| Basis of Presentation and Significant Accounting Policies | Note 2 – Basis of Presentation and
Significant Accounting Policies The interim condensed financial statements
included herein, presented in accordance with United States generally accepted accounting principles and stated in US dollars,
have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission.
Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that
the disclosures are adequate to not make the information presented misleading. These statements reflect all adjustments, which
in the opinion of management, are necessary for fair presentation of the information contained therein. Except as otherwise disclosed,
all such adjustments are of a normal recurring nature. It is suggested that these interim condensed financial statements be read
in conjunction with the audited financial statements for the year ended December 31, 2019, which were included in our
Annual Report on Form 10-K/A. The Company follows the same accounting policies in the preparation of interim reports. Reclassifications In the prior year, the income, expense and
cash flows from Black Ridge Acquisition Corp., a wholly-owned subsidiary formed on October 10, 2017, which was consolidated as
a variable interest entity through August 9, 2019, the date that BRAC completed a business combination with Allied Esports Entertainment,
Inc. (“AESE”), were consolidated and have been retrospectively classified as discontinued operations. In addition,
prior period investment in Allied Esports Entertainment, Inc. securities of $6,982,300 were reclassified from long term assets
to current assets to conform to current period presentation. Use of Estimates The preparation of financial statements in
conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements
and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. Environmental Liabilities The Company was formerly a direct owner of
assets in the oil and gas industry. Oil and gas companies are subject, by their nature, to environmental hazard and clean-up costs.
At this time, management knows of no substantial losses from environmental accidents or events which would have a material effect
on the Company. Cash in Excess of FDIC Limits The Company maintains its cash in bank deposit
accounts which, at times, may exceed federally insured limits. Accounts are guaranteed by the Federal Deposit Insurance Corporation
(FDIC) and the Securities Investor Protection Corporation (SIPC) up to $250,000 and $500,000, respectively, under current regulations.
The Company had $44,718 of cash in excess of SIPC insured limits at June 30, 2020. The Company has not experienced any losses in
such accounts. Income Taxes The Company recognizes deferred tax assets
and liabilities based on differences between the financial reporting and tax basis of assets and liabilities using the enacted
tax rates and laws that are expected to be in effect when the differences are expected to be recovered. The Company provides a
valuation allowance for deferred tax assets for which it does not consider realization of such assets to be more likely than not. Basic and Diluted Earnings (Loss) Per Share Basic earnings (loss) per share (“EPS”)
are computed by dividing net income (the numerator) by the weighted average number of common shares outstanding for the period
(the denominator). Diluted EPS is computed by dividing net income by the weighted average number of common shares and potential
common shares outstanding (if dilutive) during each period. Potential common shares include stock options, warrants and restricted
stock. The number of potential common shares outstanding relating to stock options, warrants and restricted stock is computed using
the treasury stock method. The reconciliation of the denominators used
to calculate basic EPS and diluted EPS for the three months ended June 30, 2020 and 2019 are as follows:
Three Months Ended June 30,
2020 2019
Weighted average common shares outstanding – basic 1,600,424 1,600,424
Plus: Potentially dilutive common shares:
Common stock warrants 121 –
Weighted average common shares outstanding – diluted 1,600,545 For the six months ended June 30, 2020 and
2019, potential dilutive securities had an anti-dilutive effect and were not included in the calculation of diluted net loss per
common share. Stock options and warrants excluded from the calculation of diluted EPS because their effect was anti-dilutive were
378,871 and 36,788 as of June 30, 2020 and 2019, respectively. Fair Value of Financial Instruments Under FASB ASC 820-10-05, the Financial Accounting
Standards Board establishes a framework for measuring fair value in generally accepted accounting principles and expands disclosures
about fair value measurements. This Statement reaffirms that fair value is the relevant measurement attribute. The adoption of
this standard did not have a material effect on the Company’s financial statements as reflected herein. The carrying amounts
of cash, accounts payable and accrued expenses reported on the balance sheets are estimated by management to approximate fair value
primarily due to the short-term nature of the instruments. The Company had no items that required fair value measurement on a recurring
basis. Property and Equipment Property and equipment are recorded at cost
and depreciated using the straight-line method over their estimated useful lives of three to seven years. Expenditures for replacements,
renewals, and betterments are capitalized. Maintenance and repairs are charged to operations as incurred. Long-lived assets are
evaluated for impairment to determine if current circumstances and market conditions indicate the carrying amount may not be recoverable.
Depreciation expense was $650 and $623 for the six months ended June 30, 2020 and 2019, respectively. Revenue Recognition The Company recognizes revenue in accordance
with ASC 606 — Revenue from Contracts with Customers. Under ASC 606, the Company recognized revenue from management services
through our previously consolidated Special Purpose Acquisition Company (“SPAC”), Black Ridge Acquisition Corp. until
December 31, 2019. Revenue was primarily generated from BRAC in
the form of management services performed within the state of Minnesota on a fixed fee basis. Revenue from the performance of those
services was recognized upon completion of the services, at which time the services were delivered to the customer, and collectability
of the fee was reasonably assured. We typically required payment within thirty days of the completion of services. Management estimates
an allowance for doubtful accounts based on the aging of its receivables. Stock-Based Compensation The Company accounts for equity instruments
issued to employees in accordance with the provisions of ASC 718 Stock Compensation (ASC 718) and Equity-Based Payments to Non-employees
pursuant to ASC 2018-07 (ASC 2018-07). All transactions in which the consideration provided in exchange for the purchase of goods
or services consists of the issuance of equity instruments are accounted for based on the fair value of the consideration received
or the fair value of the equity instrument issued, whichever is more reliably measurable. The measurement date of the fair value
of the equity instrument issued is the earlier of the date on which the counterparty’s performance is complete or the date
at which a commitment for performance by the counterparty to earn the equity instruments is reached because of sufficiently large
disincentives for nonperformance. Stock-based compensation was $70,943 and $55,818, consisting entirely of expenses related to
common stock options issued for services for the six months ended June 30, 2020 and 2019, respectively, using the Black-Scholes
options pricing model and an effective term of 6 to 6.5 years based on the weighted average of the vesting periods and the stated
term of the option grants and the discount rate on 5 to 7 year U.S. Treasury securities at the grant date. In addition, $377,440
of expenses related to the amortization of warrants issued in consideration of personal guarantees provided for debt financing
for the six months ended June 30, 2020, using the Black-Scholes options pricing model and an effective term of 5 years based on
the weighted average of the vesting periods and the stated term of the warrant grants and the discount rate on 5 year U.S. Treasury
securities at the grant date were recognized as interest expense for the six months ended June 30, 2020. Uncertain Tax Positions In accordance with ASC 740, “Income Taxes”
(“ASC 740”), the Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not
that the tax position will be capable of withstanding examination by the taxing authorities based on the technical merits of the
position. These standards prescribe a recognition threshold and measurement attribute for the financial statement recognition and
measurement of a tax position taken or expected to be taken in a tax return. These standards also provide guidance on de-recognition,
classification, interest and penalties, accounting in interim periods, disclosure, and transition. Various taxing authorities may periodically
audit the Company’s income tax returns. These audits include questions regarding the Company’s tax filing positions,
including the timing and amount of deductions and the allocation of income to various tax jurisdictions. In evaluating the exposures
connected with these various tax filing positions, including state and local taxes, the Company records allowances for probable
exposures. A number of years may elapse before a particular matter, for which an allowance has been established, is audited and
fully resolved. Black Ridge Oil & Gas, Inc. has not yet undergone an examination by any taxing authorities. The assessment of the Company’s tax position
relies on the judgment of management to estimate the exposures associated with the Company’s various filing positions. Recent Accounting Pronouncements From time to time, new accounting pronouncements
are issued by the Financial Accounting Standards Board (“FASB”) that are adopted by the Company as of the specified
effective date. If not discussed below, management believes there have been no developments to recently issued accounting standards,
including expected dates of adoption and estimated effects on our financial statements, from those disclosed in our Annual Report
on Form 10-K/A for the year ended December 31, 2019. In July 2018, the FASB issued ASU No. 2018-10, Codification
Improvements to Topic 842, Leases |
