 31, 2021 | May 19, 2020 | Apr. 30, 2019 | Apr. 09, 2019 | Jun. 26, 2015 | |
Loss Contingencies [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000,000,000 | |||||
Operating lease expense | $ 83,590 | $ 271,517 | ||||
Standby letters of credit drawn | 10,000,000 | $ 13,000,000 | ||||
Surety Bond | ||||||
Loss Contingencies [Line Items] | ||||||
Issued surety bonds | 500,438 | |||||
Surety bonds renewal amount | 400,000 | |||||
Surety bonds renewal amount, not applicable | $ 100,438 | |||||
Extended Term For Surety Bonds | 1 year | |||||
Standby Letters of Credit | ||||||
Loss Contingencies [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 250,000 | |||||
Issued surety bonds | $ 500,438 | $ 10,000 | ||||
Standby letters of credit drawn | $ 0 | |||||
Standby Letters of Credit | State And Federal Agencies | ||||||
Loss Contingencies [Line Items] | ||||||
Extended term under letter of credit arrangement (in years) | 1 year |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - $ / shares | Apr. 07, 2022 | Apr. 06, 2022 | Apr. 05, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Subsequent Event [Line Items] | |||||
Common stock issued | 100,192,562 | 100,192,562 | |||
Subsequent Events. | |||||
Subsequent Event [Line Items] | |||||
Common stock issued | 6,453,907 | 6,453,907 | 6,453,907 | ||
Subsequent Events. | Pre-funded Common Warrants [Member] | |||||
Subsequent Event [Line Items] | |||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 6,453,907 | 6,453,907 | 6,453,907 | ||
Exercise price | $ 0.80 | ||||
Subsequent Events. | Common Warrants Unexercised [Member] | |||||
Subsequent Event [Line Items] | |||||
Class of Warrant or Right, Unissued | 22,907,793 | 22,907,793 | 22,907,793 |