Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Aug. 13, 2021 | |
Document Information Line Items | ||
Entity Registrant Name | GENERATION HEMP, INC. | |
Trading Symbol | GENH | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 34,977,953 | |
Amendment Flag | false | |
Entity Central Index Key | 0001527102 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Jun. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 000-55019 | |
Entity Incorporation, State or Country Code | CO | |
Entity Tax Identification Number | 26-3119496 | |
Entity Address, Address Line One | 8533 Midway Road | |
Entity Address, City or Town | Dallas | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75209 | |
City Area Code | (469) | |
Local Phone Number | 209-6154 | |
Title of 12(b) Security | Common Stock, no par value | |
Security Exchange Name | NYSE | |
Entity Interactive Data Current | Yes |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Current Assets | ||
Cash | $ 210,898 | $ 2,776,425 |
Accounts receivable | 4,940 | |
Inventories | 700,000 | |
Prepaid expenses | 10,298 | |
Total Current Assets | 926,136 | 2,776,425 |
Property and Equipment | ||
Property and equipment | 2,974,820 | 1,222,430 |
Accumulated depreciation | (311,283) | (102,938) |
Total Property and Equipment, Net | 2,663,537 | 1,119,492 |
Operating lease right-of-use asset | 310,027 | |
Intangible assets, net | 2,851,064 | |
Other assets | 49,650 | 23,077 |
Total Assets | 6,800,414 | 3,918,994 |
Current Liabilities | ||
Accounts payable | 814,776 | 1,053,542 |
Accrued liabilities | 387,432 | 337,588 |
Payables to related parties | 102,333 | 448,271 |
Operating lease liability - related party | 96,321 | |
Notes payable – related parties | 1,706,038 | 3,336,592 |
Other indebtedness - current | 617,523 | 619,461 |
Common stock issuable | 50,000 | |
Current liabilities of discontinued operations held for sale | 138,289 | 140,068 |
Total Current Liabilities | 3,862,712 | 5,985,522 |
Operating lease liability - related party, net of current portion | 213,706 | |
Other indebtedness - long-term | 25,200 | |
Long-term liabilities of discontinued operations held for sale | 155,647 | 144,149 |
Total Liabilities | 4,232,065 | 6,154,871 |
Commitments and Contingencies | ||
Series B redeemable preferred stock, no par value, $10,000 stated value, 300 shares authorized, 135 shares issued and outstanding | 454,058 | 729,058 |
Equity (Deficit) | ||
Series A preferred stock, no par value; $1.00 stated value; 6,500,000 shares authorized, 6,328,948 shares issued and outstanding | 4,975,503 | 4,975,503 |
Common stock, no par value; 100,000,000 shares authorized, 34,977,953 and 17,380,317 shares issued and outstanding at June 30, 2021 and December 31, 2020 | 15,733,125 | 6,083,480 |
Common stock warrants | 2,894,642 | 4,436,018 |
Accumulated deficit | (21,250,601) | (18,220,705) |
Generation Hemp equity | 2,352,669 | (2,725,704) |
Noncontrolling interest | (238,378) | (239,231) |
Total Equity (Deficit) | 2,114,291 | (2,964,935) |
Total Liabilities and Equity (Deficit) | $ 6,800,414 | $ 3,918,994 |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Common stock, par value (in Dollars per share) | ||
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 34,977,953 | 17,380,317 |
Common stock, shares outstanding | 34,977,953 | 17,380,317 |
Series B Redeemable Preferred Stock | ||
Preferred stock par value (in Dollars per share) | ||
Preferred stock, shares authorized | 300 | 300 |
Preferred stock, shares issued | 135 | 135 |
Preferred stock, shares outstanding | 135 | 135 |
Preferred stock, Stated Value (in Dollars) | $ 10,000 | $ 10,000 |
Series A Preferred Stock | ||
Preferred stock par value (in Dollars per share) | ||
Preferred stock, shares authorized | 6,500,000 | 6,500,000 |
Preferred stock, shares issued | 6,328,948 | 6,328,948 |
Preferred stock, shares outstanding | 6,328,948 | 6,328,948 |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements of Operations - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenue | ||||
Post-harvest and midstream services | $ 3,355 | $ 47,965 | ||
Rental | 22,500 | 22,500 | 45,000 | $ 45,000 |
Total revenue | 25,855 | 22,500 | 92,965 | 45,000 |
Costs and Expenses | ||||
Cost of revenue (exclusive of items shown separately below) | 112,195 | 270,260 | ||
Depreciation and amortization | 341,447 | 16,039 | 691,075 | 38,923 |
Merger and acquisition costs | 7,013 | 16,115 | 93,024 | |
General and administrative | 514,299 | 204,981 | 1,635,231 | 774,837 |
Total costs and expenses | 967,941 | 228,033 | 2,612,681 | 906,784 |
Operating loss | (942,086) | (205,533) | (2,519,716) | (861,784) |
Other expense (income) | ||||
Interest and other income | (25,424) | (25,424) | (1) | |
Change in fair value of marketable security | (7,057) | (11,770) | 16,562 | |
Interest expense | 232,462 | 66,884 | 496,302 | 136,400 |
Total other expense | 207,038 | 59,827 | 459,108 | 152,961 |
Loss from continuing operations | (1,149,124) | (265,360) | (2,978,824) | (1,014,745) |
(Loss) income from discontinued operations | (6,205) | (4,212) | (9,719) | 2,532 |
Net loss | (1,155,329) | (269,572) | (2,988,543) | (1,012,213) |
Less: net loss (income) attributable to noncontrolling interests | (2,815) | (9,287) | 853 | (39,362) |
Net loss attributable to Generation Hemp | $ (1,152,514) | $ (260,285) | $ (2,989,396) | $ (972,851) |
Loss from continuing operations | ||||
Basic (in Dollars per share) | $ (0.03) | $ (0.01) | $ (0.11) | $ (0.06) |
Diluted (in Dollars per share) | (0.03) | (0.01) | (0.11) | (0.06) |
(Loss) income from discontinued operations | ||||
Basic (in Dollars per share) | ||||
Diluted (in Dollars per share) | ||||
Earnings (loss) per share | ||||
Basic (in Dollars per share) | (0.03) | (0.01) | (0.11) | (0.06) |
Diluted (in Dollars per share) | $ (0.03) | $ (0.01) | $ (0.11) | $ (0.06) |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Statements of Equity - USD ($) | Total | Series B Redeemable Preferred Stock | Series A Preferred Stock | Common Stock | Common Stock Warrants | Accumulated Deficit | Noncontrolling Interest |
Balance at Dec. 31, 2019 | $ (2,474,810) | $ 4,975,503 | $ 6,029,328 | $ 3,426,946 | $ (16,722,036) | $ (184,551) | |
Balance (in Shares) at Dec. 31, 2019 | 6,328,948 | 17,130,317 | |||||
Issuances of common stock units | 100,000 | $ 54,152 | 45,848 | ||||
Issuances of common stock units (in Shares) | 250,000 | ||||||
Net loss | (742,641) | (712,566) | (30,075) | ||||
Balance at Mar. 31, 2020 | (3,117,451) | $ 4,975,503 | $ 6,083,480 | 3,472,794 | (17,434,602) | (214,626) | |
Balance (in Shares) at Mar. 31, 2020 | 6,328,948 | 17,380,317 | |||||
Balance at Dec. 31, 2019 | (2,474,810) | $ 4,975,503 | $ 6,029,328 | 3,426,946 | (16,722,036) | (184,551) | |
Balance (in Shares) at Dec. 31, 2019 | 6,328,948 | 17,130,317 | |||||
Net loss | (1,012,213) | ||||||
Balance at Jun. 30, 2020 | (3,387,023) | $ 4,975,503 | $ 6,083,480 | 3,472,794 | (17,694,887) | (223,913) | |
Balance (in Shares) at Jun. 30, 2020 | 6,328,948 | 17,380,317 | |||||
Balance at Mar. 31, 2020 | (3,117,451) | $ 4,975,503 | $ 6,083,480 | 3,472,794 | (17,434,602) | (214,626) | |
Balance (in Shares) at Mar. 31, 2020 | 6,328,948 | 17,380,317 | |||||
Issuances of common stock units | |||||||
Issuances of common stock units (in Shares) | |||||||
Net loss | (269,572) | (260,285) | (9,287) | ||||
Balance at Jun. 30, 2020 | (3,387,023) | $ 4,975,503 | $ 6,083,480 | 3,472,794 | (17,694,887) | (223,913) | |
Balance (in Shares) at Jun. 30, 2020 | 6,328,948 | 17,380,317 | |||||
Balance at Dec. 31, 2020 | (2,964,935) | $ 729,058 | $ 4,975,503 | $ 6,083,480 | 4,436,018 | (18,220,705) | (239,231) |
Balance (in Shares) at Dec. 31, 2020 | 135 | 6,328,948 | 17,380,317 | ||||
Acquisition of Certain Assets of Halcyon Thruput, LLC | 2,500,000 | $ 2,500,000 | |||||
Acquisition of Certain Assets of Halcyon Thruput, LLC (in Shares) | 6,250,000 | ||||||
Issuances of common stock units | 400,000 | $ 136,707 | 263,293 | ||||
Issuances of common stock units (in Shares) | 800,000 | ||||||
Warrant exercises | 2,967,000 | $ 4,771,669 | (1,804,669) | ||||
Warrant exercises (in Shares) | 8,428,976 | ||||||
Issuance of common shares for Convertible Promissory Note | 217,769 | $ 217,769 | |||||
Issuance of common shares for Convertible Promissory Note (in Shares) | 618,660 | ||||||
Issuance of common shares for Senior Secured Promissory Note | 1,942,500 | $ 1,942,500 | |||||
Issuance of common shares for Senior Secured Promissory Note (in Shares) | 1,000,000 | ||||||
Stock-based compensation | 42,250 | $ 42,250 | |||||
Stock-based compensation (in Shares) | 500,000 | ||||||
Series B preferred stock dividend | (20,250) | (20,250) | |||||
Net loss | (1,833,214) | (1,836,882) | 3,668 | ||||
Balance at Mar. 31, 2021 | 3,251,120 | $ 729,058 | $ 4,975,503 | $ 15,694,375 | 2,894,642 | (20,077,837) | (235,563) |
Balance (in Shares) at Mar. 31, 2021 | 135 | 6,328,948 | 34,977,953 | ||||
Balance at Dec. 31, 2020 | (2,964,935) | $ 729,058 | $ 4,975,503 | $ 6,083,480 | 4,436,018 | (18,220,705) | (239,231) |
Balance (in Shares) at Dec. 31, 2020 | 135 | 6,328,948 | 17,380,317 | ||||
Net loss | (2,988,543) | ||||||
Balance at Jun. 30, 2021 | 2,114,291 | $ 454,058 | $ 4,975,503 | $ 15,733,125 | 2,894,642 | (21,250,601) | (238,378) |
Balance (in Shares) at Jun. 30, 2021 | 135 | 6,328,948 | 34,977,953 | ||||
Balance at Mar. 31, 2021 | 3,251,120 | $ 729,058 | $ 4,975,503 | $ 15,694,375 | 2,894,642 | (20,077,837) | (235,563) |
Balance (in Shares) at Mar. 31, 2021 | 135 | 6,328,948 | 34,977,953 | ||||
Stock-based compensation | 38,750 | $ 38,750 | |||||
Stock-based compensation (in Shares) | |||||||
Series B preferred stock dividend | (20,250) | (20,250) | |||||
Series B preferred stock redemptions | (275,000) | ||||||
Net loss | (1,155,329) | (1,152,514) | (2,815) | ||||
Balance at Jun. 30, 2021 | $ 2,114,291 | $ 454,058 | $ 4,975,503 | $ 15,733,125 | $ 2,894,642 | $ (21,250,601) | $ (238,378) |
Balance (in Shares) at Jun. 30, 2021 | 135 | 6,328,948 | 34,977,953 |
Unaudited Condensed Consolida_5
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash Flows From Operating Activities | ||
Net loss | $ (2,988,543) | $ (1,012,213) |
Loss from discontinued operations | (9,719) | 2,532 |
Net loss from continuing operations | (2,978,824) | (1,014,745) |
Adjustments to reconcile net loss from continuing operations to net cash from operating activities: | ||
Depreciation expense | 691,075 | 38,923 |
Amortization of debt discount | 328,320 | |
Stock-based compensation | 81,000 | |
Other income - PPP Loan forgiveness | (25,424) | |
Loss on disposal of property and equipment | 539 | |
Change in fair value of marketable securities | (11,770) | 16,562 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 70,530 | |
Prepaid expenses and other assets | (10,298) | |
Accounts payable and accrued liabilities | (244,741) | 463,610 |
Net cash from operating activities – continuing operations | (2,100,132) | (495,111) |
Net cash from operating activities – discontinued operations | 31,717 | |
Net cash from operating activities | (2,100,132) | (463,394) |
Cash Flows From Investing Activities | ||
Capital expenditures | (40,220) | |
Acquisition of Certain Assets of Halcyon Thruput, LLC, net of acquired cash of $224,530 | (1,525,470) | |
Proceeds from sale of investment in common stock | 34,847 | |
Net cash from investing activities – continuing operations | (1,530,843) | |
Net cash from investing activities – discontinued operations | ||
Net cash from investing activities | (1,530,843) | |
Cash Flows From Financing Activities | ||
Proceeds for common stock issuable | 50,000 | |
Issuance of common stock units | 350,000 | 100,000 |
Redemptions of Series B preferred stock | (137,500) | |
Series B preferred stock dividends paid | (16,500) | |
Proceeds from warrant exercises | 2,967,000 | |
Repayment of Halcyon bank note | (995,614) | |
Proceeds from SBA PPP Loan | 25,200 | |
Proceeds (repayment) of subordinated notes | (1,100,000) | 205,000 |
Payment of mortgage payable | (1,938) | (3,615) |
Net cash from financing activities – continuing operations | 1,065,448 | 376,585 |
Net cash from financing activities – discontinued operations | ||
Net cash from financing activities | 1,065,448 | 376,585 |
Net change in cash | (2,565,527) | (86,809) |
Cash, beginning of period | 2,776,425 | 101,337 |
Cash, end of period | $ 210,898 | $ 14,528 |
Business
Business | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Business | 1. Business Generation Hemp, Inc. (the “Company”), formerly known as Home Treasure Finders, Inc. (“HTF”), was incorporated on July 28, 2008 in the State of Colorado. On November 27, 2019, HTF purchased approximately 94% of the common stock of Energy Hunter Resources, Inc. (“EHR”) in a series of transactions accounted for as a reverse merger (the “Transaction”). Upon closing of the Transaction, HTF changed its name to Generation Hemp, Inc. On January 11, 2021, we completed the acquisition of certain assets of Halcyon Thruput, LLC (“Halcyon”). With this acquisition, we commenced providing post-harvest and midstream services to growers by drying, processing, cleaning and stripping harvested hemp directly from the field and wetbaled at our 48,000 square foot leased facility located in Hopkinsville, Kentucky. Additionally, the Company offers safe storage services for processed hemp, which enables farmers to maximize strategic market timing. The Company plans to significantly expand its business lines to include post-processing of biomass for use in a number of new products. This expansion requires certain new equipment to be procured. We also generate revenue from rental of our “Cannabis Zoned” (Hemp) warehouse property located in Denver, Colorado currently leased to a hemp seed company. As of June 30, 2021, EHR held an approximate 8% working interest in an oil & gas property located in Cochran County, Texas within the Slaughter-Levelland Field of the San Andres formation in the Northwest Shelf of West Texas. EHR’s oil & gas activities are currently held for sale and are presented in these consolidated financial statements as discontinued operations for each of the periods presented. Our management team has been and continues to actively review acquisition candidates involved in the hemp industry that operate within a number of vertical businesses, predominantly within the midstream sector that are attractive to us and are within the hemp supply chain. Liquidity – We are focused on executing our operating strategy now that the Halcyon acquisition has been completed. Management expects to renew and obtain new contracts with both new and existing Halcyon customers for the 2021 harvest. In July 2021, two toll processing agreements with Halcyon’s customers were awarded (see Note 13). Under terms of these agreements, the Company will dry, strip, process and store approximately ten million pounds of hemp biomass assets. Process operations from these contracts are expected to commence in July 2021. Expansion of our business lines is also expected to result in additional revenues. The Company will continue to pursue additional capital raising opportunities in order to fund future acquisitions and meet its obligations as they become due. In the event financing cannot be obtained, the Company may not be able to satisfy these plans and obligations. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. Impact of COVID-19 Pandemic on Our Business – |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments, necessary to fairly present the financial position as of, and the results of operations for, all periods presented. In preparing the accompanying financial statements, management has made certain estimates and assumptions that affect reported amounts in the condensed consolidated financial statements and disclosures of contingencies. Actual results may differ from those estimates. The results for interim periods are not necessarily indicative of annual results. Certain reclassifications have been made to the prior period’s consolidated financial statements and related footnotes to conform them to the current period presentation. Intercompany balances and transactions between consolidated entities are eliminated. Revenue Recognition Rental revenue is recognized based on the contractual cash rental payments for the period. Oil & gas revenue is recognized for discontinued operations based on delivered qualities in the amount of the consideration to which the Company is entitled. Stock-based Compensation – Fair Value Measurement The Company’s non-financial assets measured at fair value on non-recurring basis include impairment measurements of oil and gas properties and warrants issued as part of financing transactions. These are considered Level 3 measurements as they involve significant unobservable inputs. Major Customer and Concentration of Credit Risk During the three and six months ended June 30, 2021, one customer accounted for approximately 93% and 90% of our post-harvest and midstream services revenue, respectively. No amounts were outstanding from this customer at June 30, 2021. Our rental revenue is derived from a single lessee on a commercial warehouse owned by the Company. There were no amounts due from this customer at June 30, 2021 or December 31, 2020. Recent Accounting Pronouncements – |
Acquisition
Acquisition | 6 Months Ended |
Jun. 30, 2021 | |
Business Combinations [Abstract] | |
Acquisition | 3. Acquisition On January 11, 2021, the Company completed the acquisition of certain assets of Halcyon pursuant to the Asset Purchase Agreement dated March 7, 2020, as amended on January 11, 2021. The purchase consideration totaled approximately $6.1 million consisting of 6,250,000 shares of Company common stock valued at $2.5 million (valued at $0.40 per share; restricted from trading for a period of up to one year), $1.75 million in cash, a promissory note for $850,000 issued by the Company’s subsidiary, GenH Halcyon Acquisition, LLC, and guaranteed by Gary C. Evans, CEO of the Company, and assumption of approximately $1.0 million of new indebtedness of Halcyon. The Company was granted an option to purchase the real estate occupied by Halcyon for $993,000. This option is exercisable at any time before its expiration on January 11, 2022. The acquisition was accounted for as a business combination where the Company is the acquirer and the acquisition method of accounting was applied in accordance with GAAP. Accordingly, the aggregate value of the consideration we paid to complete the acquisition was allocated to the assets acquired based upon their estimated fair values on the acquisition date. The following table summarizes the purchase price allocation for the assets acquired. This allocation is preliminary. The final allocation of the purchase price will be determined at a later date and is dependent on a number of factors, including the final evaluation of the fair value of tangible and identifiable intangible assets acquired. Final adjustments, including increases and decreases to depreciation and amortization resulting from the allocation of the purchase price to amortizable tangible and intangible assets, may be material. Accounts receivable $ 75,470 Inventories 700,000 Other working capital 224,530 Property and equipment, other 1,712,170 Intangibles - customer contracts and lists 3,333,794 Other assets - Purchase option on real estate 49,650 Assets acquired $ 6,095,614 Intangible assets consist of customer contracts and lists and have definite-lives. These intangible assets are being amortized over the estimated useful life on an accelerated basis reflecting the anticipated future cash flows of the Company post acquisition of Halcyon. The results of operations for the acquired Halcyon assets have been included in the Company’s consolidated financial statements since the January 11, 2021 acquisition date. Concurrent with the closing of the asset acquisition, the Company entered into term employment agreements with two executives to serve as vice presidents of the Company for a term of at least two years. The term employment agreements each provide for the issuance of 250,000 shares of restricted common stock of the Company as a signing bonus. Such shares are subject to restrictions on the trading or transfer of such common stock. Further, the term employment agreements each provide for the payment by the executives of liquidated damages if the employee terminates his employment without good reason during the initial term, other than due to the employee’s death or disability. Such liquidated damages total $600,000 if such termination occurs on or prior to January 11, 2022 or $375,000 if such termination occurs after January 11, 2022 and prior to January 11, 2023. On March 3, 2021, the Company repaid the outstanding principal and interest balance on the $850,000 promissory note issued in connection with the acquisition. Supplemental Pro Forma Information The supplemental pro forma financial information presented below is for illustrative purposes only and is not necessarily indicative of the financial position or results of operations that would have been realized if the acquisition of certain assets of Halcyon had been completed on the date indicated, nor is it indicative of future operating results or financial position. The pro forma adjustments are based upon currently available information and certain assumptions that management believes are reasonable under the circumstances. The supplemental pro forma financial information reflects pro forma adjustments to present the combined pro forma results of operations as if the acquisition had occurred on January 1, 2020, to give effect to certain events that management believes to be directly attributable to the acquisition. These pro forma adjustments primarily include: ● an increase to depreciation and amortization expense that would have been recognized due to acquired tangible and intangible assets; and ● an adjustment to interest expense to reflect the reduced borrowings due to the repayment of Halcyon’s historical debt in conjunction with the acquisition; The supplemental pro forma financial information for the periods presented is as follows: For the three months ended For the six months ended 2021 2020 2021 2020 Revenue, continuing operations $ 25,855 $ 102,080 $ 94,203 $ 132,006 Loss from continuing operations (1,149,124 ) (425,651 ) (3,047,721 ) (1,588,419 ) Earnings (loss) per common share: Basic and diluted $ (0.03 ) $ (0.02 ) $ (0.11 ) $ (0.09 ) |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Jun. 30, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | 4. Discontinued Operations In connection with the Transaction, management determined to fully divest of EHR’s oil and gas activities. As such, these activities are presented as discontinued operations for each of the periods presented. The following is a summary of the carrying amounts of major classes of assets and liabilities of the discontinued operations to assets and liabilities held for sale: June 30, December 31, 2021 2020 Assets - Oil and Natural Gas Properties held for sale, at cost, using the successful efforts method $ 1,874,849 $ 1,874,849 Accumulated DD&A (1,874,849 ) (1,874,849 ) Total assets of discontinued operations held for sale $ - $ - Liabilities Accrued liabilities $ 33,804 $ 31,117 Asset retirement obligations 52,368 56,834 Revenue payable 52,117 52,117 Note payable - - Current liabilities of discontinued operations held for sale 138,289 140,068 Asset retirement obligations - Long-term liabilities of discontinued operations held for sale 155,647 144,149 Total liabilities of discontinued operations held for sale $ 293,936 $ 284,217 The following is a summary of the major classes of line items constituting (loss) income on discontinued operations shown in the consolidated statements of operations: For the three months ended For the six months ended 2021 2020 2021 2020 Revenue - Oil and gas sales $ 16,119 $ 9,217 $ 38,108 $ 80,325 Costs and Expenses Lease operating expense 18,067 22,033 40,795 60,337 Depreciation, depletion & amortization - 1,928 - 9,942 Accretion 4,257 4,309 7,032 8,605 Gain on disposal of oil & gas property interests - (24,008 ) (24,008 ) Total costs and expenses 22,324 4,262 47,827 54,876 Interest expense - 9,167 - 22,917 Income from discontinued operations $ (6,205 ) $ (4,212 ) $ (9,719 ) $ 2,532 |
Notes Payable _ Related Parties
Notes Payable – Related Parties | 6 Months Ended |
Jun. 30, 2021 | |
Note Payable Related Party [Abstract] | |
Notes Payable – Related Parties | 5. Notes Payable – Related Parties Notes payable – related parties consisted of the following: June 30, December 31, 2021 2020 Senior Secured Promissory Note $ - $ 1,500,000 Convertible Promissory Note - 208,874 Subordinated Promissory Note to CEO 490,000 490,000 Secured Promissory Note to Coventry Asset Management, LTD. 1,000,000 1,000,000 Subordinated Promissory Note to Investor 250,000 500,000 Total 1,740,000 3,698,874 Less debt discounts (33,962 ) (362,282 ) Total Notes Payable – Related Parties $ 1,706,038 $ 3,336,592 Senior Secured Promissory Note – Convertible Promissory Note – Subordinated Promissory Note to CEO – Secured Promissory Note and Warrants to Coventry Asset Management, LTD. – The holder of the secured promissory note received a warrant to purchase 1,000,000 shares of common stock exercisable at an exercise price of $0.352 per share upon origination of the promissory note in 2020. This warrant was subsequently exercised in the first quarter of 2021. Subordinated Promissory Note and Warrants to Investor If at any time prior to September 30, 2021, the Company raises new equity capital in the amount of $5,000,000 or more, then within five business days of closing, repayment of all outstanding principal and interest on the Subordinated Note will be due. The holder of the subordinated note received a warrant to purchase 500,000 shares of common stock exercisable until December 30, 2022 at an exercise price of $0.352 per share. |
Other Indebtedness
Other Indebtedness | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Other Indebtedness | 6. Other Indebtedness Other indebtedness consisted of the following: June 30, December 31, 2021 2020 Mortgage Payable $ 617,523 $ 619,461 Paycheck Protection Program Loan - 25,200 Total 617,523 644,661 Less current portion (617,523 ) (619,461 ) Total Other Indebtedness - Long-Term $ - $ 25,200 Mortgage Payable and Operating Lease — The Company leases the Denver warehouse property to a tenant under an operating lease which was recently renewed with a new tenant and extended to August 1, 2023 for a monthly rent of $7,500. The lease requires a true-up with the tenant for property taxes and and insurance paid by the Company and requires the tenant to maintain the interior and exterior of the warehouse (except for the roof). The lease provides for a rent abatement in the first and last month of the contracted extension. Minimum future rents for the remainder of 2021 are $37,500, for 2022 are $90,000 and for 2023 are $52,500. Paycheck Protection Program Loan – PPP loan recipients may be eligible to have their loans forgiven if the funds were used for eligible expenses over the eight-week coverage period commencing when the loan was originally disbursed. The amount of forgiveness may be reduced if the percentage of eligible expenses attributed to nonpayroll expenses exceeds 25% of the loan, if employee headcount decreases, or compensation decreases by more than 25% for each employee making less than $100,000 per year, unless the reduced headcount or compensation levels are restored. On April 29, 2020, we received disbursement of an approved PPP loan in the amount of $25,200. The Company received notice from the SBA that the PPP Loan principal and interest thereon was fully forgiven on April 20, 2021. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 7. Commitments and Contingencies Leases – The Company leases its operating facility in Kentucky from Oz Capital, LLC, a related party, under a lease expiring May 31, 2024. The lease provides for monthly payments of $10,249. Oz Capital, LLC is responsible for all taxes and maintenance under the lease. Lease expense for this facility totaled $30,747 and $57,857 in the three and six months ended June 30, 2021, respectively. A right-of-use asset and lease liability is recorded for this lease. The right-of-use asset represent the right to use the underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. A right-of-use asset and lease liabilities were recognized at the commencement date based on the present value of lease payments over the lease term. As the lease does not provide an implicit rate, the Company used its estimated incremental borrowing rate of 10% in determining the present value of the lease payments. Pending Insurance Claim – In the acquisition of Halcyon, the Company assumed Halcyon’s rights to any future recoveries related to the fire loss. The Company has filed for additional claims of in excess of $1.0 million against Halcyon’s insurance carrier including violation of Prompt Payment of Claims Act and Texas Insurance Code violations. The Company is in the process of formulating legal action against the insurance carrier. No amounts have been recognized for the possible recovery of these losses. Litigation – JDONE, LLC v. Grand Traverse Holdings, LLC and John Gallegos, Denver District Court Case No. 2019CV33723 JDONE, LLC (“JDONE”) is a wholly owned subsidiary of the Company and landlord of a commercial warehouse building that was leased to Grand Traverse Holdings, LLC on December 31, 2018 for a term of 61 months, with a personal guaranty from Defendant John Gallegos. On April 12, 2019, Grand Traverse presented JDONE with an alleged forged, signed copy of the draft early termination amendment that JDONE had previously rejected. JDONE has suffered damages due to Defendant’s alleged misconduct of approximately $823,504 plus interest and attorney’s fees. A court ordered mediation was held in May 2020 without success. All material defendant motions have been denied by the court. The case is set for jury trial in January 2022. We believe that Grand Traverse Holdings, LLC and John Gallegos are jointly liable for the asserted damages which approximate $1 million and continue to vigorously pursue our claims. KBSIII Tower at Lake Carolyn, LLC and Prime US-Tower at Lake Carolyn, LLC (collectively – “KBSIII”) vs. Energy Hunter Resources, Inc. Plaintiff/Counterdefendant KBSIII was seeking lost rent on office space for periods after EHR vacated office premises located in Las Colinas, Texas. EHR filed a counter suit alleging specific damages due to uninhabitable premises of the office space due to the intolerable conduct of other tenants located on the same floor. On December 23, 2020, the trial court entered a summary judgment against EHR for $230,712. The judgment provides for post-judgment interest at a rate of 5% per annum until paid and further provides for additional amounts owed should EHR pursue unsuccessful appeals to higher courts. At June 30, 2021, the Company had accrued $252,583 for this judgment. Arbitration – Jones & Keller, P.C. In February 2021, Jones & Keller, P.C., a Denver law firm that previously represented the Company, filed an arbitration demand against the Company and JDONE for the payment of alleged legal fees of approximately $150,000 regarding our lawsuit against Grand Traverse Holdings, LLC and John Gallegos discussed above. We subsequently engaged new legal counsel and filed a counterclaim for charging inappropriate and unreasonable legal fees and for unreasonable, unnecessary and duplicative work from two attorneys employed by Jones & Keller, P.C. who previously worked the case. A one-day arbitration hearing concerning this matter was held in late-July 2021 where both parties presented their case. A final ruling is anticipated within the third quarter of 2021. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2021 | |
Stockholders' Equity Note [Abstract] | |
Equity | 8. Equity Series A Preferred Stock – December 2020 Issuance of Series B Preferred Stock Units – The sale of the preferred stock units for $10,000 each resulted in aggregate gross proceeds of approximately $1.35 million, before deducting estimated offering expenses payable by the Company. Substantially all of the proceeds raised in the offering were used to fund the acquisition of assets of Halcyon, expenses related thereto and for general corporate purposes. Each share of Series B Preferred Stock is initially convertible into 25,000 shares of common stock, subject to adjustment. Holders of Series B Preferred Stock are entitled to receive dividends of 6.00% per annum based on the stated value equal to $10,000 per share. Except as otherwise required by law, the Series B Preferred Stock does not have voting rights. However, as long as any shares of Series B Preferred Stock are outstanding, the Company will not, without the affirmative vote of the holders of a majority of the then outstanding shares of the Series B Preferred Stock, (a) alter or change adversely the powers, preferences or rights given to the Series B Preferred Stock, (b) alter or amend the related certificate of designation, (c) amend its certificate of incorporation or other charter documents in any manner that adversely affects any rights of the holders of Series B Preferred Stock, (d) repay, repurchase or offer to repay, repurchase or otherwise acquire more than a de minimis number of shares of its common stock, (e) enter into any agreement with respect to any of the foregoing, or (f) pay cash dividends or distributions on any equity securities of the Company other than pursuant to the terms of the outstanding Series B Preferred Stock. The Series B Preferred Stock does not have a preference upon any liquidation, dissolution or winding-up of the Company. Beginning the later of June 30, 2021 or the effectiveness of any registration statement registering the underlying common shares, all or any portion of the Series B Preferred Stock may be converted, at their holder’s option, into 25,000 shares of common stock, as adjusted for any stock dividends, splits, combinations or similar events. At any time after the occurrence of a “Qualifying Event,” the Company, upon 5-day written notice, shall have the right to cause each share of Series B Preferred Stock (and all accrued in-kind dividends with respect thereto) to be converted into common stock. For purposes of this automatic conversion of the Series B Preferred Stock, a “Qualifying Event” shall have occurred if (A) (1) the rolling five-trading day volume-weighted average trading price of shares of the common stock exceeds $1.00, and (2) there shall be an effective registration statement under the Securities Act of 1933, as amended covering all of the shares of common stock which would be issuable upon conversion of all of the outstanding shares of Series B Preferred Stock or (B) the Company closes a firm commitment underwriting of the common stock on a Form S-1 Registration Statement with aggregate gross proceeds of at least $5,000,000 at a price per share equal to or greater than $1.00. In each instance, a conversion may not be made unless the Company has filed an amendment to its Articles of Incorporation effecting an increase in its authorized common stock so that the Company has a sufficient number of authorized and unissued shares of common stock so as to permit the conversion of all outstanding shares. The Series B Preferred Stock may be redeemed by the Company for its stated value, plus accrued and unpaid dividends, at any time. On September 30, 2021 and December 31, 2021, redemption payments of 12.5% each of the total amount of Series B Preferred Stock then outstanding plus accrued dividends will be due from the Company to each Holder of Series B Preferred Stock. The first required redemption payments were made in April 2021. In May and June of 2021, the three holders of the Company’s Series B Preferred Stock and associated warrants (the “Series B Preferred Units”), including the Company’s chief executive officer, entered into transactions in which they accepted the mandatory redemption payment required pursuant to the Series B Preferred Stock certificate of designation in a number of Series B Units to effectively waive the redemption requirement. All other terms of the Series B Units remain unchanged and the holders’ ownership interest in the Series B Preferred Units remains the same as it was before such transactions. Common Stock – ● February 2020 Issuance of Common Stock Units – The common stock issued in the exchange was valued using the trading price of the common stock on February 20, 2020. The warrants were valued at $45,848 using a binomial lattice valuation model using inputs as of the exchange date. Our expected volatility assumption was based on the historical volatility of the Company’s common stock (252%). The expected life assumption was based on the expiration date of the warrant (two years). The risk-free interest rate for the expected term of the warrant was based on the U.S. Treasury yield curve in effect at the time of measurement (1.39%). The warrants are classified within equity in the consolidated balance sheets. Under GAAP, the anti-dilution provisions will be accounted for if and when these provisions are triggered. ● Acquisition of Certain Assets of Halcyon ● 2021 First Quarter Issuances of Common Stock Units ● Warrant Exercises ● Issuances for Exchange or Conversion of Debt ● Stock-based Compensation Common Stock Warrants Outstanding – # of Warrants Exercise Price Expiration Date Method of Exercise Issued upon exchange of EHR Series C Preferred Stock (1) 1,065,340 $ 0.352 November 27, 2021 Cash Issued upon exchange of EHR Series C Preferred Stock (1) 7,244,316 $ 0.352 November 27, 2021 Cashless Issued in February 2020 with common stock units (2) 250,000 $ 0.400 March 1, 2022 Cash Issued in December 2020 with Series B preferred units (1) 5,500,000 $ 0.352 December 30, 2022 Cash Issued in December 2020 with subordinated note to investor (1) 500,000 $ 0.352 December 30, 2022 Cash Issued in Q1 2021 with common stock units (1) 1,600,000 $ 0.500 Jan-Feb, 2023 Cash Total warrants outstanding at June 30, 2021 16,159,656 (1) May be redeemed for $0.0001 per warrant at the Company’s option with 30 days advanced notice should the weighted average market price of common stock exceed $1.00 for any five out of seven consecutive trading days with a minimum average daily trading volume for such seven-day period of at least 25,000 shares of common stock. (2) Contains certain anti-dilution provisions requiring a downward adjustment to the exercise price of the warrant if dilutive instruments are issued at prices less than the warrant exercise price. Following is a summary of outstanding stock warrants activity for the periods presented: Warrants as of January 1, 2020 14,488,632 Issued 250,000 Warrants as of June 30, 2020 14,738,632 Warrants as of January 1, 2021 22,988,632 Issued 1,600,000 Exercised (8,428,976 ) Warrants as of June 30, 2021 16,159,656 |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | 9. Stock-Based Compensation We award restricted stock or stock options as incentive compensation to employees. Generally, these awards include vesting periods of up to three years from the date of grant. In the first quarter of 2021, the Company issued 500,000 restricted shares valued at $158,500 as incentive compensation to two executives who joined the Company. Compensation expense related to these awards totaled $38,750 and $81,000 for the three and six months ended June 30, 2021, respectively. As of June 30, 2021, there was $77,500 of total unrecognized compensation cost related to unvested awards to be recognized over a weighted-average period of six months. On April 6, 2021, the Company announced that Chad Burkhardt has joined the Company as its Vice President and General Counsel, effective April 1, 2021. In addition to his annual salary, the Company agreed to make a future grant to Mr. Burkhardt of $750,000 worth of options for the purchase of our common stock at an exercise price equal to the fair market value of the Company’s common stock on the date of grant. Such options will vest annually in equal installments over a three-year period from his date of hire. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Income Taxes [Abstract] | |
Income Taxes | 10. Income Taxes Income tax provisions for interim quarterly periods are generally based on an estimated annual effective income tax rate calculated separately from the effect of significant, infrequent or unusual items related specifically to interim periods. An income tax benefit for the three and six months ended June 30, 2021 or 2020 was not recognized because tax losses incurred were fully offset by a valuation allowance against deferred tax assets. There were no uncertain tax positions as of June 30, 2021. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 6 Months Ended |
Jun. 30, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | 11. Supplemental Cash Flow Information For the six months ended 2021 2020 Cash paid for interest $ 45,342 $ - Cash paid for taxes - - Noncash investing and financing activities: Acquisition of certain assets of Halcyon Thruput, LLC - issuance of common shares 2,500,000 - - issuance of subordinated note 850,000 - - assumption of Halcyon bank note 995,614 - Series B preferred stock dividend payable 24,000 - Issuance of common stock units previously subscribed 50,000 - Issuances of common shares for exchange or conversion of debt 2,160,269 - |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) per Share | 12. Earnings (Loss) per Share The following is the computation of earnings (loss) per basic and diluted share: For the three months ended For the six months ended 2021 2020 2021 2020 Amounts attributable to Generation Hemp: Numerator Loss from continuing operations attributable to common stockholders $ (1,146,697 ) $ (256,337 ) $ (2,980,285 ) $ (975,224 ) (Loss) income from discontinued operations (5,817 ) (3,948 ) (9,111 ) 2,373 Less: preferred stock dividends (20,250 ) - (40,500 ) - Net loss attributable to common stockholders $ (1,172,764 ) $ (260,285 ) $ (3,029,896 ) $ (972,851 ) Denominator Weighted average shares used to compute basic EPS 34,977,953 17,380,317 26,691,992 17,311,636 Dilutive effect of preferred stock 79,322,376 75,947,376 79,322,376 75,947,376 Dilutive effect of common stock warrants 11,654,942 - 11,787,111 743,784 Weighted average shares used to compute diluted EPS 125,955,271 93,327,693 117,801,479 94,002,796 Earnings (loss) per share: Loss from continuing operations Basic $ (0.03 ) $ (0.01 ) $ (0.11 ) $ (0.06 ) Diluted $ (0.03 ) $ (0.01 ) $ (0.11 ) $ (0.06 ) (Loss) income from discontinued operations Basic $ - $ - $ - $ - Diluted $ - $ - $ - $ - Earnings (loss) per share Basic $ (0.03 ) $ (0.01 ) $ (0.11 ) $ (0.06 ) Diluted $ (0.03 ) $ (0.01 ) $ (0.11 ) $ (0.06 ) The computation of diluted earnings per common share excludes the assumed conversion of the Series A and Series B Preferred Stock and exercise of common stock warrants in periods when we report a loss. The dilutive effect of the assumed exercise of outstanding warrants was calculated using the treasury stock method. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | 13. Subsequent Events In July 2021, the Company executed two new Toll Processing Agreements with a leading hemp processor and CBD product manufacturer and a large farmer. Under terms of these agreements, the Company will dry, strip, process and store approximately ten million pounds of hemp biomass assets. Process operations from this contract are expected to commence in July 2021. In July 2021, the Company filed a Preliminary Information Statement on Schedule 14C with the SEC for the appointment of three directors to the Company’s Board of Directors and to implement other governance matters. The directors will assume their roles following the effective date of the information statement. In July 2021, the mortgage payable secured by the Company’s Denver warehouse was amended to a new maturity date of October 15, 2021. The Company made a $100,000 principal payment and paid an extension fee of $6,000 in July 2021 for this amendment. The rate during the extension period was increased to 12% annually and the new monthly payment is $5,279. In July and August 2021, our CEO made advances totaling $200,000 to the Company under a promissory note. Proceeds were used in part to make the additional principal payment required under the mortgage payable extension agreement and for other general corporate purposes. The note matures on January 1, 2022 and bears interest at 10%. In August 2021, the Company entered into an agreement with a third-party to provide biomass processing and other services for approximately one to two million pounds of hemp biomass. The Company will obtain ownership rights to such biomass upon pick up at the customer’s facilities and will be compensated in-kind of the processed product with the customer receiving an earn-out payment, following allocated fees and all costs and expenses incurred by the Company, equal to 40% of the net profit the Company receives from the processed product. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments, necessary to fairly present the financial position as of, and the results of operations for, all periods presented. In preparing the accompanying financial statements, management has made certain estimates and assumptions that affect reported amounts in the condensed consolidated financial statements and disclosures of contingencies. Actual results may differ from those estimates. The results for interim periods are not necessarily indicative of annual results. Certain reclassifications have been made to the prior period’s consolidated financial statements and related footnotes to conform them to the current period presentation. Intercompany balances and transactions between consolidated entities are eliminated. |
Revenue Recognition | Revenue Recognition Rental revenue is recognized based on the contractual cash rental payments for the period. Oil & gas revenue is recognized for discontinued operations based on delivered qualities in the amount of the consideration to which the Company is entitled. |
Stock-based Compensation | Stock-based Compensation – |
Fair Value Measurement | Fair Value Measurement The Company’s non-financial assets measured at fair value on non-recurring basis include impairment measurements of oil and gas properties and warrants issued as part of financing transactions. These are considered Level 3 measurements as they involve significant unobservable inputs. |
Major Customer and Concentration of Credit Risk | Major Customer and Concentration of Credit Risk During the three and six months ended June 30, 2021, one customer accounted for approximately 93% and 90% of our post-harvest and midstream services revenue, respectively. No amounts were outstanding from this customer at June 30, 2021. Our rental revenue is derived from a single lessee on a commercial warehouse owned by the Company. There were no amounts due from this customer at June 30, 2021 or December 31, 2020. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements – |
Acquisition (Tables)
Acquisition (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Business Combinations [Abstract] | |
Schedule of amortizable tangible and intangible assets | Accounts receivable $ 75,470 Inventories 700,000 Other working capital 224,530 Property and equipment, other 1,712,170 Intangibles - customer contracts and lists 3,333,794 Other assets - Purchase option on real estate 49,650 Assets acquired $ 6,095,614 |
Schedule of pro forma consolidated results of operations | For the three months ended For the six months ended 2021 2020 2021 2020 Revenue, continuing operations $ 25,855 $ 102,080 $ 94,203 $ 132,006 Loss from continuing operations (1,149,124 ) (425,651 ) (3,047,721 ) (1,588,419 ) Earnings (loss) per common share: Basic and diluted $ (0.03 ) $ (0.02 ) $ (0.11 ) $ (0.09 ) |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of discontinued operations to assets and liabilities | June 30, December 31, 2021 2020 Assets - Oil and Natural Gas Properties held for sale, at cost, using the successful efforts method $ 1,874,849 $ 1,874,849 Accumulated DD&A (1,874,849 ) (1,874,849 ) Total assets of discontinued operations held for sale $ - $ - Liabilities Accrued liabilities $ 33,804 $ 31,117 Asset retirement obligations 52,368 56,834 Revenue payable 52,117 52,117 Note payable - - Current liabilities of discontinued operations held for sale 138,289 140,068 Asset retirement obligations - Long-term liabilities of discontinued operations held for sale 155,647 144,149 Total liabilities of discontinued operations held for sale $ 293,936 $ 284,217 |
Schedule of discontinued operations shown in the consolidated statements of operations | For the three months ended For the six months ended 2021 2020 2021 2020 Revenue - Oil and gas sales $ 16,119 $ 9,217 $ 38,108 $ 80,325 Costs and Expenses Lease operating expense 18,067 22,033 40,795 60,337 Depreciation, depletion & amortization - 1,928 - 9,942 Accretion 4,257 4,309 7,032 8,605 Gain on disposal of oil & gas property interests - (24,008 ) (24,008 ) Total costs and expenses 22,324 4,262 47,827 54,876 Interest expense - 9,167 - 22,917 Income from discontinued operations $ (6,205 ) $ (4,212 ) $ (9,719 ) $ 2,532 |
Notes Payable _ Related Parti_2
Notes Payable – Related Parties (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Note Payable Related Party [Abstract] | |
Schedule of notes payable related parties | June 30, December 31, 2021 2020 Senior Secured Promissory Note $ - $ 1,500,000 Convertible Promissory Note - 208,874 Subordinated Promissory Note to CEO 490,000 490,000 Secured Promissory Note to Coventry Asset Management, LTD. 1,000,000 1,000,000 Subordinated Promissory Note to Investor 250,000 500,000 Total 1,740,000 3,698,874 Less debt discounts (33,962 ) (362,282 ) Total Notes Payable – Related Parties $ 1,706,038 $ 3,336,592 |
Other Indebtedness (Tables)
Other Indebtedness (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of other indebtedness | June 30, December 31, 2021 2020 Mortgage Payable $ 617,523 $ 619,461 Paycheck Protection Program Loan - 25,200 Total 617,523 644,661 Less current portion (617,523 ) (619,461 ) Total Other Indebtedness - Long-Term $ - $ 25,200 |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Stockholders' Equity Note [Abstract] | |
Schedule of warrants outstanding | # of Warrants Exercise Price Expiration Date Method of Exercise Issued upon exchange of EHR Series C Preferred Stock (1) 1,065,340 $ 0.352 November 27, 2021 Cash Issued upon exchange of EHR Series C Preferred Stock (1) 7,244,316 $ 0.352 November 27, 2021 Cashless Issued in February 2020 with common stock units (2) 250,000 $ 0.400 March 1, 2022 Cash Issued in December 2020 with Series B preferred units (1) 5,500,000 $ 0.352 December 30, 2022 Cash Issued in December 2020 with subordinated note to investor (1) 500,000 $ 0.352 December 30, 2022 Cash Issued in Q1 2021 with common stock units (1) 1,600,000 $ 0.500 Jan-Feb, 2023 Cash Total warrants outstanding at June 30, 2021 16,159,656 |
Schedule of outstanding stock warrants activity | Warrants as of January 1, 2020 14,488,632 Issued 250,000 Warrants as of June 30, 2020 14,738,632 Warrants as of January 1, 2021 22,988,632 Issued 1,600,000 Exercised (8,428,976 ) Warrants as of June 30, 2021 16,159,656 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of supplemental cash flow information | For the six months ended 2021 2020 Cash paid for interest $ 45,342 $ - Cash paid for taxes - - Noncash investing and financing activities: Acquisition of certain assets of Halcyon Thruput, LLC - issuance of common shares 2,500,000 - - issuance of subordinated note 850,000 - - assumption of Halcyon bank note 995,614 - Series B preferred stock dividend payable 24,000 - Issuance of common stock units previously subscribed 50,000 - Issuances of common shares for exchange or conversion of debt 2,160,269 - |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of earnings (loss) per basic and diluted share | For the three months ended For the six months ended 2021 2020 2021 2020 Amounts attributable to Generation Hemp: Numerator Loss from continuing operations attributable to common stockholders $ (1,146,697 ) $ (256,337 ) $ (2,980,285 ) $ (975,224 ) (Loss) income from discontinued operations (5,817 ) (3,948 ) (9,111 ) 2,373 Less: preferred stock dividends (20,250 ) - (40,500 ) - Net loss attributable to common stockholders $ (1,172,764 ) $ (260,285 ) $ (3,029,896 ) $ (972,851 ) Denominator Weighted average shares used to compute basic EPS 34,977,953 17,380,317 26,691,992 17,311,636 Dilutive effect of preferred stock 79,322,376 75,947,376 79,322,376 75,947,376 Dilutive effect of common stock warrants 11,654,942 - 11,787,111 743,784 Weighted average shares used to compute diluted EPS 125,955,271 93,327,693 117,801,479 94,002,796 Earnings (loss) per share: Loss from continuing operations Basic $ (0.03 ) $ (0.01 ) $ (0.11 ) $ (0.06 ) Diluted $ (0.03 ) $ (0.01 ) $ (0.11 ) $ (0.06 ) (Loss) income from discontinued operations Basic $ - $ - $ - $ - Diluted $ - $ - $ - $ - Earnings (loss) per share Basic $ (0.03 ) $ (0.01 ) $ (0.11 ) $ (0.06 ) Diluted $ (0.03 ) $ (0.01 ) $ (0.11 ) $ (0.06 ) |
Business (Details)
Business (Details) - $ / item | Jan. 11, 2021 | Nov. 27, 2019 | Jun. 30, 2021 |
Accounting Policies [Abstract] | |||
Owns approximately percentage | 94.00% | ||
Square Foot Facility | 48,000 | ||
Description of business, description | EHR held an approximate 8% working interest in an oil & gas property located in Cochran County, Texas within the Slaughter-Levelland Field of the San Andres formation in the Northwest Shelf of West Texas. EHR’s oil & gas activities are currently held for sale and are presented in these consolidated financial statements as discontinued operations for each of the periods presented. | ||
Description of hemp biomass assets | the Company will dry, strip, process and store approximately ten million pounds of hemp biomass assets. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Details) | 6 Months Ended |
Jun. 30, 2021 | |
Summary of Significant Accounting Policies (Details) [Line Items] | |
Number of customer | 1 |
Service revenue, percentage | 93.00% |
One Customer [Member] | |
Summary of Significant Accounting Policies (Details) [Line Items] | |
Service revenue, percentage | 90.00% |
Acquisition (Details)
Acquisition (Details) - USD ($) | Jan. 11, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Acquisition (Details) [Line Items] | |||
Company common stock (in Shares) | 34,977,953 | 17,380,317 | |
Company common stock, value | $ 15,733,125 | $ 6,083,480 | |
Per share value (in Dollars per share) | |||
Promissory note | $ 850,000 | ||
Issuance of Restricted common stock (in Shares) | 250,000 | ||
Employee terminates, description | the employee terminates his employment without good reason during the initial term, other than due to the employee’s death or disability. Such liquidated damages total $600,000 if such termination occurs on or prior to January 11, 2022 or $375,000 if such termination occurs after January 11, 2022 and prior to January 11, 2023. | ||
Halcyon [Member] | |||
Acquisition (Details) [Line Items] | |||
Consideration value | $ 6,100,000 | ||
Company common stock (in Shares) | 6,250,000 | ||
Company common stock, value | $ 2,500,000 | ||
Per share value (in Dollars per share) | $ 0.40 | ||
Cash | $ 1,750,000 | ||
Promissory note | $ 850,000 | ||
Real Estate Occupied, description | the Company, and assumption of approximately $1.0 million of new indebtedness of Halcyon. The Company was granted an option to purchase the real estate occupied by Halcyon for $993,000. This option is exercisable at any time before its expiration on January 11, 2022. |
Acquisition (Details) - Schedul
Acquisition (Details) - Schedule of amortizable tangible and intangible assets - Acquisitions [Member] | Jun. 30, 2021USD ($) |
Indefinite-lived Intangible Assets [Line Items] | |
Accounts receivable | $ 75,470 |
Inventories | 700,000 |
Other working capital | 224,530 |
Property and equipment, other | 1,712,170 |
Intangibles - customer contracts and lists | 3,333,794 |
Other assets - Purchase option on real estate | 49,650 |
Assets acquired | $ 6,095,614 |
Acquisition (Details) - Sched_2
Acquisition (Details) - Schedule of pro forma consolidated results of operations - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Schedule of pro forma consolidated results of operations [Abstract] | ||||
Revenue, continuing operations | $ 25,855 | $ 102,080 | $ 94,203 | $ 132,006 |
Loss from continuing operations | $ (1,149,124) | $ (425,651) | $ (3,047,721) | $ (1,588,419) |
Earnings (loss) per common share: | ||||
Basic and diluted (in Dollars per share) | $ (0.03) | $ (0.02) | $ (0.11) | $ (0.09) |
Discontinued Operations (Detail
Discontinued Operations (Details) - Schedule of discontinued operations to assets and liabilities - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Assets - | ||
Oil and Natural Gas Properties held for sale, at cost, using the successful efforts method | $ 1,874,849 | $ 1,874,849 |
Accumulated DD&A | (1,874,849) | (1,874,849) |
Total assets of discontinued operations held for sale | ||
Liabilities | ||
Accrued liabilities | 33,804 | 31,117 |
Asset retirement obligations | 52,368 | 56,834 |
Revenue payable | 52,117 | 52,117 |
Note payable | ||
Current liabilities of discontinued operations held for sale | 138,289 | 140,068 |
Asset retirement obligations - | ||
Long-term liabilities of discontinued operations held for sale | 155,647 | 144,149 |
Total liabilities of discontinued operations held for sale | $ 293,936 | $ 284,217 |
Discontinued Operations (Deta_2
Discontinued Operations (Details) - Schedule of discontinued operations shown in the consolidated statements of operations - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenue - | ||||
Oil and gas sales | $ 16,119 | $ 9,217 | $ 38,108 | $ 80,325 |
Costs and Expenses | ||||
Lease operating expense | 18,067 | 22,033 | 40,795 | 60,337 |
Depreciation, depletion & amortization | 1,928 | 9,942 | ||
Accretion | 4,257 | 4,309 | 7,032 | 8,605 |
Gain on disposal of oil & gas property interests | (24,008) | (24,008) | ||
Total costs and expenses | 22,324 | 4,262 | 47,827 | 54,876 |
Interest expense | 9,167 | 22,917 | ||
Income from discontinued operations | $ (6,205) | $ (4,212) | $ (9,719) | $ 2,532 |
Notes Payable _ Related Parti_3
Notes Payable – Related Parties (Details) - USD ($) | 1 Months Ended | 6 Months Ended | |||||||
Jul. 31, 2021 | Mar. 09, 2021 | Dec. 30, 2020 | Jun. 30, 2021 | Dec. 30, 2022 | Oct. 01, 2021 | Sep. 30, 2021 | Apr. 30, 2021 | Dec. 31, 2020 | |
Notes Payable – Related Parties (Details) [Line Items] | |||||||||
Exchange of common shares (in Shares) | 1,000,000 | ||||||||
Converted into common shares (in Shares) | 618,660 | ||||||||
Subordinated Promissory note due date | Sep. 30, 2021 | ||||||||
Interest rate | 10.00% | ||||||||
Accrued interest | $ 15,986 | $ 22,393 | |||||||
Extension fee (in Shares) | 0.352 | ||||||||
Warrant to purchase of common stock (in Shares) | 1,000,000 | ||||||||
Exercise price per share (in Dollars per share) | $ 0.352 | ||||||||
Subsequent Event [Member] | |||||||||
Notes Payable – Related Parties (Details) [Line Items] | |||||||||
Extension fee (in Shares) | 20,000 | ||||||||
Accrued interest | $ 50,000 | ||||||||
Warrant to purchase of common stock (in Shares) | 500,000 | ||||||||
Exercise price per share (in Dollars per share) | $ 0.352 | ||||||||
Equity capital amount | $ 5,000,000 | ||||||||
Subordinated Promissory Note [Member] | |||||||||
Notes Payable – Related Parties (Details) [Line Items] | |||||||||
Interest rate | 10.00% | ||||||||
Accrued interest | $ 12,483 | ||||||||
Principal amount | $ 250,000 | ||||||||
Accrued and unpaid interest due date | Sep. 30, 2021 | ||||||||
Conventry Asset Management, LTD. [Member] | |||||||||
Notes Payable – Related Parties (Details) [Line Items] | |||||||||
Interest rate | 10.00% | ||||||||
Principal amount | $ 1,000,000 | ||||||||
Accredited Investor [Member] | |||||||||
Notes Payable – Related Parties (Details) [Line Items] | |||||||||
Principal amount | $ 500,000 | ||||||||
Forecast [Member] | Conventry Asset Management, LTD. [Member] | |||||||||
Notes Payable – Related Parties (Details) [Line Items] | |||||||||
Principal amount | $ 250,000 |
Notes Payable _ Related Parti_4
Notes Payable – Related Parties (Details) - Schedule of notes payable related parties - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Notes Payable – Related Parties (Details) - Schedule of notes payable related parties [Line Items] | ||
Total | $ 1,740,000 | $ 3,698,874 |
Less debt discounts | (33,962) | (362,282) |
Total Notes Payable – Related Parties | 1,706,038 | 3,336,592 |
Senior Secured Promissory Note [Member] | ||
Notes Payable – Related Parties (Details) - Schedule of notes payable related parties [Line Items] | ||
Total | 1,500,000 | |
Convertible Promissory Note [Member] | ||
Notes Payable – Related Parties (Details) - Schedule of notes payable related parties [Line Items] | ||
Total | 208,874 | |
Subordinated Promissory Note to CEO [Member] | ||
Notes Payable – Related Parties (Details) - Schedule of notes payable related parties [Line Items] | ||
Total | 490,000 | 490,000 |
Secured Promissory Note to Coventry Asset Management, LTD. [Member] | ||
Notes Payable – Related Parties (Details) - Schedule of notes payable related parties [Line Items] | ||
Total | 1,000,000 | 1,000,000 |
Subordinated Promissory Note to Investor [Member] | ||
Notes Payable – Related Parties (Details) - Schedule of notes payable related parties [Line Items] | ||
Total | $ 250,000 | $ 500,000 |
Other Indebtedness (Details)
Other Indebtedness (Details) - USD ($) | Aug. 01, 2023 | Jun. 30, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 21, 2021 | Apr. 29, 2020 |
Other Indebtedness (Details) [Line Items] | ||||||
Mortgage payable, description | The note provided for a 25-year amortization period and an initial interest rate of 9% annually. As amended, the note matured on January 15, 2021 but was extended under terms of the amendment to July 15, 2021 after payment by the Company of an extension fee of 1% of the then outstanding principal. The rate during this extension period is 11% annually and the monthly payment is $6,067. | |||||
Nonpayroll expenses | 25.00% | |||||
Compensation decreases percentage | 25.00% | |||||
Compensation levels amount | $ 100,000 | |||||
PPP loan amount | $ 25,200 | |||||
Forecast [Member] | ||||||
Other Indebtedness (Details) [Line Items] | ||||||
Lease and rental expense | $ 7,500 | |||||
Minimum future rents | $ 37,500 | |||||
Minimum future rents twelve months | $ 90,000 | |||||
Minimum future rents two years | $ 52,500 |
Other Indebtedness (Details) -
Other Indebtedness (Details) - Schedule of other indebtedness - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Schedule of other indebtedness [Abstract] | ||
Mortgage Payable | $ 617,523 | $ 619,461 |
Paycheck Protection Program Loan | 25,200 | |
Total | 617,523 | 644,661 |
Less current portion | (617,523) | (619,461) |
Total Other Indebtedness - Long-Term | $ 25,200 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | Apr. 12, 2019 | Feb. 28, 2021 | Dec. 23, 2020 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Commitments and Contingencies (Details) [Line Items] | |||||||||
Monthly lease payment | $ 2,000 | ||||||||
Lease expense | $ 6,000 | $ 10,000 | |||||||
Incremental borrowing rate | 10.00% | ||||||||
Cost of drying equipment total | $ 1,100,000 | ||||||||
Insurance proceeds | $ 595,000 | ||||||||
Additional claims | $ 1,000,000 | ||||||||
Amount of summary judgment | $ 230,712 | ||||||||
Litigation settlement interest percentage | 5.00% | ||||||||
Accrued unpaid rent | 252,583 | ||||||||
Legal fees | $ 150,000 | ||||||||
Stock Issued During Period, Shares, New Issues (in Shares) | 2 | ||||||||
Oz Capital, LLC [Member] | |||||||||
Commitments and Contingencies (Details) [Line Items] | |||||||||
Monthly lease payment | $ 10,249 | ||||||||
Lease expiration date | May 31, 2024 | ||||||||
Lease expense | $ 30,747 | $ 57,857 | |||||||
Grand Traverse Holdings, LLC [Member] | |||||||||
Commitments and Contingencies (Details) [Line Items] | |||||||||
Lease term | 61 months | ||||||||
Interest and attorney fees | $ 823,504 | ||||||||
Grand Traverse Holdings, LLC [Member] | John Gallegos [Member] | |||||||||
Commitments and Contingencies (Details) [Line Items] | |||||||||
Liable for the asserted damages | $ 1,000,000 |
Equity (Details)
Equity (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Equity (Details) [Line Items] | ||
Exercisable warrants common stock shares | 0.352 | |
Sale of preferred stock units (in Dollars) | $ 10,000 | |
Aggregate gross proceeds (in Dollars) | $ 1,350,000 | |
Common stock shares Issued | 25,000 | |
Equity description | For purposes of this automatic conversion of the Series B Preferred Stock, a “Qualifying Event” shall have occurred if (A) (1) the rolling five-trading day volume-weighted average trading price of shares of the common stock exceeds $1.00, and (2) there shall be an effective registration statement under the Securities Act of 1933, as amended covering all of the shares of common stock which would be issuable upon conversion of all of the outstanding shares of Series B Preferred Stock or (B) the Company closes a firm commitment underwriting of the common stock on a Form S-1 Registration Statement with aggregate gross proceeds of at least $5,000,000 at a price per share equal to or greater than $1.00. | |
Warrant per share (in Dollars per share) | $ 0.0001 | |
Weighted average price exceed (in Dollars per share) | $ 1 | |
Shares of Common stock | 25,000 | |
December 2020 Issuance of Series B Preferred Stock Units [Member] | ||
Equity (Details) [Line Items] | ||
Exercisable warrants common stock shares | 50,000 | |
Common Stock [Member] | ||
Equity (Details) [Line Items] | ||
Equity description | At June 30, 2021, the Company had 34,977,953 common shares outstanding. Following is a discussion of common stock issuances during the periods presented: ● February 2020 Issuance of Common Stock Units – In February 2020, the Company issued 250,000 common units for $100,000. Each unit consisted of one share of common stock and a warrant for purchase of one common share for $0.40 per share. The warrant expires March 1, 2022 and contains certain anti-dilution provisions requiring a downward adjustment to the exercise price of the warrant if dilutive instruments are issued at prices less than the warrant exercise price. Proceeds of this issuance were used for general corporate purposes. The common stock issued in the exchange was valued using the trading price of the common stock on February 20, 2020. The warrants were valued at $45,848 using a binomial lattice valuation model using inputs as of the exchange date. Our expected volatility assumption was based on the historical volatility of the Company’s common stock (252%). The expected life assumption was based on the expiration date of the warrant (two years). The risk-free interest rate for the expected term of the warrant was based on the U.S. Treasury yield curve in effect at the time of measurement (1.39%). The warrants are classified within equity in the consolidated balance sheets. Under GAAP, the anti-dilution provisions will be accounted for if and when these provisions are triggered. ● Acquisition of Certain Assets of Halcyon – the Company issued 6,250,000 shares of common stock valued at $2.5 million (valued at $0.40 per share; restricted from trading for a period of up to one year) in the acquisition. Refer to Note 3. ● 2021 First Quarter Issuances of Common Stock Units – In the first quarter of 2021, the Company issued 800,000 common stock units for total proceeds of $400,000. Each common stock unit consists of one share of common stock and a warrant for the purchase of two shares of common stock for $0.50 each. Each warrant is exercisable any time before its expiration on the second anniversary of its issuance. ● Warrant Exercises – In the first quarter of 2021, the Company received $2,967,000 for the exercise of 8,428,976 outstanding warrants. ● Issuances for Exchange or Conversion of Debt – The Company issued a total of 1,618,660 common shares for the exchange or conversion of outstanding debt. Refer to Note 5. ●Stock-based Compensation – The Company issued 500,000 restricted common shares as incentive compensation to two executives who joined the Company in the first quarter of 2021. | |
Series A Preferred Stock [Member] | ||
Equity (Details) [Line Items] | ||
Preferred stock, share outstanding | 6,328,948 | 6,328,948 |
Series B Preferred Stock [Member] | ||
Equity (Details) [Line Items] | ||
Preferred Stock converted into common stock | 25,000 | |
Annual dividend rate | 6.00% | |
Preferred stock stated value (in Dollars) | $ 10,000 | |
Annual rate, description | On September 30, 2021 and December 31, 2021, redemption payments of 12.5% each of the total amount of Series B Preferred Stock then outstanding plus accrued dividends will be due from the Company to each Holder of Series B Preferred Stock. The first required redemption payments were made in April 2021. |
Equity (Details) - Schedule of
Equity (Details) - Schedule of warrants outstanding | 6 Months Ended | |
Jun. 30, 2021$ / sharesshares | ||
Class of Warrant or Right [Line Items] | ||
Number of warrants | shares | 16,159,656 | |
Exercise Price (each) | $ / shares | $ 0.352 | |
Issued in December 2020 [Member] | Subordinated Note to Investor [Member] | ||
Class of Warrant or Right [Line Items] | ||
Number of warrants | shares | 500,000 | [1] |
Exercise Price (each) | $ / shares | $ 0.352 | [1] |
Expiration Date | December 30, 2022 | [1] |
Method of Exercise | Cash | [1] |
Common Stock Units [Member] | Issued in February 2020 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Number of warrants | shares | 250,000 | [2] |
Exercise Price (each) | $ / shares | $ 0.400 | [2] |
Expiration Date | March 1, 2022 | [2] |
Method of Exercise | Cash | [2] |
Common Stock Unites [Member] | March Two Thousand Twenty One [Member] | ||
Class of Warrant or Right [Line Items] | ||
Number of warrants | shares | 1,600,000 | [1] |
Exercise Price (each) | $ / shares | $ 0.500 | [1] |
Expiration Date | Jan-Feb, 2023 | [1] |
Method of Exercise | Cash | [1] |
Series C Preferred Stock [Member] | Issued upon exchange of EHR [Member] | ||
Class of Warrant or Right [Line Items] | ||
Number of warrants | shares | 1,065,340 | [1] |
Exercise Price (each) | $ / shares | $ 0.352 | [1] |
Expiration Date | November 27, 2021 | [1] |
Method of Exercise | Cash | [1] |
Series C Preferred Stock [Member] | Issued upon exchange of EHR One [Member] | ||
Class of Warrant or Right [Line Items] | ||
Number of warrants | shares | 7,244,316 | [1] |
Exercise Price (each) | $ / shares | $ 0.352 | [1] |
Expiration Date | November 27, 2021 | [1] |
Method of Exercise | Cashless | [1] |
Series B Preferred Units [Member] | Issued in December 2020 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Number of warrants | shares | 5,500,000 | [1] |
Exercise Price (each) | $ / shares | $ 0.352 | [1] |
Expiration Date | December 30, 2022 | [1] |
Method of Exercise | Cash | [1] |
[1] | May be redeemed for $0.0001 per warrant at the Company’s option with 30 days advanced notice should the weighted average market price of common stock exceed $1.00 for any five out of seven consecutive trading days with a minimum average daily trading volume for such seven-day period of at least 25,000 shares of common stock. | |
[2] | Contains certain anti-dilution provisions requiring a downward adjustment to the exercise price of the warrant if dilutive instruments are issued at prices less than the warrant exercise price. |
Equity (Details) - Schedule o_2
Equity (Details) - Schedule of outstanding stock warrants activity - shares | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Schedule of outstanding stock warrants activity [Abstract] | ||
Warrants, beginning | 22,988,632 | 14,488,632 |
Issued | 1,600,000 | 250,000 |
Exercised | (8,428,976) | |
Warrants, ending | 16,159,656 | 14,738,632 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2021 | Apr. 06, 2021 | |
Stock-Based Compensation (Details) [Line Items] | ||||
Compensation expense related to awards | $ 38,750 | $ 81,000 | ||
Total unrecognized compensation cost | $ 77,500 | |||
Purchase of common stock | $ 750,000 | |||
Restricted Stock [Member] | ||||
Stock-Based Compensation (Details) [Line Items] | ||||
Restricted shares, issued (in Shares) | 500,000 | |||
Restricted shares, value | $ 158,500 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - Schedule of supplemental cash flow information - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Schedule of supplemental cash flow information [Abstract] | ||
Cash paid for interest | $ 45,342 | |
Cash paid for taxes | ||
Acquisition of certain assets of Halcyon Thruput, LLC | ||
- issuance of common shares | 2,500,000 | |
- issuance of subordinated note | 850,000 | |
- assumption of Halcyon bank note | 995,614 | |
Series B preferred stock dividend payable | 24,000 | |
Issuance of common stock units previously subscribed | 50,000 | |
Issuances of common shares for exchange or conversion of debt | $ 2,160,269 |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) - Schedule of earnings (loss) per basic and diluted share - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Numerator | ||||
Loss from continuing operations attributable to common stockholders (in Dollars) | $ (1,146,697) | $ (256,337) | $ (2,980,285) | $ (975,224) |
(Loss) income from discontinued operations (in Dollars) | (5,817) | (3,948) | (9,111) | 2,373 |
Less: preferred stock dividends (in Dollars) | (20,250) | (40,500) | ||
Net loss attributable to common stockholders (in Dollars) | $ (1,172,764) | $ (260,285) | $ (3,029,896) | $ (972,851) |
Denominator | ||||
Weighted average shares used to compute basic EPS (in Shares) | 34,977,953 | 17,380,317 | 26,691,992 | 17,311,636 |
Dilutive effect of preferred stock (in Shares) | 79,322,376 | 75,947,376 | 79,322,376 | 75,947,376 |
Dilutive effect of common stock warrants (in Shares) | 11,654,942 | 11,787,111 | 743,784 | |
Weighted average shares used to compute diluted EPS (in Shares) | 125,955,271 | 93,327,693 | 117,801,479 | 94,002,796 |
Loss from continuing operations | ||||
Basic | $ (0.03) | $ (0.01) | $ (0.11) | $ (0.06) |
Diluted | (0.03) | (0.01) | (0.11) | (0.06) |
(Loss) income from discontinued operations | ||||
Basic | ||||
Diluted | ||||
Earnings (loss) per share | ||||
Basic | (0.03) | (0.01) | (0.11) | (0.06) |
Diluted | $ (0.03) | $ (0.01) | $ (0.11) | $ (0.06) |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | 1 Months Ended | |
Aug. 31, 2021 | Jul. 31, 2021 | |
Subsequent Events (Details) [Line Items] | ||
Principal payment | $ 100,000 | |
Extension fee | 6,000 | |
New monthly payment | 5,279 | |
Subsequent Event [Member] | ||
Subsequent Events (Details) [Line Items] | ||
PPP loan amount | $ 200,000 | 200,000 |
Note bears interest | 10.00% | |
Percentage of net profit | 40.00% | |
Note maturity date | Jan. 1, 2022 | |
Toll Processing Agreements [Member] | ||
Subsequent Events (Details) [Line Items] | ||
Hemp biomass assets | $ 10,000,000 |