Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 19, 2022 | |
Document Information Line Items | ||
Entity Registrant Name | GENERATION HEMP, INC. | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 113,154,002 | |
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, 2022 | |
Document Fiscal Year Focus | 2022 | |
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 | DE | |
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 | |
Entity Interactive Data Current | Yes |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Current Assets: | ||
Cash | $ 4,289 | $ 20,656 |
Accounts receivable | 91,185 | |
Inventories | 212,518 | 212,518 |
Prepaid expenses | 55,791 | 4,723 |
Total current assets | 363,783 | 237,897 |
Property and equipment, net | 2,391,678 | 2,580,662 |
Operating lease right-of-use asset | 213,706 | 263,065 |
Intangible assets, net | 1,564,652 | 1,857,908 |
Goodwill | 799,888 | 799,888 |
Other assets | 407,000 | 407,000 |
Total Assets | 5,740,707 | 6,146,420 |
Current Liabilities: | ||
Accounts payable | 1,169,006 | 883,485 |
Accrued liabilities | 421,234 | 410,990 |
Payables to related parties | 382,197 | 204,007 |
Operating lease liability - related party | 106,406 | 101,238 |
Notes payable – related parties | 3,241,120 | 2,183,551 |
Other indebtedness - current | 473,192 | 501,668 |
Current liabilities of discontinued operations held for sale | 160,057 | 153,482 |
Total current liabilities | 5,953,212 | 4,438,421 |
Operating lease liability - related party, net of current portion | 107,300 | 161,827 |
Long-term liabilities of discontinued operations held for sale | 193,816 | 162,948 |
Total liabilities | 6,254,328 | 4,763,196 |
Commitments and contingencies | ||
Series B redeemable preferred stock, no par value, $10,000 stated value, 300 shares authorized, 118 and 135 shares issued and outstanding at June 30, 2022 and December 31, 2021 | 591,558 | 591,558 |
Equity (Deficit): | ||
Preferred stock, $0.00001 par value; 200,000,000 shares authorized, none outstanding | ||
Common stock, $0.00001 par value; 200,000,000 shares authorized, 113,154,002 and 113,094,002 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively | 1,132 | 1,131 |
Additional paid-in capital | 31,887,994 | 29,150,258 |
Accumulated deficit | (32,748,818) | (28,118,245) |
Generation Hemp equity | (859,692) | 1,033,144 |
Noncontrolling interest | (245,487) | (241,478) |
Total equity (deficit) | (1,105,179) | 791,666 |
Total Liabilities and Equity (Deficit) | $ 5,740,707 | $ 6,146,420 |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Preferred stock, par value (in Dollars per share) | $ 0.00001 | $ 0.00001 |
Preferred stock, shares authorized | 200,000,000 | 200,000,000 |
Preferred stock, shares outstanding | ||
Common stock, par value (in Dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 113,154,002 | 113,094,002 |
Common stock, shares outstanding | 113,154,002 | 113,094,002 |
Series B Redeemable Preferred Stock | ||
Preferred stock, par value (in Dollars per share) | ||
Preferred stock, Stated Value (in Dollars) | $ 10,000 | $ 10,000 |
Preferred stock, shares authorized | 300 | 300 |
Preferred stock, shares issued | 118 | 135 |
Preferred stock, shares outstanding | 118 | 135 |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements of Operations - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenue: | ||||
Post-harvest and midstream services | $ 331,900 | $ 3,355 | $ 331,933 | $ 47,965 |
Rental | 22,500 | 22,500 | 45,000 | 45,000 |
Total revenue | 354,400 | 25,855 | 376,933 | 92,965 |
Costs and Expenses: | ||||
Cost of revenue (exclusive of items shown separately below) | 164,479 | 112,195 | 268,844 | 270,260 |
Depreciation and amortization | 261,491 | 341,447 | 482,240 | 691,075 |
Merger and acquisition costs | 16,115 | |||
General and administrative | 1,914,644 | 514,299 | 3,892,528 | 1,635,231 |
Total costs and expenses | 2,340,614 | 967,941 | 4,643,612 | 2,612,681 |
Operating loss | (1,986,214) | (942,086) | (4,266,679) | (2,519,716) |
Other expense (income): | ||||
Interest and other income | (25,424) | (25,424) | ||
Change in fair value of marketable security | (11,770) | |||
Interest expense | 123,763 | 232,462 | 287,273 | 496,302 |
Total other expense | 123,763 | 207,038 | 287,273 | 459,108 |
Loss from continuing operations | (2,109,977) | (1,149,124) | (4,553,952) | (2,978,824) |
Loss from discontinued operations | (27,567) | (6,205) | (40,263) | (9,719) |
Net loss | (2,137,544) | (1,155,329) | (4,594,215) | (2,988,543) |
Less: net income (loss) attributable to noncontrolling interests | (2,422) | (2,815) | (4,009) | 853 |
Net loss attributable to Generation Hemp | $ (2,135,122) | $ (1,152,514) | $ (4,590,206) | $ (2,989,396) |
Loss from continuing operations | ||||
Basic (in Dollars per share) | $ (0.02) | $ (0.03) | $ (0.04) | $ (0.11) |
Diluted (in Dollars per share) | (0.02) | (0.03) | (0.04) | (0.11) |
Loss from discontinued operations | ||||
Basic (in Dollars per share) | ||||
Diluted (in Dollars per share) | ||||
Earnings (loss) per share | ||||
Basic (in Dollars per share) | (0.02) | (0.03) | (0.04) | (0.11) |
Diluted (in Dollars per share) | $ (0.02) | $ (0.03) | $ (0.04) | $ (0.11) |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Statements of Equity (Deficit) - USD ($) | Total | Series B Redeemable Preferred Stock | Series A Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Noncontrolling Interest |
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 | ||||||
Series B preferred stock dividend | (20,250) | (20,250) | |||||
Stock-based compensation | 42,250 | $ 42,250 | |||||
Stock-based compensation (in Shares) | 500,000 | ||||||
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 | 2,095,791 | $ 729,058 | $ 4,975,503 | $ 15,694,375 | 2,894,642 | (21,230,351) | (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 | ||||
Series B preferred stock dividend | |||||||
Stock-based compensation | |||||||
Net loss | (1,155,329) | (1,152,514) | (2,815) | ||||
Balance at Jun. 30, 2021 | 2,095,791 | $ 729,058 | $ 4,975,503 | $ 15,694,375 | 2,894,642 | (21,230,351) | (238,378) |
Balance (in Shares) at Jun. 30, 2021 | 135 | 6,328,948 | 34,977,953 | ||||
Balance at Dec. 31, 2021 | 791,666 | $ 591,558 | $ 1,131 | 29,150,258 | (28,118,245) | (241,478) | |
Balance (in Shares) at Dec. 31, 2021 | 118 | 113,094,002 | |||||
Issuance of common shares for extension of secured note | 11,480 | 11,480 | |||||
Issuance of common shares for extension of secured note (in Shares) | 20,000 | ||||||
Modification of warrants for extension of promissory note to investor | 68,756 | 68,756 | |||||
Series B preferred stock dividend | (20,992) | (20,992) | |||||
Stock-based compensation | 1,315,750 | 1,315,750 | |||||
Net loss | (2,456,671) | (2,455,084) | (1,587) | ||||
Balance at Mar. 31, 2022 | (290,011) | $ 591,558 | $ 1,131 | 30,546,244 | (30,594,321) | (243,065) | |
Balance (in Shares) at Mar. 31, 2022 | 118 | 113,114,002 | |||||
Balance at Dec. 31, 2021 | 791,666 | $ 591,558 | $ 1,131 | 29,150,258 | (28,118,245) | (241,478) | |
Balance (in Shares) at Dec. 31, 2021 | 118 | 113,094,002 | |||||
Net loss | (4,594,215) | ||||||
Balance at Jun. 30, 2022 | (1,105,179) | $ 591,558 | $ 1,132 | 31,887,994 | (32,748,818) | (245,487) | |
Balance (in Shares) at Jun. 30, 2022 | 118 | 113,154,002 | |||||
Balance at Mar. 31, 2022 | (290,011) | $ 591,558 | $ 1,131 | 30,546,244 | (30,594,321) | (243,065) | |
Balance (in Shares) at Mar. 31, 2022 | 118 | 113,114,002 | |||||
Issuance of common shares for extension of secured note | 26,001 | $ 1 | 26,000 | ||||
Issuance of common shares for extension of secured note (in Shares) | 40,000 | ||||||
Series B preferred stock dividend | (19,375) | (19,375) | |||||
Stock-based compensation | 1,315,750 | 1,315,750 | |||||
Net loss | (2,137,544) | (2,135,122) | (2,422) | ||||
Balance at Jun. 30, 2022 | $ (1,105,179) | $ 591,558 | $ 1,132 | $ 31,887,994 | $ (32,748,818) | $ (245,487) | |
Balance (in Shares) at Jun. 30, 2022 | 118 | 113,154,002 |
Unaudited Condensed Consolida_5
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash Flows From Operating Activities | ||
Net loss | $ (4,594,215) | $ (2,988,543) |
Loss from discontinued operations | (40,263) | (9,719) |
Net loss from continuing operations | (4,553,952) | (2,978,824) |
Adjustments to reconcile net loss from continuing operations to net cash from operating activities: | ||
Depreciation and amortization | 482,240 | 691,075 |
Amortization of debt discount | 37,481 | 328,320 |
Stock-based compensation | 2,631,500 | 81,000 |
Modification of warrants for extension of promissory note to investor | 68,756 | |
Other income - PPP Loan forgiveness | (25,424) | |
Change in fair value of marketable securities | (11,770) | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (91,185) | 70,530 |
Prepaid expenses | (51,068) | (10,298) |
Accounts payable and accrued liabilities | 433,588 | (244,741) |
Net cash from operating activities – continuing operations | (1,042,640) | (2,100,132) |
Net cash from operating activities – discontinued operations | (2,820) | |
Net cash from operating activities | (1,045,460) | (2,100,132) |
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 | ||
Issuance of common stock units | 350,000 | |
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 notes payable - related parties | 1,107,569 | |
Repayment of subordinated notes | (50,000) | (1,100,000) |
Payment of mortgage payable | (28,476) | (1,938) |
Net cash from financing activities – continuing operations | 1,029,093 | 1,065,448 |
Net cash from financing activities – discontinued operations | ||
Net cash from financing activities | 1,029,093 | 1,065,448 |
Net change in cash | (16,367) | (2,565,527) |
Cash, beginning of period | 20,656 | 2,776,425 |
Cash, end of period | $ 4,289 | $ 210,898 |
Business
Business | 6 Months Ended |
Jun. 30, 2022 | |
Business [Abstract] | |
Business | 1. Business Generation Hemp, Inc. (the “Company”) was incorporated on August 21, 2021 in the State of Delaware. The Company was originally incorporated as Home Treasure Finders, Inc. (“HTF”) 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. Upon closing, 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. In August 2021, the Company launched its small animal bedding consumer goods product line (“Rowdy Rooster”) made from the hemp hurd byproduct that is produced from its hemp processing operations. We also generate revenue from rental of our “Cannabis Zoned” (Hemp) warehouse property located in Denver, Colorado currently leased to an unaffiliated hemp seed company. As of June 30, 2022, 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. New Business Line The Company subsequently formed a new company, GenCrypto, LLC (a Delaware limited liability company) with a 50% partner, Cerberus Digital, LLC, an affiliate of Cryptech Solutions, Inc. Cryptech is one of the largest resellers of bitcoin mining equipment in North America. GenCrypto now has approximately ten different bitcoin locations identified and either under contract, under letter of intent, or in final negotiating status, located in three states and in Costa Rica. All of these site locations are deemed “green” based upon the power being provided either from the local utility or co-op. They range in power size from 1.1 megawatts to 50 megawatts. GenCrypto has been contacted by several larger bitcoin mining operators concerning utilizing some of these mining locations under “hosting” arrangements. The Company anticipates closing its first acquisition which is currently operational in September 2022. Liquidity and Going Concern – In the six months ended June 30, 2022, the Company used $1.0 million of cash for its operating activities. At June 30, 2022, the Company’s current liabilities, including financing obligations due within one year, totaled $6.0 million as compared with its current assets of $364 thousand. The Company will continue to pursue additional capital raising opportunities in order to fund future acquisitions and meet its obligations as they become due. We may not be successful in obtaining additional financing needed. 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, 2022 | |
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. Fair Value Measurement Major Customer and Concentration of Credit Risk During the three and six months ended June 30, 2022, one customer accounted for 99% of our post-harvest and midstream services revenue. A total of $91,185 was outstanding from this customer at June 30, 2022. 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, 2022 or December 31, 2021. Recent Accounting Pronouncements – |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2022 | |
Property and Equipment [Abstract] | |
Property and Equipment | 3. Property and Equipment Property and equipment consisted of the following: Useful June 30, December 31, Life (yrs) 2022 2021 Land $ 96,000 $ 96,000 Warehouse 30 916,500 916,500 Leasehold Improvements 3 473,601 473,601 Machinery and equipment 5-7 1,506,447 1,506,447 Vehicles 4 149,440 149,440 Computer equipment and software 3 46,825 46,825 Office furniture and equipment 3-5 17,294 17,294 Subtotal 3,206,107 3,206,107 Less accumulated depreciation and amortization (814,429 ) (625,445 ) Total property and equipment, net $ 2,391,678 $ 2,580,662 |
Intangible and Other Assets
Intangible and Other Assets | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible and Other Assets | 4. Intangible and Other Assets The following table summarizes information related to definite-lived intangible assets: June 30, 2022 December 31, 2021 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Customer relationships $ 2,612,649 $ (1,079,585 ) $ 1,533,064 $ 2,612,649 $ (796,858 ) $ 1,815,791 Non-competition agreements 63,176 (31,588 ) 31,588 63,176 (21,059 ) 42,117 Total $ 2,675,825 $ (1,111,173 ) $ 1,564,652 $ 2,675,825 $ (817,917 ) $ 1,857,908 Other assets included $407,000 at June 30, 2022 and December 31, 2021 for the Company’s option to purchase the 48,000 square foot facility located in Hopkinsville, Kentucky presently leased from Halcyon. Under this option agreement, the Company may purchase the facility on or before August 25, 2022, as amended, for a purchase price of $993,000. |
Notes Payable _ Related Parties
Notes Payable – Related Parties | 6 Months Ended |
Jun. 30, 2022 | |
Notes Payable – Related Parties [Abstract] | |
Notes Payable – Related Parties | 5. Notes Payable – Related Parties Notes payable – related parties consisted of the following: June 30, December 31, 2022 2021 Subordinated Promissory Note to CEO $ 523,551 $ 523,551 Convertible Promissory Note to CEO 1,037,069 410,000 Secured Promissory Note to Coventry Asset Management, LTD. 1,000,000 1,000,000 Subordinated Promissory Note to Investor 200,000 250,000 Promissory Note to Investment Hunter, LLC 480,500 - Total notes payable – related parties $ 3,241,120 $ 2,183,551 Subordinated Promissory Note to CEO – Convertible Promissory Note to CEO Secured Promissory Note and Warrants to Coventry Asset Management, LTD. – Subordinated Promissory Note and Warrants to Investor – The holder of the subordinated note received a warrant to purchase 500,000 shares of common stock exercisable for cash at an exercise price of $0.352 per share. As consideration for the April 2022 extension, the term of this warrant was extended by one year to December 30, 2023. The Company recognized $68,756 of interest expense in 2022 for this extension of the warrant term. Promissory Note to Investment Hunter, LLC |
Other Indebtedness
Other Indebtedness | 6 Months Ended |
Jun. 30, 2022 | |
Other Indebtedness [Abstract] | |
Other Indebtedness | 6. Other Indebtedness The Company is obligated under a mortgage payable dated September 15, 2014 secured by its warehouse property located in Denver, Colorado. The note provided for a 25-year amortization period and an initial interest rate of 9% annually. The note has been amended several times to a maturity date of September 30, 2022. In the latest extension, the Company made a principal payment of $25,000 plus accrued interest on July 18, 2022 and agreed to another principal payment of $25,000 plus accrued interest on August 31, 2022. The interest rate on the mortgage payable is 12%. If before the final maturity of the mortgage payable, the Company raises new equity capital of $5 million or more, then the full amount outstanding is due within ten days. The principal balance of this mortgage note payable as of June 30, 2022 was $473,192. The Company leases the Denver warehouse property to a tenant under an operating lease which was 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 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 2022 are $45,000 and for 2023 are $52,500. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
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 $31,147 and $61,494 in the three months ended June 30, 2022, respectively. In the three and six months ended June 30. 2021, lease expense for this facility was $30,747 and $57,857, respectively. A right-of-use asset and lease liability is recorded for this lease. 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. Litigation – Generation Hemp, Inc. v. Colorado Mills Equipment, LLC The Defendant sold to the Company a faulty piece of equipment for $16,000 and will not refund the Company the purchase price after repeated attempts to return their equipment. An original lawsuit was filed by the Company against Colorado Mills in January 2022 in Dallas County, subsequently dismissed, and a second lawsuit has been filed El Paso County, Colorado and is currently pending. Halcyon Thruput, LLC, Plaintiff v. United National Insurance Company, Defendant, United States District Court for the Northern District of Texas, Dallas Division, Case No. 3:21-CV-3136-K. Halcyon Thruput, LLC (Halcyon) obtained an all-risks commercial insurance policy, including an Equipment Breakdown Endorsement (Policy) from United National Insurance Company (UNIC) to provide substantial coverages for Halcyon Thruput LLC’s (Halcyon) $1,203,735 hemp processing dryer (Dryer) at its facility in Hopkinsville, Kentucky. During the Policy period, the Dryer caught fire due to the Dryer being defectively designed. While UNIC paid a number of Halcyon’s claims, Halcyon’s claim for the cost of the replacement Dryer of $1,498,848 was denied as described below. Buyer, a wholly owned subsidiary of the Company, pursuant to an Asset Purchase Agreement as twice amended, then acquired all the assets of Halcyon, except for the right to the proceeds of UNIC’s insurance policy since the Policy prohibited assignment. Halcyon and Buyer agreed that Buyer’s principal, Gary C. Evans, had the right to control the litigation, engage counsel for Halcyon and make all decisions relating to any proceeds received in the litigation by settlement or otherwise. Halcyon’s suit against UNIC, which was removed to federal court, seeks $796,865.53 (the cost of the replacement dryer of $1,498,848, less a credit for $583,508.47 previously paid by UNIC to Halcyon for the Dryer fire=$915,339.53) plus statutory interest on that sum from August 10, 2020 for violating the Texas Insurance Code’s requirement that claims be promptly paid, additional statutory penalties, and attorneys’ fees. Certain documents have been executed between the Company, Halcyon and legal counsel, which provide for a sharing of costs and expenses and awards, if any, against UNIC. Mediation of the case was held in April 2022 where no agreement was reached by the parties. Depositions of the Company’s expert witnesses were completed in July 2022. 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 previously 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 exceeding $400,000. 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 July 2022. We believe that Grand Traverse Holdings, LLC and John Gallegos are jointly liable for the asserted damages which exceed $1 million plus attorney’s fees and we continue to vigorously pursue our claims. KBSIII Tower at Lake Carolyn, LLC and Prime US-Tower at Lake Carolyn, LLC (collectively – “KBSIII” v. 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, 2022, the Company had accrued $252,583 for this judgment, which is exclusively an EHR obligation. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2022 | |
Income Taxes [Abstract] | |
Income Taxes | 8. 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 or six months ended June 30, 2022 or 2021 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, 2022. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Equity | 9. Equity Series A Preferred Stock – 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. Any or all 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. Initially, redemption payments of 12.5% each of the total amount of Series B Preferred Stock then outstanding plus accrued dividends were due from the Company to each Holder of Series B Preferred Stock at the end of each calendar quarter of 2021. The first required redemption payments totaling $137,500 were made in April 2021. In May, June and October of 2021, the three holders of the Series B Preferred Stock, 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 – ● 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 ● Issuance for Extension of Secured Note – Common Stock Warrants Outstanding – # of Warrants Exercise Price Expiration Date Method of Exercise 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 500,000 $ 0.352 December 30, 2022 Cash Issued in Q1 2021 with common stock units (1) 1,600,000 $ 0.500 January-February, 2023 Cash Issued in Q4 2021 with common stock units (1) 958,333 $ 0.600 October-December, 2023 Cash Total warrants outstanding at June 30, 2022 8,558,333 (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. Following is a summary of outstanding stock warrants activity for the periods presented: Weighted Average # of Warrants Exercise Price Warrants as of December 31, 2021 8,808,333 $ 0.407 Cancelled (250,000 ) $ 0.400 Warrants as of June 30, 2022 8,558,333 $ 0.407 |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | 10. 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. The 2021 Omnibus Incentive Plan (“2021 Plan”) was adopted by our Board on July 1, 2021. The 2021 Plan provides for the initial reservation of 15 million shares of common stock for issuance, and provides that the maximum number of shares that may be issued pursuant to the exercise of ISOs is 15 million. The number of shares of common stock available for issuance under the 2021 Plan constituted approximately 13.1% of the Company’s fully diluted common shares outstanding as of the date of Board approval, including shares issuable upon the conversion of preferred shares, as calculated on an as-converted basis. On the one-year anniversary date of the 2021 Plan, the number of shares of common stock reserved for issuance thereunder shall automatically increase to 20% of the fully diluted common shares outstanding, including shares issuable upon the conversion of preferred shares, as calculated on an as-converted basis. In the first quarter of 2021, the Company issued 500,000 restricted shares valued at $155,000 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. These awards became fully vested in January 2022. In the fourth quarter of 2021, the Company awarded options for 13,850,000 shares of the Company’s common stock as incentive compensation. One-third of the awarded options vested immediately with the remaining options vesting in two equal annual tranches over the next two years. Vested options may be exercised at any time until their expiration after 10 years at an exercise price of $0.76 per share. Unvested options are forfeited upon termination of employment. Compensation expense for stock option grants was recognized based on the fair value at the date of grant using the Black-Scholes option pricing model. Key assumptions included a risk-free interest rate ranging from 1.18% to 1.28%, historical volatility ranging from 331% to 643% and an expected life of the stock options ranging from five to six years. We recognized $1.3 million of compensation expense for these option awards in each of the quarters ended June 30, 2022. As of June 30, 2022, there was $3.5 million of total unrecognized compensation cost related to options to be recognized over a remaining weighted average period of 18 months. The following table summarizes options outstanding, as well as activity for the periods presented: Shares Weighted Weighted Aggregate Outstanding at December 31, 2021 13,850,000 $ 0.76 $ 0.76 - Granted - $ - $ - - Outstanding at June 30, 2022 13,850,000 $ 0.76 $ 0.76 - The remaining weighted average contractual life of exercisable options at June 30, 2022 was 9.3 years. |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Jun. 30, 2022 | |
Discontinued Operations [Abstract] | |
Discontinued Operations | 11. Discontinued Operations In 2019, 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, 2022 2021 Assets - Oil and natural gas properties held for sale, at cost $ 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 $ 55,572 $ 48,997 Asset retirement obligations 52,368 52,368 Revenue payable 52,117 52,117 Current liabilities of discontinued operations held for sale 160,057 153,482 Asset retirement obligations - Long-term liabilities of discontinued operations held for sale 193,816 162,948 Total liabilities of discontinued operations held for sale $ 353,873 $ 316,430 The following is a summary of the major classes of line items constituting loss on discontinued operations shown in the consolidated statements of operations: For the three months ended For the six months ended 2022 2021 2022 2021 Revenue - Oil and gas sales $ 36,925 $ 16,119 $ 75,793 $ 38,108 Costs and Expenses Lease operating expense 41,140 18,067 85,188 40,795 Accretion 23,352 4,257 30,868 7,032 Total costs and expenses 64,492 22,324 116,056 47,827 Loss from discontinued operations $ (27,567 ) $ (6,205 ) $ (40,263 ) $ (9,719 ) |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 6 Months Ended |
Jun. 30, 2022 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | 12. Supplemental Cash Flow Information For the six months ended 2022 2021 Cash paid for interest $ 39,295 $ 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 40,367 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, 2022 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) per Share | 13. 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 2022 2021 2022 2021 Amounts attributable to Generation Hemp: Numerator Loss from continuing operations attributable to common stockholders $ (2,109,281 ) $ (1,146,697 ) $ (4,553,952 ) $ (2,980,285 ) Loss from discontinued operations (25,841 ) (5,817 ) (40,263 ) (9,111 ) Less: preferred stock dividends (20,992 ) (20,250 ) (20,992 ) (40,500 ) Net loss attributable to common stockholders $ (2,156,114 ) $ (1,172,764 ) $ (4,615,207 ) $ (3,029,896 ) Denominator Weighted average shares used to compute basic EPS 113,145,211 34,977,953 113,122,510 26,691,992 Dilutive effect of convertible note 1,164,773 - 1,164,773 - Dilutive effect of preferred stock 2,950,000 79,322,376 2,953,125 79,322,376 Dilutive effect of common stock options - - - - Dilutive effect of common stock warrants 1,518,226 11,654,942 2,436,954 11,787,111 Weighted average shares used to compute diluted EPS 118,778,209 125,955,271 119,677,362 117,801,479 Earnings (loss) per share: Loss from continuing operations Basic $ (0.02 ) $ (0.03 ) $ (0.04 ) $ (0.11 ) Diluted $ (0.02 ) $ (0.03 ) $ (0.04 ) $ (0.11 ) Loss from discontinued operations Basic $ - $ - $ - $ - Diluted $ - $ - $ - $ - Earnings (loss) per share Basic $ (0.02 ) $ (0.03 ) $ (0.04 ) $ (0.11 ) Diluted $ (0.02 ) $ (0.03 ) $ (0.04 ) $ (0.11 ) The computation of diluted earnings per common share excludes the assumed conversion of the Series B Preferred Stock and outstanding convertible notes and exercise of common stock options and warrants in periods when we report a loss. The dilutive effect of the assumed exercise of outstanding options and warrants was calculated using the treasury stock method. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | 14. Subsequent Events Advances under Convertible Promissory Note Advances under Promissory Note to Investment Hunter, LLC Sale of inventories New indebtedness |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
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. |
Fair Value Measurement | Fair Value Measurement |
Major Customer and Concentration of Credit Risk | Major Customer and Concentration of Credit Risk During the three and six months ended June 30, 2022, one customer accounted for 99% of our post-harvest and midstream services revenue. A total of $91,185 was outstanding from this customer at June 30, 2022. 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, 2022 or December 31, 2021. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements – |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Property and Equipment [Abstract] | |
Schedule of property and equipment | Useful June 30, December 31, Life (yrs) 2022 2021 Land $ 96,000 $ 96,000 Warehouse 30 916,500 916,500 Leasehold Improvements 3 473,601 473,601 Machinery and equipment 5-7 1,506,447 1,506,447 Vehicles 4 149,440 149,440 Computer equipment and software 3 46,825 46,825 Office furniture and equipment 3-5 17,294 17,294 Subtotal 3,206,107 3,206,107 Less accumulated depreciation and amortization (814,429 ) (625,445 ) Total property and equipment, net $ 2,391,678 $ 2,580,662 |
Intangible and Other Assets (Ta
Intangible and Other Assets (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible asset | June 30, 2022 December 31, 2021 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Customer relationships $ 2,612,649 $ (1,079,585 ) $ 1,533,064 $ 2,612,649 $ (796,858 ) $ 1,815,791 Non-competition agreements 63,176 (31,588 ) 31,588 63,176 (21,059 ) 42,117 Total $ 2,675,825 $ (1,111,173 ) $ 1,564,652 $ 2,675,825 $ (817,917 ) $ 1,857,908 |
Notes Payable _ Related Parti_2
Notes Payable – Related Parties (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Notes Payable – Related Parties [Abstract] | |
Schedule of notes payable – related parties | June 30, December 31, 2022 2021 Subordinated Promissory Note to CEO $ 523,551 $ 523,551 Convertible Promissory Note to CEO 1,037,069 410,000 Secured Promissory Note to Coventry Asset Management, LTD. 1,000,000 1,000,000 Subordinated Promissory Note to Investor 200,000 250,000 Promissory Note to Investment Hunter, LLC 480,500 - Total notes payable – related parties $ 3,241,120 $ 2,183,551 |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Schedule of warrants outstanding | # of Warrants Exercise Price Expiration Date Method of Exercise 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 500,000 $ 0.352 December 30, 2022 Cash Issued in Q1 2021 with common stock units (1) 1,600,000 $ 0.500 January-February, 2023 Cash Issued in Q4 2021 with common stock units (1) 958,333 $ 0.600 October-December, 2023 Cash Total warrants outstanding at June 30, 2022 8,558,333 |
Schedule of outstanding stock warrants activity | Weighted Average # of Warrants Exercise Price Warrants as of December 31, 2021 8,808,333 $ 0.407 Cancelled (250,000 ) $ 0.400 Warrants as of June 30, 2022 8,558,333 $ 0.407 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of summarizes options outstanding | Shares Weighted Weighted Aggregate Outstanding at December 31, 2021 13,850,000 $ 0.76 $ 0.76 - Granted - $ - $ - - Outstanding at June 30, 2022 13,850,000 $ 0.76 $ 0.76 - |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Discontinued Operations [Abstract] | |
Schedule of discontinued operations to assets and liabilities held for sale | June 30, December 31, 2022 2021 Assets - Oil and natural gas properties held for sale, at cost $ 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 $ 55,572 $ 48,997 Asset retirement obligations 52,368 52,368 Revenue payable 52,117 52,117 Current liabilities of discontinued operations held for sale 160,057 153,482 Asset retirement obligations - Long-term liabilities of discontinued operations held for sale 193,816 162,948 Total liabilities of discontinued operations held for sale $ 353,873 $ 316,430 |
Schedule of discontinued operations shown in the consolidated statements of operations | For the three months ended For the six months ended 2022 2021 2022 2021 Revenue - Oil and gas sales $ 36,925 $ 16,119 $ 75,793 $ 38,108 Costs and Expenses Lease operating expense 41,140 18,067 85,188 40,795 Accretion 23,352 4,257 30,868 7,032 Total costs and expenses 64,492 22,324 116,056 47,827 Loss from discontinued operations $ (27,567 ) $ (6,205 ) $ (40,263 ) $ (9,719 ) |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of supplemental cash flow information | For the six months ended 2022 2021 Cash paid for interest $ 39,295 $ 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 40,367 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, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of earnings (loss) per basic and diluted share | For the three months ended For the six months ended 2022 2021 2022 2021 Amounts attributable to Generation Hemp: Numerator Loss from continuing operations attributable to common stockholders $ (2,109,281 ) $ (1,146,697 ) $ (4,553,952 ) $ (2,980,285 ) Loss from discontinued operations (25,841 ) (5,817 ) (40,263 ) (9,111 ) Less: preferred stock dividends (20,992 ) (20,250 ) (20,992 ) (40,500 ) Net loss attributable to common stockholders $ (2,156,114 ) $ (1,172,764 ) $ (4,615,207 ) $ (3,029,896 ) Denominator Weighted average shares used to compute basic EPS 113,145,211 34,977,953 113,122,510 26,691,992 Dilutive effect of convertible note 1,164,773 - 1,164,773 - Dilutive effect of preferred stock 2,950,000 79,322,376 2,953,125 79,322,376 Dilutive effect of common stock options - - - - Dilutive effect of common stock warrants 1,518,226 11,654,942 2,436,954 11,787,111 Weighted average shares used to compute diluted EPS 118,778,209 125,955,271 119,677,362 117,801,479 Earnings (loss) per share: Loss from continuing operations Basic $ (0.02 ) $ (0.03 ) $ (0.04 ) $ (0.11 ) Diluted $ (0.02 ) $ (0.03 ) $ (0.04 ) $ (0.11 ) Loss from discontinued operations Basic $ - $ - $ - $ - Diluted $ - $ - $ - $ - Earnings (loss) per share Basic $ (0.02 ) $ (0.03 ) $ (0.04 ) $ (0.11 ) Diluted $ (0.02 ) $ (0.03 ) $ (0.04 ) $ (0.11 ) |
Business (Details)
Business (Details) $ in Thousands | 1 Months Ended | 6 Months Ended | |
Jan. 11, 2021 $ / ft² | Nov. 27, 2019 | Jun. 30, 2022 USD ($) | |
Business (Details) [Line Items] | |||
Square Foot Facility (in Dollars per Square Foot) | $ / ft² | 48,000 | ||
Description of business, description | As of June 30, 2022, 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. | ||
Excess | 10 years | ||
Business percentage | 50% | ||
Cash for its operating activities | $ 1,000 | ||
Financing obligations terms | 1 year | ||
Financing obligations | $ 6,000 | ||
Current Assets | $ 364 | ||
Energy Hunter Resources, Inc. [Member] | |||
Business (Details) [Line Items] | |||
Percentage of common stock | 94% |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Details) - USD ($) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2022 | Jun. 30, 2022 | |
Summary of Significant Accounting Policies (Details) [Line Items] | ||
Outstanding amount (in Dollars) | $ 91,185 | |
One Customer [Member] | ||
Summary of Significant Accounting Policies (Details) [Line Items] | ||
Service revenue percentage | 99% | 99% |
Property and Equipment (Details
Property and Equipment (Details) - Schedule of property and equipment - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | ||
Subtotal | $ 3,206,107 | $ 3,206,107 |
Less accumulated depreciation and amortization | (814,429) | (625,445) |
Total property and equipment, net | 2,391,678 | 2,580,662 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | $ 96,000 | 96,000 |
Warehouse [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, useful Life (years) | 30 years | |
Subtotal | $ 916,500 | 916,500 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, useful Life (years) | 3 years | |
Subtotal | $ 473,601 | 473,601 |
Machinery and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | $ 1,506,447 | 1,506,447 |
Machinery and equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, useful Life (years) | 5 years | |
Machinery and equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, useful Life (years) | 7 years | |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, useful Life (years) | 4 years | |
Subtotal | $ 149,440 | 149,440 |
Computer equipment and software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, useful Life (years) | 3 years | |
Subtotal | $ 46,825 | 46,825 |
Office furniture and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | $ 17,294 | $ 17,294 |
Office furniture and equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, useful Life (years) | 3 years | |
Office furniture and equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, useful Life (years) | 5 years |
Intangible and Other Assets (De
Intangible and Other Assets (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Option to purchase description | the Company’s option to purchase the 48,000 square foot facility located in Hopkinsville, Kentucky presently leased from Halcyon. Under this option agreement, the Company may purchase the facility on or before August 25, 2022, as amended, for a purchase price of $993,000. | |
Other assets | $ 407,000 | $ 407,000 |
Intangible and Other Assets (_2
Intangible and Other Assets (Details) - Schedule of intangible asset - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 2,675,825 | $ 2,675,825 |
Accumulated Amortization | (1,111,173) | (817,917) |
Net | 1,564,652 | 1,857,908 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2,612,649 | 2,612,649 |
Accumulated Amortization | (1,079,585) | (796,858) |
Net | 1,533,064 | 1,815,791 |
Non-Competition Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 63,176 | 63,176 |
Accumulated Amortization | (31,588) | (21,059) |
Net | $ 31,588 | $ 42,117 |
Notes Payable _ Related Parti_3
Notes Payable – Related Parties (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 30, 2020 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2022 | Jul. 31, 2022 | Dec. 31, 2021 | Apr. 30, 2021 | |
Notes Payable – Related Parties (Details) [Line Items] | ||||||||
Convertible note ,description | The convertible note initially matured on January 1, 2022 but was subsequently amended to extend the maturity date to September 30, 2022. | |||||||
Conversion price (in Dollars per share) | $ 0.3 | |||||||
Restricted common shares (in Shares) | 50,000 | |||||||
Convertible note matured description | As subsequently amended, a payment of $50,000 was made in April 2022 and the remaining principal of $200,000 together with accrued interest was due on June 30, 2022. | |||||||
Accrued interest | $ 29,932 | |||||||
Warrant term | 1 year | |||||||
Extension date | Dec. 30, 2023 | |||||||
Interest expense | $ 68,756 | |||||||
Common Stock [Member] | ||||||||
Notes Payable – Related Parties (Details) [Line Items] | ||||||||
Warrant to purchase of common stock (in Shares) | 500,000 | |||||||
Exercise price per share (in Dollars per share) | $ 0.352 | |||||||
Subordinated Promissory Note to CEO [Member] | ||||||||
Notes Payable – Related Parties (Details) [Line Items] | ||||||||
Subordinated promissory note due date | Sep. 30, 2021 | |||||||
New maturity date | Sep. 30, 2022 | |||||||
New equity capital | $ 3,000,000 | |||||||
Bears interest | 10% | |||||||
Accrued interest | $ 33,565 | |||||||
Convertible Promissory Note to CEO [Member] | ||||||||
Notes Payable – Related Parties (Details) [Line Items] | ||||||||
New equity capital | $ 3,000,000 | |||||||
Bears interest | 10% | |||||||
Accrued interest | $ 52,291 | |||||||
Convertible debt | $ 410,000 | |||||||
Additional advances | $ 627,069 | |||||||
Conversion price (in Dollars per share) | $ 0.5 | |||||||
Subordinated Promissory Note and Warrants to Investor [Member] | ||||||||
Notes Payable – Related Parties (Details) [Line Items] | ||||||||
Principal amount | $ 250,000 | |||||||
Interest rate | 10% | |||||||
Forecast [Member] | ||||||||
Notes Payable – Related Parties (Details) [Line Items] | ||||||||
Due date | Sep. 30, 2022 | |||||||
Accredited Investor [Member] | ||||||||
Notes Payable – Related Parties (Details) [Line Items] | ||||||||
Principal amount | $ 500,000 | |||||||
Secured Promissory Note and Warrants to Coventry Asset Management, LTD. [Member] | ||||||||
Notes Payable – Related Parties (Details) [Line Items] | ||||||||
Bears interest | 10% | |||||||
Principal amount | $ 1,000,000 | |||||||
Maturity date | Dec. 31, 2022 | |||||||
Restricted common shares (in Shares) | 20,000 | |||||||
Interest rate percentage | 25% | |||||||
Due date | Oct. 31, 2022 | |||||||
Option exercisable | 14% | |||||||
Accrued interest | $ 149,864 | |||||||
Secured Promissory Note and Warrants to Coventry Asset Management, LTD. [Member] | Forecast [Member] | ||||||||
Notes Payable – Related Parties (Details) [Line Items] | ||||||||
New equity capital | $ 5,000,000 | |||||||
Promissory Note to Investment Hunter, LLC [Member] | ||||||||
Notes Payable – Related Parties (Details) [Line Items] | ||||||||
New equity capital | 3,000,000 | |||||||
Advances totaling | $ 492,000 | |||||||
Promissory note due | Sep. 30, 2022 | |||||||
Bears interest | 10% | |||||||
Accrued interest | $ 17,864 | |||||||
Promissory Note [Member] | ||||||||
Notes Payable – Related Parties (Details) [Line Items] | ||||||||
Maturity date | Jun. 30, 2021 |
Notes Payable _ Related Parti_4
Notes Payable – Related Parties (Details) - Schedule of notes payable – related parties - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Notes Payable – Related Parties (Details) - Schedule of notes payable – related parties [Line Items] | ||
Total notes payable – related parties | $ 3,241,120 | $ 2,183,551 |
Subordinated Promissory Note to CEO [Member] | ||
Notes Payable – Related Parties (Details) - Schedule of notes payable – related parties [Line Items] | ||
Total | 523,551 | 523,551 |
Convertible Promissory Note to CEO [Member] | ||
Notes Payable – Related Parties (Details) - Schedule of notes payable – related parties [Line Items] | ||
Total | 1,037,069 | 410,000 |
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 | 200,000 | 250,000 |
Promissory Note to Investment Hunter, LLC [Member] | ||
Notes Payable – Related Parties (Details) - Schedule of notes payable – related parties [Line Items] | ||
Total | $ 480,500 |
Other Indebtedness (Details)
Other Indebtedness (Details) | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Other Indebtedness [Abstract] | |
Mortgage payable, description | The note provided for a 25-year amortization period and an initial interest rate of 9% annually. The note has been amended several times to a maturity date of September 30, 2022. In the latest extension, the Company made a principal payment of $25,000 plus accrued interest on July 18, 2022 and agreed to another principal payment of $25,000 plus accrued interest on August 31, 2022. |
Interest rate | 12% |
Interest expenses | $ 5,000,000 |
Notes payable | 473,192 |
Lease and rental expense | 7,500 |
Minimum future of remainder of 2022 | 45,000 |
Minimum future of remainder of 2023 | $ 52,500 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Apr. 12, 2019 | Dec. 23, 2020 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2018 | |
Commitments and Contingencies (Details) [Line Items] | |||||||
Lease requires monthly payments | $ 2,000 | ||||||
Lease expense | $ 4,000 | $ 6,000 | $ 12,000 | $ 10,000 | |||
Lease expiring date | May 31, 2024 | ||||||
Estimated incremental borrowing rate | 10% | ||||||
Purchase price of equipment | $ 16,000 | ||||||
Insurance claim for replacement | 1,498,848 | $ 1,498,848 | |||||
Description of suit against UNIC | Halcyon’s suit against UNIC, which was removed to federal court, seeks $796,865.53 (the cost of the replacement dryer of $1,498,848, less a credit for $583,508.47 previously paid by UNIC to Halcyon for the Dryer fire=$915,339.53) plus statutory interest on that sum from August 10, 2020 for violating the Texas Insurance Code’s requirement that claims be promptly paid, additional statutory penalties, and attorneys’ fees. Certain documents have been executed between the Company, Halcyon and legal counsel, which provide for a sharing of costs and expenses and awards, if any, against UNIC. | ||||||
Fees exceeding | $ 400,000 | ||||||
Amount of summary judgment | $ 230,712 | ||||||
Litigation settlement interest percentage | 5% | ||||||
Amount accrued for judgment | $ 252,583 | ||||||
Oz Capital, LLC [Member] | |||||||
Commitments and Contingencies (Details) [Line Items] | |||||||
Lease requires monthly payments | 10,249 | ||||||
Lease expense | $ 31,147 | $ 30,747 | 61,494 | $ 57,857 | |||
Halcyon Thruput LLC’s [Member] | |||||||
Commitments and Contingencies (Details) [Line Items] | |||||||
Substantial coverages | $ 1,203,735 | ||||||
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 | |||
Dec. 30, 2020 | Jun. 30, 2022 | Sep. 08, 2021 | Apr. 30, 2021 | |
Equity (Details) [Line Items] | ||||
Converted into shares of common stock | 25,000 | |||
Sale of preferred stock units (in Dollars) | $ 10,000 | |||
Aggregate gross proceeds (in Dollars) | $ 1,350,000 | |||
Price per share (in Dollars per share) | $ 1 | |||
Redemption payments percentage | 12.50% | |||
Redemption payments (in Dollars) | $ 137,500 | |||
Weighted average market price of common stock exceed (in Dollars per share) | $ 1 | |||
Shares of Common stock | 25,000 | |||
Common Stock [Member] | ||||
Equity (Details) [Line Items] | ||||
Equity, description | Common Stock – At June 30, 2022, the Company had 113,154,002 common shares outstanding. Following is a discussion of common stock issuances during the periods presented: ●Acquisition of Certain Assets of Halcyon – In January 2021, the Company issued 6,250,000 shares of common stock valued at $2.5 million ($0.40 per share; restricted from trading for a period of up to one year) in the acquisition. ●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. The Company allocated the total proceeds based on the relative fair values of the common stock and warrants. The fair value of the warrants was determined using an options valuation model with key assumptions including a risk-free interest rate of 0.11% and historical volatility of 272%. A total of $263,293 was allocated to the warrants and reported in additional paid-in capital. ●Warrant Exercises – In the first quarter of 2021, the Company received $2,967,000 for the exercise of 8,428,976 outstanding warrants. In the fourth quarter of 2021, the Company received $375,000 for the exercise of 1,065,340 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 in the first quarter of 2021. ●Stock-based Compensation – The Company issued 500,000 restricted common shares valued at $155,000 as incentive compensation to two executives who joined the Company in the first quarter of 2021. ●Issuance for Extension of Secured Note – The Company issued 60,000 common shares as consideration for extensions of the maturity of a senior note in 2022. Refer to Note 5. | |||
Price per share (in Dollars per share) | $ 1 | |||
Warrant [Member] | ||||
Equity (Details) [Line Items] | ||||
Warrant per share (in Dollars per share) | $ 0.0001 | |||
Series A Preferred Stock [Member] | ||||
Equity (Details) [Line Items] | ||||
Shares of preferred stock | 6,328,948 | |||
Converted into shares of common stock | 75,947,376 | |||
Preferred Stock converting into shares | 12 | |||
Series B Preferred Stock [Member] | ||||
Equity (Details) [Line Items] | ||||
Converted into shares of common stock | 25,000 | |||
Equity, description | Series B Preferred Stock Units – On December 30, 2020, the Company sold to certain accredited investors, including Gary C. Evans, our Chief Executive Officer, an aggregate of 135 preferred stock units comprised of (i) one share of Series B Redeemable Convertible Preferred Stock, no par value, and (ii) one warrant exercisable for 50,000 shares of common stock of the Company until December 30, 2022 at an exercise price of $0.352 per share. | |||
Aggregate gross proceeds (in Dollars) | $ 5,000,000 | |||
Dividends rate | 6% | |||
Preferred stock stated value (in Dollars) | $ 10,000 |
Equity (Details) - Schedule of
Equity (Details) - Schedule of warrants outstanding | 6 Months Ended | |
Jun. 30, 2022 $ / shares shares | ||
Class of Warrant or Right [Line Items] | ||
Number of Warrants | 8,558,333 | |
Issued in December 2020 [Member] | Series B preferred units [Member] | ||
Class of Warrant or Right [Line Items] | ||
Number of Warrants | 5,500,000 | [1] |
Exercise Price (each) | $ / shares | $ 0.352 | [1] |
Expiration Date | December 30, 2022 | [1] |
Method of Exercise | Cash | [1] |
Issued in December 2020 [Member] | Subordinated note to investor [Member] | ||
Class of Warrant or Right [Line Items] | ||
Number of Warrants | 500,000 | |
Exercise Price (each) | $ / shares | $ 0.352 | |
Expiration Date | December 30, 2022 | |
Method of Exercise | Cash | |
Issued in Q1 2021 [Member] | Common stock units [Member] | ||
Class of Warrant or Right [Line Items] | ||
Number of Warrants | 1,600,000 | [1] |
Exercise Price (each) | $ / shares | $ 0.5 | [1] |
Expiration Date | January-February, 2023 | [1] |
Method of Exercise | Cash | [1] |
Issued in Q4 2021 [Member] | Common stock units [Member] | ||
Class of Warrant or Right [Line Items] | ||
Number of Warrants | 958,333 | [1] |
Exercise Price (each) | $ / shares | $ 0.6 | [1] |
Expiration Date | October-December, 2023 | [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. |
Equity (Details) - Schedule o_2
Equity (Details) - Schedule of outstanding stock warrants activity | 6 Months Ended |
Jun. 30, 2022 $ / shares shares | |
Schedule Of Outstanding Stock Warrants Activity Abstract | |
Number of Warrants, Warrants beginning | shares | 8,808,333 |
Weighted Average Exercise Price, Warrants beginning | $ / shares | $ 0.407 |
Number of Warrants, Warrants cancelled | shares | (250,000) |
Weighted Average Exercise Price, Cancelled | $ / shares | $ 0.4 |
Number of Warrants, Warrants ending | shares | 8,558,333 |
Weighted Average Exercise Price, Warrants ending | $ / shares | $ 0.407 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Stock-Based Compensation (Details) [Line Items] | |||||
Diluted common shares outstanding percentage | 20% | ||||
Compensation expense related to awards | $ 38,750 | $ 81,000 | |||
Common stock incentive compensation | 13,850,000 | ||||
Weighted average contractual life | 10 years | ||||
Exercise price per share | 0.76 | ||||
Compensation expense | 1,300,000 | ||||
Total unrecognized compensation cost | $ 3,500,000 | ||||
Weighted average contractual life | 9 years 3 months 18 days | ||||
Minimum [Member] | |||||
Stock-Based Compensation (Details) [Line Items] | |||||
Risk free interest rate | 1.18% | ||||
Volatility ranging | 331% | ||||
Stock options range | 5 years | ||||
Maximum [Member] | |||||
Stock-Based Compensation (Details) [Line Items] | |||||
Risk free interest rate | 1.28% | ||||
Volatility ranging | 643% | ||||
Stock options range | 6 years | ||||
2021 Plan [Member] | |||||
Stock-Based Compensation (Details) [Line Items] | |||||
common stock for issuance | 15,000,000 | ||||
Number of shares | 15,000,000 | ||||
Diluted common shares outstanding percentage | 13.10% | ||||
Restricted Stock [Member] | |||||
Stock-Based Compensation (Details) [Line Items] | |||||
Restricted shares, issued | 500,000 | ||||
Restricted shares, value | $ 155,000 |
Stock-Based Compensation (Det_2
Stock-Based Compensation (Details) - Schedule of summarizes options outstanding | 6 Months Ended |
Jun. 30, 2022 USD ($) $ / shares shares | |
Schedule Of Summarizes Options Outstanding Abstract | |
Shares Beginning (in Shares) | shares | 13,850,000 |
Weighted Average Grant Date Fair Value Beginning | $ 0.76 |
Weighted Average Exercise Price Beginning | $ 0.76 |
Aggregate Intrinsic Value Beginning (in Dollars) | $ | |
Shares Granted (in Shares) | shares | |
Weighted Average Grant Date Fair Value Granted | |
Weighted Average Exercise Price Granted | |
Aggregate Intrinsic Value Granted (in Dollars) | $ | |
Shares Ending (in Shares) | shares | 13,850,000 |
Weighted Average Grant Date Fair Value Ending | $ 0.76 |
Weighted Average Exercise Price Ending | $ 0.76 |
Aggregate Intrinsic Value Ending (in Dollars) | $ |
Discontinued Operations (Detail
Discontinued Operations (Details) - Schedule of discontinued operations to assets and liabilities held for sale - Discontinued Operations [Member] - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Discontinued Operations (Details) - Schedule of discontinued operations to assets and liabilities held for sale [Line Items] | ||
Oil and natural gas properties held for sale, at cost | $ 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 | 55,572 | 48,997 |
Asset retirement obligations | 52,368 | 52,368 |
Revenue payable | 52,117 | 52,117 |
Current liabilities of discontinued operations held for sale | 160,057 | 153,482 |
Asset retirement obligations - | ||
Long-term liabilities of discontinued operations held for sale | 193,816 | 162,948 |
Total liabilities of discontinued operations held for sale | $ 353,873 | $ 316,430 |
Discontinued Operations (Deta_2
Discontinued Operations (Details) - Schedule of discontinued operations shown in the consolidated statements of operations - Discontinued Operations [Member] - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenue - | ||||
Oil and gas sales | $ 36,925 | $ 16,119 | $ 75,793 | $ 38,108 |
Costs and Expenses | ||||
Lease operating expense | 41,140 | 18,067 | 85,188 | 40,795 |
Accretion | 23,352 | 4,257 | 30,868 | 7,032 |
Total costs and expenses | 64,492 | 22,324 | 116,056 | 47,827 |
Loss from discontinued operations | $ (27,567) | $ (6,205) | $ (40,263) | $ (9,719) |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - Schedule of supplemental cash flow information - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Schedule Of Supplemental Cash Flow Information Abstract | ||
Cash paid for interest | $ 39,295 | $ 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 | 40,367 | 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, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Numerator | ||||
Loss from continuing operations attributable to common stockholders | $ (2,109,281) | $ (1,146,697) | $ (4,553,952) | $ (2,980,285) |
Loss from discontinued operations | (25,841) | (5,817) | (40,263) | (9,111) |
Less: preferred stock dividends | (20,992) | (20,250) | (20,992) | (40,500) |
Net loss attributable to common stockholders | $ (2,156,114) | $ (1,172,764) | $ (4,615,207) | $ (3,029,896) |
Denominator | ||||
Weighted average shares used to compute basic EPS | 113,145,211 | 34,977,953 | 113,122,510 | 26,691,992 |
Dilutive effect of convertible note | 1,164,773 | 1,164,773 | ||
Dilutive effect of preferred stock | 2,950,000 | 79,322,376 | 2,953,125 | 79,322,376 |
Dilutive effect of common stock options | ||||
Dilutive effect of common stock warrants | 1,518,226 | 11,654,942 | 2,436,954 | 11,787,111 |
Weighted average shares used to compute diluted EPS | 118,778,209 | 125,955,271 | 119,677,362 | 117,801,479 |
Loss from continuing operations | ||||
Basic | $ (0.02) | $ (0.03) | $ (0.04) | $ (0.11) |
Diluted | (0.02) | (0.03) | (0.04) | (0.11) |
Loss from discontinued operations | ||||
Basic | ||||
Diluted | ||||
Earnings (loss) per share | ||||
Basic | (0.02) | (0.03) | (0.04) | (0.11) |
Diluted | $ (0.02) | $ (0.03) | $ (0.04) | $ (0.11) |
Subsequent Events (Details)
Subsequent Events (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |
Aug. 31, 2022 shares | Jul. 31, 2022 USD ($) $ / shares | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | |
Subsequent Events (Details) [Line Items] | ||||
initial down payment site | $ 40,069 | |||
Subsequent Event [Member] | ||||
Subsequent Events (Details) [Line Items] | ||||
Sale of agreement amount | $ 66,782 | |||
Sales price per share (in Dollars per share) | $ / shares | $ 1.5 | |||
payment of sales proceeds | $ 100,173 | |||
Forecast [Member] | ||||
Subsequent Events (Details) [Line Items] | ||||
Convertible promissory note | $ 58,000 | |||
Advances | $ 11,500 | |||
Promissory note due date | Sep. 30, 2022 | |||
Restricted common shares extension fees (in Shares) | shares | 105,000 | |||
Number of board of directors | 3 | |||
Interest rate percentage | 10% | |||
Maturity date | Sep. 12, 2022 |