Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 05, 2018 | |
Document And Entity Information | ||
Entity Registrant Name | HOUSTON AMERICAN ENERGY CORP | |
Entity Central Index Key | 1,156,041 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business Flag | true | |
Entity Emerging Growth Company | false | |
Entity Ex Transition Period | false | |
Entity Common Stock, Shares Outstanding | 62,222,777 | |
Trading Symbol | HUSA | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,018 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
CURRENT ASSETS | ||
Cash | $ 785,346 | $ 392,062 |
Accounts receivable - oil and gas sales | 351,625 | 347,548 |
Prepaid expenses and other current assets | 27,203 | 3,750 |
TOTAL CURRENT ASSETS | 1,164,174 | 743,360 |
Oil and gas properties, full cost method | ||
Costs subject to amortization | 60,014,246 | 60,139,526 |
Costs not being amortized | 2,454,650 | 2,309,341 |
Office equipment | 90,004 | 90,004 |
Total | 62,558,900 | 62,538,871 |
Accumulated depletion, depreciation, amortization, and impairment | (55,992,976) | (55,725,080) |
PROPERTY AND EQUIPMENT, NET | 6,565,924 | 6,813,791 |
Other assets | 3,167 | 3,167 |
TOTAL ASSETS | 7,733,265 | 7,560,318 |
CURRENT LIABILITIES | ||
Accounts payable | 49,675 | 127,036 |
Accrued expenses | 2,420 | 24,621 |
TOTAL CURRENT LIABILITIES | 52,095 | 151,657 |
LONG-TERM LIABILITIES | ||
Reserve for plugging and abandonment costs | 37,980 | 35,658 |
Deferred rent obligation | 45,285 | 49,245 |
TOTAL LONG-TERM LIABILITIES | 83,265 | 84,903 |
TOTAL LIABILITIES | 135,360 | 236,560 |
COMMITMENTS AND CONTINGENCIES | ||
SHAREHOLDERS' EQUITY | ||
Common stock, par value $0.001; 150,000,000 shares authorized 62,209,073 and 59,260,101 shares issued and outstanding, respectively | 62,209 | 59,260 |
Additional paid-in capital | 73,069,501 | 72,482,303 |
Accumulated deficit | (65,533,807) | (65,217,807) |
TOTAL SHAREHOLDERS' EQUITY | 7,597,905 | 7,323,758 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 7,733,265 | 7,560,318 |
Series A Convertible Redeemable Preferred Stock [Member] | ||
SHAREHOLDERS' EQUITY | ||
Preferred stock, par value $0.001; 10,000,000 shares authorized | 1 | 1 |
Series B Convertible Redeemable Preferred Stock [Member] | ||
SHAREHOLDERS' EQUITY | ||
Preferred stock, par value $0.001; 10,000,000 shares authorized | $ 1 | $ 1 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 62,209,073 | 59,260,101 |
Common stock, shares outstanding | 62,209,073 | 59,260,101 |
Series A Convertible Redeemable Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 2,000 | 2,000 |
Preferred stock, shares issued | 1,085 | 1,175 |
Preferred stock, shares outstanding | 1,085 | 1,175 |
Preferred stock liquidation share value | $ 1,085,000 | $ 1,085,000 |
Series B Convertible Redeemable Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 1,000 | 1,000 |
Preferred stock, shares issued | 835 | 895 |
Preferred stock, shares outstanding | 835 | 895 |
Preferred stock liquidation share value | $ 835,000 | $ 835,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Statement [Abstract] | ||||
OIL AND GAS REVENUE | $ 552,946 | $ 111,741 | $ 1,881,683 | $ 215,649 |
EXPENSES OF OPERATIONS | ||||
Lease operating expense and severance tax | 278,460 | 55,245 | 764,035 | 95,260 |
General and administrative expense | 301,495 | 622,994 | 1,165,854 | 1,627,433 |
Depreciation and depletion | 89,924 | 55,280 | 267,896 | 86,486 |
Total operating expenses | 669,879 | 733,519 | 2,197,785 | 1,809,179 |
Loss from operations | (116,933) | (621,778) | (316,102) | (1,593,530) |
OTHER INCOME (EXPENSE) | ||||
Other income | 102 | 3 | 102 | 10,184 |
Interest expense | (164,503) | (171,605) | ||
Total other income (expense), net | 102 | (164,500) | 102 | (161,421) |
Net loss before taxes | (116,831) | (786,278) | (316,000) | (1,754,951) |
Income tax expense (benefit) | ||||
Net loss | (116,831) | (786,278) | (316,000) | (1,754,951) |
Dividends to Series A and B preferred stockholders | (56,250) | (63,288) | (181,350) | (80,570) |
Net loss attributable to common shareholders | $ (173,081) | $ (849,566) | $ (497,350) | $ (1,835,521) |
Basic and diluted loss per common share | $ 0 | $ (0.02) | $ (0.01) | $ (0.04) |
Based and diluted weighted average number of common shares outstanding | 61,220,932 | 54,330,541 | 60,079,314 | 52,306,289 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (316,000) | $ (1,754,951) |
Adjustments to reconcile net loss to net cash used in operations: | ||
Depreciation and depletion | 267,896 | 86,486 |
Stock-based compensation | 82,947 | 196,869 |
Accretion of asset retirement obligation | 2,322 | 2,758 |
Amortization of debt discount | 158,734 | |
Changes in operating assets and liabilities: | ||
Increase in accounts receivable | (4,078) | (24,199) |
Increase in prepaid expenses and other current assets | (23,453) | (11,250) |
Increase in accounts payable and accrued expenses | 335 | 64,326 |
Increase/(decrease) in deferred rent obligation | (3,960) | 40,100 |
Net cash provided by (used in) operating activities | 6,010 | (1,241,127) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Payments for the acquisition and development of oil and gas properties | (119,926) | (3,878,984) |
Net cash used in investing activities | (119,926) | (3,878,984) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from the issuance of notes payable, net of debt discount | 570,000 | |
Payments on notes payable | (600,000) | |
Proceeds from the issuance of common stock, net of offering costs | 688,550 | 3,049,515 |
Payment of preferred stock dividends | (181,350) | (80,570) |
Net cash provided by financing activities | 507,200 | 5,048,545 |
Increase (decrease) in cash | 393,284 | (71,566) |
Cash, beginning of period | 392,062 | 481,172 |
Cash, end of period | 785,346 | 409,606 |
SUPPLEMENTAL CASH FLOW INFORMATION | ||
Interest paid | 12,871 | |
Taxes paid | ||
SUPPLEMENTAL NON-CASH INVESTING AND FINANCING ACTIVITIES | ||
Change in accrued oil and gas development costs | 99,897 | 423,522 |
Conversion of convertible preferred stock to common stock | 617 | |
Debt discount from issuance of warrants as debt inducement | 128,734 | |
Increase in reserve for plugging and abandonment costs | 6,000 | |
Cashless exercise of stock options | 114 | |
Retirement of treasury shares | 174,125 | |
Series A Preferred Stock [Member] | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from the issuance of Preferred Stock | 1,200,000 | |
Series B Preferred Stock [Member] | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from the issuance of Preferred Stock | $ 909,600 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | NOTE 1 – BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES The accompanying unaudited consolidated financial statements of Houston American Energy Corp., a Delaware corporation (the “Company”), have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q. They do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for a complete financial presentation. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, considered necessary for a fair presentation, have been included in the accompanying unaudited consolidated financial statements. Operating results for the periods presented are not necessarily indicative of the results that may be expected for the full year. These unaudited consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and footnotes, which are included as part of the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. Consolidation The accompanying consolidated financial statements include all accounts of the Company and its subsidiaries (HAEC Louisiana E&P, Inc., HAEC Oklahoma E&P, Inc., and HAEC Caddo Lake E&P, Inc.). All significant inter-company balances and transactions have been eliminated in consolidation. Accounting Principles and Use of Estimates The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America. In preparing financial statements, management makes informed judgments and estimates that affect the reported amounts of assets and liabilities as of the date of the financial statements and affect the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, management reviews its estimates, including those related to such potential matters as litigation, environmental liabilities, income taxes and the related valuation allowance, determination of proved reserves of oil and gas and asset retirement obligations. Changes in facts and circumstances may result in revised estimates and actual results may differ from these estimates. Reclassifications Certain amounts for prior periods have been reclassified to conform to the current presentation. Concentration of Credit Risk Financial instruments that potentially subject the Company to a concentration of credit risk include cash, cash equivalents and any marketable securities (if any). The Company had cash deposits of $155,174 in excess of the FDIC’s current insured limit on interest bearing accounts of $250,000 as of September 30, 2018. The Company also had cash deposits of $45,638 in Colombian banks at September 30, 2018 that are not insured by the FDIC. The Company has not experienced any losses on its deposits of cash and cash equivalents. Revenue Recognition ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” Revenue Recognition (Topic 605) The Company’s revenue is comprised entirely of revenue from exploration and production activities. The Company’s oil is sold primarily to marketers, gatherers, and refiners. Natural gas is sold primarily to interstate and intrastate natural-gas pipelines, direct end-users, industrial users, local distribution companies, and natural-gas marketers. NGLs are sold primarily to direct end-users, refiners, and marketers. Payment is generally received from the customer in the month following delivery. Contracts with customers have varying terms, including spot sales or month-to-month contracts, contracts with a finite term, and life-of-field contracts where all production from a well or group of wells is sold to one or more customers. 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. Loss per Share Basic loss per share is computed by dividing net loss available to common shareholders by the weighted average common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common shares were exercised or converted in common shares that then shared in the earnings of the Company. In periods in which the Company reports a net loss, dilutive securities are excluded from the calculation of diluted net loss per share amounts as the effect would be anti-dilutive. For the nine months ended September 30, 2018 and 2017, the following convertible preferred stock and warrants and options to purchase shares of common stock were excluded from the computation of diluted net loss per share, as the inclusion of such shares would be anti-dilutive: Nine Months Ended September 30, 2018 2017 Series A Convertible Preferred Stock 5,425,000 6,000,000 Series B Convertible Preferred Stock 2,320,556 2,527,778 Stock warrants 50,000 3,651,680 Stock options 4,978,832 6,012,165 Total 12,774,388 18,191,623 Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, a new lease standard requiring lessees to recognize lease assets and lease liabilities for most leases classified as operating leases under previous U.S. GAAP. The guidance is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company will be required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. The Company has evaluated the adoption of the standard and, due to there being only one operating lease currently in place, there will be minimal impact of the standard on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement”. The amendments in this update are to improve the effectiveness of disclosures in the notes to the financial statements by facilitating clear communication of the information required by GAAP that is most important to users of each entity’s financial statements. The amendments in this Update apply to all entities that are required, under existing GAAP, to make disclosures about recurring or nonrecurring fair value measurements. The amendments in this update are effective for all entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Company does not expect that this guidance will have a material impact on its consolidated financial statements. In July 2018, the FASB issued ASU 2018-11, “Leases (Topic 842): Target Improvements”. The amendments in this Update also clarify which Topic (Topic 842 or Topic 606) applies for the combined component. Specifically, if the non-lease component or components associated with the lease component are the predominant component of the combined component, an entity should account for the combined component in accordance with Topic 606. Otherwise, the entity should account for the combined component as an operating lease in accordance with Topic 842. An entity that elects the lessor practical expedient also should provide certain disclosures. The Company is currently evaluating the adoption of this guidance and does not expect that this guidance will have a material impact on its consolidated financial statements. The Company has not adopted this Standard and will do so when specified by the FASB. In July 2018, the FASB issued ASU 2018-10, “Codification Improvements to Topic 842, Leases”. The amendments in this Update affect narrow aspects of the guidance issued in the amendments in Update 2016-02 as described in the table below. The amendments in this Update related to transition do not include amendments from proposed Accounting Standards Update, Leases (Topic 842): Targeted Improvements, specific to a new and optional transition method to adopt the new lease requirements in Update 2016-02. That additional transition method will be issued as part of a forthcoming and separate Update that will result in additional amendments to transition paragraphs included in this Update to conform with the additional transition method. The Company is currently evaluating the adoption of this guidance and does not expect that this guidance will have a material impact on its consolidated financial statements. The Company has not adopted this Standard and will do so when specified by the FASB. In June 2018, the FASB issued ASU 2018-07, “Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting”. The amendments in this update are to maintain or improve the usefulness of the information provided to the users of financial statements while reducing cost and complexity in financial reporting. The areas for simplification in this Update involve several aspects of the accounting for nonemployee share-based payment transactions resulting from expanding the scope of Topic 718, to include share-based payment transactions for acquiring goods and services from nonemployees. Some of the areas for simplification apply only to nonpublic entities. The amendments in this update are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The Company does not expect that this guidance will have a material impact on its consolidated financial statements. The Company does not expect the adoption of any recently issued accounting pronouncements to have a significant impact on its financial position, results of operations, or cash flows. Subsequent Events The Company has evaluated all transactions from September 30, 2018 through the financial statement issuance date for subsequent event disclosure consideration. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | NOTE 2 – REVENUE FROM CONTRACTS WITH CUSTOMERS Change in Accounting Policy The Company adopted ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” Exploration and Production. There were no significant changes to the timing or valuation of revenue recognized for sales of production from exploration and production activities. Disaggregation of Revenue from Contracts with Customers The following table disaggregates revenue by significant product type for the three and nine month periods ended September 30, 2018: Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Oil sales $ 297,967 $ 1,145,643 Natural gas sales 102,756 583,817 Natural gas liquids sales 152,223 152,223 Total revenue from customers $ 552,946 $ 1,881,683 There were no significant contract liabilities or transaction price allocations to any remaining performance obligations as of December 31, 2017 or September 30, 2018. |
Oil and Gas Properties
Oil and Gas Properties | 9 Months Ended |
Sep. 30, 2018 | |
Oil and Gas Property [Abstract] | |
Oil and Gas Properties | NOTE 3 – OIL AND GAS PROPERTIES During the nine months ended September 30, 2018, the Company invested $20,029, net, for the acquisition and development of oil and gas properties, consisting of (1) cost of acquisition of U.S. properties $135,329, attributable to acreage acquired in Yoakum County, Texas, and (2) preparation and evaluation costs in Colombia of $9,980; offset by a credit of $125,280 attributable to cash advances previously reflected as development costs on the Company’s Reeves County acreage. Of the amount invested, the Company capitalized $145,309 to oil and gas properties not subject to amortization and reduced costs capitalized to oil and gas properties subject to amortization by $125,280. Geographical Information The Company currently has operations in two geographical areas, the United States and Colombia. Revenues for the nine months ended September 30, 2018 and long lived assets (net of depletion, amortization, and impairments) as of September 30, 2018 attributable to each geographical area are presented below: Nine Months Ended September 30, 2018 As of September 30, 2018 Revenues Long Lived Assets, Net United States $ 1,881,683 $ 4,246,604 Colombia — 2,319,320 Total $ 1,881,683 $ 6,565,924 |
Stock-Based Compensation Expens
Stock-Based Compensation Expense | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation Expense | NOTE 4 – STOCK-BASED COMPENSATION EXPENSE In 2008, the Company’s Board of Directors adopted the Houston American Energy Corp. 2008 Equity Incentive Plan (the “2008 Plan”). The terms of the 2008 Plan, as amended in 2012 and 2013, allow for the issuance of up to 6,000,000 shares of the Company’s common stock pursuant to the grant of stock options and restricted stock. Persons eligible to participate in the Plans are key employees, consultants and directors of the Company. In March 2017, the Company’s Board of Directors adopted, and the shareholders ultimately approved, the Houston American Energy Corp. 2017 Equity Incentive Plan (the “2017 Plan” and, together with the 2008 Plan, the “Plans”). The terms of the 2017 Plan, allow for the issuance of up to 5,000,000 shares of the Company’s common stock pursuant to the grant of stock options and restricted stock. Persons eligible to participate in the Plans are key employees, consultants and directors of the Company. The Company periodically grants options to employees, directors and consultants under the Plans and is required to make estimates of the fair value of the related instruments and recognize expense over the period benefited, usually the vesting period. Stock Option Activity In February 2018, options to purchase an aggregate of 1,000,000 shares were granted to an executive officer. The options have a ten-year life, vest 1/3 on each of the first three anniversaries of the grant date and are exercisable at $0.2922 per share, the fair market value on the date of grant. The executive officer was terminated in June 2018 and the options were forfeited unvested on termination of employment. The options were valued on the date of grant at $166,940 using the Black-Scholes option-pricing model with the following parameters: (1) risk-free interest rate of 2.68%; (2) expected life in years of 5.79; (3) expected stock volatility of 105.4%; and (4) expected dividend yield of 0%. The Company determined the options qualify as ‘plain vanilla’ under the provisions of SAB 107 and the simplified method was used to estimate the expected option life. In March 2018, options to purchase an aggregate of 500,000 shares were granted to a non-officer employee. The options have a ten-year life, vest 1/3 on each of the first three anniversaries of the grant date and are exercisable at $0.30 per share, the fair market value on the date of grant. The options were valued on the date of grant at $89,808 using the Black-Scholes option-pricing model with the following parameters: (1) risk-free interest rate of 2.72%; (2) expected life in years of 5.81; (3) expected stock volatility of 105.0%; and (4) expected dividend yield of 0%. The Company determined the options qualify as ‘plain vanilla’ under the provisions of SAB 107 and the simplified method was used to estimate the expected option life. In April 2018, options to purchase 8,333 shares were granted to a newly appointed non-employee director. The options have a ten-year life, vest 20% on the date of grant and 80% nine months from the date of grant and an exercise price of $0.267 per share, the fair market value on the date of grant. The options were valued on the date of grant at $1,770 using the Black-Scholes option-pricing model with the following parameters: (1) risk-free interest rate of 2.69%; (2) expected life in years of 5.8; (3) expected stock volatility of 105%; and (4) expected dividend yield of 0%. The Company determined the options qualify as ‘plain vanilla’ under the provisions of SAB 107 and the simplified method was used to estimate the expected option life. In June 2018, options to purchase an aggregate of 150,000 shares were granted to three non-employee directors. The options have a ten-year life, vest 20% on the date of grant and 80% nine months from the date of grant and exercise prices of $0.2425 per share, the fair market value on the date of grant. The options were valued on the date of grant at $27,422 using the Black-Scholes option-pricing model with the following parameters: (1) risk-free interest rate of 2.79%; (2) expected life in years of 5.88; (3) expected stock volatility of 103.9%; and (4) expected dividend yield of 0%. The Company determined the options qualify as ‘plain vanilla’ under the provisions of SAB 107 and the simplified method was used to estimate the expected option life. In June 2018, stock options to purchase 250,000 shares of common stock were exercised, in a cashless exercise, resulting in the issuance of 114,379 shares of common stock. A summary of stock option activity and related information for the nine months ended September 30, 2018 is presented below: Options Weighted-Average Exercise Price Aggregate Intrinsic Value Outstanding at January 1, 2018 6,012,165 $ 1.86 Granted 1,658,333 0.29 Exercised (250,000 ) 0.22 Forfeited (2,441,666 ) 3.79 Outstanding at September 30, 2018 4,978,832 $ 0.88 $ 6,646 Exercisable at September 30, 2018 4,923,499 $ 0.95 $ 6,646 During the three and nine months ended September 30, 2018, the Company recognized $14,049 and $81,177, respectively, of stock-based compensation expense attributable to the amortization of unrecognized stock-based compensation from its outstanding stock options. As of September 30, 2018, total unrecognized stock-based compensation expense related to non-vested stock options was $84,514. The unrecognized expense is expected to be recognized over a weighted average period of 0.99 years and the weighted average remaining contractual term of the outstanding options and exercisable options at September 30, 2018 is 5.57 years and 4.82 years, respectively. Shares are no longer available for issuance under the 2008 Plan. Shares available for issuance under the 2017 Plan, as of September 30, 2018, totaled 4,500,000. Share-Based Compensation Expense The following table reflects share-based compensation recorded by the Company for the three and nine months ended September 30, 2018 and 2017: Nine Months Ended September 30, Three Months Ended September 30, 2018 2017 2018 2017 Share-based compensation expense included in general and administrative expense $ 82,947 $ 196,869 $ 14,217 $ 61,025 Earnings per share effect of share-based compensation expense – basic and diluted $ 0.00 $ 0.00 $ 0.00 $ 0.00 |
Capital Stock
Capital Stock | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Capital Stock | NOTE 5 – CAPITAL STOCK Series A Convertible Redeemable Preferred Stock During the nine months ended September 30, 2018, (i) 90 shares of Series A Convertible Redeemable Preferred Stock were converted, under the terms of the preferred stock, into 450,000 shares of common stock and (ii) the Company paid dividends on Series A Convertible Redeemable Preferred Stock in the amount of $100,350. At September 30, 2018, there were 1,085 shares of Series A Convertible Redeemable Preferred Stock issued and outstanding. Series B Convertible Redeemable Preferred Stock During the nine months ended September 30, 2018, (i) 60 shares of Series B Convertible Redeemable Preferred Stock were converted, under the terms of the preferred stock, into 166,667 shares of common stock, and (ii) the Company paid dividends on Series B Convertible Redeemable Preferred Stock in the amount of $81,000. At September 30, 2018, there were 835 shares of Series B Convertible Redeemable Preferred Stock issued and outstanding. Common Stock During the nine months ended September 30, 2018, the Company issued an aggregate of 2,610,083 shares of common stock, consisting of (i) 2,217,926 shares sold under the Company’s At-the-Market Issuance Sales Agreement (the “2017 ATM Offering”) with WestPark Capital, Inc. (“WestPark Capital”); (ii) 277,778 shares issued on conversion of convertible preferred stock, and (iii) 114,379 shares issued on the exercise of stock options. Proceeds from the sale of shares sold under the 2017 ATM Offering, net of commissions and expenses, totaled $688,550. The shares issued on the exercise of stock option were issued in a cashless exercise and resulted in no proceeds to the Company. Warrants A summary of warrant activity and related information for the nine months ended September 30, 2018 is presented below: Warrants Weighted-Average Exercise Price Aggregate Intrinsic Value Outstanding at January 1, 2018 3,651,680 $ 0.44 Issued — — Exercised — — Expired (3,601,680 ) 0.44 Outstanding at September 30, 2018 50,000 $ 0.55 $ — Exercisable at September 30, 2018 25,000 $ 0.55 $ — During the three and nine months ended September 30, 2018, the Company recognized $168 and $1,770, respectively, of stock-based compensation expense attributable to the amortization of warrants. As of September 30, 2018, total unrecognized stock-based compensation expense related to non-vested stock warrants was $12,668. The unrecognized expense is expected to be recognized over a weighted average period of 1.94 years and the weighted average remaining contractual term of the outstanding warrants and exercisable warrants at September 30, 2018 is 1.94 years and 1.94 years, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 6 - COMMITMENTS AND CONTINGENCIES Lease Commitment The Company leases office facilities under an operating lease agreement that expires October 31, 2022. As of September 30, 2018, the lease agreement requires future payments as follows: Year Amount 2018 31,791 2019 128,348 2020 130,717 2021 133,087 2022 112,551 Total $ 536,494 For the three and nine months ended September 30, 2018, the total base rental expense was $30,298 and $98,678, respectively. For the three and nine months ended September 30, 2017, the total base rental expense was $40,100 and $89,544, respectively. The Company does not have any capital leases or other operating lease commitments. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 7 – SUBSEQUENT EVENTS 2017 At-the-Market Offering Subsequent to September 30, 2018, through the date hereof, the Company sold an aggregate of 13,614 shares in the ATM Offering and received proceeds, net of commissions and expenses, of $3,698. 2018 At-the-Market Offering In October 2018, the Company entered into an At-the-Market Issuance Sales Agreement (the “Sales Agreement”) with WestPark Capital pursuant to which the Company may sell, at its option, up to an aggregate of $1.9 million in shares of its common stock through WestPark Capital, as sales agent. Sales of shares under the Sales Agreement (the “2018 ATM Offering”) will be made, in accordance with one or more placement notices delivered by the Company to WestPark Capital, which notices shall set parameters under which shares may be sold. The 2018 ATM Offering was made pursuant to a shelf registration statement by methods deemed to be “at the market,” as defined in Rule 415 promulgated under the Securities Act of 1933. The Company will pay WestPark a commission in cash equal to 3% of the gross proceeds from the sale of shares in the 2018 ATM Offering. Additionally, the Company reimbursed WestPark Capital for $18,000 of expenses incurred in connection with the 2018 ATM Offering. Recovery of Escrow Account In 2010, the Company, and its operator in Colombia, Hupecol, sold its interests in two entities in Colombia. Pursuant to the terms of those sales, a portion of the sales price was escrowed to secure certain representations of the selling parties. The Company’s share of amounts escrowed was recorded as escrow receivables. In 2016, the Company recorded an allowance in the amount of $262,016 relating to the undisbursed balance of escrow receivables. In October 2018, the Company received payments totaling $89,230 representing recoveries of escrowed funds relating to the previously written-off escrow receivables. As a result of the receipt of such funds, the Company will record a non-recurring gain in the amount of $89,230 during the quarter ending December 31, 2018. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Consolidation | Consolidation The accompanying consolidated financial statements include all accounts of the Company and its subsidiaries (HAEC Louisiana E&P, Inc., HAEC Oklahoma E&P, Inc., and HAEC Caddo Lake E&P, Inc.). All significant inter-company balances and transactions have been eliminated in consolidation. |
Accounting Principles and Use of Estimates | Accounting Principles and Use of Estimates The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America. In preparing financial statements, management makes informed judgments and estimates that affect the reported amounts of assets and liabilities as of the date of the financial statements and affect the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, management reviews its estimates, including those related to such potential matters as litigation, environmental liabilities, income taxes and the related valuation allowance, determination of proved reserves of oil and gas and asset retirement obligations. Changes in facts and circumstances may result in revised estimates and actual results may differ from these estimates. |
Reclassifications | Reclassifications Certain amounts for prior periods have been reclassified to conform to the current presentation. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to a concentration of credit risk include cash, cash equivalents and any marketable securities (if any). The Company had cash deposits of $155,174 in excess of the FDIC’s current insured limit on interest bearing accounts of $250,000 as of September 30, 2018. The Company also had cash deposits of $45,638 in Colombian banks at September 30, 2018 that are not insured by the FDIC. The Company has not experienced any losses on its deposits of cash and cash equivalents. |
Revenue Recognition | Revenue Recognition ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” Revenue Recognition (Topic 605) The Company’s revenue is comprised entirely of revenue from exploration and production activities. The Company’s oil is sold primarily to marketers, gatherers, and refiners. Natural gas is sold primarily to interstate and intrastate natural-gas pipelines, direct end-users, industrial users, local distribution companies, and natural-gas marketers. NGLs are sold primarily to direct end-users, refiners, and marketers. Payment is generally received from the customer in the month following delivery. Contracts with customers have varying terms, including spot sales or month-to-month contracts, contracts with a finite term, and life-of-field contracts where all production from a well or group of wells is sold to one or more customers. 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. |
Loss Per Share | Loss per Share Basic loss per share is computed by dividing net loss available to common shareholders by the weighted average common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common shares were exercised or converted in common shares that then shared in the earnings of the Company. In periods in which the Company reports a net loss, dilutive securities are excluded from the calculation of diluted net loss per share amounts as the effect would be anti-dilutive. For the nine months ended September 30, 2018 and 2017, the following convertible preferred stock and warrants and options to purchase shares of common stock were excluded from the computation of diluted net loss per share, as the inclusion of such shares would be anti-dilutive: Nine Months Ended September 30, 2018 2017 Series A Convertible Preferred Stock 5,425,000 6,000,000 Series B Convertible Preferred Stock 2,320,556 2,527,778 Stock warrants 50,000 3,651,680 Stock options 4,978,832 6,012,165 Total 12,774,388 18,191,623 |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, a new lease standard requiring lessees to recognize lease assets and lease liabilities for most leases classified as operating leases under previous U.S. GAAP. The guidance is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company will be required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. The Company has evaluated the adoption of the standard and, due to there being only one operating lease currently in place, there will be minimal impact of the standard on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement”. The amendments in this update are to improve the effectiveness of disclosures in the notes to the financial statements by facilitating clear communication of the information required by GAAP that is most important to users of each entity’s financial statements. The amendments in this Update apply to all entities that are required, under existing GAAP, to make disclosures about recurring or nonrecurring fair value measurements. The amendments in this update are effective for all entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Company does not expect that this guidance will have a material impact on its consolidated financial statements. In July 2018, the FASB issued ASU 2018-11, “Leases (Topic 842): Target Improvements”. The amendments in this Update also clarify which Topic (Topic 842 or Topic 606) applies for the combined component. Specifically, if the non-lease component or components associated with the lease component are the predominant component of the combined component, an entity should account for the combined component in accordance with Topic 606. Otherwise, the entity should account for the combined component as an operating lease in accordance with Topic 842. An entity that elects the lessor practical expedient also should provide certain disclosures. The Company is currently evaluating the adoption of this guidance and does not expect that this guidance will have a material impact on its consolidated financial statements. The Company has not adopted this Standard and will do so when specified by the FASB. In July 2018, the FASB issued ASU 2018-10, “Codification Improvements to Topic 842, Leases”. The amendments in this Update affect narrow aspects of the guidance issued in the amendments in Update 2016-02 as described in the table below. The amendments in this Update related to transition do not include amendments from proposed Accounting Standards Update, Leases (Topic 842): Targeted Improvements, specific to a new and optional transition method to adopt the new lease requirements in Update 2016-02. That additional transition method will be issued as part of a forthcoming and separate Update that will result in additional amendments to transition paragraphs included in this Update to conform with the additional transition method. The Company is currently evaluating the adoption of this guidance and does not expect that this guidance will have a material impact on its consolidated financial statements. The Company has not adopted this Standard and will do so when specified by the FASB. In June 2018, the FASB issued ASU 2018-07, “Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting”. The amendments in this update are to maintain or improve the usefulness of the information provided to the users of financial statements while reducing cost and complexity in financial reporting. The areas for simplification in this Update involve several aspects of the accounting for nonemployee share-based payment transactions resulting from expanding the scope of Topic 718, to include share-based payment transactions for acquiring goods and services from nonemployees. Some of the areas for simplification apply only to nonpublic entities. The amendments in this update are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The Company does not expect that this guidance will have a material impact on its consolidated financial statements. The Company does not expect the adoption of any recently issued accounting pronouncements to have a significant impact on its financial position, results of operations, or cash flows. |
Subsequent Events | Subsequent Events The Company has evaluated all transactions from September 30, 2018 through the financial statement issuance date for subsequent event disclosure consideration. |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Computation of Diluted Net Loss Per Share | For the nine months ended September 30, 2018 and 2017, the following convertible preferred stock and warrants and options to purchase shares of common stock were excluded from the computation of diluted net loss per share, as the inclusion of such shares would be anti-dilutive: Nine Months Ended September 30, 2018 2017 Series A Convertible Preferred Stock 5,425,000 6,000,000 Series B Convertible Preferred Stock 2,320,556 2,527,778 Stock warrants 50,000 3,651,680 Stock options 4,978,832 6,012,165 Total 12,774,388 18,191,623 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregates Revenue by Significant Product | The following table disaggregates revenue by significant product type for the three and nine month periods ended September 30, 2018: Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Oil sales $ 297,967 $ 1,145,643 Natural gas sales 102,756 583,817 Natural gas liquids sales 152,223 152,223 Total revenue from customers $ 552,946 $ 1,881,683 |
Oil and Gas Properties (Tables)
Oil and Gas Properties (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Oil and Gas Property [Abstract] | |
Schedule of Revenues and Long Lived Assets Attributable to Geographical Area | Revenues for the nine months ended September 30, 2018 and long lived assets (net of depletion, amortization, and impairments) as of September 30, 2018 attributable to each geographical area are presented below: Nine Months Ended September 30, 2018 As of September 30, 2018 Revenues Long Lived Assets, Net United States $ 1,881,683 $ 4,246,604 Colombia — 2,319,320 Total $ 1,881,683 $ 6,565,924 |
Stock-Based Compensation Expe_2
Stock-Based Compensation Expense (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Stock Option Activity | A summary of stock option activity and related information for the nine months ended September 30, 2018 is presented below: Options Weighted-Average Exercise Price Aggregate Intrinsic Value Outstanding at January 1, 2018 6,012,165 $ 1.86 Granted 1,658,333 0.29 Exercised (250,000 ) 0.22 Forfeited (2,441,666 ) 3.79 Outstanding at September 30, 2018 4,978,832 $ 0.88 $ 6,646 Exercisable at September 30, 2018 4,923,499 $ 0.95 $ 6,646 |
Schedule of Share-based Compensation Expense | The following table reflects share-based compensation recorded by the Company for the three and nine months ended September 30, 2018 and 2017: Nine Months Ended September 30, Three Months Ended September 30, 2018 2017 2018 2017 Share-based compensation expense included in general and administrative expense $ 82,947 $ 196,869 $ 14,217 $ 61,025 Earnings per share effect of share-based compensation expense – basic and diluted $ 0.00 $ 0.00 $ 0.00 $ 0.00 |
Capital Stock (Tables)
Capital Stock (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Summary of Warrant Activity | A summary of warrant activity and related information for the nine months ended September 30, 2018 is presented below: Warrants Weighted-Average Exercise Price Aggregate Intrinsic Value Outstanding at January 1, 2018 3,651,680 $ 0.44 Issued — — Exercised — — Expired (3,601,680 ) 0.44 Outstanding at September 30, 2018 50,000 $ 0.55 $ — Exercisable at September 30, 2018 25,000 $ 0.55 $ — |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Payments Under Lease Agreement | As of September 30, 2018, the lease agreement requires future payments as follows: Year Amount 2018 31,791 2019 128,348 2020 130,717 2021 133,087 2022 112,551 Total $ 536,494 |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies (Details Narrative) | Sep. 30, 2018USD ($) |
Cash deposits but not insured FDIC's | $ 155,174 |
Current insured limit on interest bearing accounts | 250,000 |
Colombian Banks [Member] | |
Cash deposits but not insured FDIC's | $ 45,638 |
Basis of Presentation and Sig_5
Basis of Presentation and Significant Accounting Policies - Schedule of Computation of Diluted Net Loss Per Share (Details) - shares | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Total | 12,774,388 | 18,191,623 |
Series A Convertible Preferred Stock [Member] | ||
Total | 5,425,000 | 6,000,000 |
Series B Convertible Preferred Stock [Member] | ||
Total | 2,320,556 | 2,527,778 |
Stock Warrants [Member] | ||
Total | 50,000 | 3,651,680 |
Stock Options [Member] | ||
Total | 4,978,832 | 6,012,165 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details Narrative) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Revenue from Contract with Customer [Abstract] | ||
Remaining performance obligations |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Schedule of Disaggregates Revenue by Significant Product (Details) - USD ($) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | |
Total revenue from customers | $ 552,946 | $ 1,881,683 |
Oil Sales [Member] | ||
Total revenue from customers | 297,967 | 1,145,643 |
Natural Gas Sales [Member] | ||
Total revenue from customers | 102,756 | 583,817 |
Natural Gas Liquids Sales [Member] | ||
Total revenue from customers | $ 152,223 | $ 152,223 |
Oil and Gas Properties (Details
Oil and Gas Properties (Details Narrative) | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Investment in development of oil and gas properties | $ 20,029 |
Properties Not Subject to Amortization and Reduced Costs [Member] | |
Capitalized oil and gas properties | 145,309 |
Properties Subject to Amortization [Member] | |
Capitalized oil and gas properties | 125,280 |
Yoakum County, Texas [Member] | |
Acquisition and development cost of oil and gas properties | 135,329 |
Colombia [Member] | |
Preparation and evaluation costs | 9,980 |
Reeves County, Texas [Member] | |
Acquisition and development cost of oil and gas properties | $ 125,280 |
Oil and Gas Properties - Schedu
Oil and Gas Properties - Schedule of Revenues and Long Lived Assets Attributable to Geographical Area (Details) | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Revenue | $ 1,881,683 |
Long Lived Assets, Net | 6,565,924 |
Reportable Geographical Components [Member] | United States [Member] | |
Revenue | 1,881,683 |
Long Lived Assets, Net | 4,246,604 |
Reportable Geographical Components [Member] | Colombia [Member] | |
Revenue | |
Long Lived Assets, Net | $ 2,319,320 |
Stock-Based Compensation Expe_3
Stock-Based Compensation Expense (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Jun. 30, 2018 | Apr. 30, 2018 | Mar. 31, 2018 | Feb. 28, 2018 | Sep. 30, 2018 | Sep. 30, 2018 | Mar. 31, 2017 | Dec. 31, 2008 | |
Number of stock option shares granted | 250,000 | 1,658,333 | ||||||
Options granted exercise price of per share | $ 0.29 | |||||||
Issuance of common stock, shares | 114,379 | |||||||
Stock compensation amortized expense | $ 14,049 | $ 81,177 | ||||||
Unrecognized share-based compensation expense related to non-vested stock options | $ 84,514 | $ 84,514 | ||||||
Weighted average period for recognition of compensation expense | 11 months 26 days | |||||||
Weighted average remaining contractual term of the outstanding options | 5 years 6 months 25 days | |||||||
Weighted average remaining contractual term of the exercisable options | 4 years 9 months 25 days | |||||||
Executive Officer [Member] | ||||||||
Number of stock option shares granted | 1,000,000 | |||||||
Description on vesting of stock options | The options have a ten-year life, vest 1/3 on each of the first three anniversaries of the grant date and are exercisable at $0.2922 per share, the fair market value on the date of grant. | |||||||
Stock option grand period | 10 years | |||||||
Options granted exercise price of per share | $ 0.2922 | |||||||
Fair value of options granted | $ 166,940 | |||||||
Risk free interest rate | 2.68% | |||||||
Stock option expected life | 5 years 9 months 14 days | |||||||
Expected stock volatility | 105.40% | |||||||
Expected dividend yield | 0.00% | |||||||
Non-Officer Employee [Member] | ||||||||
Number of stock option shares granted | 500,000 | |||||||
Description on vesting of stock options | The options have a ten-year life, vest 1/3 on each of the first three anniversaries of the grant date and are exercisable at $0.30 per share, the fair market value on the date of grant. | |||||||
Stock option grand period | 10 years | |||||||
Options granted exercise price of per share | $ 0.30 | |||||||
Fair value of options granted | $ 89,808 | |||||||
Risk free interest rate | 2.72% | |||||||
Stock option expected life | 5 years 9 months 22 days | |||||||
Expected stock volatility | 105.00% | |||||||
Expected dividend yield | 0.00% | |||||||
Non-Employee Director [Member] | ||||||||
Number of stock option shares granted | 8,333 | |||||||
Description on vesting of stock options | The options have a ten-year life, vest 20% on the date of grant and 80% nine months from the date of grant and an exercise price of $0.267 per share, the fair market value on the date of grant. | |||||||
Stock option grand period | 10 years | |||||||
Options granted exercise price of per share | $ 0.267 | |||||||
Fair value of options granted | $ 1,770 | |||||||
Risk free interest rate | 2.69% | |||||||
Stock option expected life | 5 years 9 months 18 days | |||||||
Expected stock volatility | 105.00% | |||||||
Expected dividend yield | 0.00% | |||||||
Three Non Employee Directors [Member] | ||||||||
Number of stock option shares granted | 150,000 | |||||||
Description on vesting of stock options | The options have a ten-year life, vest 20% on the date of grant and 80% nine months from the date of grant and exercise prices of $0.2425 per share, the fair market value on the date of grant. | |||||||
Stock option grand period | 10 years | |||||||
Options granted exercise price of per share | $ 0.2425 | |||||||
Fair value of options granted | $ 27,422 | |||||||
Risk free interest rate | 2.79% | |||||||
Stock option expected life | 5 years 10 months 17 days | |||||||
Expected stock volatility | 103.90% | |||||||
Expected dividend yield | 0.00% | |||||||
2008 Equity Incentive Plan [Member] | Maximum [Member] | ||||||||
Number of options authorized to purchase shares of common stock | 6,000,000 | |||||||
2017 Equity Incentive Plan [Member] | ||||||||
Shares available for issuance | 4,500,000 | 4,500,000 | ||||||
2017 Equity Incentive Plan [Member] | Maximum [Member] | ||||||||
Number of options authorized to purchase shares of common stock | 5,000,000 |
Stock-Based Compensation Expe_4
Stock-Based Compensation Expense - Summary of Stock Option Activity (Details) - USD ($) | 1 Months Ended | 9 Months Ended |
Jun. 30, 2018 | Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Options Outstanding at beginning of the period | 6,012,165 | |
Options Granted | 250,000 | 1,658,333 |
Options Exercised | (250,000) | |
Options Forfeited | (2,441,666) | |
Options Outstanding at end of the period | 4,978,832 | |
Options Outstanding Exercisable | 4,923,499 | |
Weighted-Average Exercise Price Outstanding at beginning of the period | $ 1.86 | |
Weighted-Average Exercise Price Granted | 0.29 | |
Weighted-Average Exercise Price Exercised | 0.22 | |
Weighted-Average Exercise Price Forfeited | 3.79 | |
Weighted-Average Exercise Price Outstanding at end of the period | 0.88 | |
Weighted-Average Exercise Price Outstanding Exercisable | $ 0.95 | |
Aggregate Intrinsic Value Outstanding at end of the period | $ 6,646 | |
Aggregate Intrinsic Value Outstanding Exercisable | $ 6,646 |
Stock-Based Compensation Expe_5
Stock-Based Compensation Expense - Schedule of Share-based Compensation Expense (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Share-based compensation expense included in general and administrative expense | $ 14,217 | $ 61,025 | $ 82,947 | $ 196,869 |
Earnings per share effect of share-based compensation expense - basic and diluted | $ 0 | $ 0 | $ 0 | $ 0 |
Capital Stock (Details Narrativ
Capital Stock (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Issuance of common stock, shares | 114,379 | ||||
Stock issued on exercise of stock option | 250,000 | ||||
Proceeds from issuance of common stock | $ 688,550 | $ 3,049,515 | |||
Stock compensation amortized expense | $ 14,049 | 81,177 | |||
Unrecognized share-based compensation expense related to non-vested stock options | $ 84,514 | $ 84,514 | |||
Weighted average period for recognition of compensation expense | 11 months 26 days | ||||
Weighted average remaining contractual term of the outstanding warrants | 5 years 6 months 25 days | ||||
Weighted average remaining contractual term of the exercisable warrants | 4 years 9 months 25 days | ||||
Common Stock [Member] | |||||
Number of preferred stock converted | 277,778 | 277,778 | |||
Issuance of common stock, shares | 2,610,083 | ||||
Stock issued on exercise of stock option | 114,379 | ||||
Proceeds from issuance of common stock | $ 688,550 | ||||
Common Stock [Member] | 2017 ATM Offering [Member] | WestPark Capital, Inc [Member] | |||||
Sale of stock, shares | 2,217,926 | ||||
Warrants [Member] | |||||
Stock compensation amortized expense | $ 168 | $ 1,770 | |||
Unrecognized share-based compensation expense related to non-vested stock options | $ 12,668 | $ 12,668 | |||
Weighted average period for recognition of compensation expense | 1 year 11 months 8 days | ||||
Weighted average remaining contractual term of the outstanding warrants | 1 year 11 months 8 days | ||||
Weighted average remaining contractual term of the exercisable warrants | 1 year 11 months 8 days | ||||
Series A Convertible Redeemable Preferred Stock [Member] | |||||
Number of preferred stock converted | 90 | 90 | |||
Conversion of stock, shares converted | 450,000 | ||||
Payments for dividend | $ 100,350 | ||||
Preferred stock, shares issued | 1,085 | 1,085 | 1,175 | ||
Preferred stock, shares outstanding | 1,085 | 1,085 | 1,175 | ||
Series B Convertible Redeemable Preferred Stock [Member] | |||||
Number of preferred stock converted | 60 | 60 | |||
Conversion of stock, shares converted | 166,667 | ||||
Payments for dividend | $ 81,000 | ||||
Preferred stock, shares issued | 835 | 835 | 895 | ||
Preferred stock, shares outstanding | 835 | 835 | 895 |
Capital Stock - Summary of Warr
Capital Stock - Summary of Warrant Activity (Details) | 9 Months Ended |
Sep. 30, 2018USD ($)$ / sharesshares | |
Equity [Abstract] | |
Warrants Outstanding, beginning | 3,651,680 |
Warrants Outstanding, Issued | |
Warrants Outstanding, Exercised | |
Warrants Outstanding, Expired | (3,651,680) |
Warrants Outstanding, ending | 50,000 |
Warrants Outstanding, Exercisable | 12,500 |
Weighted-Average Exercise Price Outstanding, beginning | $ / shares | $ 0.44 |
Weighted-Average Exercise Price, Issued | $ / shares | |
Weighted-Average Exercise Price, Exercised | $ / shares | |
Weighted-Average Exercise Price, Expired | $ / shares | 0.44 |
Weighted-Average Exercise Price Outstanding, ending | $ / shares | $ 0.55 |
Weighted-Average Exercise Price Outstanding, Exercisable | 0.55 |
Aggregate Intrinsic Value Ending | $ | |
Aggregate Intrinsic Value, Exercisable | $ |
Commitments and Contingencies_2
Commitments and Contingencies (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Operating lease agreement expire date | Oct. 31, 2022 | |||
Rental expense | $ 30,298 | $ 40,100 | $ 98,678 | $ 89,544 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Payments Under Lease Agreement (Details) | Sep. 30, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,018 | $ 31,791 |
2,019 | 128,348 |
2,020 | 130,717 |
2,021 | 133,087 |
2,022 | 112,551 |
Total | $ 536,494 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Oct. 31, 2018 | Dec. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2016 | |
Proceeds from issuance of common stock | $ 688,550 | $ 3,049,515 | |||
Allowance for escrow receivables | $ 262,016 | ||||
Subsequent Event [Member] | |||||
Proceeds from recoveries of escrowed funds | $ 89,230 | ||||
Non-recurring gain from escrow | $ 89,230 | ||||
ATM Offering [Member] | |||||
Sale of stock, shares | 13,614 | ||||
Proceeds from issuance of common stock | $ 3,698 | ||||
Sales Agreement [Member] | Subsequent Event [Member] | WestPark Capital, Inc [Member] | |||||
Proceeds from issuance of common stock | 1,900,000 | ||||
Expenses incurred in offering | $ 18,000 |