Yuma Energy 10-Q 15 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 15, 2016
Document And Entity Information
Entity Registrant Name	Yuma Energy, Inc.
Entity Central Index Key	81,318
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		72,579,820
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,016

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
CURRENT ASSETS:
Cash and cash equivalents	$ 2,092,997	$ 5,355,191
Accounts receivable, net of allowance for doubtful accounts:
Trade	2,781,350	2,829,266
Officers and employees	62,058	75,404
Other	316,723	633,573
Commodity derivative instruments	980,189	2,658,047
Prepayments	375,656	704,523
Other deferred charges	29,805	415,740
Total current assets	6,638,778	12,671,744
OIL AND GAS PROPERTIES (full cost method):
Not subject to amortization	14,940,004	14,288,716
Subject to amortization	205,301,727	204,512,038
Subtotal	220,241,731	218,800,754
Less: accumulated depreciation, depletion and amortization	(132,665,148)	(117,304,945)
Net oil and gas properties	87,576,583	101,495,809
OTHER PROPERTY AND EQUIPMENT:
Land, buildings and improvements	2,795,000	2,795,000
Other property and equipment	3,497,948	3,460,507
Total	6,292,948	6,255,507
Less: accumulated depreciation and amortization	(2,296,906)	(2,174,316)
Net other property and equipment	3,996,042	4,081,191
OTHER ASSETS AND DEFERRED CHARGES:
Commodity derivative instruments	329,819	1,070,541
Deposits	414,064	264,064
Other noncurrent assets	0	38,104
Total other assets and deferred charges	743,883	1,372,709
TOTAL ASSETS	98,955,286	119,621,453
CURRENT LIABILITIES:
Current maturities of debt	29,800,000	30,063,635
Accounts payable, principally trade	6,335,891	7,933,664
Commodity derivative instruments	143,987	0
Asset retirement obligations	435,936	70,000
Other accrued liabilities	2,022,327	1,781,484
Total current liabilities	38,738,141	39,848,783
OTHER NONCURRENT LIABILITIES:
Asset retirement obligations	8,469,015	8,720,498
Commodity derivative instruments	10,004	0
Deferred taxes	192,129	1,417,364
Other liabilities	14,540	30,090
Total other noncurrent liabilities	8,685,688	10,167,952
EQUITY:
Preferred stock	10,828,603	10,828,603
Common stock, no par value (300 million shares authorized, 72,544,053 and 71,834,617 issued)	142,533,459	141,858,946
Accumulated earnings (deficit)	(101,830,605)	(83,082,831)
Total equity	51,531,457	69,604,718
TOTAL LIABILITIES AND EQUITY	$ 98,955,286	$ 119,621,453

CONSOLIDATED BALANCE SHEETS (U3

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Common stock, shares par value	$ 0	$ 0
Common stock, shares authorized	300,000,000	300,000,000
Common Stock, shares, Issued	72,544,053	71,834,617

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
REVENUES:
Sales of natural gas and crude oil	$ 3,124,424	$ 5,534,894	$ 6,056,010	$ 10,107,573
Net gains (losses) from commodity derivatives	(1,226,702)	(1,696,979)	(855,764)	(626,411)
Total revenues	1,897,722	3,837,915	5,200,246	9,481,162
EXPENSES:
Lease operating	1,880,060	3,226,225	3,893,209	6,449,341
Re-engineering and workovers	0	60,063	0	554,492
Marketing cost of sales	0	97,994	0	199,682
General and administrative - stock-based compensation	301,808	133,921	720,098	1,872,331
General and administrative - other	2,003,719	1,844,163	4,161,205	3,516,375
Depreciation, depletion and amortization	2,020,804	3,755,446	4,467,205	7,896,466
Asset retirement obligation accretion expense	105,242	166,773	210,256	329,557
Impairments	11,015,589	4,927,508	11,015,589	4,927,508
Other	8,647	707,338	(16,785)	718,649
Total expenses	17,335,869	14,919,431	24,450,777	26,464,401
INCOME (LOSS) FROM OPERATIONS	(15,438,147)	(11,081,516)	(19,250,531)	(16,983,239)
OTHER INCOME (EXPENSE):
Interest expense	(326,396)	(114,378)	(729,044)	(206,385)
Other, net	(2,447)	5,310	6,566	21,466
Total other income (expense)	(328,843)	(109,068)	(722,478)	(184,919)
NET INCOME (LOSS) BEFORE INCOME TAXES	(15,766,990)	(11,190,584)	(19,973,009)	(17,168,158)
Income tax expense (benefit)	(692,302)	(1,640,910)	(1,225,235)	(3,935,492)
NET INCOME (LOSS)	(15,074,688)	(9,549,674)	(18,747,774)	(13,232,666)
PREFERRED STOCK, PERPETUAL PREFERRED SERIES A:
Dividends paid in cash	0	318,874	0	619,689
Dividends in arrears	320,626	0	641,252	0
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS	$ (15,395,314)	$ (9,868,548)	$ (19,389,026)	$ (13,852,355)
EARNINGS (LOSS) PER COMMON SHARE:
Basic	$ (0.21)	$ (0.14)	$ (0.27)	$ (0.2)
Diluted	$ (0.21)	$ (0.14)	$ (0.27)	$ (0.2)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
Basic	72,185,618	71,502,546	72,048,490	70,384,326
Diluted	72,185,618	71,502,546	72,048,490	70,384,326

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Consolidated Statements Of Comprehensive Income Loss
NET LOSS	$ (15,074,688)	$ (9,549,674)	$ (18,747,774)	$ (13,232,666)
OTHER COMPREHENSIVE INCOME (LOSS):
Commodity derivatives sold	0	0	0	(119,917)
Less income taxes	0	0	0	(46,168)
Commodity derivatives sold, net of income taxes	0	0	0	(73,749)
Reclassification of loss on settled commodity derivatives	0	8,118	0	31,554
Less income taxes	0	3,125	0	12,148
Reclassification of loss on settled commodity derivatives, net of income taxes	0	4,993	0	19,406
OTHER COMPREHENSIVE INCOME (LOSS)	0	4,993	0	(54,343)
COMPREHENSIVE LOSS	$ (15,074,688)	$ (9,544,681)	$ (18,747,774)	$ (13,287,009)

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited) - USD ($)	PERPETUAL PREFERRED STOCK	COMMON STOCK	ACCUMULATED OTHER COMPREHENSIVE INCOME	ACCUMULATED EARNINGS (DEFICIT):	Total
Beginning Balance, Amount at Dec. 31, 2014	$ 9,958,217	$ 137,469,772	$ 38,801	$ (67,195,800)	$ 80,270,990
Beginning Balance, Shares at Dec. 31, 2014	507,739	69,139,869
Sales of stock, Amount	$ 870,386	$ 1,363,160			2,233,546
Sales of stock, shares	46,857	1,347,458
Restricted stock awards vested, Amount		$ 3,171,477			3,171,477
Restricted stock awards vested, Shares		1,676,113
Buy back of shares from vested stock awards, Amount		$ (300,732)			(300,732)
Buy back shares from vested stock awards, Shares		328,823
Stock appreciation rights issued, Amount		$ 155,269			155,269
Comprehensive income (loss) from commodity derivative instruments, net of income taxes			(38,801)		(38,801)
Series A perpetual preferred stock cash dividends				(1,047,191)	(1,047,191)
Net loss				(14,839,840)	(14,839,840)
Ending Balance, Amount at Dec. 31, 2015	$ 10,828,603	$ 141,858,946	0	(83,082,831)	69,604,718
Ending Balance, Shares at Dec. 31, 2015	554,596	71,834,617
Sales of stock, Amount
Restricted stock awards vested, Amount		$ 570,376			570,376
Restricted stock awards vested, Shares		983,804
Buy back of shares from vested stock awards, Amount		$ (69,177)			(69,177)
Buy back shares from vested stock awards, Shares		274,368
Stock appreciation rights issued, Amount		$ 173,314			173,314
Net loss				(18,747,774)	(18,747,774)
Ending Balance, Amount at Jun. 30, 2016	$ 10,828,603	$ 142,533,459	$ 0	$ (101,830,605)	$ 51,531,457
Ending Balance, Shares at Jun. 30, 2016	554,596	72,544,053

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Reconciliation of net loss to net cash provided by (used in) operating activities
Net loss	$ (18,747,774)	$ (13,232,666)
Impairment of oil and gas properties	11,015,589	0
Impairment of goodwill	0	4,927,508
Depreciation, depletion and amortization of property and equipment	4,467,205	7,896,466
Accretion of asset retirement obligation	210,256	329,557
Stock-based compensation net of capitalized cost	720,098	1,872,331
Amortization of other assets and liabilities	457,990	136,758
Deferred tax expense (benefit)	(1,225,235)	(3,937,892)
Bad debt expense increase (decrease)	(16,785)	737,536
Unrealized (gains) losses on commodity derivatives	2,572,571	5,308,196
Other	0	(18,887)
Changes in current operating assets and liabilities:
Accounts receivable	394,897	3,427,212
Other current assets	328,867	(61,604)
Accounts payable	(1,273,595)	(11,663,279)
Other current liabilities	219,138	877,533
Other noncurrent assets and liabilities	(108,618)	0
NET CASH USED IN OPERATING ACTIVITIES	(985,396)	(3,401,231)
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures on property and equipment	(1,873,671)	(9,301,034)
Proceeds from sale of property	1,740	30,442
Decrease in short-term investments	0	1,170,868
NET CASH USED IN INVESTING ACTIVITIES	(1,871,931)	(8,099,724)
CASH FLOWS FROM FINANCING ACTIVITIES:
Change in borrowing on line of credit	0	7,000,000
Proceeds from insurance note	0	536,762
Payments on insurance note	(263,635)	(388,059)
Line of credit financing costs	(72,055)	(210,194)
Net proceeds from sale of common stock	0	1,363,160
Net proceeds from sale of perpetual preferred stock	0	870,386
Cash dividends to preferred shareholders	0	(619,689)
Common stock purchased from employees	(69,177)	(300,732)
Other	0	(25,998)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES	(404,867)	8,225,636
NET DECREASE IN CASH AND CASH EQUIVALENTS	(3,262,194)	(3,275,319)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	5,355,191	11,558,322
CASH AND CASH EQUIVALENTS AT END OF PERIOD	2,092,997	8,283,003
Supplemental disclosure of cash flow information:
Interest payments (net of interest capitalized)	308,434	20,479
Interest capitalized	253,313	483,158
Supplemental disclosure of significant non-cash activity:
(Increase) decrease in capital expenditures financed by accounts payable	$ 324,178	$ 2,695,729

1. BASIS OF PRESENTATION

1. BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
1. BASIS OF PRESENTATION	These consolidated financial statements are unaudited; however, in the opinion of management, they reflect all adjustments necessary for a fair presentation of the results for the periods reported. All such adjustments are of a normal recurring nature unless disclosed otherwise. These consolidated financial statements, including notes, have been condensed and do not include all of the information and disclosures required by accounting principles generally accepted in the United States of America (“GAAP”) for complete financial statements. These consolidated financial statements should be read in conjunction with the consolidated financial statements as of and for the year ended December 31, 2015 and the notes thereto included with the Annual Report on Form 10-K/A of Yuma Energy, Inc. (the “Company”) filed with the Securities and Exchange Commission (“SEC”) on May 23, 2016. Restatement Background On May 11, 2016, the Company determined that there were non-cash errors in the computation of its income tax provision and the recording of its deferred taxes related to its asset retirement obligations, its stock based compensation, its allocation of the purchase price in the Pyramid merger and resultant amount of goodwill, the tax amortization of that goodwill, the tax treatment of expenses related to the Pyramid merger, the incorrect roll forward of the historic net operating losses and the difference in the book and tax basis in its properties. As a result, the Company’s computation of its income tax provision and the net amount of its deferred tax liability were restated for the years ended December 31, 2015, 2014 and 2013 and the applicable quarterly periods in 2015 and 2014. As a result, management, the Audit Committee and the Board of Directors determined after consideration of the relevant facts and circumstances, that the Company’s consolidated financial statements as of December 31, 2015 and 2014, and for the years ended December 31, 2015, 2014 and 2013 contained within the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 (the “2015 Form 10-K”), and the financial data included in its interim consolidated financial statements set forth in its quarterly reports on Form 10-Q for the quarter ended September 30, 2014, and for all subsequent quarters through the quarter ended December 31, 2015, should be restated, and that such financial statements previously filed with the SEC, should no longer be relied upon. As a result, on May 23, 2016, the Company filed Amendment No. 1 to its Annual Report on Form 10-K for the year ended December 31, 2015 (the “Amended Filing”). Prior period financial information in this Form 10-Q has been amended where necessary to reflect the restatement. Additional information regarding the restatement is contained in the Amended Filing. Therefore, this Form 10-Q should be read in conjunction with the Amended Filing.

2. LIQUIDITY CONSIDERATIONS AND

2. LIQUIDITY CONSIDERATIONS AND GOING CONCERN	6 Months Ended
	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
2. LIQUIDITY CONSIDERATIONS AND GOING CONCERN	The Company has borrowings which require, among other things, compliance with certain financial ratios. Due to operating losses the Company has sustained during recent quarters as a result of the prolonged weak commodity price environment and other factors, the Company was not in compliance with the trailing four quarter funded debt to EBITDA financial ratio covenant under its credit facility at September 30, 2015, December 31, 2015 or at March 31, 2016, as well as its EBITDA to interest expense ratio as of December 31, 2015 and March 31, 2016. In addition, the Company was not in compliance due to its going concern opinion at March 31, 2016, as well as its failure to maintain a certain financial bank as its principal depository bank. On May 20, 2016, the Company remedied its compliance with regard to the depository bank. On December 30, 2015, the Company’s wholly owned subsidiary, Yuma Exploration and Production Company, Inc. (“Exploration”) entered into the Waiver, Borrowing Base Redetermination and Ninth Amendment (the “Ninth Amendment”) to the credit agreement which provided for a $29.8 million conforming borrowing base, with an automatic reduction to $20.0 million on May 31, 2016, and waived the compliance with the trailing four quarter funded debt to EBITDA and EBITDA to interest expense financial ratio covenants or any other events of default under the credit facility for the quarters ended September 30, 2015 and December 31, 2015. On June 6, 2016 and effective as of May 31, 2016, Exploration entered into the Waiver and Tenth Amendment to the credit agreement (the “Tenth Amendment”), which maintains the borrowing base at $29.8 million and automatically reduces the borrowing base to $20.0 million on the earliest of (each a “Tenth Amendment Termination Date”) (i) August 15, 2016, if the registration statement on Form S-4 (the “Form S-4”) filed with the SEC pursuant to the pending agreement and plan of merger dated as of February 10, 2016 (the “merger agreement”) by and among the Company, two wholly owned subsidiaries of the Company, and Davis Petroleum Acquisition Corp. (“Davis”) has not been declared effective by such date; (ii) the date that is forty-seven days after the date the Form S-4 has been declared effective by the SEC; (iii) September 30, 2016; and (iv) in the event of the termination of the merger agreement. As of June 30, 2016, the Company had a working capital deficit of $32.1 million inclusive of the Company’s outstanding debt under its credit facility, which was fully drawn with no additional borrowing capacity available. A breach of any of the terms and conditions or the financial covenants contained in the credit agreement could result in acceleration of the Company’s indebtedness, in which case the debt would become immediately due and payable. Given that the Company was in violation of the funded debt to EBITDA and EBITDA to interest expense ratio covenants as of March 31, 2016, and was out of compliance with the funded debt to EBITDA, EBITDA to interest expense and current asset to current liability ratio covenants as of June 30, 2016, the Company has classified its bank debt as a current liability in its financial statements. In the event the Form S-4 is not declared effective by August 15, 2016, the Company anticipates working with its lenders to obtain an extension of its waivers until the closing of the transaction. In the event that the Company does not obtain an extension or waiver of the violations, then the Company’s outstanding indebtedness would become immediately due and payable. During 2015 and 2016, the Company initiated several strategic alternatives to remedy its debt covenant compliance issues and provide working capital to develop the Company’s existing assets. On February 10, 2016, the Company entered into the merger agreement. Upon completion of the transaction, which is subject to the approval of the stockholders of both companies and other conditions, Davis will become a wholly owned subsidiary of the Company. Subject to bank approval, it is anticipated that the Company will enter into another credit agreement amendment that will take into account the contemplated merger with Davis (see Note 15 – Agreement and Plan of Merger and Reorganization). However, the Company’s management can provide no assurance that the merger with Davis and the amendment to the credit agreement will actually occur. The significant risks and uncertainties described above raise substantial doubt about the Company’s ability to continue as a going concern. The consolidated financial statements have been prepared on a going concern basis of accounting, which contemplates continuity of operations, realization of assets, and satisfaction of liabilities and commitments in the normal course of business. The consolidated financial statements do not include any adjustments that might result from the outcome of the going concern uncertainty.

3. ACCOUNTING STANDARDS

3. ACCOUNTING STANDARDS	6 Months Ended
	Jun. 30, 2016
Accounting Standards
3. ACCOUNTING STANDARDS	Not Yet Adopted In March 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting,” which seeks to simplify accounting for share-based payment transactions including income tax consequences, classification of awards as either equity or liabilities, and the classification on the statement of cash flows. The new standard requires the Company to recognize the income tax effects of awards in the income statement when the awards vest or are settled. The guidance is effective for fiscal years beginning after December 15, 2016. Early adoption is permitted and if an entity early adopts the guidance in an interim period, any adjustments must be reflected as of the beginning of the fiscal year that includes that interim period. The Company is currently evaluating the impact of adopting this standard on its Consolidated Financial Statements. In February 2016, the FASB issued ASU 2016-02, “Leases,” a new lease standard requiring lessees to recognize lease assets and lease liabilities for most leases classified as operating leases under previous GAAP. The guidance is effective for fiscal years beginning after December 15, 2018 with early adoption permitted. The Company will be required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. The Company is currently evaluating the impact of adopting this standard on its Consolidated Financial Statements. In January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities,” which changes certain guidance related to the recognition, measurement, presentation and disclosure of financial instruments. This update is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is not permitted for the majority of the update, but is permitted for two of its provisions. The Company is evaluating the new guidance and has not determined the impact this standard may have on its Consolidated Financial Statements. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” an update which removes inconsistencies in existing standards, changes the way companies recognize revenue from contracts with customers, and increases disclosure requirements. The guidance requires companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods or services. In March 2016, the FASB issued guidance which provides further clarification on the principal versus agent evaluation. The guidance is effective for annual and interim periods beginning after December 15, 2017. The standard is required to be adopted using either the full retrospective approach, with all prior periods presented adjusted, or the modified retrospective approach, with a cumulative adjustment to retained earnings on the opening balance sheet. The Company is currently evaluating the level of effort needed to implement the standard, the impact of adopting this standard on its Consolidated Financial Statements, and whether to use the full retrospective approach or the modified retrospective approach. Recently Adopted In April 2015, the FASB issued ASU 2015-03, “Interest – Imputation of Interest (Subtopic 835-30) – Simplifying the Presentation of Debt Issuance Costs,” an update that requires debt issuance costs to be presented in the balance sheet as a direct reduction from the associated debt liability. In August 2015, the FASB subsequently issued ASU 2015-15, “Interest – Imputation of Interest (Subtopic 835-30) – Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements,” a clarification as to the handling of debt issuance costs related to line-of-credit arrangements that allows the presentation of these costs as an asset. The standards update is effective for interim and annual periods beginning after December 15, 2015. The Company has debt costs associated with its line-of-credit only; therefore, this standard had no impact on its Consolidated Financial Statements. These costs remain an asset on the Company’s Balance Sheet. In February 2015, the FASB issued ASU 2015-02, “Consolidation (Topic 810) – Amendments to the Consolidation Analysis,” an amendment to the guidance for determining whether an entity is a variable interest entity (“VIE”). The standard does not add or remove any of the five characteristics that determine if an entity is a VIE. However, it does change the manner in which a reporting entity assesses one of the characteristics. In particular, when decision-making over the entity’s most significant activities has been outsourced, the standard changes how a reporting entity assesses if the equity holders at risk lack decision making rights. This standard is effective for the Company for annual periods beginning after December 15, 2015 and early adoption is permitted, including in interim periods. The Company adopted this standard’s update, as required, effective January 1, 2016. The adoption of this standard’s update did not have a material impact on its Consolidated Financial Statements.

4. FAIR VALUE MEASUREMENTS

4. FAIR VALUE MEASUREMENTS	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
4. FAIR VALUE MEASUREMENTS	Certain financial instruments are reported at fair value on the Consolidated Balance Sheets. Under fair value measurement accounting guidance, fair value is defined as the amount that would be received from the sale of an asset or paid for the transfer of a liability in an orderly transaction between market participants, i.e., an exit price. To estimate an exit price, a three-level hierarchy is used. The fair value hierarchy prioritizes the inputs, which refer broadly to assumptions market participants would use in pricing an asset or a liability, into three levels. The Company uses a market valuation approach based on available inputs and the following methods and assumptions to measure the fair values of its assets and liabilities, which may or may not be observable in the market. Fair Value of Financial Instruments (other than Commodity Derivatives, see below) Derivatives Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques, and at least one significant model assumption or input is unobservable. Fair value measurements at June 30, 2016 Significant Quoted prices other Significant in active observable unobservable markets inputs inputs (Level 1) (Level 2) (Level 3) Total Assets: Commodity derivatives – oil $ - $ 1,310,008 $ - $ 1,310,008 Liabilities: Commodity derivatives – gas $ - $ 153,991 $ - $ 153,991 Fair value measurements at December 31, 2015 Significant Quoted prices other Significant in active observable unobservable markets inputs inputs (Level 1) (Level 2) (Level 3) Total Assets: Commodity derivatives – oil $ - $ 3,442,693 $ - $ 3,442,693 Commodity derivatives – gas - 285,895 - 285,895 Total assets $ - $ 3,728,588 $ - $ 3,728,588 Derivative instruments listed above include swaps, reverse swaps and three-way collars. For additional information on the Company’s derivative instruments and derivative liabilities, see Note 5 – Commodity Derivative Instruments. Debt Asset Retirement Obligations (“AROs”)

5. COMMODITY DERIVATIVE INSTRUM

5. COMMODITY DERIVATIVE INSTRUMENTS	6 Months Ended
	Jun. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
5. COMMODITY DERIVATIVE INSTRUMENTS	Objective and Strategies for Using Commodity Derivative Instruments While these instruments mitigate the cash flow risk of future reductions in commodity prices, they may also curtail benefits from future increases in commodity prices. The Company elected to discontinue hedge accounting for all commodity derivative instruments beginning with the 2013 financial year. The balance in other comprehensive income (“OCI”) at year-end 2012 remained in accumulated other comprehensive income (“AOCI”) until the original hedged forecasted transaction occurred. The last of these contracts expired in December 2015 and the Company’s AOCI balance is now zero. No mark-to-market adjustments for commodity derivative contracts are made to AOCI, but instead are recognized in earnings. As a result of discontinuing the application of hedge accounting, the Company’s earnings are potentially more volatile. See Note 4 – Fair Value Measurements for a discussion of methods and assumptions used to estimate the fair values of the Company’s commodity derivative instruments. Counterparty Credit Risk On February 18, 2015, the Company settled all of its natural gas and crude oil options, realizing $4.03 million. The Company retained its existing natural gas swap positions. Concurrent with the settlement of the Company’s option positions and during the following day, the Company entered into new swap transactions for crude oil and natural gas for the balance of 2015 and all of 2016. In addition, the Company entered into three-way collars for 2017 for both natural gas and crude oil. In conjunction with certain derivative hedging activity, the Company deferred the payment of $153,389 put premiums which was recorded in both current other deferred charges and current other accrued liabilities at year-end 2014 and was for production months January 2015 through December 2015. The put premium liabilities became payable monthly as the hedge production month became the prompt production month. The Company amortized the deferred put premium liabilities in January and February 2015; however, the liability for the remainder of the year was settled as part of the $4.03 million settlement. Commodity derivative instruments open as of June 30, 2016 are provided below. Natural gas prices are New York Mercantile Exchange (“NYMEX”) Henry Hub prices, 2016 crude oil prices are Argus Light Louisiana Sweet (“LLS”), and 2017 crude oil prices are NYMEX West Texas Intermediate (“WTI”). 2016 2017 Settlement Settlement NATURAL GAS (MMBtu): Swaps Volume 245,068 - Price $ 2.628 * - 3-way collars Volume - 248,023 Ceiling sold price (call) - $ 3.280 * Floor purchased price (put) - $ 2.946 * Floor sold price (short put) - $ 2.381 * CRUDE OIL (Bbls): Put spread Volume 64,333 - Floor purchased price (put) $ 62.27 - Floor sold price (short put) $ 40.00 - 3-way collars Volume 23,449 113,029 Ceiling sold price (call) $ 47.15 $ 77.00 Floor purchased price (put) $ 40.00 $ 60.00 Floor sold price (short put) $ 30.00 $ 45.00 *Price is a weighted average Derivatives for each commodity are netted on the Consolidated Balance Sheets as they are all contracts with the same counterparty. The following table presents the fair value and balance sheet location of each classification of commodity derivative contracts on a gross basis without regard to same-counterparty netting: Fair value as of June 30, December 31, 2016 2015 Asset commodity derivatives: Current assets $ 1,433,402 $ 3,069,115 Noncurrent assets 661,835 1,841,120 2,095,237 4,910,235 Liability commodity derivatives: Current liabilities (597,200 ) (411,068 ) Noncurrent liabilities (342,020 ) (770,579 ) (939,220 ) (1,181,647 ) Total commodity derivative instruments $ 1,156,017 $ 3,728,588 Sales of natural gas and crude oil on the Consolidated Statements of Operations are comprised of the following: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Sales of natural gas and crude oil $ 3,124,424 $ 5,534,894 $ 6,056,010 $ 10,107,573 Gain realized from sale of commodity derivatives - - - 4,030,000 Other gains (losses) realized on commodity derivatives 557,693 (255,049 ) 1,716,807 651,785 Unrealized losses on commodity derivatives (1,784,395 ) (1,441,930 ) (2,572,571 ) (5,308,196 ) Total revenue from natural gas and crude oil $ 1,897,722 $ 3,837,915 $ 5,200,246 $ 9,481,162 A reconciliation of the components of accumulated other comprehensive income (loss) in the Consolidated Statements of Changes in Equity is presented below: Three Months Ended Year Ended June 30, 2016 December 31, 2015 Before tax After tax Before tax After tax Balance, beginning of period $ - $ - $ 63,091 $ 38,801 Sale of unexpired contracts previously subject to hedge accounting rules - - (119,917 ) (73,749 ) Other reclassifications due to expired contracts previously subject to hedge accounting rules - - 56,826 34,948 Balance, end of period $ - $ - $ - $ -

6. ASSET IMPAIRMENTS

6. ASSET IMPAIRMENTS	6 Months Ended
	Jun. 30, 2016
Asset Impairments
6. ASSET IMPAIRMENTS	Oil and natural gas prices have remained low in the first and second quarters of 2016 and, as a result, the Company recognized a non-cash asset impairment charge of $11,015,589 to write down oil and gas properties for the three months ended June 30, 2016. In addition, the Company recognized a non-cash asset impairment of $4,927,508 to write off goodwill for the three months ended June 30, 2015. Potential for Future Impairments If commodities prices remain at or below the current low levels, subject to numerous factors and inherent limitations, and all other factors remain constant, the Company expects to incur a non-cash full cost impairment of approximately $3.0 million during the third quarter of 2016, which will have an adverse effect on the Company’s results of operations.

7. PREFERRED STOCK

7. PREFERRED STOCK	6 Months Ended
	Jun. 30, 2016
Preferred stock [Abstract]
7. PREFERRED STOCK	The Company’s shares of 9.25% Series A Cumulative Redeemable Preferred Stock, no par value per share, with a liquidation preference of $25.00 per share (the “Series A Preferred Stock”), trade on the NYSE MKT under the symbol “YUMAprA”. The Series A Preferred Stock cannot be converted into common stock (except upon a change in control and in the event the Company chooses not to redeem the Series A Preferred Stock), but may be redeemed by the Company, at the Company’s option, on or after October 23, 2017 (or in certain circumstances, prior to such date as a result of a change in control of the Company), at a redemption price of $25.00 per share plus any accrued and unpaid dividends. The Series A Preferred Stock has no stated maturity, is not subject to any sinking fund or mandatory redemption, and will remain outstanding indefinitely unless repurchased, redeemed or converted into common stock in connection with a change in control. Holders of the Series A Preferred Stock are entitled to receive, when, as and if declared by the Board of Directors, cumulative dividends at the rate of 9.25% per annum (the dividend rate) based on the liquidation price of $25.00 per share of the Series A Preferred Stock, payable monthly in arrears on each dividend payment date, with the first payment date of December 1, 2014. The Series A Preferred Stock is presented in the permanent equity section of the financial statements. Due to the current depressed commodity price environment, as well as other factors which have adversely affected the Company’s cash flows and liquidity, the monthly dividends on the Series A Preferred Stock were suspended beginning with the month ended November 30, 2015. Pursuant to the Company’s credit facility, the Company is precluded from making dividend payments on its Series A Preferred Stock. The Company’s articles of incorporation provide that any unpaid dividends will accumulate. While the accumulation does not result in presentation of a liability on the balance sheet, the accumulated dividends are deducted from the Company’s net income (or added to its net loss) in the determination of income (loss) attributable to common shareholders and, as appropriate, the corresponding computation of earnings (loss) per share. As of June 30, 2016, the Company had accumulated a total of $855,003 in unpaid preferred stock dividends, attributable to the Series A Preferred Stock. If the Company does not pay dividends on its Series A Preferred Stock for six quarterly periods, whether consecutive or non-consecutive, the holders of the shares of the Series A Preferred Stock, voting together as a single class, will have the right to elect two additional directors to serve on the Company’s board of directors until all accumulated and unpaid dividends are paid in full. The Company anticipates the Series A Preferred Stock will convert into common equity as part of the merger with Davis. See Note 15 – Agreement and Plan of Merger and Reorganization for additional information.

8. STOCK-BASED COMPENSATION

8. STOCK-BASED COMPENSATION	6 Months Ended
	Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
8. STOCK-BASED COMPENSATION	The Yuma Co. 2011 Stock Option Plan (the “Yuma Co. Plan”) was adopted on June 21, 2011. On September 10, 2014, the shareholders of Pyramid Oil Company (“Pyramid”) (see Note 11 – Merger With Pyramid Oil Company and Goodwill), adopted the 2014 Long-Term Incentive Plan (the “2014 Plan”). Under these plans, the Board of Directors is authorized to grant stock options, stock awards (including restricted stock and restricted stock unit awards) and performance awards to officers, directors, employees and consultants. At June 30, 2016, 4,584,075 shares of the 8,900,000 shares of Yuma common stock originally authorized under active share-based compensation plans remained available for future issuance. The Company generally issues new shares to satisfy awards under employee share-based payment plans. The number of shares available is reduced by awards granted. Restricted Stock – A summary of the status of the RSAs for employees and non-employees and changes for the period ended June 30, 2016 is presented below. Number of Weighted average unvested grant-date RSA shares fair value Unvested shares as of January 1, 2016 2,514,434 $0.87 per share Granted 132,244 $0.21 per share Forfeited (132,244 ) $0.73 per share Vested (983,804 ) $0.68 per share Unvested shares as of June 30, 2016 1,530,630 $0.95 per share At June 30, 2016, total unrecognized RSA compensation expense of $619,658 is expected to be recognized over a weighted average remaining service period of 1.33 years. Stock Appreciation Rights – Weighted Number of average unvested grant-date SARs fair value Unvested shares as of January 1, 2016 1,912,419 $0.30 per share Granted 103,745 $0.03 per share Forfeited (103,745 ) $0.32 per share Vested (789,117 ) $0.24 per share Unvested shares as of June 30, 2016 1,123,302 $0.32 per share Weighted average assumptions used to estimate fair value for employees were expected life of five years, 61.17% volatility, 1.60% risk-free rate, and zero annual dividends. At June 30, 2016, total unrecognized SAR compensation expense of $214,281 is expected to be recognized over a weighted average remaining service period of 1.49 years. The SARs in the table above have a weighted average exercise price of $0.605 and an aggregate intrinsic value of zero. The Company intends to settle these SARs in equity, as opposed to cash. Stock Options – The following is a summary of the Company’s stock option activity. Weighted- Weighted- average average remaining Aggregate exercise contractual intrinsic Options price life (years) value Outstanding at December 31, 2015 105,000 $ 5.17 2.65 $ - Granted - - - - Exercised - - - - Forfeited (5,000 ) $ 5.40 - - Outstanding at June 30, 2016 100,000 $ 5.16 2.27 $ - Vested at June 30, 2016 100,000 $ 5.16 2.27 $ - Exercisable at June 30, 2016 100,000 $ 5.16 2.27 $ - As of June 30, 2016, there were no unvested stock options or unrecognized stock option expenses. The exercise price for all options is $5.16. Restricted Stock Units – A summary of the status of the unvested RSUs and changes during the six months ended June 30, 2016 is presented below. Weighted Number of average unvested grant-date RSUs fair value Unvested shares as of January 1, 2016 80,278 $2.72 per share Vested on April 1, 2016 (80,278 ) $2.72 per share Unvested shares as of June 30, 2016 -

9. EARNINGS (LOSS) PER COMMON S

9. EARNINGS (LOSS) PER COMMON SHARE	6 Months Ended
	Jun. 30, 2016
EARNINGS (LOSS) PER COMMON SHARE:
9. EARNINGS (LOSS) PER COMMON SHARE	Earnings (loss) per common share is computed by dividing earnings or losses attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period. Potential common stock equivalents are determined using the “if converted” method. Potentially dilutive securities for the computation of diluted weighted average shares outstanding are as follows: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Restricted Stock Awards 2,041,498 640,499 2,239,594 1,271,916 Restricted Stock Units - 95,424 - 95,424 2,041,498 735,923 2,239,594 1,367,340 For the three months ended June 30, 2016 and the three months ended June 30, 2015, adjusted earnings were losses, therefore common stock equivalents were excluded from the calculation of diluted net loss per share of common stock, as their effect was anti-dilutive. RSUs were settled in cash during April 2016 and are no longer considered potentially dilutive.

10. DEBT AND INTEREST EXPENSE

10. DEBT AND INTEREST EXPENSE	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
10. DEBT AND INTEREST EXPENSE	June 30, December 31, 2016 2015 Variable rate revolving credit agreement payable to Société Générale, CIT Bank, NAC, and LegacyTexas Bank, maturing May 20, 2017, secured by the stock of Exploration and its interest in POL, and guaranteed by The Yuma Companies, Inc. $ 29,800,000 $ 29,800,000 Installment loan due February 29, 2016, originating from the financing of insurance premiums at 3.74% interest rate. - 108,894 Installment loan due June 11, 2016, originating from the financing of insurance premiums at 3.76% interest rate. - 154,741 29,800,000 30,063,635 Less: current portion (29,800,000 ) (30,063,635 ) Total long-term debt $ - $ - On December 30, 2015, Exploration entered into the Ninth Amendment pursuant to which Exploration agreed that on or before February 6, 2016, it would engage an investment bank to explore strategic options for its finances and, on or before March 31, 2016, would either enter into an underwritten commitment for additional capital in an aggregate amount sufficient to pay any borrowing base deficiency then existing or enter into a definitive agreement for the acquisition by a third party of all or substantially all of the assets of Exploration and its subsidiaries by merger, asset purchase, equity purchase or other structure acceptable to SocGen and the lenders. On February 10, 2016, the Company entered into the merger agreement with Davis (see Note 15 – Agreement and Plan of Merger and Reorganization). On June 6, 2016 and effective as of May 31, 2016, Exploration entered into the Tenth Amendment which maintains the borrowing base at $29.8 million and automatically reduces the borrowing base to $20.0 million on the occurrence of a Tenth Amendment Termination Date. Costs and fees paid to the banks in connection with the revolving credit facility were amortized through May 31, 2016, due to the possible accelerated maturity date pursuant to the Ninth Amendment. Additional loan costs incurred during the second quarter of 2016 were $50,334, and are being amortized to August 15, 2016. SocGen, as Agent Bank, is also paid an annual administrative fee of $25,000 that is usually amortized over the year, but was also amortized through May 31, 2016. The terms of the credit agreement require the Company to meet a specific current ratio, interest coverage ratio, and a funded debt to EBITDA ratio. The credit agreement also contains a covenant requiring ten percent availability under the current borrowing line in order to pay dividends on the Series A Preferred Stock. In addition, the credit agreement requires the guarantee of the Company. The Company was not in compliance with the loan covenants as of March 31, 2016; however, the Tenth Amendment provided a waiver of those violations until the occurrence of a Tenth Amendment Termination Date. The Company was not in compliance with the funded debt to EBITDA, EBITDA to interest expense and current ratio covenants as of June 30, 2016. Accordingly, the Company anticipates working with its lenders to obtain an extension of its waivers until the closing of the merger. In the event that the Company does not obtain an extension or waiver of the violations, then the Company’s outstanding indebtedness would become immediately due and payable. The following summarizes interest expense for the three and six months ended June 30, 2016 and 2015. Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Credit agreement $ 259,649 $ 280,113 $ 517,377 $ 521,407 Credit agreement commitment fees - 9,331 - 25,159 Amortization of credit agreement loan costs 195,516 71,613 457,990 136,757 Insurance installment loan 291 3,471 1,961 5,197 Other interest charges 89 186 5,029 1,023 Capitalized interest (129,149 ) (250,336 ) (253,313 ) (483,158 ) Total interest expense $ 326,396 $ 114,378 $ 729,044 $ 206,385

11. MERGER WITH PYRAMID OIL COM

11. MERGER WITH PYRAMID OIL COMPANY AND GOODWILL	6 Months Ended
	Jun. 30, 2016
Business Combinations [Abstract]
11. MERGER WITH PYRAMID OIL COMPANY AND GOODWILL	On September 10, 2014, a wholly owned subsidiary of Pyramid merged with and into Yuma Energy, Inc., a Delaware corporation (“Yuma Co.”), in exchange for 66,336,701 shares of common stock and Pyramid changed its name to “Yuma Energy, Inc.” (the “merger”). As a result of the merger, the former Yuma Co. stockholders received approximately 93% of the then outstanding common stock of the Company and thus acquired voting control. Although the Company was the legal acquirer, for financial reporting purposes the merger was accounted for as a reverse acquisition of Pyramid by Yuma Co. The transaction qualified as a tax-deferred reorganization under Section 368(a) of the Internal Revenue Code of 1986, as amended (the “Code”). The merger was accounted for as a business combination in accordance with ASC 805 Business Combinations (“ASC 805”). ASC 805, among other things, requires assets acquired and liabilities assumed to be measured at their acquisition date fair values. Goodwill represents the excess of the purchase price over the estimated fair value of the assets acquired net of the fair value of liabilities assumed in an acquisition. Certain assets and liabilities may be adjusted as additional information is obtained; but no later than one year from the acquisition date. The provisions of ASC 350, on Intangibles – Goodwill and Other require that intangible assets with indefinite lives, including goodwill, be evaluated on an annual basis for impairment, or more frequently if events occur or circumstances change that could potentially result in impairment. The goodwill impairment test requires the allocation of goodwill and all other assets and liabilities to reporting units; however, the Company has only one reporting unit. The drop in crude oil prices and the resulting decline in the Company’s common share price since the merger caused the Company to test goodwill for impairment at June 30, 2015. Goodwill was determined to be fully impaired and as a result, the balance of $4,927,508 was written off at that time.

12. INCOME TAXES

12. INCOME TAXES	6 Months Ended
	Jun. 30, 2016
Income Tax Disclosure [Abstract]
12. INCOME TAXES	The following summarizes the income tax expense (benefit) and effective tax rates: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Consolidated net income (loss) before income taxes $ (15,766,990 ) $ (11,190,584 ) $ (19,973,009 ) $ (17,168,158 ) Income tax expense (benefit) (692,302 ) (1,640,910 ) (1,225,235 ) (3,935,492 ) Effective tax rate 4.4 % 14.7 % 6.1 % 22.9 % The differences between the U.S. federal statutory rate of 34% and the Company’s effective tax rates for the three and six months ended June 30, 2016 and 2015 are due primarily to state taxes and nondeductible expenses. In addition, June 30, 2016 was impacted by the expected valuation allowance on our deferred tax asset at year-end, which affected our expected annual effective tax rate and the tax effect of nondeductible stock compensation. The Company knows of no uncertain tax positions and has no unrecognized tax benefits for the six months ended June 30, 2016 or June 30, 2015. Valuation allowances are established when the Company determines it is more likely than not that some portion, or all, of the deferred tax assets will not be realized. As of June 30, 2016, the Company anticipates that it will have a net deferred tax asset at year-end 2016, for which a valuation allowance will be required. The Company has considered the effect of the valuation allowance in the current period in determining its expected annual effective tax rate to record tax expense for the period ending June 30, 2016. No valuation allowance was established as of June 30, 2015.

13. AT MARKET SECURITY SALES

13. AT MARKET SECURITY SALES	6 Months Ended
	Jun. 30, 2016
Marketable Securities [Abstract]
13. AT MARKET SECURITY SALES	The Company entered into an At Market Issuance Sales Agreement (“Sales Agreement”) with an investment banking firm (the “Agent”) on December 19, 2014. Under the Sales Agreement, the Company was able to sell both common stock and Series A Preferred Stock pursuant to the Registration Statement on Form S-3 of the Company filed on November 5, 2013 (Registration No. 333-192094), which became effective under the Securities Act on November 21, 2013. Upon the Company’s delivery and the Agent’s acceptance of a placement notice, the Agent will use its commercially reasonable efforts, consistent with its sales and trading practices, to sell any shares subject to the placement notice. The Company initiated the sales of securities under the Sales Agreement on February 18, 2015, and as of June 30, 2016, the Company sold the following securities for the net proceeds listed below (the Company has made no sales of securities since the second quarter of 2015). The Company may not sell any securities under the Sales Agreement pursuant to the merger agreement with Davis. Shares Net Proceeds Common Stock 1,347,458 $ 1,363,160 Series A Preferred Stock 46,857 870,386 Total $ 2,233,546

14. CONTINGENCIES

14. CONTINGENCIES	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
14. CONTINGENCIES	Certain Legal Proceedings From time to time, the Company is party to various legal proceedings arising in the ordinary course of business. While the outcome of lawsuits cannot be predicted with certainty, the Company is not currently a party to any proceeding that it believes, if determined in a manner adverse to the Company, could have a potential material adverse effect on its financial condition, results of operations, or cash flows. Amanda Olivier, et al. v. Nabors Drilling USA, L.P., and Yuma Exploration and Production, Inc. On July 9, 2014, Nabors Drilling USA, L.P. and other Nabors entities and Yuma Energy, Inc. and several of its wholly owned subsidiaries were named in a lawsuit filed in the District Court of Harris County, Texas, in the 80th Judicial District, concerning the death of an employee of Timco Services during the drilling of the Crosby 12-1 well. The Company has tendered its defense to its liability insurance carriers who are responding. There has been one unsuccessful mediation session. Depositions are being scheduled. Management believes that the Company has adequate insurance to meet this potential claim. Ontiveros v. Pyramid Oil, LLC, Yuma Energy, Inc. et al In September 2015, a suit was filed against the Company and Pyramid Oil LLC styled Mark A. Ontiveros and Louise D. Ontiveros, Trustees of The Ontiveros Family Trust dated March 29, 2007 vs. Pyramid Oil, LLC, et al., Case Number 15CV02959 in the Superior Court of California, County of Santa Barbara, Cook Division. In the suit, the plaintiffs allege that the 1950 Community Oil and Gas Lease between them and Pyramid Oil LLC has expired by non-production. The Company claims that the lease is still in effect, as there is no cessation of production time frame set out in the lease; production had temporarily ceased, but was still profitable when measured over an appropriate time period; and the Company was conducting workover operations on a well on the lease in an effort to re-establish production when served with the quit claim deed demand from the plaintiff’s attorney. All present owners of the minerals covered by the 1950 Community Oil and Gas Lease, with the exception of the plaintiffs, have executed amendments signifying their concurrence that the 1950 Community Oil and Gas Lease is still in force and effect. On June 23, 2016, Pyramid Oil LLC filed a First Amended Cross Complaint against Texican Energy Corporation and Everett Lawley alleging interference with contractual relations and prospective economic relations, and violation of the California Uniform Trade Secrets Act. The parties are presently in the process of document discovery. Yuma Energy, Inc. v. Cardno PPI Technology Services, LLC Arbitration On May 20, 2015, counsel for Cardno PPI Technology Services, LLC (“Cardno PPI”) sent a notice of the filing of liens totaling $304,209 on the Company’s Crosby 14 No. 1 Well and Crosby 14 SWD No. 1 Well in Vernon Parish, Louisiana. The Company disputed the validity of the liens and of the underlying invoices, and notified Cardno PPI that applicable credits had not been applied. The Company invoked mediation on August 11, 2015 on the issues of the validity of the liens, the amount due pursuant to terms of the parties’ Master Service Agreement (“MSA”), and PPI Cardno’s breaches of the MSA. Mediation was held on April 12, 2016; no settlement was reached. On May 12, 2016, Cardno filed a lawsuit in Louisiana state court to enforce the liens; the Court entered an Order Staying Proceeding on June 13, 2016, ordering that the lawsuit “be stayed pending mediation/arbitration between the parties.” On June 17, 2016, the Company served a Notice of Arbitration on Cardno PPI, stating claims for breach of the MSA billing and warranty provisions. On July 15, 2016, Cardno PPI served a Counterclaim for $304,209 plus attorneys’ fees. The parties are currently engaged in the arbitrator selection process. Management intends to pursue the Company’s claims and to defend the counterclaim vigorously. Environmental Remediation Contingencies As of June 30, 2016, there were no known environmental or other regulatory matters related to the Company’s operations that were reasonably expected to result in a material liability to the Company. The Company’s operations are subject to numerous laws and regulations governing the discharge of materials into the environment or otherwise relating to environmental protection. Exploration, a subsidiary of the Company, has been named as one of 97 defendants in a matter entitled Board of Commissioners of the Southeast Louisiana Flood Protection Authority – East, Individually and As the Board Governing the Orleans Levee District, the Lake Borgne Basin Levee District, and the East Jefferson Levee District v. Tennessee Gas Pipeline Company, LLC, et al., Civil District Court for the Parish of Orleans, State of Louisiana, No. 13-6911, Division “J” - 5, now removed as Civil Action No. 13-5410, before the United States District Court, Eastern District of Louisiana. Plaintiff filed the suit on July 24, 2013 seeking damages and injunctive relief arising out of defendants’ drilling, exploration, and production activities from the early 1900s to the present day in coastal areas east of the Mississippi River in Southeast Louisiana. The suit alleges that defendants’ activities have caused “removal, erosion, and submergence” of coastal lands resulting in significant reduction or loss of the protection such lands afforded against hurricanes and tropical storms. Plaintiff alleges that it now faces increased costs to maintain and operate the man-made hurricane protection system and may reach the point where that system no longer adequately protects populated areas. Plaintiff lists hundreds of wells, pipelines, and dredging events as possible sources of the alleged land loss. Exploration is named in association with 11 wells, four rights-of-way, and one dredging permit. The suit does not specify any deficiency or harm caused by any individual activity or facility. Although the suit references various federal statutes as sources of standards of care, plaintiff claims that all causes of action arise under state law: negligence, strict liability, natural servitude of drain, public nuisance, private nuisance, and as third-party beneficiary under breach of contract. The Company tendered its defense to its liability insurance carriers, who are responding. On February 13, 2015, the federal judge adjudicating the matter granted defendants “Joint Motion to Dismiss for Failure to State a Claim Under Rule 12(b)(6)”, thereby dismissing plaintiff’s claims with prejudice in the matter. On February 20, 2015, the Board of Orleans filed a notice of appeal to the U.S. Fifth Circuit. On February 29, 2016, oral arguments were held regarding the appeal, but as of July 31, 2016, no ruling on the appeal has been made. The Company will continue to contest plaintiff’s legal arguments and factual assertions. At this point in the legal process, no evaluation of the likelihood of an unfavorable outcome or associated economic loss can be made; therefore no liability has been recorded on the Company’s books. Escheat Audits The States of Louisiana, Texas, Minnesota, North Dakota and Wyoming have notified the Company that they will examine the Company’s books and records to determine compliance with each of the examining state’s escheat laws. The review is being conducted by Discovery Audit Services, LLC. The Company has engaged Ryan, LLC to represent it in this matter. The exposure related to the audits is not currently determinable.

15. AGREEMENT AND PLAN OF MERGE

15. AGREEMENT AND PLAN OF MERGER AND REORGANIZATION	6 Months Ended
	Jun. 30, 2016
Agreement And Plan Of Merger And Reorganization
15. AGREEMENT AND PLAN OF MERGER AND REORGANIZATION	On February 10, 2016, the Company and privately held Davis entered into a definitive merger agreement for an all-stock transaction. Upon completion of the transaction, the Company will reincorporate in Delaware, implement a one for ten reverse split of its common stock, and convert each share of its existing Series A Preferred Stock into 35 shares of common stock prior to giving effect for the reverse split (3.5 shares post reverse split). Following these actions, the Company will issue additional shares of common stock in an amount sufficient to result in approximately 61.1% of the common stock being owned by the current common stockholders of Davis. In addition, the Company will issue approximately 3.3 million shares of a new Series D preferred stock to existing Davis preferred stockholders, which is estimated to have a conversion price of approximately $5.70 per share, after giving effect for the reverse split. The Series D preferred stock is estimated to have a liquidation preference of approximately $19.0 million at closing, and will be paid dividends in the form of additional Series D preferred stock at a rate of 7% per annum. Upon closing, there will be an aggregate of approximately 23.7 million shares of common stock outstanding (after giving effect to the reverse stock split and conversion of Series A Preferred Stock to common stock). The transaction is expected to qualify as a tax-deferred reorganization under Section 368(a) of the Code. The merger agreement is subject to the approval of the shareholders of both companies, as well as the Company’s preferred shareholders, and other customary conditions and approvals, including authorization to list the newly issued shares on the NYSE MKT. The parties anticipate completing the transaction in the third or fourth quarter of 2016. On June 17, 2016, Yuma Delaware Merger Subsidiary, Inc., a Delaware corporation and wholly-owned subsidiary of the Company (“Yuma Delaware”), filed a Registration Statement on Form S-4 (“Form S-4”) with the SEC to effectuate (i) the proposed reincorporation of the Company from California to Delaware through the merger of the Company with and into Yuma Delaware (the “reincorporation”), and (ii) the proposed merger of Yuma Merger Subsidiary, Inc., a Delaware corporation and wholly-owned subsidiary of Yuma Delaware (“Merger Subsidiary”), with and into Davis, with Davis becoming a wholly-owned subsidiary of Yuma Delaware (the “Davis merger”). In order to complete the Davis merger, the Company’s holders of common stock and preferred stock must vote to approve and adopt the reincorporation and the merger.

16. GREATER MASTERS CREEK FIELD

16. GREATER MASTERS CREEK FIELD AREA	6 Months Ended
	Jun. 30, 2016
Greater Masters Creek Field Area
16. GREATER MASTERS CREEK FIELD AREA	During the first quarter of 2016, the Company shut-in 14 Austin Chalk wells in Beauregard, Rapides and Vernon Parishes, Louisiana due to low oil and natural gas prices. Since production was not restarted from these wells, the associated leases have expired, reducing the Company’s proved reserves from year-end 2015 by approximately 1,629 MBoe, acreage by 22,021 gross (18,140 net) acres, operated proved undeveloped locations by three, and operated non-proved undeveloped locations by seven. In addition, during the first quarter of 2016, the Company received notice from the operator of certain wells in Rapides and Vernon Parishes, Louisiana, that certain wells in which the Company has an interest were shut-in due to current economic conditions. The operator has since sold its interest. Since the operator and the subsequent operator have not restarted production from these wells, the associated leases have expired, reducing the Company’s proved reserves by approximately 285 MBoe from year-end 2015, acreage by 18,895 gross (3,737 net) acres, non-operated proved undeveloped locations by three, and non-operated non-proved undeveloped locations by 18. In April 2016, a party to the participation agreement dated July 31, 2013 relating to the Company’s Greater Masters Creek Area exercised its option to participate under the participation agreement for a four percent working interest. On April 4, 2016, the Company entered into an amendment effective March 1, 2016 to an oil and gas lease in the Greater Masters Creek Field area with a certain mineral owner for acreage that was not held by production as of March 31, 2016. The total acreage is approximately 25,139 acres and, by virtue of the Company conducting certain location clean-up operations, the lease has now been extended until December 31, 2016. This extension is subject to certain additional performance criteria, including the posting of a bond to cover P&A costs for wells located on this mineral owner’s property, or plugging and abandoning six of the mineral owner’s wells by December 31, 2016 at an estimated net cost of $426,000. If the leased acreage expires, the Company’s proved reserves from year-end 2015 would be reduced by approximately 5,096 MBoe, the number of operated proved undeveloped locations and operated non-proved locations would be reduced by 13 and 16, respectively.

17. TEXAS SOUTHEASTERN GAS MARK

17. TEXAS SOUTHEASTERN GAS MARKETING COMPANY	6 Months Ended
	Jun. 30, 2016
Texas Southeastern Gas Marketing Company
17. TEXAS SOUTHEASTERN GAS MARKETING COMPANY	As of January 1, 2016, the Company decided to discontinue the operations of Texas Southeastern Gas Marketing Company due to the limited volumes of natural gas that it marketed, as well as the costs associated with accounting for the entity. Texas Southeastern Gas Marketing Company is not a significant subsidiary, and this discontinuation of operations does not represent a strategic shift in business for the Company.

18. SUBSEQUENT EVENTS

18. SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2016
Subsequent Events [Abstract]
18. SUBSEQUENT EVENTS	The Company is not aware of any subsequent events which would require recognition or disclosure in the financial statements, except as noted below or already recognized or disclosed in the Company’s filings with the SEC. Amendment to Form S-4 On August 4, 2016, Yuma Delaware filed Amendment No. 1 to the Form S-4 with the SEC in connection with the proposed reincorporation of the Company from California to Delaware and the proposed merger with Davis.

4. FAIR VALUE MEASUREMENTS (Tab

4. FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
Fair value measurements by hierarchy	Fair value measurements at June 30, 2016 Significant Quoted prices other Significant in active observable unobservable markets inputs inputs (Level 1) (Level 2) (Level 3) Total Assets: Commodity derivatives – oil $ - $ 1,310,008 $ - $ 1,310,008 Liabilities: Commodity derivatives – gas $ - $ 153,991 $ - $ 153,991 Fair value measurements at December 31, 2015 Significant Quoted prices other Significant in active observable unobservable markets inputs inputs (Level 1) (Level 2) (Level 3) Total Assets: Commodity derivatives – oil $ - $ 3,442,693 $ - $ 3,442,693 Commodity derivatives – gas - 285,895 - 285,895 Total assets $ - $ 3,728,588 $ - $ 3,728,588

5. COMMODITY DERIVATIVE INSTR27

5. COMMODITY DERIVATIVE INSTRUMENTS (Tables)	6 Months Ended
	Jun. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Commodity derivative instruments	2016 2017 Settlement Settlement NATURAL GAS (MMBtu): Swaps Volume 245,068 - Price $ 2.628 * - 3-way collars Volume - 248,023 Ceiling sold price (call) - $ 3.280 * Floor purchased price (put) - $ 2.946 * Floor sold price (short put) - $ 2.381 * CRUDE OIL (Bbls): Put spread Volume 64,333 - Floor purchased price (put) $ 62.27 - Floor sold price (short put) $ 40.00 - 3-way collars Volume 23,449 113,029 Ceiling sold price (call) $ 47.15 $ 77.00 Floor purchased price (put) $ 40.00 $ 60.00 Floor sold price (short put) $ 30.00 $ 45.00 *Price is a weighted average
Schedule of derivative assets and liablities	Fair value as of June 30, December 31, 2016 2015 Asset commodity derivatives: Current assets $ 1,433,402 $ 3,069,115 Noncurrent assets 661,835 1,841,120 2,095,237 4,910,235 Liability commodity derivatives: Current liabilities (597,200 ) (411,068 ) Noncurrent liabilities (342,020 ) (770,579 ) (939,220 ) (1,181,647 ) Total commodity derivative instruments $ 1,156,017 $ 3,728,588
Sales of natural gas and crude oil	Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Sales of natural gas and crude oil $ 3,124,424 $ 5,534,894 $ 6,056,010 $ 10,107,573 Gain realized from sale of commodity derivatives - - - 4,030,000 Other gains (losses) realized on commodity derivatives 557,693 (255,049 ) 1,716,807 651,785 Unrealized losses on commodity derivatives (1,784,395 ) (1,441,930 ) (2,572,571 ) (5,308,196 ) Total revenue from natural gas and crude oil $ 1,897,722 $ 3,837,915 $ 5,200,246 $ 9,481,162
Schedule reconciliation of the components of accumulated other comprehensive income (loss) in the Consolidated Statements of Changes in Equity	Three Months Ended Year Ended June 30, 2016 December 31, 2015 Before tax After tax Before tax After tax Balance, beginning of period $ - $ - $ 63,091 $ 38,801 Sale of unexpired contracts previously subject to hedge accounting rules - - (119,917 ) (73,749 ) Other reclassifications due to expired contracts previously subject to hedge accounting rules - - 56,826 34,948 Balance, end of period $ - $ - $ - $ -

8. STOCK-BASED COMPENSATION (Ta

8. STOCK-BASED COMPENSATION (Tables)	6 Months Ended
	Jun. 30, 2016
Schedule stock option activity	Weighted- Weighted- average average remaining Aggregate exercise contractual intrinsic Options price life (years) value Outstanding at December 31, 2015 105,000 $ 5.17 2.65 $ - Granted - - - - Exercised - - - - Forfeited (5,000 ) $ 5.40 - - Outstanding at June 30, 2016 100,000 $ 5.16 2.27 $ - Vested at June 30, 2016 100,000 $ 5.16 2.27 $ - Exercisable at June 30, 2016 100,000 $ 5.16 2.27 $ -
Schedule unvested restricted stock units	Weighted Number of average unvested grant-date RSUs fair value Unvested shares as of January 1, 2016 80,278 $2.72 per share Vested on April 1, 2016 (80,278 ) $2.72 per share Unvested shares as of June 30, 2016 -
Stock Appreciation Rights (SARs) [Member]
Company's stock-based activity	Weighted Number of average unvested grant-date SARs fair value Unvested shares as of January 1, 2016 1,912,419 $0.30 per share Granted 103,745 $0.03 per share Forfeited (103,745 ) $0.32 per share Vested (789,117 ) $0.24 per share Unvested shares as of June 30, 2016 1,123,302 $0.32 per share
Restricted Stock Agreements (RSAs) [Member]
Company's stock-based activity	Number of Weighted average unvested grant-date RSA shares fair value Unvested shares as of January 1, 2016 2,514,434 $0.87 per share Granted 132,244 $0.21 per share Forfeited (132,244 ) $0.73 per share Vested (983,804 ) $0.68 per share Unvested shares as of June 30, 2016 1,530,630 $0.95 per share

9. EARNINGS (LOSS) PER COMMON29

9. EARNINGS (LOSS) PER COMMON SHARE (Tables)	6 Months Ended
	Jun. 30, 2016
EARNINGS (LOSS) PER COMMON SHARE:
Potentially dilutive securities	Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Restricted Stock Awards 2,041,498 640,499 2,239,594 1,271,916 Restricted Stock Units - 95,424 - 95,424 2,041,498 735,923 2,239,594 1,367,340

10. DEBT AND INTEREST EXPENSE (

10. DEBT AND INTEREST EXPENSE (Tables)	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
Debt	June 30, December 31, 2016 2015 Variable rate revolving credit agreement payable to Société Générale, CIT Bank, NAC, and LegacyTexas Bank, maturing May 20, 2017, secured by the stock of Exploration and its interest in POL, and guaranteed by The Yuma Companies, Inc. $ 29,800,000 $ 29,800,000 Installment loan due February 29, 2016, originating from the financing of insurance premiums at 3.74% interest rate. - 108,894 Installment loan due June 11, 2016, originating from the financing of insurance premiums at 3.76% interest rate. - 154,741 29,800,000 30,063,635 Less: current portion (29,800,000 ) (30,063,635 ) Total long-term debt $ - $ -
Schedule interest expense	Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Credit agreement $ 259,649 $ 280,113 $ 517,377 $ 521,407 Credit agreement commitment fees - 9,331 - 25,159 Amortization of credit agreement loan costs 195,516 71,613 457,990 136,757 Insurance installment loan 291 3,471 1,961 5,197 Other interest charges 89 186 5,029 1,023 Capitalized interest (129,149 ) (250,336 ) (253,313 ) (483,158 ) Total interest expense $ 326,396 $ 114,378 $ 729,044 $ 206,385

12. INCOME TAXES (Tables)

12. INCOME TAXES (Tables)	6 Months Ended
	Jun. 30, 2016
Income Taxes Tables
Schedule income tax expense (benefit) and effective tax rates	Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Consolidated net income (loss) before income taxes $ (15,766,990 ) $ (11,190,584 ) $ (19,973,009 ) $ (17,168,158 ) Income tax expense (benefit) (692,302 ) (1,640,910 ) (1,225,235 ) (3,935,492 ) Effective tax rate 4.4 % 14.7 % 6.1 % 22.9 %

13. AT MARKET SECURITY SALES (T

13. AT MARKET SECURITY SALES (Tables)	6 Months Ended
	Jun. 30, 2016
Marketable Securities [Abstract]
Summary of sales of securities and the net proceeds	Shares Net Proceeds Common Stock 1,347,458 $ 1,363,160 Series A Preferred Stock 46,857 870,386 Total $ 2,233,546

4. FAIR VALUE MEASUREMENTS (Det

4. FAIR VALUE MEASUREMENTS (Details) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Derivative Assets		$ 3,728,588
Commodity derivatives - oil
Derivative Assets	$ 1,310,008	3,442,693
Derivative liability	153,991
Commodity derivatives - gas
Derivative Assets		285,895
Quoted prices in active markets (Level 1)
Derivative Assets		0
Quoted prices in active markets (Level 1) | Commodity derivatives - oil
Derivative Assets	0	0
Derivative liability	0
Quoted prices in active markets (Level 1) | Commodity derivatives - gas
Derivative Assets		0
Significant other observable inputs (Level 2)
Derivative Assets		3,728,588
Significant other observable inputs (Level 2) | Commodity derivatives - oil
Derivative Assets	1,310,008	3,442,693
Derivative liability	153,991
Significant other observable inputs (Level 2) | Commodity derivatives - gas
Derivative Assets		285,895
Significant unobservable inputs (Level 3)
Derivative Assets		0
Significant unobservable inputs (Level 3) | Commodity derivatives - oil
Derivative Assets	0	0
Derivative liability	$ 0
Significant unobservable inputs (Level 3) | Commodity derivatives - gas
Derivative Assets		$ 0

5. COMMODITY DERIVATIVE INSTR34

5. COMMODITY DERIVATIVE INSTRUMENTS (Details)		Dec. 31, 2017bblMMBbls$ / MMBTU$ / bbl	Dec. 31, 2016bblMMBbls$ / MMBTU$ / bbl
Swaps
Volume | MMBbls			245,068
Price(NYMEX) | $ / MMBTU	[1]		2.628
Volume | bbl			64,333
Price(LLS)			62.27
Ceiling sold price (call) (WTI)			40
3-Way Collars
Volume | MMBbls		248,023
Ceiling sold price (call) (NYMEX) | $ / MMBTU	[1]	3.280
Floor purchased price (put) (NYMEX) | $ / MMBTU	[1]	2.946
Floor sold price (short put) (NYMEX) | $ / MMBTU	[1]	2.381
Volume | bbl		113,029	23,449
Ceiling sold price (call) (WTI)		77	47.15
Put Spread
Floor purchased price (put) (WTI)		60	40
Floor sold price (short put) (WTI)		45	30
[1]	Price is a weighted average

5. COMMODITY DERIVATIVE INSTR35

5. COMMODITY DERIVATIVE INSTRUMENTS (Details 1) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Asset commodity derivatives:
Current assets	$ 1,433,402	$ 3,069,115
Noncurrent assets	661,835	1,841,120
Total	2,095,237	4,910,235
Liability commodity derivatives:
Current liabilities	(597,200)	(411,068)
Noncurrent liabilities	(342,020)	(770,579)
Total	(939,220)	(1,181,647)
Total commodity derivative instruments	$ 1,156,017	$ 3,728,588

5. COMMODITY DERIVATIVE INSTR36

5. COMMODITY DERIVATIVE INSTRUMENTS (Details 2) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Commodity Derivative Instruments Details 2
Sales of natural gas and crude oil	$ 3,124,424	$ 5,534,894	$ 6,056,010	$ 10,107,573
ain realized from sale of commodity derivatives	0	0	0	4,030,000
Other gains (losses) realized on commodity derivatives	557,693	(255,049)	1,716,807	651,785
Unrealized losses on commodity derivatives	(1,784,395)	(1,441,930)	(2,572,571)	(5,308,196)
Total revenue from natural gas and crude oil	$ 1,897,722	$ 3,837,915	$ 5,200,246	$ 9,481,162

5. COMMODITY DERIVATIVE INSTR37

5. COMMODITY DERIVATIVE INSTRUMENTS (Details 3) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Balance, beginning of period, before tax	$ 0	$ 63,091
Balance, beginning of period, after tax	0	38,801
Sale of unexpired contracts previously subject to hedge accounting rules before tax	0	(119,917)
Sale of unexpired contracts previously subject to hedge accounting rules after tax	0	(73,749)
Other reclassifications due to expired contracts previously subject to hedge accounting rules, before tax	0	56,826
Other reclassifications due to expired contracts previously subject to hedge accounting rules, after tax	0	34,948
Balance, end of period, before tax	0	0
Balance, end of period, after tax	$ 0	$ 0

6. ASSET IMPAIRMENTS (Details N

6. ASSET IMPAIRMENTS (Details Narrative) - USD ($)	3 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Asset Impairments
Non-cash asset impairment charge to write down oil and gas properties	$ 11,015,589
Non-cash asset impairment to write off goodwill		$ 4,927,508

8. STOCK-BASED COMPENSATION (De

8. STOCK-BASED COMPENSATION (Details)	6 Months Ended
	Jun. 30, 2016$ / sharesshares
Granted	0
RSA
Unvested shares as of January 1, 2016	2,514,434
Granted	132,244
Forfeited	(132,244)
Vested	(983,804)
Unvested shares as of June 30, 2016	1,530,630
Weighted Average Grant-Date Fair Value
Beginning of period | $ / shares	$ 0.87
Granted | $ / shares	0.21
Forfeited | $ / shares	0.73
Vested | $ / shares	0.68
End of period | $ / shares	$ 0.95

8. STOCK-BASED COMPENSATION (40

8. STOCK-BASED COMPENSATION (Details 1)	6 Months Ended
	Jun. 30, 2016$ / sharesshares
Granted	0
SARs [Member]
Unvested shares as of January 1, 2016	1,912,419
Granted	103,745
Forfeited	(103,745)
Vested	(789,117)
Unvested shares as of June 30, 2016	1,123,302
Weighted Average Grant-Date Fair Value
Beginning of period | $ / shares	$ 0.30
Granted | $ / shares	0.03
Forfeited | $ / shares	0.32
Vested | $ / shares	0.24
End of period | $ / shares	$ 0.32

8. STOCK-BASED COMPENSATION (41

8. STOCK-BASED COMPENSATION (Details 2)	6 Months Ended
	Jun. 30, 2016USD ($)$ / sharesshares
Stock-based Compensation Details 2
Number of Options Outstanding, Beginning | shares	105,000
Number of Options Granted | shares	0
Number of Options Exercised | shares	0
Number of Options Forfeited | shares	(5,000)
Number of Options Outstanding, Ending | shares	100,000
Number of Options Vested | shares	100,000
Number of Options Exercisable | shares	100,000
Weighted Average Exercise Price Outstanding, Beginning	$ 5.17
Weighted Average Exercise Price Granted	0
Weighted Average Exercise Price Exercised	0
Weighted Average Exercise Price Forfeited	5.40
Weighted Average Exercise Price Outstanding, Ending	5.16
Weighted Average Exercise Price Vested	5.16
Weighted Average Exercise Price Exercisable	$ 5.16
Weighted Average Remaining Contractual Life (in years) Outstanding	2 years 7 months 24 days
Weighted Average Remaining Contractual Life (in years) at June 30, 2016	2 years 3 months 7 days
Weighted Average Remaining Contractual Life (in years) Vested at June 30, 2016	2 years 3 months 7 days
Weighted Average Remaining Contractual Life (in years) Exercisable at June 30, 2016	2 years 3 months 7 days
Aggregate Intrinsic Value Outstanding, Beginning | $	$ 0
Aggregate Intrinsic Value Granted	$ 0
Aggregate Intrinsic Value Exercised | $	$ 0
Aggregate Intrinsic Value Forfeited	$ 0
Aggregate Intrinsic Value Outstanding, Ending | $	$ 0
Aggregate Intrinsic Value Vested, Ending | $	0
Aggregate Intrinsic Value Exercisable, Ending | $	$ 0

8. STOCK-BASED COMPENSATION (42

8. STOCK-BASED COMPENSATION (Details 3) - RSUs	6 Months Ended
	Jun. 30, 2016$ / sharesshares
Unvested shares as of January 1, 2016 | shares	80,278
Vested on April 1, 2016 | shares	(80,278)
Unvested shares as of June 30, 2016 | shares	0
Beginning of period | $ / shares	$ 2.72
Vested on April 1, 2016 | $ / shares	2.72
End of period | $ / shares	$ 0

9. EARNINGS (LOSS) PER COMMON43

9. EARNINGS (LOSS) PER COMMON SHARE (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Earnings Loss Per Common Share Details
Restricted Stock Awards	2,041,498	640,499	2,239,594	1,271,916
Restricted Stock Units	0	95,424	0	95,424
Total	2,041,498	735,923	2,239,594	1,367,340

10. DEBT AND INTEREST EXPENSE44

10. DEBT AND INTEREST EXPENSE (Details) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Total Debt	$ 29,800,000	$ 30,063,635
Less: current portion	(29,800,000)	(30,063,635)
Total long-term debt	0	0
Variable rate revolving credit facility payable [Member]
Total Debt	29,800,000	29,800,000
Installment loan due February 29, 2016 [Member]
Total Debt	0	108,894
Installment loan due June 11, 2016 [Member]
Total Debt	$ 0	$ 154,741

10. DEBT AND INTEREST EXPENSE45

10. DEBT AND INTEREST EXPENSE (Details 1) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Debt Disclosure [Abstract]
Credit agreement	$ 259,649	$ 280,113	$ 517,377	$ 521,407
Credit agreement commitment fees	0	9,331	0	25,159
Amortization of credit agreement loan costs	195,516	71,613	457,990	136,757
Insurance installment loan	291	3,471	1,961	5,197
Other interest charges	89	186	5,029	1,023
Capitalized interest	(129,149)	(250,336)	(253,313)	(483,158)
Total interest expense	$ 326,396	$ 114,378	$ 729,044	$ 206,385

12. INCOME TAXES (Details)

12. INCOME TAXES (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Taxes Tables
Consolidated net income (loss) before income taxes	$ (15,766,990)	$ (11,190,584)	$ (19,973,009)	$ (17,168,158)
Income tax expense (benefit)	$ (692,302)	$ (1,640,910)	$ (1,225,235)	$ (3,935,492)
Effective tax rate	4.40%	14.70%	6.10%	22.90%

13. AT MARKET ISSUANCE SALES AG

13. AT MARKET ISSUANCE SALES AGREEMENT (Details)	6 Months Ended
	Jun. 30, 2016USD ($)shares
Net Proceeds	$ 2,233,546
COMMON STOCK
Shares | shares	1,347,458
Net Proceeds	$ 1,363,160
Series A Preferred Stock
Shares | shares	46,857
Net Proceeds	$ 870,386