Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 10, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2021 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 1-32955 | |
Entity Registrant Name | HOUSTON AMERICAN ENERGY CORP. | |
Entity Central Index Key | 0001156041 | |
Entity Tax Identification Number | 76-0675953 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 801 Travis Street, Suite 1425 | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77002 | |
City Area Code | (713) | |
Local Phone Number | 222-6966 | |
Title of 12(b) Security | Common Stock, $0.001 par value per share | |
Trading Symbol | HUSA | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 9,928,338 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
CURRENT ASSETS | ||
Cash | $ 4,943,181 | $ 1,242,560 |
Accounts receivable – oil and gas sales | 125,930 | 95,763 |
Prepaid expenses and other current assets | 166,020 | 35,845 |
TOTAL CURRENT ASSETS | 5,235,131 | 1,374,168 |
Oil and gas properties, full cost method | ||
Costs subject to amortization | 61,119,974 | 61,089,737 |
Costs not being amortized | 3,981,805 | 3,981,805 |
Office equipment | 90,004 | 90,004 |
Total | 65,191,783 | 65,161,546 |
Accumulated depletion, depreciation, amortization, and impairment | (60,230,667) | (60,150,988) |
PROPERTY AND EQUIPMENT, NET | 4,961,116 | 5,010,558 |
Cost method investment | 451,619 | 260,405 |
Right of use asset | 286,336 | 194,123 |
Other assets | 3,167 | 3,167 |
TOTAL ASSETS | 10,937,369 | 6,842,421 |
CURRENT LIABILITIES | ||
Accounts payable | 44,385 | 120,140 |
Accrued expenses | 14,959 | 939 |
Current portion of lease liability | 55,718 | 110,577 |
TOTAL CURRENT LIABILITIES | 115,062 | 231,656 |
LONG-TERM LIABILITIES | ||
Lease liability, net of current portion | 226,782 | 107,862 |
Reserve for plugging and abandonment costs | 68,209 | 63,929 |
TOTAL LONG-TERM LIABILITIES | 294,991 | 171,791 |
TOTAL LIABILITIES | 410,053 | 403,447 |
COMMITMENTS AND CONTINGENCIES | ||
SHAREHOLDERS’ EQUITY | ||
Common stock, par value $0.001; 12,000,000 shares authorized; 9,928,338 and 6,977,718 shares issued and outstanding, respectively | 9,928 | 6,977 |
Additional paid-in capital | 83,203,994 | 78,453,906 |
Accumulated deficit | (72,686,606) | (72,021,911) |
TOTAL SHAREHOLDERS’ EQUITY | 10,527,316 | 6,438,974 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 10,937,369 | 6,842,421 |
Preferred stock series A [Member] | ||
SHAREHOLDERS’ EQUITY | ||
Preferred stock | 1 | |
Preferred stock series B [Member] | ||
SHAREHOLDERS’ EQUITY | ||
Preferred stock | $ 1 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
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 | 12,000,000 | 12,000,000 |
Common stock, shares outstanding | 9,928,338 | 6,977,718 |
Common stock, shares issued | 9,928,338 | 6,977,718 |
Series A Convertible Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 2,000 | 2,000 |
Preferred stock, shares issued | 0 | 1,085 |
Preferred stock, shares outstanding | 0 | 1,085 |
Liquidation preference value | $ 1,085,000 | |
Series B Convertible Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 1,000 | 1,000 |
Preferred stock, shares issued | 835 | 835 |
Preferred stock, shares outstanding | 835 | 835 |
Liquidation preference value | $ 0 | $ 835,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
OIL AND GAS REVENUE | $ 290,375 | $ 126,425 | $ 922,862 | $ 351,489 |
EXPENSES OF OPERATIONS | ||||
Lease operating expense and severance tax | 184,869 | 53,603 | 443,614 | 233,753 |
General and administrative expense | 436,304 | 240,390 | 1,076,392 | 883,995 |
Depreciation and depletion | 21,045 | 94,926 | 79,680 | 237,071 |
Impairment of oil and gas properties | 429,116 | |||
Total operating expense | 642,218 | 388,919 | 1,599,686 | 1,783,935 |
Loss from operations | (351,843) | (262,494) | (676,824) | (1,432,446) |
OTHER INCOME | ||||
Interest income | 968 | 2,729 | 12,425 | 12,006 |
Interest expense | (296) | (26,817) | ||
Total other income | 968 | 2,729 | 12,129 | (14,811) |
Net loss before taxes | (350,875) | (259,765) | (664,695) | (1,447,257) |
Income tax expense | ||||
Net loss | (350,875) | (259,765) | (664,695) | (1,447,257) |
Dividends to Series A and B preferred stockholders | (69,600) | (37,201) | (172,800) | |
Net loss attributable to common shareholders | $ (350,875) | $ (329,365) | $ (701,896) | $ (1,620,057) |
Basic and diluted loss per common share | $ (0.04) | $ (0.05) | $ (0.07) | $ (0.23) |
Based and diluted weighted average number of common shares outstanding | 9,928,338 | 6,972,128 | 9,585,493 | 9,626,407 |
Conslidated Statements of Chang
Conslidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Subscription Receivable [Member] | Retained Earnings [Member] | Total |
Balance at Dec. 31, 2019 | $ 2 | $ 5,276 | $ 73,877,332 | $ (58,575) | $ (67,984,837) | $ 5,839,198 |
Beginning balance, shares at Dec. 31, 2019 | 1,920 | 5,275,816 | ||||
Issuance of common stock for cash, net | $ 1,684 | 4,373,910 | 58,575 | 4,434,169 | ||
Issuance of common stock for cash, net, shares | 1,684,760 | |||||
Stock-based compensation | 57,442 | 57,442 | ||||
Series A and Series B Preferred Stock dividends paid | (57,600) | (57,600) | ||||
Net loss | (850,990) | (850,990) | ||||
Balance at Mar. 31, 2020 | $ 2 | $ 6,960 | 78,251,084 | (68,835,827) | 9,422,219 | |
Ending balance, shares at Mar. 31, 2020 | 1,920 | 6,960,576 | ||||
Balance at Dec. 31, 2019 | $ 2 | $ 5,276 | 73,877,332 | (58,575) | (67,984,837) | 5,839,198 |
Beginning balance, shares at Dec. 31, 2019 | 1,920 | 5,275,816 | ||||
Net loss | (1,447,257) | |||||
Balance at Sep. 30, 2020 | $ 2 | $ 6,977 | 78,184,271 | 69,432,094 | 8,759,156 | |
Ending balance, shares at Sep. 30, 2020 | 1,920 | 6,977,718 | ||||
Balance at Mar. 31, 2020 | $ 2 | $ 6,960 | 78,251,084 | (68,835,827) | 9,422,219 | |
Beginning balance, shares at Mar. 31, 2020 | 1,920 | 6,960,576 | ||||
Stock-based compensation | 39,323 | 39,323 | ||||
Series A and Series B Preferred Stock dividends paid | (45,600) | (45,600) | ||||
Net loss | (336,502) | (336,502) | ||||
Balance at Jun. 30, 2020 | $ 2 | $ 6,960 | 78,244,807 | (69,172,329) | 9,079,440 | |
Ending balance, shares at Jun. 30, 2020 | 1,920 | 6,960,576 | ||||
Rounding of common stock due to reverse split | $ 17 | (17) | ||||
Rounding of common stock due to reverse split, shares | 17,142 | |||||
Stock-based compensation | 9,081 | 9,081 | ||||
Series A and Series B Preferred Stock dividends paid | (69,600) | (69,600) | ||||
Net loss | (259,765) | (259,765) | ||||
Balance at Sep. 30, 2020 | $ 2 | $ 6,977 | 78,184,271 | 69,432,094 | 8,759,156 | |
Ending balance, shares at Sep. 30, 2020 | 1,920 | 6,977,718 | ||||
Balance at Dec. 31, 2020 | $ 2 | $ 6,977 | 78,453,906 | (72,021,911) | 6,438,974 | |
Beginning balance, shares at Dec. 31, 2020 | 1,920 | 6,977,718 | ||||
Issuance of common stock for cash, net | $ 2,922 | 6,572,967 | 6,575,889 | |||
Issuance of common stock for cash, net, shares | 2,921,620 | |||||
Stock-based compensation | 15,109 | 15,109 | ||||
Conversion of Series A Preferred Stock to common stock | $ 24 | (24) | ||||
Conversion of Series A Preferred Stock to common stock, shares | (60) | 24,000 | ||||
Redemption of Series A and Series B Preferred Stock | $ (2) | (1,967,798) | (1,967,800) | |||
Redemption of Series A and Series B Preferred Stock, shares | (1,860) | |||||
Series A and Series B Preferred Stock dividends paid | (37,201) | (37,201) | ||||
Net loss | (268,476) | (268,476) | ||||
Balance at Mar. 31, 2021 | $ 9,923 | 83,036,959 | (72,290,387) | 10,756,495 | ||
Ending balance, shares at Mar. 31, 2021 | 9,923,338 | |||||
Balance at Dec. 31, 2020 | $ 2 | $ 6,977 | 78,453,906 | (72,021,911) | 6,438,974 | |
Beginning balance, shares at Dec. 31, 2020 | 1,920 | 6,977,718 | ||||
Net loss | (664,695) | |||||
Balance at Sep. 30, 2021 | $ 9,928 | 83,203,994 | (72,686,606) | 10,527,316 | ||
Ending balance, shares at Sep. 30, 2021 | 9,928,338 | |||||
Balance at Mar. 31, 2021 | $ 9,923 | 83,036,959 | (72,290,387) | 10,756,495 | ||
Beginning balance, shares at Mar. 31, 2021 | 9,923,338 | |||||
Net loss | (45,344) | (45,344) | ||||
Balance at Jun. 30, 2021 | $ 9,923 | 83,036,959 | (72,335,731) | 10,711,151 | ||
Ending balance, shares at Jun. 30, 2021 | 9,923,338 | |||||
Stock-based compensation | $ 5 | 167,035 | 167,040 | |||
Stock-based compensation, shares | 5,000 | |||||
Net loss | (350,875) | (350,875) | ||||
Balance at Sep. 30, 2021 | $ 9,928 | $ 83,203,994 | $ (72,686,606) | $ 10,527,316 | ||
Ending balance, shares at Sep. 30, 2021 | 9,928,338 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (664,695) | $ (1,447,257) |
Adjustments to reconcile net loss to net cash used in operations: | ||
Depreciation and depletion | 79,680 | 237,071 |
Impairment of oil and gas properties | 429,116 | |
Accretion of asset retirement obligation | 4,280 | 7,779 |
Stock-based compensation | 182,149 | 105,846 |
Amortization of debt discount | 23,467 | |
Amortization of right of use asset | 60,208 | 64,423 |
Changes in operating assets and liabilities: | ||
(Increase) decrease in accounts receivable | (30,167) | 59,059 |
Increase in prepaid expenses and other current assets | (130,175) | (35,520) |
Decrease in accounts payable and accrued expenses | (116,595) | (197,006) |
Increase (decrease) in operating lease liability | (33,501) | (83,038) |
Net cash used in operating activities | (648,816) | (836,060) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Payments for the acquisition and development of oil and gas properties | (30,237) | (1,272,133) |
Payments for capital contribution for cost method investment | (191,214) | (55,264) |
Net cash used in investing activities | (221,451) | (1,327,397) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Repayments of notes payable – related party | (621,052) | |
Proceeds from the issuance of common stock, net of expenses | 6,575,889 | 4,434,169 |
Redemption of Series A and Series B Preferred Stock | (1,967,800) | |
Payment of preferred stock dividends | (37,201) | (172,800) |
Net cash provided by financing activities | 4,570,888 | 3,640,317 |
Increase (decrease) in cash | 3,700,621 | 1,476,860 |
Cash, beginning of period | 1,242,560 | 97,915 |
Cash, end of period | 4,943,181 | 1,574,775 |
SUPPLEMENTAL CASH FLOW INFORMATION | ||
Interest paid | 3,350 | |
Taxes paid | ||
SUPPLEMENTAL NON-CASH INVESTING AND FINANCING ACTIVITIES | ||
Conversion of Series A preferred stock to common stock | $ 24 |
BASIS OF PRESENTATION AND SIGNI
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [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 Form 10-K for the year ended December 31, 2020. 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. Liquidity and Capital Requirements The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business for the twelve-month period following the issuance date of these consolidated financial statements. The Company has incurred continuing losses since 2011, including a loss of $ 664,695 for the nine months ended September 30, 2021. As a result of the steep global economic slowdown that began in March 2020 as the coronavirus pandemic (“COVID-19”) spread, oil and gas demand and prices realized from oil and gas sales declined sharply. While the COVID-19 crisis has, in some regards, subsided and the global economy oil and gas prices have recovered, future spikes in COVID-19 infection rates could result in declines in global economic activity and oil and gas prices. Any such future declines in prices would adversely affect the Company’s revenues and profitability. During January and February 2021, the Company raised $ 6.5 With those funds, the Company believes that it has the ability to fund, from cash on hand, its operating costs and anticipated drilling operations for at least the next twelve months following the issuance of these financial statements. The actual timing and number of wells drilled during 2021 will be principally controlled by the operators of the Company’s acreage, based on a number of factors, including but not limited to availability of financing, performance of existing wells on the subject acreage, energy prices and industry condition and outlook, costs of drilling and completion services and equipment and other factors beyond the Company’s control or that of its operators. In the event that the Company pursues additional acreage acquisitions or expands its drilling plans, the Company may be required to secure additional funding beyond our resources on hand. While the Company may, among other efforts, seek additional funding from “at-the-market” sales of common stock, and private sales of equity and debt securities, it presently does not have any commitments to provide additional funding, and there can be no assurance that the Company can secure the necessary capital to fund its share of drilling, acquisition or other costs on acceptable terms or at all. If, for any reason, the Company is unable to fund its share of drilling and completion costs, it would forego participation in one or more of such wells. In such event, the Company may be subject to penalties or to the possible loss of some of its rights and interests in prospects with respect to which it fails to satisfy funding obligations and it may be required to curtail operations and forego opportunities. 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. 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 $ 4,619,259 in excess of the FDIC’s current insured limit on interest bearing accounts of $ 250,000 as of September 30, 2021. The Company also had cash deposits of $ 4,695 in Colombian banks at September 30, 2021 that are not insured by the FDIC. The Company has not experienced any losses on its deposits of cash and cash equivalents. 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 three and nine months ended September 30, 2021 and 2020, 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: SCHEDULE OF COMPUTATION OF DILUTED NET LOSS PER SHARE Nine Months Ended September 30, Three Months Ended September 30, 2021 2020 2021 2020 Series A Convertible Preferred Stock — 434,000 — 434,000 Series B Convertible Preferred Stock — 185,644 — 185,644 Stock warrants 98,400 98,400 98,400 98,400 Stock options 990,173 480,973 990,173 480,973 Total 1,088,573 1,199,017 1,088,573 1,199,017 Recently Issued Accounting Pronouncements 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, 2021 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, 2021 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | NOTE 2 – REVENUE FROM CONTRACTS WITH CUSTOMERS 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, 2021 and 2020: SCHEDULE OF DISAGGREGATES REVENUE BY SIGNIFICANT PRODUCT Three Months Ended Three Months Ended September 30, 2020 Nine Months Ended September 30, 2021 Nine Months Ended September 30, 2020 Oil sales $ 213,503 $ 85,617 $ 689,296 $ 257,567 Natural gas sales 51,984 21,795 151,808 44,456 Natural gas liquids sales 24,888 19,013 81,758 49,466 Total revenue from customers $ 290,375 $ 126,425 $ 922,862 $ 351,489 There were no |
OIL AND GAS PROPERTIES
OIL AND GAS PROPERTIES | 9 Months Ended |
Sep. 30, 2021 | |
Extractive Industries [Abstract] | |
OIL AND GAS PROPERTIES | NOTE 3 – OIL AND GAS PROPERTIES During the nine months ended September 30, 2021, the Company invested $ 30,237 , net, for the acquisition and development of oil and gas properties, all attributable to U.S. properties, principally acreage in Reeves County. All of the amount invested was capitalized to oil and gas properties subject to amortization. The Company also invested $ 191,214 in Hupecol Meta relating to drilling operations in Colombia, reflected in the cost method investment asset. During the three and nine months ended September 30, 2021, the Company recorded depletion expense of $ 21,045 and $ 79,680 , respectively. During the three and nine months ended September 30, 2020, the Company recorded depletion expense of $ 94,926 and $ 237,071 , respectively. During the three and nine months ended September 30, 2021, the Company recorded an impairment of oil and gas properties of $ 0 0 0 429,116 Geographical Information The Company currently has properties in two geographical areas, the United States and Colombia. Revenues for the nine months ended September 30, 2021 and long lived assets (net of depletion, amortization, and impairment) as of September 30, 2021 attributable to each geographical area are presented below: SCHEDULE OF REVENUES AND LONG LIVED ASSETS ATTRIBUTABLE TO GEOGRAPHICAL AREA Nine Months Ended As of Revenues Long Lived Assets, Net United States $ 922,862 $ 2,617,990 Colombia — 2,343,126 Total $ 922,862 $ 4,961,116 |
STOCK-BASED COMPENSATION EXPENS
STOCK-BASED COMPENSATION EXPENSE | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION EXPENSE | NOTE 4 – STOCK-BASED COMPENSATION EXPENSE In 2008, the Company 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 480,000 In 2017, the Company adopted the Houston American Energy Corp. 2017 Equity Incentive Plan (the “2017 Plan”). The terms of the 2017 Plan, allow for the issuance of up to 400,000 In 2021, the Company adopted the Houston American Energy 2021 Equity Incentive Plan (the “2021 Plan” and, together with the 2008 Plan and the 2017 Plan, the “Plans”). The terms of the 2021 Plan allow for the issuance of up to 500,000 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 A summary of stock option activity and related information for the nine months ended September 30, 2021 is presented below: SUMMARY OF STOCK OPTION ACTIVITY Options Weighted-Average Exercise Price Aggregate Intrinsic Value Outstanding at January 1, 2021 730,973 $ 5.07 Granted 264,000 1.70 Exercised — — Forfeited (4,800 ) 167.81 Outstanding at September 30, 2021 990,173 $ 3.38 $ 361,460 Exercisable at September 30, 2021 792,177 $ 3.79 $ 260,480 During the nine months ended September 30, 2021, options to purchase an aggregate of 210,000 shares of the Company’s common stock were granted to the Company’s directors and sole officer. The options have a ten-year life and are exercisable at $ 1.77 per share. The 60,000 aggregate options granted to directors vest 20% on the date of grant and 80% ten months from the date of grant. The 150,000 options granted to the Company’s sole officer vest one year from the date of grant. The grant date fair value of these stock options was $ 340,308 based on the Black-Scholes Option Pricing model based on the following assumptions: market value of common stock on grant date – $ 1.77 ; risk free interest rate based on the applicable US Treasury bill rate – 1.27 %; dividend yield – 0 %; volatility factor based on the trading history of the Company – 107.2 %; weighted average expected life in years – 10 ; and expected forfeiture rate – 0 %. Additionally, during the nine months ended September 30, 2021, options to purchase 54,000 shares of the Company’s common stock, granted in November 2020 subject to shareholder approval of the Company’s 2021 Plan, received the requisite approval of shareholders and are treated as granted during the nine months ended September 30, 2021. The options have a ten-year life, are exercisable at $ 1.45 per share and vested in full on shareholder approval of the 2021 Plan. The grant date fair value of these stock options was $ 70,279 based on the Black-Scholes Option Pricing model based on the following assumptions: market value of common stock on grant date – $ 1.45 ; risk free interest rate based on the applicable US Treasury bill rate - 0 %; dividend yield – 0 %; volatility factor based on the trading history of the Company – 103.3 %; weighted average expected life in years – 10 ; and expected forfeiture rate – 0 %. As of September 30, 2021, there were 389,827 shares of common stock available for issuance pursuant to future stock or option grants under the Plans. Stock-Based Compensation Expense During the nine months ended September 30, 2021, a non-executive employee was granted 5,000 shares of the Company’s common stock as compensation for services with a grant date fair value of $ 10,825 During the nine months ended September 30, 2021, the Company recognized $ 182,149 of stock-based compensation expense attributable to the amortization of stock options and the issuance of common stock as compensation. As of September 30, 2021, total unrecognized stock-based compensation expense related to non-vested stock options was approximately $ 255,795 . The unrecognized expense is expected to be recognized over a weighted average period of 0.75 years and the weighted average remaining contractual term of the outstanding options and exercisable options at September 30, 2021 is 6.99 years and 6.29 years, respectively. The following table reflects total stock-based compensation recorded by the Company for the nine months ended September 30, 2021 and 2020: SCHEDULE OF STOCK-BASED COMPENSATION EXPENSE Nine Months Ended September 30, 2021 2020 Stock-based compensation expense included in general and administrative expense $ 182,149 $ 105,846 Earnings per share effect of share-based compensation expense – basic and diluted $ (0.00 ) $ (0.02 ) |
CAPITAL STOCK
CAPITAL STOCK | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
CAPITAL STOCK | NOTE 5 – CAPITAL STOCK Common Stock - At-the-Market Offerings In January 2021, the Company entered into a Sales Agreement with Univest Securities, LLC (“Univest”) pursuant to which the Company could sell (the “2021 ATM Offering”), at its option, up to an aggregate of $ 4.768 3 18,000 In January 2021, the Company sold an aggregate of 2,108,520 4.6 In February 2021, the Company entered into another Sales Agreement with Univest pursuant to which the Company could sell (the “2021 Supplemental ATM Offering”), at its option, up to an aggregate of $ 2.03 3 18,000 In February 2021, the Company sold an aggregate of 813,100 2.0 Series A Convertible Preferred Stock During the nine months ended September 30, 2021 and 2020, the Company paid dividends on Series A Convertible Preferred Stock in the amount of $ 20,501 96,900 In February 2021, 60 24,000 1.07 Series B Convertible Preferred Stock During the nine months ended September 30, 2021 and 2020, the Company paid dividends on Series B Convertible Preferred Stock in the amount of $ 16,700 75,900 In February 2021, the Company redeemed all remaining shares of Series B Preferred Stock for cash paid of $ 0.9 Warrants A summary of warrant activity and related information for 2021 is presented below: SUMMARY OF WARRANT ACTIVITY Warrants Weighted-Average Aggregate Outstanding at January 1, 2021 98,400 $ 2.63 Issued — — Exercised — — Expired — — Outstanding at September 30, 2021 98,400 $ 2.63 $ — Exercisable at September 30, 2021 98,400 $ 2.63 $ — |
NOTES PAYABLE _ RELATED PARTY
NOTES PAYABLE – RELATED PARTY | 9 Months Ended |
Sep. 30, 2021 | |
Notes Payable Related Party | |
NOTES PAYABLE – RELATED PARTY | NOTE 6 – NOTES PAYABLE – RELATED PARTY During the nine months ended September 30, 2020, interest expense paid in cash totaled $ 3,350 23,467 The holders of the Bridge Loan Notes were the CEO and a 10 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 7 - COMMITMENTS AND CONTINGENCIES Lease Commitment The Company leases office facilities under an operating lease agreement, which lease agreement was renegotiated in July 2021. The new agreement began August 1, 2021 and expires October 31, 2025 . During the three and nine months ended September 30, 2021, the operating cash outflows related to operating lease liabilities totaled $ 25,179 and $ 91,525 , respectively, and the expense for the right of use asset for operating leases was $ 11,929 and $ 60,208 , respectively. As of September 30, 2021, the Company’s operating lease had a weighted-average remaining term of 4.08 and a weighted average discount rate of 12 %. As of September 30, 2021, the lease agreement requires future payments as follows: SCHEDULE OF FUTURE PAYMENTS UNDER LEASE AGREEMENT Year Amount 2021 21,434 2022 86,373 2023 87,288 2024 88,801 2025 75,051 Total future lease payments 358,947 Total future lease payments 358,947 Less: imputed interest (76,447 ) Present value of future operating lease payments 282,500 Less: current portion of operating lease liabilities (55,718 ) Operating lease liabilities, net of current portion $ 226,782 Right of use assets $ 286,336 The Company does not have any capital leases or other operating lease commitments. |
BASIS OF PRESENTATION AND SIG_2
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [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. |
Liquidity and Capital Requirements | Liquidity and Capital Requirements The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business for the twelve-month period following the issuance date of these consolidated financial statements. The Company has incurred continuing losses since 2011, including a loss of $ 664,695 for the nine months ended September 30, 2021. As a result of the steep global economic slowdown that began in March 2020 as the coronavirus pandemic (“COVID-19”) spread, oil and gas demand and prices realized from oil and gas sales declined sharply. While the COVID-19 crisis has, in some regards, subsided and the global economy oil and gas prices have recovered, future spikes in COVID-19 infection rates could result in declines in global economic activity and oil and gas prices. Any such future declines in prices would adversely affect the Company’s revenues and profitability. During January and February 2021, the Company raised $ 6.5 With those funds, the Company believes that it has the ability to fund, from cash on hand, its operating costs and anticipated drilling operations for at least the next twelve months following the issuance of these financial statements. The actual timing and number of wells drilled during 2021 will be principally controlled by the operators of the Company’s acreage, based on a number of factors, including but not limited to availability of financing, performance of existing wells on the subject acreage, energy prices and industry condition and outlook, costs of drilling and completion services and equipment and other factors beyond the Company’s control or that of its operators. In the event that the Company pursues additional acreage acquisitions or expands its drilling plans, the Company may be required to secure additional funding beyond our resources on hand. While the Company may, among other efforts, seek additional funding from “at-the-market” sales of common stock, and private sales of equity and debt securities, it presently does not have any commitments to provide additional funding, and there can be no assurance that the Company can secure the necessary capital to fund its share of drilling, acquisition or other costs on acceptable terms or at all. If, for any reason, the Company is unable to fund its share of drilling and completion costs, it would forego participation in one or more of such wells. In such event, the Company may be subject to penalties or to the possible loss of some of its rights and interests in prospects with respect to which it fails to satisfy funding obligations and it may be required to curtail operations and forego opportunities. |
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. |
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 $ 4,619,259 in excess of the FDIC’s current insured limit on interest bearing accounts of $ 250,000 as of September 30, 2021. The Company also had cash deposits of $ 4,695 in Colombian banks at September 30, 2021 that are not insured by the FDIC. The Company has not experienced any losses on its deposits of cash and cash equivalents. |
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 three and nine months ended September 30, 2021 and 2020, 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: SCHEDULE OF COMPUTATION OF DILUTED NET LOSS PER SHARE Nine Months Ended September 30, Three Months Ended September 30, 2021 2020 2021 2020 Series A Convertible Preferred Stock — 434,000 — 434,000 Series B Convertible Preferred Stock — 185,644 — 185,644 Stock warrants 98,400 98,400 98,400 98,400 Stock options 990,173 480,973 990,173 480,973 Total 1,088,573 1,199,017 1,088,573 1,199,017 |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements 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, 2021 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, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SCHEDULE OF COMPUTATION OF DILUTED NET LOSS PER SHARE | For the three and nine months ended September 30, 2021 and 2020, 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: SCHEDULE OF COMPUTATION OF DILUTED NET LOSS PER SHARE Nine Months Ended September 30, Three Months Ended September 30, 2021 2020 2021 2020 Series A Convertible Preferred Stock — 434,000 — 434,000 Series B Convertible Preferred Stock — 185,644 — 185,644 Stock warrants 98,400 98,400 98,400 98,400 Stock options 990,173 480,973 990,173 480,973 Total 1,088,573 1,199,017 1,088,573 1,199,017 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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, 2021 and 2020: SCHEDULE OF DISAGGREGATES REVENUE BY SIGNIFICANT PRODUCT Three Months Ended Three Months Ended September 30, 2020 Nine Months Ended September 30, 2021 Nine Months Ended September 30, 2020 Oil sales $ 213,503 $ 85,617 $ 689,296 $ 257,567 Natural gas sales 51,984 21,795 151,808 44,456 Natural gas liquids sales 24,888 19,013 81,758 49,466 Total revenue from customers $ 290,375 $ 126,425 $ 922,862 $ 351,489 |
OIL AND GAS PROPERTIES (Tables)
OIL AND GAS PROPERTIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Extractive Industries [Abstract] | |
SCHEDULE OF REVENUES AND LONG LIVED ASSETS ATTRIBUTABLE TO GEOGRAPHICAL AREA | The Company currently has properties in two geographical areas, the United States and Colombia. Revenues for the nine months ended September 30, 2021 and long lived assets (net of depletion, amortization, and impairment) as of September 30, 2021 attributable to each geographical area are presented below: SCHEDULE OF REVENUES AND LONG LIVED ASSETS ATTRIBUTABLE TO GEOGRAPHICAL AREA Nine Months Ended As of Revenues Long Lived Assets, Net United States $ 922,862 $ 2,617,990 Colombia — 2,343,126 Total $ 922,862 $ 4,961,116 |
STOCK-BASED COMPENSATION EXPE_2
STOCK-BASED COMPENSATION EXPENSE (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
SUMMARY OF STOCK OPTION ACTIVITY | A summary of stock option activity and related information for the nine months ended September 30, 2021 is presented below: SUMMARY OF STOCK OPTION ACTIVITY Options Weighted-Average Exercise Price Aggregate Intrinsic Value Outstanding at January 1, 2021 730,973 $ 5.07 Granted 264,000 1.70 Exercised — — Forfeited (4,800 ) 167.81 Outstanding at September 30, 2021 990,173 $ 3.38 $ 361,460 Exercisable at September 30, 2021 792,177 $ 3.79 $ 260,480 |
SCHEDULE OF STOCK-BASED COMPENSATION EXPENSE | The following table reflects total stock-based compensation recorded by the Company for the nine months ended September 30, 2021 and 2020: SCHEDULE OF STOCK-BASED COMPENSATION EXPENSE Nine Months Ended September 30, 2021 2020 Stock-based compensation expense included in general and administrative expense $ 182,149 $ 105,846 Earnings per share effect of share-based compensation expense – basic and diluted $ (0.00 ) $ (0.02 ) |
CAPITAL STOCK (Tables)
CAPITAL STOCK (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
SUMMARY OF WARRANT ACTIVITY | A summary of warrant activity and related information for 2021 is presented below: SUMMARY OF WARRANT ACTIVITY Warrants Weighted-Average Aggregate Outstanding at January 1, 2021 98,400 $ 2.63 Issued — — Exercised — — Expired — — Outstanding at September 30, 2021 98,400 $ 2.63 $ — Exercisable at September 30, 2021 98,400 $ 2.63 $ — |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
SCHEDULE OF FUTURE PAYMENTS UNDER LEASE AGREEMENT | SCHEDULE OF FUTURE PAYMENTS UNDER LEASE AGREEMENT Year Amount 2021 21,434 2022 86,373 2023 87,288 2024 88,801 2025 75,051 Total future lease payments 358,947 Total future lease payments 358,947 Less: imputed interest (76,447 ) Present value of future operating lease payments 282,500 Less: current portion of operating lease liabilities (55,718 ) Operating lease liabilities, net of current portion $ 226,782 Right of use assets $ 286,336 |
SCHEDULE OF COMPUTATION OF DILU
SCHEDULE OF COMPUTATION OF DILUTED NET LOSS PER SHARE (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Totals | 1,088,573 | 1,199,017 | 1,088,573 | 1,199,017 |
Series A Convertible Preferred Stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Totals | 434,000 | 434,000 | ||
Series B Convertible Preferred Stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Totals | 185,644 | 185,644 | ||
Stock Warrants [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Totals | 98,400 | 98,400 | 98,400 | 98,400 |
Stock Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Totals | 990,173 | 480,973 | 990,173 | 480,973 |
BASIS OF PRESENTATION AND SIG_4
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||
Feb. 28, 2021 | Jan. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||
Net income loss | $ 350,875 | $ 45,344 | $ 268,476 | $ 259,765 | $ 336,502 | $ 850,990 | $ 664,695 | $ 1,447,257 | ||
Proceeds from sale of common stock | $ 6,500,000 | $ 6,500,000 | 6,575,889 | $ 4,434,169 | ||||||
Cash deposits | 4,619,259 | 4,619,259 | ||||||||
Current insured limit on interest bearing accounts | 250,000 | 250,000 | ||||||||
Colombian Banks [Member] | ||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||
Cash deposits | $ 4,695 | $ 4,695 |
SCHEDULE OF DISAGGREGATES REVEN
SCHEDULE OF DISAGGREGATES REVENUE BY SIGNIFICANT PRODUCT (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue from customers | $ 290,375 | $ 126,425 | $ 922,862 | $ 351,489 |
Oil Sales [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from customers | 213,503 | 85,617 | 689,296 | 257,567 |
Natural Gas Sales [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from customers | 51,984 | 21,795 | 151,808 | 44,456 |
Natural Gas Liquids Sales [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from customers | $ 24,888 | $ 19,013 | $ 81,758 | $ 49,466 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details Narrative) - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
Revenue from Contract with Customer [Abstract] | ||
Remaining performance obligations | $ 0 | $ 0 |
SCHEDULE OF REVENUES AND LONG L
SCHEDULE OF REVENUES AND LONG LIVED ASSETS ATTRIBUTABLE TO GEOGRAPHICAL AREA (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Reserve Quantities [Line Items] | ||||
Revenues | $ 290,375 | $ 126,425 | $ 922,862 | $ 351,489 |
Long Lived Assets, Net | 4,961,116 | 4,961,116 | ||
UNITED STATES | ||||
Reserve Quantities [Line Items] | ||||
Revenues | 922,862 | |||
Long Lived Assets, Net | 2,617,990 | 2,617,990 | ||
COLOMBIA | ||||
Reserve Quantities [Line Items] | ||||
Revenues | ||||
Long Lived Assets, Net | $ 2,343,126 | $ 2,343,126 |
OIL AND GAS PROPERTIES (Details
OIL AND GAS PROPERTIES (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Reserve Quantities [Line Items] | ||||
Depletion | $ 21,045 | $ 94,926 | $ 79,680 | $ 237,071 |
Impairment of oil and gas properties | $ 429,116 | |||
Yoakum County, Texas [Member] | ||||
Reserve Quantities [Line Items] | ||||
Acquisition and development cost of oil and gas properties | 30,237 | |||
COLOMBIA | ||||
Reserve Quantities [Line Items] | ||||
Acquisition and development cost of oil and gas properties | $ 191,214 |
SUMMARY OF STOCK OPTION ACTIVIT
SUMMARY OF STOCK OPTION ACTIVITY (Details) | 9 Months Ended |
Sep. 30, 2021USD ($)$ / sharesshares | |
Share-based Payment Arrangement [Abstract] | |
Options Outstanding at beginning of the period | shares | 730,973 |
Weighted-Average Exercise Price Outstanding at end of the period | $ / shares | $ 5.07 |
Options Granted | shares | 264,000 |
Weighted-Average Exercise Price Granted | $ / shares | $ 1.70 |
Options Exercised | shares | |
Weighted-Average Exercise Price Exercised | $ / shares | |
Options Forfeited | shares | (4,800) |
Weighted-Average Exercise Price Forfeited | $ / shares | $ 167.81 |
Options Outstanding at end of the period | shares | 990,173 |
Weighted-Average Exercise Price Outstanding at end of the period | $ / shares | $ 3.38 |
Aggregate Intrinsic Value Outstanding at end of the period | $ | $ 361,460 |
Options Outstanding Exercisable at end of the period | shares | 792,177 |
Weighted-Average Exercise Price Outstanding Exercisable at end of the period | $ / shares | $ 3.79 |
Aggregate Intrinsic Value Outstanding Exercisable at end of the period | $ | $ 260,480 |
SCHEDULE OF STOCK-BASED COMPENS
SCHEDULE OF STOCK-BASED COMPENSATION EXPENSE (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | ||
Stock-based compensation expense included in general and administrative expense | $ 182,149 | $ 105,846 |
Earnings per share effect of share-based compensation expense - basic and diluted | $ 0 | $ (0.02) |
STOCK-BASED COMPENSATION EXPE_3
STOCK-BASED COMPENSATION EXPENSE (Details Narrative) | 9 Months Ended | |||
Sep. 30, 2021USD ($)$ / sharesshares | Sep. 30, 2020USD ($) | Dec. 31, 2017shares | Dec. 31, 2008shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment award, options, grants | 264,000 | |||
[custom:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm] | ten-year | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ / shares | $ 3.79 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ | $ 70,279 | |||
[custom:ShareBasedPaymentAwardMarketValuesCommonStock] | $ / shares | $ 1.45 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 10 years | |||
Share-based Payment Arrangement, Noncash Expense | $ | $ 182,149 | $ 105,846 | ||
Share-based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount | $ | $ 255,795 | |||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 9 months | |||
Share-based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Remaining Contractual Term | 6 years 11 months 26 days | |||
Share-based Payment Arrangement, Option, Exercise Price Range, Exercisable, Weighted Average Remaining Contractual Term | 6 years 3 months 14 days | |||
Equity Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment award, options, grants | 389,827 | |||
Measurement Input, Risk Free Interest Rate [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Derivative Liability, Measurement Input | 0 | |||
Measurement Input, Expected Dividend Rate [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Derivative Liability, Measurement Input | 0 | |||
Measurement Input Expected Forfeiture Rate [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Derivative Liability, Measurement Input | 0 | |||
Measurement Input, Option Volatility [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Derivative Liability, Measurement Input | 1.033 | |||
Equity Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment award, options, grants | 54,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ / shares | $ 1.77 | |||
Stock Option One [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ / shares | $ 1.45 | |||
Director and Sole Officer [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment award, options, grants | 210,000 | |||
Director [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment award, options, grants | 60,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | aggregate options granted to directors vest 20% on the date of grant | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights | options granted to the Company’s sole officer vest one year from the date of grant. | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ | $ 340,308 | |||
[custom:ShareBasedPaymentAwardMarketValuesCommonStock] | $ / shares | $ 1.77 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 10 years | |||
Director [Member] | Measurement Input, Risk Free Interest Rate [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Derivative Liability, Measurement Input | 0.0127 | |||
Director [Member] | Measurement Input, Expected Dividend Rate [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Derivative Liability, Measurement Input | 0 | |||
Director [Member] | Measurement Input, Price Volatility [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Derivative Liability, Measurement Input | 1.072 | |||
Director [Member] | Measurement Input Expected Forfeiture Rate [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Derivative Liability, Measurement Input | 0 | |||
Sole Officer [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment award, options, grants | 150,000 | |||
Non Executive Employee [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment award, options, grants | 5,000 | |||
Fair value of common stock granted | $ | $ 10,825 | |||
2008 Equity Incentive Plan [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of options authorized to purchase shares of common stock | 480,000 | |||
2017 Equity Incentive Plan [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of options authorized to purchase shares of common stock | 400,000 | |||
2021 Equity Incentive Plan [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of options authorized to purchase shares of common stock | 500,000 |
SUMMARY OF WARRANT ACTIVITY (De
SUMMARY OF WARRANT ACTIVITY (Details) | 9 Months Ended |
Sep. 30, 2021USD ($)$ / sharesshares | |
Equity [Abstract] | |
Warrants Outstanding, Beginning | 98,400 |
Weighted-Average Exercise Price Outstanding, Beginning | $ / shares | $ 2.63 |
Warrants Outstanding, Issued | |
Weighted-Average Exercise Price, Issued | $ / shares | |
Warrants Outstanding, Exercised | |
Weighted-Average Exercise Price, Exercised | $ / shares | |
Warrants Outstanding, Expired | |
Weighted-Average Exercise Price, Expired | $ / shares | |
Warrants Outstanding, Ending | 98,400 |
Weighted-Average Exercise Price Outstanding, Ending | $ / shares | $ 2.63 |
Aggregate Intrinsic Value, Ending | $ | |
Warrants Outstanding, Exercisable | 98,400 |
Weighted-Average Exercise Price Outstanding, Exercisable | 2.63 |
Aggregate Intrinsic Value, Exercisable | $ |
CAPITAL STOCK (Details Narrativ
CAPITAL STOCK (Details Narrative) - USD ($) | 1 Months Ended | 9 Months Ended | ||
Feb. 28, 2021 | Jan. 31, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | |
Class of Stock [Line Items] | ||||
Commission perecentage from gross proceeds of sale of share | 3.00% | 3.00% | ||
Series A Convertible Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Accrued dividends | $ 20,501 | $ 96,900 | ||
Series A Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Number of shares converted | 60 | |||
Conversion of stock, shares converted | 24,000 | |||
Redeemed preferred stock value | $ 1,070,000 | |||
Series B Convertible Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Accrued dividends | $ 16,700 | $ 75,900 | ||
Series B Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Redeemed preferred stock value | 900,000 | |||
Sales Agreement (2021 ATM Offering) [Member] | Univest Securities, LLC [Member] | Maximum [Member] | ||||
Class of Stock [Line Items] | ||||
Sale of stock shares of common stock value | $ 4,768,000 | |||
Reimbursement of expenses connection with offering | 18,000 | |||
ATM Offering [Member] | ||||
Class of Stock [Line Items] | ||||
Sale of stock shares of common stock value | $ 4,600,000 | |||
Number shares sold | 2,108,520 | |||
Sales Agreement (2021 Supplemental ATM Offering) [Member] | Univest Securities, LLC [Member] | Maximum [Member] | ||||
Class of Stock [Line Items] | ||||
Sale of stock shares of common stock value | 2,030,000 | |||
Reimbursement of expenses connection with offering | 18,000 | |||
Supplemental ATM Offering [Member] | ||||
Class of Stock [Line Items] | ||||
Sale of stock shares of common stock value | $ 2,000,000 | |||
Number shares sold | 813,100 |
NOTES PAYABLE _ RELATED PARTY (
NOTES PAYABLE – RELATED PARTY (Details Narrative) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Short-term Debt [Line Items] | ||
Amortization of debt discount | $ 23,467 | |
Bridge Loan Notes [Member] | ||
Short-term Debt [Line Items] | ||
Interest expense | 3,350 | |
Amortization of debt discount | $ 23,467 | |
Bridge Loan Notes [Member] | Shareholder [Member] | ||
Short-term Debt [Line Items] | ||
Ownership percentage | 10.00% |
SCHEDULE OF FUTURE PAYMENTS UND
SCHEDULE OF FUTURE PAYMENTS UNDER LEASE AGREEMENT (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Commitments and Contingencies Disclosure [Abstract] | ||
2021 | $ 21,434 | |
2022 | 86,373 | |
2023 | 87,288 | |
2024 | 88,801 | |
2025 | 75,051 | |
Total future lease payments | 358,947 | |
Less: imputed interest | (76,447) | |
Present value of future operating lease payments | 282,500 | |
Less: current portion of operating lease liabilities | (55,718) | |
Operating lease liabilities, net of current portion | 226,782 | $ 107,862 |
Right of use assets | $ 286,336 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details Narrative) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021USD ($) | Sep. 30, 2021USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | ||
Operating lease agreement expire date | Oct. 31, 2025 | |
Operating leases liability | $ 25,179 | $ 91,525 |
Right-of-use asset | $ 11,929 | $ 60,208 |
Operating lease, weighted average remaining lease term | 4 years 29 days | 4 years 29 days |
Weighted average discount rate | 12.00% | 12.00% |