Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 12, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2022 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2022 | |
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 | |
Entity Address, Address Line Two | 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, $0.001 par value per share | |
Trading Symbol | HUSA | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 9,928,338 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
CURRENT ASSETS | ||
Cash | $ 4,602,772 | $ 4,894,577 |
Accounts receivable – oil and gas sales | 266,826 | 214,662 |
Prepaid expenses and other current assets | 99,870 | 85,403 |
TOTAL CURRENT ASSETS | 4,969,468 | 5,194,642 |
Oil and gas properties, full cost method | ||
Costs subject to amortization | 62,785,384 | 62,771,222 |
Costs not being amortized | 2,343,126 | 2,343,126 |
Office equipment | 90,004 | 90,004 |
Total | 65,218,514 | 65,204,352 |
Accumulated depletion, depreciation, amortization, and impairment | (60,506,334) | (60,396,594) |
PROPERTY AND EQUIPMENT, NET | 4,712,180 | 4,807,758 |
Cost method investment | 704,061 | 455,779 |
Right of use asset | 242,338 | 272,507 |
Other assets | 3,167 | 3,167 |
TOTAL ASSETS | 10,631,214 | 10,733,853 |
CURRENT LIABILITIES | ||
Accounts payable | 39,365 | 69,607 |
Accrued expenses | 16,942 | 15,176 |
Current portion of lease liability | 61,098 | 57,174 |
TOTAL CURRENT LIABILITIES | 117,405 | 141,957 |
LONG-TERM LIABILITIES | ||
Lease liability, net of current portion | 180,150 | 211,744 |
Reserve for plugging and abandonment costs | 71,906 | 68,209 |
TOTAL LONG-TERM LIABILITIES | 252,056 | 279,953 |
TOTAL LIABILITIES | 369,461 | 421,910 |
COMMITMENTS AND CONTINGENCIES | ||
SHAREHOLDERS’ EQUITY | ||
Common stock, par value $0.001; 12,000,000 shares authorized; 9,928,338 shares issued and outstanding | 9,928 | 9,928 |
Additional paid-in capital | 83,456,461 | 83,345,456 |
Accumulated deficit | (73,204,636) | (73,043,441) |
TOTAL SHAREHOLDERS’ EQUITY | 10,261,753 | 10,311,943 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 10,631,214 | 10,733,853 |
Series A Preferred Stock [Member] | ||
SHAREHOLDERS’ EQUITY | ||
Preferred stock, value | ||
Series B Preferred Stock [Member] | ||
SHAREHOLDERS’ EQUITY | ||
Preferred stock, value |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2022 | Dec. 31, 2021 |
Preferred stock, par or stated value per share | $ 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 issued | 9,928,338 | 9,928,338 |
Common stock, shares outstanding | 9,928,338 | 9,928,338 |
Series A Preferred Stock [Member] | ||
Preferred stock, par or stated value per share | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 2,000 | 2,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Series B Preferred Stock [Member] | ||
Preferred stock, par or stated value per share | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 1,000 | 1,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement [Abstract] | ||||
OIL AND GAS REVENUE | $ 462,989 | $ 303,999 | $ 886,809 | $ 632,487 |
EXPENSES OF OPERATIONS | ||||
Lease operating expense and severance tax | 150,485 | 92,531 | 311,757 | 258,745 |
General and administrative expense | 258,896 | 231,328 | 628,996 | 640,088 |
Depreciation and depletion | 51,501 | 26,271 | 109,740 | 58,635 |
Total operating expenses | 460,882 | 350,130 | 1,050,493 | 957,468 |
Income (loss) from operations | 2,107 | (46,131) | (163,684) | (324,981) |
OTHER INCOME (EXPENSE) | ||||
Interest income | 2,258 | 787 | 2,489 | 11,457 |
Interest expense | (296) | |||
Total other income (expense) | 2,258 | 787 | 2,489 | 11,161 |
Net income (loss) before taxes | 4,365 | (45,344) | (161,195) | (313,820) |
Income tax expense | ||||
Net income (loss) | 4,365 | (45,344) | (161,195) | (313,820) |
Dividends to Series A and B preferred stockholders | (37,201) | |||
Net income (loss) attributable to common shareholders | $ 4,365 | $ (45,344) | $ (161,195) | $ (351,021) |
Income (loss) per common share: | ||||
Basic | $ 0 | $ 0 | $ (0.02) | $ (0.04) |
Diluted | $ 0 | $ 0 | $ (0.02) | $ (0.04) |
Weighted average number of common shares outstanding: | ||||
Based | 9,923,338 | 9,923,338 | 9,923,338 | 9,412,722 |
Diluted | 10,379,291 | 9,923,338 | 9,923,338 | 9,412,722 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance – March 31, 2021 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 | |||
Stock-based compensation | 15,109 | 15,109 | |||
Net income (loss) | (268,476) | (268,476) | |||
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 | ||||
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) | |||
Balance – June 30, 2021 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 – March 31, 2021 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 income (loss) | (313,820) | ||||
Balance – June 30, 2021 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 | ||||
Balance – March 31, 2021 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 income (loss) | (45,344) | (45,344) | |||
Balance – June 30, 2021 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 | ||||
Balance – March 31, 2021 at Dec. 31, 2021 | $ 9,928 | 83,345,456 | (73,043,441) | 10,311,943 | |
Beginning balance, shares at Dec. 31, 2021 | 9,928,338 | ||||
Stock-based compensation | 85,485 | 85,485 | |||
Net income (loss) | (165,560) | (165,560) | |||
Balance – June 30, 2021 at Mar. 31, 2022 | $ 9,928 | 83,430,941 | (73,209,001) | 10,231,868 | |
Ending balance, shares at Mar. 31, 2022 | 9,928,338 | ||||
Balance – March 31, 2021 at Dec. 31, 2021 | $ 9,928 | 83,345,456 | (73,043,441) | 10,311,943 | |
Beginning balance, shares at Dec. 31, 2021 | 9,928,338 | ||||
Net income (loss) | $ (161,195) | ||||
Issuance of common stock for cash, net, shares | 236,000 | ||||
Balance – June 30, 2021 at Jun. 30, 2022 | $ 9,928 | 83,456,461 | (73,204,636) | $ 10,261,753 | |
Ending balance, shares at Jun. 30, 2022 | 9,928,338 | ||||
Balance – March 31, 2021 at Mar. 31, 2022 | $ 9,928 | 83,430,941 | (73,209,001) | 10,231,868 | |
Beginning balance, shares at Mar. 31, 2022 | 9,928,338 | ||||
Stock-based compensation | 25,520 | 25,520 | |||
Net income (loss) | 4,365 | 4,365 | |||
Balance – June 30, 2021 at Jun. 30, 2022 | $ 9,928 | $ 83,456,461 | $ (73,204,636) | $ 10,261,753 | |
Ending balance, shares at Jun. 30, 2022 | 9,928,338 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (161,195) | $ (313,820) |
Adjustments to reconcile net loss to net cash used in operations: | ||
Depreciation and depletion | 109,740 | 58,635 |
Accretion of asset retirement obligation | 3,697 | 4,280 |
Stock-based compensation | 111,005 | 15,109 |
Amortization of right of use asset | 30,169 | 48,279 |
Changes in operating assets and liabilities: | ||
Increase in accounts receivable | (52,164) | (64,824) |
Increase in prepaid expenses and other current assets | (14,467) | (158,892) |
Decrease in accounts payable and accrued expenses | (24,552) | (111,752) |
Decrease in operating lease liability | (31,594) | (4,774) |
Net cash used in operating activities | (29,361) | (527,759) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Payments for the acquisition and development of oil and gas properties | (14,162) | (30,948) |
Payments for capital contribution for cost method investment | (248,282) | (136,001) |
Net cash used in investing activities | (262,444) | (166,949) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from the issuance of common stock, net of expenses | 6,575,889 | |
Redemption of Series A and Series B Preferred Stock | (1,967,800) | |
Payment of preferred stock dividends | (37,201) | |
Net cash provided by financing activities | 4,570,888 | |
(Decrease)/increase in cash | (291,805) | 3,876,180 |
Cash, beginning of period | 4,894,577 | 1,242,560 |
Cash, end of period | 4,602,772 | 5,118,740 |
SUPPLEMENTAL CASH FLOW INFORMATION | ||
Interest paid | ||
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 | 6 Months Ended |
Jun. 30, 2022 | |
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, 2021. 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 $ 161,195 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 2022 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, has less than 1 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 $ 4,308,432 250,000 5,019 Earnings (Loss) per Share Basic earnings (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. 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 June 30, 2022 through the financial statement issuance date for subsequent event disclosure consideration. |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 6 Months Ended |
Jun. 30, 2022 | |
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 six-month periods ended June 30, 2022 and 2021: SCHEDULE OF DISAGGREGATES REVENUE BY SIGNIFICANT PRODUCT Three Months Ended Three Months Ended June 30, 2021 Six Months Ended June 30, 2022 Six Months Ended June 30, 2021 Oil sales $ 263,427 $ 246,950 $ 542,905 $ 475,793 Natural gas sales 119,824 29,738 191,206 99,824 Natural gas liquids sales 79,738 27,311 152,698 56,870 Total revenue from customers $ 462,989 $ 303,999 $ 886,809 $ 632,487 There were no |
OIL AND GAS PROPERTIES
OIL AND GAS PROPERTIES | 6 Months Ended |
Jun. 30, 2022 | |
Extractive Industries [Abstract] | |
OIL AND GAS PROPERTIES | NOTE 3 – OIL AND GAS PROPERTIES During the six months ended June 30, 2022, the Company invested $ 14,162 The Company also invested $ 248,282 During the three and six months ended June 30, 2022, the Company recorded depletion expense of $ 51,501 109,740 26,271 58,635 Geographical Information The Company currently has properties in two geographical areas, the United States and Colombia. Revenues for the six months ended June 30, 2022 and long lived assets (net of depletion, amortization, and impairments) as of June 30, 2022 attributable to each geographical area are presented below: SCHEDULE OF REVENUES AND LONG LIVED ASSETS ATTRIBUTABLE TO GEOGRAPHICAL AREA Six Months Ended June 30, 2022 As of June 30, 2022 Revenues Long Lived Assets, Net United States $ 886,809 $ 2,369,054 Colombia — 2,343,126 Total $ 886,809 $ 4,712,180 |
STOCK-BASED COMPENSATION EXPENS
STOCK-BASED COMPENSATION EXPENSE | 6 Months Ended |
Jun. 30, 2022 | |
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 six months ended June 30, 2022 is presented below: SUMMARY OF STOCK OPTION ACTIVITY Options Weighted-Average Exercise Price Aggregate Intrinsic Value Outstanding at January 1, 2022 990,173 $ 3.38 Granted — — Exercised — — Forfeited / expired (48,696 ) 20.63 Outstanding at June 30, 2022 941,477 $ 2.49 $ 2,052,817 Exercisable at June 30, 2022 791,481 $ 2.63 $ 1,629,817 During the three and six months ended June 30, 2022, the Company recognized $ 25,520 111,005 30,364 0.06 6.57 6.10 As of June 30, 2022, there were 236,000 Stock-Based Compensation Expense The following table reflects total stock-based compensation recorded by the Company for the six months ended June 30, 2022 and 2021: SCHEDULE OF STOCK-BASED COMPENSATION Six Months Ended June 30, 2022 2021 Stock-based compensation expense included in general and administrative expense $ 111,005 $ 15,109 Earnings per share effect of share-based compensation expense – basic and diluted $ (0.01 ) $ (0.00 ) |
CAPITAL STOCK
CAPITAL STOCK | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
CAPITAL STOCK | NOTE 5 – CAPITAL STOCK Series A Convertible Preferred Stock During the six months ended June 30, 2021, the Company paid dividends on Series A Convertible Preferred Stock in the amount of $ 20,501 In February 2021, 60 24,000 1.07 Series B Convertible Preferred Stock During the six months ended June 30, 2021, the Company paid dividends on Series B Convertible Preferred Stock in the amount of $ 16,700 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 2022 is presented below: SUMMARY OF WARRANT ACTIVITY Warrants Weighted-Average Aggregate Outstanding at January 1, 2022 98,400 $ 2.63 Issued — — Exercised — — Expired (4,000 ) 6.88 Outstanding at June 30, 2022 94,400 $ 2.46 $ 201,072 Exercisable at June 30, 2022 94,400 $ 2.46 $ 201,072 |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 6 Months Ended |
Jun. 30, 2022 | |
Income (loss) per common share: | |
EARNINGS PER COMMON SHARE | NOTE 6 – EARNINGS PER COMMON SHARE Earnings (loss) per common share-basic is calculated by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Net income (loss) per common share-diluted assumes the conversion of all potentially dilutive securities and is calculated by dividing net (loss) income by the sum of the weighted average number of shares of common stock, as defined above, outstanding plus potentially dilutive securities. Net (loss) income per common share-diluted considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of the potential common shares, as defined above, would have an anti-dilutive effect. The calculation of earnings per share for the periods indicated below were as follows: SCHEDULE OF EARNINGS PER SHARE Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Numerator: Net income (loss) $ 4,365 $ (45,344 ) $ (161,195 ) $ (313,820 ) Dividends to Series A and B preferred shareholders — — — (37,201 ) Net income (loss) attributable to common shareholders $ 4,365 $ (45,344 ) $ (161,195 ) $ (351,021 ) Denominator: Weighted average common shares – basic 9,923,338 9,923,338 9,923,338 9,412,722 Dilutive effect of common stock equivalents: Options and warrants 455,953 — — — Denominator: Weighted average common shares – diluted 10,379,291 9,923,338 9,923,338 9,412,722 Earnings (loss) per share – basic $ 0.00 $ (0.00 ) $ (0.02 ) $ (0.04 ) Earnings (loss) per share – diluted $ 0.00 $ (0.00 ) $ (0.02 ) $ (0.04 ) For the three and six months ended June 30, 2022 and 2021, the following 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 Six Months Ended June 30, Three Months Ended June 30, 2022 2021 2022 2021 Stock warrants — 98,400 94,400 98,400 Stock options 74,000 726,177 990,177 726,177 Total 74,000 824,577 1,084,577 824,577 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2022 | |
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 that expires October 31, 2025 21,560 43,121 15,940 30,169 3.3 12 SCHEDULE OF FUTURE PAYMENTS UNDER LEASE AGREEMENT Year Amount 2022 43,253 2023 87,288 2024 88,801 2025 75,051 Total future lease payments 294,393 Less: imputed interest 53,145 Present value of future operating lease payments 241,248 Less: current portion of operating lease liabilities 61,098 Operating lease liabilities, net of current portion $ 180,150 Right of use assets $ 242,338 Total base rental expense was $ 22,161 30,048 46,836 60,180 |
BASIS OF PRESENTATION AND SIG_2
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
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 $ 161,195 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 2022 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, has less than 1 |
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 $ 4,308,432 250,000 5,019 |
Earnings (Loss) per Share | Earnings (Loss) per Share Basic earnings (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. |
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 June 30, 2022 through the financial statement issuance date for subsequent event disclosure consideration. |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 six-month periods ended June 30, 2022 and 2021: SCHEDULE OF DISAGGREGATES REVENUE BY SIGNIFICANT PRODUCT Three Months Ended Three Months Ended June 30, 2021 Six Months Ended June 30, 2022 Six Months Ended June 30, 2021 Oil sales $ 263,427 $ 246,950 $ 542,905 $ 475,793 Natural gas sales 119,824 29,738 191,206 99,824 Natural gas liquids sales 79,738 27,311 152,698 56,870 Total revenue from customers $ 462,989 $ 303,999 $ 886,809 $ 632,487 |
OIL AND GAS PROPERTIES (Tables)
OIL AND GAS PROPERTIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 six months ended June 30, 2022 and long lived assets (net of depletion, amortization, and impairments) as of June 30, 2022 attributable to each geographical area are presented below: SCHEDULE OF REVENUES AND LONG LIVED ASSETS ATTRIBUTABLE TO GEOGRAPHICAL AREA Six Months Ended June 30, 2022 As of June 30, 2022 Revenues Long Lived Assets, Net United States $ 886,809 $ 2,369,054 Colombia — 2,343,126 Total $ 886,809 $ 4,712,180 |
STOCK-BASED COMPENSATION EXPE_2
STOCK-BASED COMPENSATION EXPENSE (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
SUMMARY OF STOCK OPTION ACTIVITY | A summary of stock option activity and related information for the six months ended June 30, 2022 is presented below: SUMMARY OF STOCK OPTION ACTIVITY Options Weighted-Average Exercise Price Aggregate Intrinsic Value Outstanding at January 1, 2022 990,173 $ 3.38 Granted — — Exercised — — Forfeited / expired (48,696 ) 20.63 Outstanding at June 30, 2022 941,477 $ 2.49 $ 2,052,817 Exercisable at June 30, 2022 791,481 $ 2.63 $ 1,629,817 |
SCHEDULE OF STOCK-BASED COMPENSATION | The following table reflects total stock-based compensation recorded by the Company for the six months ended June 30, 2022 and 2021: SCHEDULE OF STOCK-BASED COMPENSATION Six Months Ended June 30, 2022 2021 Stock-based compensation expense included in general and administrative expense $ 111,005 $ 15,109 Earnings per share effect of share-based compensation expense – basic and diluted $ (0.01 ) $ (0.00 ) |
CAPITAL STOCK (Tables)
CAPITAL STOCK (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
SUMMARY OF WARRANT ACTIVITY | A summary of warrant activity and related information for 2022 is presented below: SUMMARY OF WARRANT ACTIVITY Warrants Weighted-Average Aggregate Outstanding at January 1, 2022 98,400 $ 2.63 Issued — — Exercised — — Expired (4,000 ) 6.88 Outstanding at June 30, 2022 94,400 $ 2.46 $ 201,072 Exercisable at June 30, 2022 94,400 $ 2.46 $ 201,072 |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Income (loss) per common share: | |
SCHEDULE OF EARNINGS PER SHARE | The calculation of earnings per share for the periods indicated below were as follows: SCHEDULE OF EARNINGS PER SHARE Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Numerator: Net income (loss) $ 4,365 $ (45,344 ) $ (161,195 ) $ (313,820 ) Dividends to Series A and B preferred shareholders — — — (37,201 ) Net income (loss) attributable to common shareholders $ 4,365 $ (45,344 ) $ (161,195 ) $ (351,021 ) Denominator: Weighted average common shares – basic 9,923,338 9,923,338 9,923,338 9,412,722 Dilutive effect of common stock equivalents: Options and warrants 455,953 — — — Denominator: Weighted average common shares – diluted 10,379,291 9,923,338 9,923,338 9,412,722 Earnings (loss) per share – basic $ 0.00 $ (0.00 ) $ (0.02 ) $ (0.04 ) Earnings (loss) per share – diluted $ 0.00 $ (0.00 ) $ (0.02 ) $ (0.04 ) |
SCHEDULE OF COMPUTATION OF DILUTED NET LOSS PER SHARE | For the three and six months ended June 30, 2022 and 2021, the following 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 Six Months Ended June 30, Three Months Ended June 30, 2022 2021 2022 2021 Stock warrants — 98,400 94,400 98,400 Stock options 74,000 726,177 990,177 726,177 Total 74,000 824,577 1,084,577 824,577 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
SCHEDULE OF FUTURE PAYMENTS UNDER LEASE AGREEMENT | SCHEDULE OF FUTURE PAYMENTS UNDER LEASE AGREEMENT Year Amount 2022 43,253 2023 87,288 2024 88,801 2025 75,051 Total future lease payments 294,393 Less: imputed interest 53,145 Present value of future operating lease payments 241,248 Less: current portion of operating lease liabilities 61,098 Operating lease liabilities, net of current portion $ 180,150 Right of use assets $ 242,338 |
BASIS OF PRESENTATION AND SIG_3
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) shares in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||
Net loss | $ (4,365) | $ 165,560 | $ 45,344 | $ 268,476 | $ 161,195 | $ 313,820 |
Common stock available to support capital raising | 1 | 1 | ||||
Cash deposits | $ 4,308,432 | $ 4,308,432 | ||||
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 | $ 5,019 | $ 5,019 |
SCHEDULE OF DISAGGREGATES REVEN
SCHEDULE OF DISAGGREGATES REVENUE BY SIGNIFICANT PRODUCT (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue from customers | $ 462,989 | $ 303,999 | $ 886,809 | $ 632,487 |
Oil Sales [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from customers | 263,427 | 246,950 | 542,905 | 475,793 |
Natural Gas Sales [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from customers | 119,824 | 29,738 | 191,206 | 99,824 |
Natural Gas Liquids Sales [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from customers | $ 79,738 | $ 27,311 | $ 152,698 | $ 56,870 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details Narrative) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
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 | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Reserve Quantities [Line Items] | ||||
Revenues | $ 462,989 | $ 303,999 | $ 886,809 | $ 632,487 |
Long Lived Assets, Net | 4,712,180 | 4,712,180 | ||
UNITED STATES | ||||
Reserve Quantities [Line Items] | ||||
Revenues | 886,809 | |||
Long Lived Assets, Net | 2,369,054 | 2,369,054 | ||
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 | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Reserve Quantities [Line Items] | ||||
Payments for the acquisition and development of oil and gas properties | $ 14,162 | $ 30,948 | ||
Payments for capital contribution for cost method investment | 248,282 | 136,001 | ||
Depletion expense | $ 51,501 | $ 26,271 | 109,740 | $ 58,635 |
COLOMBIA | ||||
Reserve Quantities [Line Items] | ||||
Payments for capital contribution for cost method investment | $ 248,282 |
SUMMARY OF STOCK OPTION ACTIVIT
SUMMARY OF STOCK OPTION ACTIVITY (Details) | 6 Months Ended |
Jun. 30, 2022 USD ($) $ / shares shares | |
Share-Based Payment Arrangement [Abstract] | |
Options Outstanding at beginning of the period | shares | 990,173 |
Weighted-Average Exercise Price Outstanding at end of the period | $ / shares | $ 3.38 |
Options Granted | shares | |
Weighted-Average Exercise Price Granted | $ / shares | |
Options exercised | shares | |
Weighted-Average Exercise Price Exercised | $ / shares | |
Options Forfeited / expired | shares | (48,696) |
Weighted-Average Exercise Price Forfeited / expired | $ / shares | $ 20.63 |
Options Outstanding at end of the period | shares | 941,477 |
Weighted-Average Exercise Price Outstanding at end of the period | $ / shares | $ 2.49 |
Aggregate Intrinsic Value Outstanding at end of the period | $ | $ 2,052,817 |
Options Outstanding Exercisable at end of the period | shares | 791,481 |
Weighted-Average Exercise Price Outstanding Exercisable at end of the period | $ / shares | $ 2.63 |
Aggregate Intrinsic Value Outstanding Exercisable at end of the period | $ | $ 1,629,817 |
SCHEDULE OF STOCK-BASED COMPENS
SCHEDULE OF STOCK-BASED COMPENSATION (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Share-Based Payment Arrangement [Abstract] | ||
Stock-based compensation expense included in general and administrative expense | $ 111,005 | $ 15,109 |
Earnings per share effect of share-based compensation expense – basic and diluted | $ (0.01) | $ 0 |
STOCK-BASED COMPENSATION EXPE_3
STOCK-BASED COMPENSATION EXPENSE (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2017 | Dec. 31, 2008 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Share based compensation | $ 25,520 | $ 111,005 | |||
Issuance of common stock, shares | 236,000 | ||||
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 | ||||
2021 Equity Incentive Plan [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Unrecognized share-based compensation expense related to non-vested stock options | $ 30,364 | $ 30,364 | |||
Weighted average period for unrecognition of compensation expense | 21 days | ||||
Weighted average remaining contractual term of the outstanding options | 6 years 6 months 25 days | ||||
Weighted average remaining contractual term of the exercisable options | 6 years 1 month 6 days |
SUMMARY OF WARRANT ACTIVITY (De
SUMMARY OF WARRANT ACTIVITY (Details) | 6 Months Ended |
Jun. 30, 2022 USD ($) $ / shares shares | |
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 | (4,000) |
Weighted-Average Exercise Price, Expired | $ / shares | $ 6.88 |
Warrants Outstanding, Ending | 94,400 |
Weighted-Average Exercise Price Outstanding, Ending | $ / shares | $ 2.46 |
Aggregate Intrinsic Value Outstanding at end of the period | $ | $ 201,072 |
Warrants Outstanding, Exercisable | 94,400 |
Weighted-Average Exercise Price Outstanding, Exercisable | 2.46 |
Aggregate Intrinsic Value Outstanding Exercisable at end of the period | $ | $ 201,072 |
CAPITAL STOCK (Details Narrativ
CAPITAL STOCK (Details Narrative) - USD ($) | 1 Months Ended | 6 Months Ended |
Feb. 28, 2021 | Jun. 30, 2021 | |
Series A Convertible Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Accrued dividends | $ 20,501 | |
Series A Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Number of shares converted | 60 | |
Conversion of stock, shares converted | 24,000 | |
Value of shares redeemed during period | $ 1,070,000 | |
Series B Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Accrued dividends | $ 16,700 | |
Value of shares redeemed during period | $ 900,000 |
SCHEDULE OF EARNINGS PER SHARE
SCHEDULE OF EARNINGS PER SHARE (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income (loss) per common share: | ||||||
Net income (loss) | $ 4,365 | $ (165,560) | $ (45,344) | $ (268,476) | $ (161,195) | $ (313,820) |
Dividends to Series A and B preferred shareholders | (37,201) | |||||
Net income (loss) attributable to common shareholders | $ 4,365 | $ (45,344) | $ (161,195) | $ (351,021) | ||
Weighted average common shares – basic | 9,923,338 | 9,923,338 | 9,923,338 | 9,412,722 | ||
Options and warrants | 455,953 | |||||
Weighted average common shares – diluted | 10,379,291 | 9,923,338 | 9,923,338 | 9,412,722 | ||
Earnings (loss) per share – basic | $ 0 | $ 0 | $ (0.02) | $ (0.04) | ||
Earnings (loss) per share – diluted | $ 0 | $ 0 | $ (0.02) | $ (0.04) |
SCHEDULE OF COMPUTATION OF DILU
SCHEDULE OF COMPUTATION OF DILUTED NET LOSS PER SHARE (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total | 1,084,577 | 824,577 | 74,000 | 824,577 |
Warrant [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total | 94,400 | 98,400 | 98,400 | |
Share-Based Payment Arrangement, Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total | 990,177 | 726,177 | 74,000 | 726,177 |
SCHEDULE OF FUTURE PAYMENTS UND
SCHEDULE OF FUTURE PAYMENTS UNDER LEASE AGREEMENT (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
2022 | $ 43,253 | |
2023 | 87,288 | |
2024 | 88,801 | |
2025 | 75,051 | |
Total future lease payments | 294,393 | |
Less: imputed interest | 53,145 | |
Present value of future operating lease payments | 241,248 | |
Less: current portion of operating lease liabilities | 61,098 | $ 57,174 |
Operating lease liabilities, net of current portion | 180,150 | 211,744 |
Right of use assets | $ 242,338 | $ 272,507 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Loss Contingencies [Line Items] | ||||
Operating lease agreement expire date | Oct. 31, 2025 | |||
Operating cash outflows related to operating lease liabilities | $ 21,560 | $ 43,121 | ||
Amortization of right of use asset | $ 15,940 | $ 30,169 | $ 48,279 | |
Operating lease, weighted average remaining lease term | 3 years 3 months 18 days | 3 years 3 months 18 days | ||
Weighted average discount rate | 12% | 12% | ||
Rental expense | $ 150,485 | $ 92,531 | $ 311,757 | 258,745 |
General and Administrative Expense [Member] | ||||
Loss Contingencies [Line Items] | ||||
Rental expense | $ 22,161 | $ 30,048 | $ 46,836 | $ 60,180 |