0001493152-23-028404.txt : 20230814 0001493152-23-028404.hdr.sgml : 20230814 20230814160618 ACCESSION NUMBER: 0001493152-23-028404 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 51 CONFORMED PERIOD OF REPORT: 20230630 FILED AS OF DATE: 20230814 DATE AS OF CHANGE: 20230814 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HOUSTON AMERICAN ENERGY CORP CENTRAL INDEX KEY: 0001156041 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] IRS NUMBER: 760675953 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-32955 FILM NUMBER: 231169872 BUSINESS ADDRESS: STREET 1: 801 TRAVIS STREET, SUITE 1425 CITY: HOUSTON STATE: TX ZIP: 77002 BUSINESS PHONE: 7132226966 MAIL ADDRESS: STREET 1: 801 TRAVIS STREET SUITE 1425 CITY: HOUSTON STATE: TX ZIP: 77002 10-Q 1 form10-q.htm
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

FORM 10-Q

 

(Mark One)

 

QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended June 30, 2023

 

OR

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from ___________ to ______________.

 

Commission File Number 1-32955

 

HOUSTON AMERICAN ENERGY CORP.

(Exact name of registrant as specified in its charter)

 

Delaware   76-0675953
(State or other jurisdiction of incorporation or organization)   (IRS Employer Identification No.)

 

  801 Travis Street, Suite 1425, Houston, Texas 77002  
  (Address of principal executive offices)(Zip Code)  

 

  (713) 222-6966  
  (Registrant’s telephone number, including area code)  

 

     
  (Former name, former address and former fiscal year, if changed since last report)  

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading Symbol(s)

 

Name of each exchange on which registered

Common Stock, $0.001 par value per share

  HUSA   NYSE American

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

 

Large accelerated filer Accelerated filer Non-accelerated filer
Smaller reporting company Emerging growth company    

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).Yes ☐ No

 

As of August 14, 2023, we had 10,906,353 shares of $0.001 par value common stock outstanding.

 

 

 

 

 

 

HOUSTON AMERICAN ENERGY CORP.

 

FORM 10-Q

 

INDEX

 

    Page No.
PART I. FINANCIAL INFORMATION
     
Item 1. Financial Statements (Unaudited)
     
  Consolidated Balance Sheets as of June 30, 2023 (Unaudited) and December 31, 2022 3
     
  Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2023 and 2022 (Unaudited) 4
     
  Consolidated Statements of Changes in Shareholders’ Equity for the Three and Six Months Ended June 30, 2023 and 2022 (Unaudited) 5
     
  Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2023 and 2022 (Unaudited) 6
     
  Notes to Consolidated Financial Statements (Unaudited) 7
     
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 13
     
Item 3. Quantitative and Qualitative Disclosures About Market Risk 17
     
Item 4. Controls and Procedures 17
     
PART II OTHER INFORMATION
     
Item 6. Exhibits 17

 

2

 

 

PART I - FINANCIAL INFORMATION

 

ITEM 1 Financial Statements

 

HOUSTON AMERICAN ENERGY CORP.

CONSOLIDATED BALANCE SHEETS

 

  

June 30,

2023

  

December 31,

2022

 
    (Unaudited)      
ASSETS          
CURRENT ASSETS          
Cash  $5,532,834   $4,547,210 
Accounts receivable – oil and gas sales   278,546    164,575 
Prepaid expenses and other current assets   181,506    84,544 
TOTAL CURRENT ASSETS   5,992,886    4,796,329 
           
PROPERTY AND EQUIPMENT          
Oil and gas properties, full cost method          
Costs subject to amortization   62,774,064    62,786,267 
Costs not being amortized   2,343,126    2,343,126 
Office equipment   90,004    90,004 
Total   65,207,194    65,219,397 
Accumulated depletion, depreciation, amortization, and impairment   (60,693,947)   (60,602,051)
PROPERTY AND EQUIPMENT, NET   4,513,247    4,617,346 
           
Equity investment – Hupecol Meta LLC   2,584,086    2,102,139 
Right of use asset   179,366    212,202 
Other assets   3,167    3,167 
TOTAL ASSETS  $13,272,752   $11,731,183 
           
LIABILITIES AND SHAREHOLDERS’ EQUITY          
CURRENT LIABILITIES          
Accounts payable  $79,678   $113,741 
Accrued expenses   17,354    16,035 
Current portion of lease liability   70,183    65,385 
TOTAL CURRENT LIABILITIES   167,215    195,161 
           
LONG-TERM LIABILITIES          
Lease liability, net of current portion   109,967    146,359 
Reserve for plugging and abandonment costs   60,587    72,789 
TOTAL LONG-TERM LIABILITIES   170,554    219,148 
           
TOTAL LIABILITIES   337,769    414,309 
           
COMMITMENTS AND CONTINGENCIES   -   - 
SHAREHOLDERS’ EQUITY          
Common stock, par value $0.001; 12,000,000 shares authorized 10,906,353 and 10,327,646 shares issued and outstanding, respectively   10,907    10,328 
Additional paid-in capital   86,908,002    85,094,266 
Accumulated deficit   (73,983,926)   (73,787,720)
TOTAL SHAREHOLDERS’ EQUITY   12,934,983    11,316,874 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY  $13,272,752   $11,731,183 

 

The accompanying notes are an integral part of these unaudited consolidated financial statements.

 

3

 

 

HOUSTON AMERICAN ENERGY CORP.

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2023 AND 2022

(Unaudited)

 

   2023   2022   2023   2022 
  

Six Months

Ended June 30,

  

Three Months

Ended June 30,

 
   2023   2022   2023   2022 
                 
OIL AND GAS REVENUE  $434,414   $886,809   $204,390   $462,989 
                     
EXPENSES OF OPERATIONS                    
Lease operating expense and severance tax   215,400    311,757    101,714    150,485 
General and administrative expense   1,046,434    628,996    716,615    258,896 
Depreciation and depletion   91,896    109,740    44,941    51,501 
Total operating expenses   1,353,730    1,050,493    863,270    460,882 
                     
Income (loss) from operations   (919,316)   (163,684)   (658,880)   2,107 
                     
OTHER INCOME                    
Interest income   74,635    2,489    44,135    2,258 
Other income   648,475        314,364     
Total other income   723,110    2,489    358,499    2,258 
                     
Net income (loss) before taxes   (196,206)   (161,195)   (300,381)   4,365 
                     
Income tax expense                
                     
Net income (loss)  $(196,206)  $(161,195)  $(300,381)  $4,365 
                     
Basic income (loss) per common share  $(0.02)  $(0.02)  $(0.03)  $0.00 
                     
Basic weighted average number of common shares outstanding   10,659,076    9,923,338    10,896,996    9,923,338 

 

The accompanying notes are an integral part of these unaudited consolidated financial statements.

 

4

 

 

HOUSTON AMERICAN ENERGY CORP.

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2023 AND 2022

(Unaudited)

 

   Shares   Amount   Capital   Deficit   Total 
           Additional         
   Common Stock   Paid-in   Accumulated     
   Shares   Amount   Capital   Deficit   Total 
                     
Balance – December 31, 2022   10,327,646   $10,328   $85,094,266   $(73,787,720)  $11,316,874 
                          
Stock-based compensation           84,445        84,445 
Issuance of common stock   294,872    295    901,205        901,500 
Net income               104,175    104,175 
                          
Balance – March 31, 2023   10,622,518    10,623    86,079,916    (73,683,545)   12,406,994 
                          
Stock-based compensation           77,870        77,870 
Issuance of common stock   283,835    284    750,216        750,500 
Net loss               (300,381)   (300,381)
                          
Balance – June 30, 2023   10,906,353   $10,907   $86,908,002   $(73,983,926)  $12,934,983 

 

           Additional         
   Common Stock   Paid-in   Accumulated     
   Shares   Amount   Capital   Deficit   Total 
                     
Balance – December 31, 2021   9,928,338   $9,928   $83,345,456   $(73,043,441)  $10,311,943 
                          
Stock-based compensation           85,485        85,485 
Net loss               (165,560)   (165,560)
                          
Balance – March 31, 2022   9,928,338    9,928    83,430,941    (73,209,001)   10,231,868 
                          
Stock-based compensation           25,520        25,520 
Net income               4,365    4,365 
                          
Balance – June 30, 2022   9,928,338   $9,928   $83,456,461   $(73,204,636)  $10,261,753 

 

The accompanying notes are an integral part of these unaudited consolidated financial statements.

 

5

 

 

HOUSTON AMERICAN ENERGY CORP.

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30, 2023 AND 2022

(Unaudited)

 

   2023   2022 
   For the Six Months Ended June 30, 
   2023   2022 
         
CASH FLOWS FROM OPERATING ACTIVITIES          
Net loss  $(196,206)  $(161,195)
Adjustments to reconcile net loss to net cash used in operations:          
Depreciation and depletion   91,896    109,740 
Accretion of asset retirement obligation   2,678    3,697 
Stock-based compensation   162,315    111,005 
Amortization of right of use asset   32,836    30,169 

Earnings distribution from Hupecol Meta LLC

   (648,475)    
Changes in operating assets and liabilities:          
Increase in accounts receivable   (113,971)   (52,164)
Increase in prepaid expenses and other current assets   534,155    (14,467)
Decrease in accounts payable and accrued expenses   (51,101)   (24,552)
Decrease in operating lease liability   (31,594)   (31,594)
           
Net cash used in operating activities   (217,467)   (29,361)
           
CASH FLOWS FROM INVESTING ACTIVITIES          
Payments for the acquisition and development of oil and gas properties       (14,162)
Payments for capital contribution for equity investment   (448,909)   (248,282)
           
Net cash used in investing activities   (448,909)   (262,444)
           
CASH FLOWS FROM FINANCING ACTIVITIES          
Proceeds from issuance of common stock for cash, net of offering costs   1,652,000     
           
Net cash provided by financing activities   1,652,000     
           
Increase (decrease) in cash   985,624    (291,805)
Cash, beginning of period   4,547,210    4,894,577 
Cash, end of period  $5,532,834   $4,602,772 
           
SUPPLEMENTAL CASH FLOW INFORMATION          
Interest paid  $   $ 
Taxes paid  $   $ 
           
SUPPLEMENTAL NON-CASH INVESTING AND FINANCING ACTIVITIES          
Changes in estimate of asset retirement obligations, net  $1,259   $
Changes in accrued equity investment contributions and distributions  $33,038   $

 

The accompanying notes are an integral part of these unaudited consolidated financial statements.

 

6

 

 

HOUSTON AMERICAN ENERGY CORP.

Notes to Consolidated Financial Statements

(Unaudited)

 

NOTE 1 – BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

 

The accompanying unaudited consolidated financial statements of Houston American Energy Corp., a Delaware corporation (the “Company”), have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q. They do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for a complete financial presentation. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, considered necessary for a fair presentation, have been included in the accompanying unaudited consolidated financial statements. Operating results for the periods presented are not necessarily indicative of the results that may be expected for the full year.

 

These unaudited consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and footnotes, which are included as part of the Company’s Form 10-K for the year ended December 31, 2022.

 

Consolidation

 

The accompanying consolidated financial statements include all accounts of the Company and its subsidiaries (HAEC Louisiana E&P, Inc., HAEC Oklahoma E&P, Inc., and HAEC Caddo Lake E&P, Inc.). All significant inter-company balances and transactions have been eliminated in consolidation.

 

Liquidity and Capital Requirements

 

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business for the twelve-month period following the issuance date of these consolidated financial statements. With limited exceptions, the Company has incurred continuing losses since 2011, with an accumulated deficit of $74 million as of June 30, 2023.

 

The Company believes that it has the ability to fund, from cash on hand, its operating costs and anticipated drilling operations for at least the next twelve months following the issuance of these financial statements.

 

The actual timing and number of wells drilled during 2023 and beyond will be principally controlled by the operators of the Company’s acreage, based on a number of factors, including but not limited to availability of financing, performance of existing wells on the subject acreage, energy prices and industry condition and outlook, costs of drilling and completion services and equipment and other factors beyond the Company’s control or that of its operators.

 

In the event that the Company pursues additional acreage acquisitions or expands its drilling plans, the Company may be required to secure additional funding beyond our resources on hand. While the Company may, among other efforts, seek additional funding from “at-the-market” sales of common stock, and private sales of equity and debt securities, it presently does not have any commitments to provide additional funding, has limited shares of common stock available to support capital raising efforts and there can be no assurance that the Company can secure the necessary capital to fund its share of drilling, acquisition or other costs on acceptable terms or at all. If, for any reason, the Company is unable to fund its share of drilling and completion costs, it would forego participation in one or more of such wells. In such event, the Company may be subject to penalties or to the possible loss of some of its rights and interests in prospects with respect to which it fails to satisfy funding obligations and it may be required to curtail operations and forego opportunities.

 

Accounting Principles and Use of Estimates

 

The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America. In preparing financial statements, management makes informed judgments and estimates that affect the reported amounts of assets and liabilities as of the date of the financial statements and affect the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, management reviews its estimates, including those related to such potential matters as litigation, environmental liabilities, income taxes and the related valuation allowance, determination of proved reserves of oil and gas and asset retirement obligations. Changes in facts and circumstances may result in revised estimates and actual results may differ from these estimates.

 

7

 

 

Concentration of Credit Risk

 

Financial instruments that potentially subject the Company to a concentration of credit risk include cash, cash equivalents (if any) and any marketable securities (if any). The Company had cash deposits of $5.1 million in excess of the FDIC’s current insured limit on interest bearing accounts of $250,000 as of June 30, 2023. The Company also had cash deposits of $5,500 in Colombian banks at June 30, 2023 that are not insured by the FDIC. The Company has not experienced any losses on its deposits of cash and cash equivalents.

 

Earnings (Loss) per Share

 

Basic earnings (loss) per share is computed by dividing net earnings (loss) available to common shareholders by the weighted average common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common shares were exercised or converted in common shares that then shared in the earnings of the Company. In periods in which the Company reports a net loss, dilutive securities are excluded from the calculation of diluted net loss per share amounts as the effect would be anti-dilutive.

 

Recently Issued Accounting Pronouncements

 

In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses of Financial Instruments, which was codified in Accounting Standards Codification (“ASC”) 326, Financial Instruments — Credit Losses (“ASC 326”). The standard changes the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. Because the Company is a smaller reporting company based on the most recent determination as of November 15, 2019, ASC 326 became effective for the Company for fiscal years beginning after December 15, 2022. As such, the Company adopted ASC 326 effective January 1, 2023, utilizing the modified retrospective transition method. Upon adoption, the Company updated its impairment model to utilize a forward-looking current expected credit losses (“CECL”) model in place of the incurred loss methodology for financial instruments measured at amortized cost, primarily including its accounts receivable and contract asset. In relation to available-for-sale (“AFS”) debt securities, the guidance eliminates the concept of “other-than-temporary” impairment, and instead focuses on determining whether any impairment is a result of a credit loss or other factors. The adoption of ASC 326 did not have a material impact on our unaudited condensed consolidated financial statements as of the adoption date.

 

NOTE 2 – REVENUE FROM CONTRACTS WITH CUSTOMERS

 

Disaggregation of Revenue from Contracts with Customers

 

The following table disaggregates revenue by significant product type for the three and six-month periods ended June 30, 2023 and 2022:

 

  

Three Months Ended

June 30, 2023

  

Three Months Ended

June 30, 2022

  

Six Months Ended

June 30, 2023

  

Six Months Ended

June 30, 2022

 
Oil sales  $150,767   $263,427   $313,049   $542,905 
Natural gas sales   16,963    119,824    41,874    191,206 
Natural gas liquids sales   36,660    79,738    79,491    152,698 
Total revenue from customers  $204,390   $462,989   $434,414   $886,809 

 

There were no significant contract liabilities or transaction price allocations to any remaining performance obligations as of June 30, 2023 or 2022.

 

8

 

 

NOTE 3 – OIL AND GAS PROPERTIES

 

During the six months ended June 30, 2023, the Company incurred costs attributable to final expenses related to the plugging and abandonment of the Lou Brock well.

 

During the three and six months ended June 30, 2023, the Company recorded depletion expense of $44,941 and $79,640, respectively. During the three and six months ended June 30, 2022, the Company recorded depletion expense of $91,896 and $109,740, respectively.

 

Geographical Information

 

The Company currently has properties in two geographical areas, the United States and Colombia. Revenues for the six months ended June 30, 2023 and long lived assets (net of depletion, amortization, and impairments) as of June 30, 2023 attributable to each geographical area are presented below:

 

  

Six Months Ended

June 30, 2023

  

As of

June 30, 2023

 
   Revenues   Long Lived Assets, Net 
United States  $434,414   $2,170,121 
Colombia       2,343,126 
Total  $434,414   $4,513,247 

 

Revenues and long-lived assets attributable to the Company’s investments in Hupecol Meta LLC (“Hupecol Meta”), and its underlying assets and operations in Colombia, are excluded from the above table.

 

NOTE 4 – EQUITY INVESTMENT

 

The Company’s carrying value of its holdings in Hupecol Meta is reflected in the line item “equity investment – Hupecol Meta LLC” on the Company’s Consolidated Balance Sheet.

 

During the six months ended June 30, 2023, the Company made capital contributions totaling $481,947, to Hupecol Meta to cover its share of required capital contributions. During the six months ended June 30, 2023, the Company received distributions, totaling $648,475, from Hupecol Meta representing the Company’s share of distributable net profits.

 

NOTE 5 – STOCK-BASED COMPENSATION EXPENSE

 

In 2008, the Company adopted the Houston American Energy Corp. 2008 Equity Incentive Plan (the “2008 Plan”). The terms of the 2008 Plan, as amended in 2012 and 2013, allow for the issuance of up to 480,000 shares of the Company’s common stock pursuant to the grant of stock options and restricted stock.

 

In 2017, the Company adopted the Houston American Energy Corp. 2017 Equity Incentive Plan (the “2017 Plan”). The terms of the 2017 Plan, allow for the issuance of up to 400,000 shares of the Company’s common stock pursuant to the grant of stock options and restricted stock.

 

In 2021, the Company adopted the Houston American Energy 2021 Equity Incentive Plan (the “2021 Plan” and, together with the 2008 Plan and the 2017 Plan, the “Plans”). The terms of the 2021 Plan allow for the issuance of up to 500,000 shares of the Company’s common stock pursuant to the grant of stock options and restricted stock.

 

Persons eligible to participate in the Plans are key employees, consultants and directors of the Company.

 

The Company periodically grants options to employees, directors and consultants under the Plans and is required to make estimates of the fair value of the related instruments and recognize expense over the period benefited, usually the vesting period.

 

9

 

 

Stock Option Activity

 

A summary of stock option activity and related information for the six months ended June 30, 2023 is presented below:

 

   Options  

Weighted-Average

Exercise Price

  

Aggregate

Intrinsic Value

 
             
Outstanding at January 1, 2023   944,177   $2.08      
Granted   60,000    2.09      
Exercised             
Forfeited             
Outstanding at June 30, 2023   1,004,177   $2.45   $286,160 
Exercisable at June 30, 2023   958,851   $2.46   $284,240 

 

During the six months ended June 30, 2023, options to purchase an aggregate of 60,000 shares of the Company’s common stock were granted to the Company’s directors. The options have a ten-year life, are exercisable at $2.09 per share, vest 20% on the date of grant and 80% nine months from the date of grant. The grant date fair value of these stock options was $119,252 based on the Black-Scholes Option Pricing model based on the following assumptions: market value of common stock on grant date – $2.13; risk free interest rate based on the applicable US Treasury bill rate – 0%; dividend yield – 0%; volatility factor based on the trading history of the Company – 116%; weighted average expected life in years – 10; and expected forfeiture rate – 0%.

 

During the three and six months ended June 30, 2023, the Company recognized $77,870 and $162,315, respectively, of stock-based compensation expense attributable to the amortization of stock options. As of June 30, 2023, total unrecognized stock-based compensation expense related to non-vested stock options was approximately $119,253. The unrecognized expense is expected to be recognized over a weighted average period of 2.23 years and the weighted average remaining contractual term of the outstanding options and exercisable options at June 30, 2023 is 5.78 years and 6.13 years, respectively.

 

As of June 30, 2023, there were 181,333 shares of common stock available for issuance pursuant to future stock or option grants under the Plans.

 

Stock-Based Compensation Expense

 

The following table reflects total stock-based compensation recorded by the Company for the six months ended June 30, 2023 and 2022:

 

   2023   2022 
  

Six Months Ended

June 30,

 
   2023   2022 
         
Stock-based compensation expense included in general and administrative expense  $162,315   $111,005 
Earnings per share effect of share-based compensation expense – basic and diluted  $(0.02)  $(0.01)

 

NOTE 6 – CAPITAL STOCK

 

Common Stock – At-the Market Offering

 

In November 2022, the Company entered into an At-the-Market Sales Agreement (the “Sales Agreement”) with Univest Securities, LLC (“Univest”) pursuant to which the Company could sell (the “2022 ATM Offering”), at its option, up to an aggregate of $3.5 million in shares of its common stock through Univest, as sales agent. Sales of shares under the Sales Agreement (the “2022 ATM Offering”) were made, in accordance with placement notices delivered to Univest, which notices set parameters under which shares could be sold. The 2022 ATM Offering was made pursuant to a shelf registration statement by methods deemed to be “at the market,” as defined in Rule 415 promulgated under the Securities Act of 1933. The Company paid Univest a commission in cash equal to 3% of the gross proceeds from the sale of shares in the 2022 ATM Offering. The Company reimbursed Univest for $25,000 of expenses incurred in connection with the 2022 ATM Offering.

 

During the six months ended June 30, 2023, the Company sold an aggregate of 578,707 shares in connection with the 2022 ATM Offering and received proceeds, net of commissions and expenses, of $1,652,000.

 

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Warrants

 

A summary of warrant activity and related information for 2023 is presented below:

 

   Warrants  

Weighted-Average

Exercise Price

  

Aggregate

Intrinsic Value

 
             
Outstanding at January 1, 2023   94,400   $ 2.46               
Issued             
Exercised             
Expired             
Outstanding at June 30, 2023   94,400   $2.46   $- 
Exercisable at June 30, 2023   94,400   $2.46   $- 

 

NOTE 7 – EARNINGS PER COMMON SHARE

 

Earnings (loss) per common share-basic is calculated by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Net income (loss) per common share-diluted assumes the conversion of all potentially dilutive securities and is calculated by dividing net (loss) income by the sum of the weighted average number of shares of common stock, as defined above, outstanding plus potentially dilutive securities. Net income (loss) per common share-diluted considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of the potential common shares, as defined above, would have an anti-dilutive effect.

 

The calculation of earnings (loss) per common share for the periods indicated below were as follows:

 

Numerator:  2023   2022   2023   2022 
   Three Months Ended June 30,   Six Months Ended June 30, 
Numerator:  2023   2022   2023   2022 
Net income (loss)  $(300,381)  $4,365   $(196,206)  $(161,195)
                     
Effect of common stock equivalents                
Net income (loss) adjusted for common stock equivalents  $(300,381)  $4,365   $(196,206)  $(161,195)
                     
Denominator:                    
Weighted average common shares – basic   10,896,996    9,923,338    10,659,076    9,923,338 
                     
Dilutive effect of common stock equivalents:                    
Options and warrants       455,953         
                     
Denominator:                    
Weighted average common shares – diluted   10,896,996    10,379,291    10,659,076    9,923,338 
                     
Earnings (loss) per common share – basic  $(0.03)  $0.00   $(0.02)  $(0.02)
Earnings (loss) per common share – diluted  $(0.03)  $0.00   $(0.02)  $(0.02)

 

For the three and six months ended June 30, 2023 and 2022, the following warrants and options to purchase shares of common stock were excluded from the computation of diluted net loss per share, as the inclusion of such shares would be anti-dilutive:

 

   2023   2022   2023   2022 
   Six Months Ended June 30,   Three Months Ended June 30, 
   2023   2022   2023   2022 
Stock warrants   94,400    94,400    94,400    94,400 
Stock options   1,004,177    74,000    1,004,177    990,177 
Total   1,098,577    168,400    1,098,577    1,084,577 

 

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NOTE 8 – COMMITMENTS AND CONTINGENCIES

 

Lease Commitment

 

The Company leases office facilities under an operating lease agreement that expires October 31, 2025. During the three and six months ended June 30, 2023, the operating cash outflows related to operating lease liabilities totaled $21,560 and $43,121, respectively, and the expense for the right of use asset for operating leases totaled $22,161 and $44,322, respectively. As of June 30, 2023, the Company’s operating lease had a weighted-average remaining term of 2.3 years and a weighted average discount rate of 12%. As of June 30, 2023, the lease agreement requires future payments as follows:

 

Year  Amount 
2023  $43,770 
2024   88,801 
2025   75,051 
Total future lease payments   207,622 
Less: imputed interest   27,472 
Present value of future operating lease payments   180,150 
Less: current portion of operating lease liabilities   70,183 
Operating lease liabilities, net of current portion  $109,967 
Right of use assets  $179,366 

 

Total base rental expense was $22,570 and $22,161 for the three months ended June 30, 2023 and 2022, respectively, and $45,731 and $46,836 for the six months ended June 30, 2023 and 2022, respectively. The Company does not have any capital leases or other operating lease commitments.

 

12

 

 

ITEM 2 MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

Forward-Looking Information

 

This Form 10-Q quarterly report of Houston American Energy Corp. (the “Company”) for the six months ended June 30, 2023, contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. To the extent that there are statements that are not recitations of historical fact, such statements constitute forward-looking statements that, by definition, involve risks and uncertainties. In any forward-looking statement, where we express an expectation or belief as to future results or events, such expectation or belief is expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the statement of expectation or belief will be achieved or accomplished.

 

The actual results or events may differ materially from those anticipated and as reflected in forward-looking statements included herein. Factors that may cause actual results or events to differ from those anticipated in the forward-looking statements included herein include the Risk Factors described in Item 1A herein and in our Form 10-K for the year ended December 31, 2022.

 

Readers are cautioned not to place undue reliance on the forward-looking statements contained herein, which speak only as of the date hereof. We believe the information contained in this Form 10-Q to be accurate as of the date hereof. Changes may occur after that date, and we will not update that information except as required by law in the normal course of our public disclosure practices.

 

Additionally, the following discussion regarding our financial condition and results of operations should be read in conjunction with the financial statements and related notes contained in Item 1 of Part 1 of this Form 10-Q, as well as the Risk Factors in Item 1A and the financial statements in Item 7 of Part II of our Form 10-K for the fiscal year ended December 31, 2022.

 

Critical Accounting Policies

 

The discussion and analysis of our financial condition and results of operations is based upon our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. We believe certain critical accounting policies affect the more significant judgments and estimates used in the preparation of our financial statements. A description of our critical accounting policies is set forth in our Form 10-K for the year ended December 31, 2022. As of, and for the six months ended, June 30, 2023, there have been no material changes or updates to our critical accounting policies.

 

Unevaluated Oil and Gas Properties

 

Unevaluated oil and gas properties not subject to amortization, include the following at June 30, 2023:

 

   June 30, 2023 
Acquisition costs  $143,847 
Development and evaluation costs   2,199,279 
Total  $2,343,126 

 

The carrying value of unevaluated oil and gas prospects above was primarily attributable to legacy properties in the South American country of Colombia, a substantial portion of which is expected to be reclassified to “costs subject to amortization” and evaluated for impairment.

 

Recent Developments

 

Drilling Activity

 

During the six months ended June 30, 2023:

 

  no drilling activities were conducted on our U.S. properties;
     
  our capital investment expenditures totaled $481,948, principally attributable to investments in our equity investment in Hupecol Meta LLC (“Hupecol Meta”); and
     
  Hupecol Meta LLC drilled and completed, and production commenced on, the Venus 1-H horizontal well in Colombia.

 

13

 

 

In July 2023, the Venus 2-H well was spud, plugged back and side-tracked by Hupecol Meta as the Venus 2-H ST1 well and, in August 2023, the well was completed and brought on production. Our estimated share of cost associated with the Venus 2-H ST1 well is $600,000.

 

Distributions from Equity Investment

 

During the six months ended June 30, 2023, we received distributions, totaling $648,475, from Hupecol Meta, representing our share of distributable net income and reflected as “Other Income” on our Statement of Operations.

 

Financing – At-the Market Offering

 

In November 2022, we entered into an At-the-Market Sales Agreement (the “Sales Agreement”) with Univest Securities, LLC (“Univest”) pursuant to which we could sell (the “2022 ATM Offering”), at our option, up to an aggregate of $3.5 million in shares of common stock through Univest, as sales agent. Sales of shares under the Sales Agreement (the “2022 ATM Offering”) were made, in accordance with placement notices delivered to Univest, which notices set parameters under which shares could be sold. The 2022 ATM Offering was made pursuant to a shelf registration statement by methods deemed to be “at the market,” as defined in Rule 415 promulgated under the Securities Act of 1933. We pay Univest a commission in cash equal to 3% of the gross proceeds from the sale of shares in the 2022 ATM Offering. We reimbursed Univest for $25,000 of expenses incurred in connection with the 2022 ATM Offering.

 

During the six months ended June 30, 2023, we sold an aggregate of 578,707 shares in connection with the 2022 ATM Offering and received proceeds, net of commissions and expenses, of $1,652,000.

 

Executive Compensation Changes

 

During the six months ended June 30, 2023, our compensation committee approved, and we paid, a cash bonus of $200,000 to our Chief Executive Officer and increased, effective July 1, 2023, our Chief Executive Officer’s annual base salary from $180,000 to $240,000.

 

Results of Operations

 

Oil and Gas Revenues. Total oil and gas revenues declined 56% to $204,390 in the three months ended June 30, 2023, compared to $462,989 in the three months ended June 30, 2022. Oil and gas revenues declined 51% to $434,414 in the six months ended June 30, 2023, compared to $886,809 for the six months ended June 30, 2022. The change in revenue was due to (i) a decline in oil production, down 13% and 20% for the three and six-month periods, (ii) a decrease in average sales price of oil, down 34% and 28% for the three and six-month periods; (iii) a decline in natural gas production, down, 13% and 6% for the three and six-month periods; and (iv) a decrease in average sales price of natural gas, down 84% and 77% for the three and six-month periods.

 

The following table sets forth the gross and net producing wells, net oil and gas production volumes and average hydrocarbon sales prices for the quarter and six months ended June 30, 2023 and 2022:

 

  

Six Months Ended

June 30,(1)

  

Three Months Ended

June 30,(1)

 
   2023   2022   2023   2022 
Gross producing wells   4    4    4    4 
Net producing wells   0.68    0.68    0.68    0.68 
Net oil production (Bbl)   4,359    5,478    2,116    2,438 
Net gas production (Mcf)   33,456    35,542    15,862    18,250 
Average sales price – oil (per barrel)  $71.82    99.11   $71.23   $108.05 
Average sales price – natural gas (per Mcf)  $1.25    5.38   $1.07   $6.57 

 

(1)All well, production and price information excludes wells operated by Hupecol Meta.

 

The change in production volumes was primarily attributable to the natural decline in production. The change in average oil and natural gas sales price realized reflects declining global energy prices.

 

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Our current focus is on development of our CPO-11 assets in Colombia, which investments are accounted for using the equity method and, therefore, excluded from consolidation and from inclusion in operations in our Statement of Operations (See “Other Income” below for discussion of equity method investment results relating to the CPO-11 block). As our investments in oil and gas projects are focused in Colombia, and we have no present plans to drill domestic wells to replace and grow U.S. production, we expect production and revenues reported in our Statement of Operations to continue to decline for the foreseeable future.

 

Oil and gas sales revenues are entirely attributable to our U.S. properties.

 

Lease Operating Expenses. Lease operating expenses decreased 32% to $101,714 during the three months ended June 30, 2023, from $150,485 during the three months ended June 30, 2022. Lease operating expenses decreased 31% to $215,400 during the six months ended June 30, 2023, from $311,757 during the six months ended June 30, 2022. The decrease in lease operating expenses was attributable to the decline in oil production volumes.

 

All lease operating expenses are attributable to U.S. operations and exclude lease operating expenses associated with our investment in, and operation of, Hupecol Meta properties in Colombia.

 

Depreciation and Depletion Expense. Depreciation and depletion expense was $44,941 and $51,501 for the three months ended June 20, 2023 and 2022, respectively, and $91,896 and $109,740 for the six months ended June 30, 2023 and 2022, respectively. The change in depreciation and depletion was due to the decrease in oil production volumes.

 

General and Administrative Expenses (excluding stock-based compensation). General and administrative expense increased 174% to $638,745 during the three months ended June 30, 2023, from $233,376 during the three months ended June 30, 2022, and increased 71% to $884,119 during the six months ended June 30, 2023, from $517,991 during the six months ended June 30, 2022. The increase in general and administrative expenses was attributable to payment of a bonus of $200,000 to our CEO during the 2023 period (compared to 2022 when bonuses were paid in the third quarter) and an increase in professional fees (up approximately $150,000 relating to increases in accounting fees and the timing of our annual meeting which accelerated certain professional fees by one quarter compared to 2022).

 

Stock-Based Compensation. Stock-based compensation increased to $77,870 during the three months ended June 30, 2023, from $25,520 during the three months ended June 30, 2022 and increased 46% to $162,315 during the six months ended June 30, 2023, from $111,005 during the six months ended June 30, 2022. The increase in stock-based compensation year-over-year, relates to the timing of option grants to directors with 2023 grants made in the quarter ended June 30, 2023, while 2022 grants were made in the quarter ended September 30, 2022.

 

Other Income. Other income totaled $358,499 during the three months ended June 30, 2023, compared to $2,258 during the three months ended June 30, 2022, and totaled $723,110 during the six months ended June 30, 2023, compared to $2,489 during the six months ended June 30, 2022. Other income consisted of (i) equity investment distributions from Hupecol Meta, totaling $314,364 during the three months ended June 30, 2023 and $648,475 during the six months ended June 30, 2023, compared to no distributions during 2022; and (ii) interest income earned on cash balances, totaling $44,135 during the three months ended June 30, 2023, compared to $2,258 during the three months ended June 30, 2022, and $74,635 during the six months ended June 30, 2023, compared to $2,489 during the six months ended June 30, 2022.

 

Distributions from Hupecol Meta reflect, generally, our share of distributable net income of Hupecol Meta. Distributions should not be viewed as a measure of actual operating results of Hupecol Meta for the period of such distributions or any other periods. Distributions merely reflect determinations by the managers of Hupecol Meta to make distributions in accordance with contractual rights of the various members of Hupecol Meta within the discretion of the managers as permitted under the contracts governing Hupecol Meta. We report distributions from Hupecol Meta as “Other Income” to the extent that the character of the distributions are in the nature of income and not a return of capital. The distributions received during 2023 are, generally, attributable to operations of Hupecol Meta’s initial wells, the Saturno ST1 vertical well, the Venus 2A vertical well, a legacy well that had been shut-in, and the Venus 1-H well, Hupecol Meta’s first horizontal well, which began production in May 2023.

 

The increase in interest income from 2022 to 2023 was attributable to the increase in our cash balances, resulting from sales of common stock during 2023, and substantial increases in interests due to trends in the broad debt market.

 

15

 

 

Financial Condition

 

Liquidity and Capital Resources. At June 30, 2023, we had a cash balance of $5,532,834 and working capital of $5,825,671, compared to a cash balance of $4,547,210 and working capital of $4,601,168 at December 31, 2022.

 

Cash Flows. Operating activities used $217,467 during the six months ended June 30, 2023, compared to $29,361 used during the six months ended June 30, 2022. The change in operating cash flow was primarily attributable to the timing of payment of cash bonuses (totaling $200,000 in 2023) which were paid during the quarter ended June 30, while 2022 bonuses were paid during the quarter ended September 30, and larger changes in operating assets and liabilities during 2023.

 

Investing activities used $448,909 during the six months ended June 30, 2023, compared to $262,444 used during the six months ended June 30, 2022. The change in funds used by investing activities is principally attributable to the commencement, and acceleration during 2023, of a drilling program on our CPO-11 assets in Colombia.

 

Financing activities provided $1,652,000 during the six months ended June 30, 2023, compared to $0 provided during the six months ended June 30, 2022. Cash provided by financing activities during the six months ended June 30, 2023 was attributable to funds received from the 2022 ATM offering.

 

Long-Term Liabilities. At June 30, 2023, we had long-term liabilities of $170,554, compared to $219,148 at December 31, 2022. Long-term liabilities at June 30, 2023 and December 31, 2022, consisted of a reserve for plugging costs and the long-term lease liability.

 

Capital and Exploration Expenditures and Commitments. Our principal capital and exploration expenditures relate to capital contribution obligations associated with our equity investment in Hupecol Meta, costs associated with the operation of our Permian Basin acreage and ongoing efforts to acquire, drill and complete prospects. The Venus 1-H well, the first horizontal well of Hupecol Meta in the Venus Exploration Area of the CPO-11 block in Colombia was drilled during the first six months of 2023. Our allocable share of costs associated with the Venus 1-H well was approximately $576,000. A second horizontal well on the CPO-11 block, the Venus 2-H ST1, commenced drilled, was plugged back and side-tracked in July 2023. Our estimated cost associated with the Venus 2-H ST1 well is approximately $490,000. The actual cost of such anticipated well, and the timing and number of well operations undertaken during 2023, in Colombia and the Permian Basin, will be principally controlled by the operators of our acreage, based on a number of factors, including but not limited to availability of financing, performance of existing wells on the subject acreage, energy prices and industry condition and outlook, costs of drilling and completion services and equipment and other factors beyond our control or that of our operators.

 

In addition to possible operations on our existing acreage holdings, we continue to evaluate drilling prospects in which may acquire an interest and participate.

 

During the six months ended June 30, 2023, we invested $481,947 for the acquisition and development of oil and gas properties, consisting of capital contributions to Hupecol Meta ($481,947). The $481,947 invested in Hupecol Metal was capitalized to our equity investment in Hupecol Meta.

 

As our allocable share of well costs will vary depending on the timing and number of wells drilled as well as our working interest in each such well and the level of participation of other interest owners, we have not established a drilling budget but will budget on a well-by-well basis as our operators propose wells.

 

We believe that we have the ability, through our cash on-hand, to fund operations and our cost for all planned wells expected to be drilled during 2023 and for the upcoming twelve-month period.

 

In the event that we pursue additional acreage acquisitions or expand our drilling plans, we may be required to secure additional funding beyond our resources on hand. While we may, among other efforts, seek additional funding from “at-the-market” sales of common stock, and private sales of equity and debt securities, we presently have limited authorized shares of common stock available for issuance to support equity capital raises and we have no commitments to provide additional funding, and there can be no assurance that we can secure the necessary capital to fund our share of drilling, acquisition or other costs on acceptable terms or at all. If, for any reason, we are unable to fund our share of drilling and completion costs and fail to satisfy commitments relative to our interest in our acreage, we may be subject to penalties or to the possible loss of some of our rights and interests in prospects with respect to which we fail to satisfy funding commitments and we may be required to curtail operations and forego opportunities.

 

Inflation

 

We believe that inflation has not had a significant impact on operations since inception. However, persistent inflation may increase our operating costs broadly, adversely affecting our operating results.

 

16

 

 

ITEM 3 QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

Commodity Price Risk

 

The price we receive for our oil and gas production heavily influences our revenue, profitability, access to capital and future rate of growth. Crude oil and natural gas are commodities and, therefore, their prices are subject to wide fluctuations in response to relatively minor changes in supply and demand. Historically, the markets for oil and gas have been volatile, and these markets will likely continue to be volatile in the future. The price we receive for production depends on numerous factors beyond our control.

 

We have not historically entered into any hedges or other transactions designed to manage, or limit, exposure to oil and gas price volatility.

 

ITEM 4 CONTROLS AND PROCEDURES

 

Evaluation of Disclosure Controls and Procedures

 

Under the supervision and the participation of our management, including our principal executive officer and principal financial officer, we conducted an evaluation as of June 30, 2023 of the effectiveness of the design and operation of our disclosure controls and procedures, as such term is defined under Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934, as amended. Based on this evaluation, our principal executive officer and our principal financial officer concluded that our disclosure controls and procedures were not effective as of June 30, 2023. Such conclusion reflects the 2013 departure of our chief financial officer and assumption of duties of principal financial officer by our chief executive officer and the resulting lack of segregation of duties. Until we are able to remedy these material weaknesses, we are relying on third party consultants and our SEC consultant to assist with financial reporting.

 

Changes in Internal Control over Financial Reporting

 

No change in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934) occurred during the quarter ended June 30, 2023 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

 

PART II

 

ITEM 6 EXHIBITS

 

 

Exhibit

Number

  Description
  31.1   Certification of CEO and Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
       
  32.1   Certification of CEO and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
       
  101.INS   Inline XBRL Instance Document
       
  101.SCH   Inline XBRL Taxonomy Extension Schema Document
       
  101.CAL   Inline XBRL Taxonomy Extension Calculation Linkbase Document
       
  101.DEF   Inline XBRL Taxonomy Extension Definition Linkbase Document
       
  101.LAB   Inline XBRL Taxonomy Extension Label Linkbase Document
       
  101.PRE   Inline XBRL Taxonomy Extension Presentation Linkbase Document
       
  104   Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

17

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on behalf by the undersigned thereunto duly authorized.

 

  HOUSTON AMERICAN ENERGY CORP.
Date: August 14, 2023    
  By: /s/ John Terwilliger 
    John Terwilliger
    CEO and President (Principal Executive Officer and Principal Financial Officer)

 

18

 

EX-31.1 2 ex31-1.htm

 

Exhibit 31.1

 

CERTIFICATION OF CEO PURSUANT TO 15 U.S.C. SECTION 10A, AS ADOPTED

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

 

I, John Terwilliger, certify that:

 

1. I have reviewed this quarterly report on Form 10-Q of Houston American Energy Corp.;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respect the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4. I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

  a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;

 

  b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

  c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

  d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5. I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors:

 

  a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

  b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

 

Date: August 14, 2023

 

  /s/ John Terwilliger
  John Terwilliger,
  Chief Executive Officer and Principal
  Financial Officer

 

 

 

EX-32.1 3 ex32-1.htm

 

Exhibit 32.1

 

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

I, John Terwilliger, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report of Houston American Energy Corp. on Form 10-Q for the quarterly period ended June 30, 2023 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in such Form 10-Q fairly presents in all material respects the financial condition and results of operations of Houston American Energy Corp.

 

  By: /s/ John Terwilliger
  Name: John Terwilliger
  Title: Chief Executive Officer and Principal
    Financial Officer
  Dated: August 14, 2023

 

 

 

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Cover - shares
6 Months Ended
Jun. 30, 2023
Aug. 14, 2023
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Document Type 10-Q  
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Document Quarterly Report true  
Document Transition Report false  
Document Period End Date Jun. 30, 2023  
Document Fiscal Period Focus Q2  
Document Fiscal Year Focus 2023  
Current Fiscal Year End Date --12-31  
Entity File Number 1-32955  
Entity Registrant Name HOUSTON AMERICAN ENERGY CORP.  
Entity Central Index Key 0001156041  
Entity Tax Identification Number 76-0675953  
Entity Incorporation, State or Country Code DE  
Entity Address, Address Line One 801 Travis Street  
Entity Address, Address Line Two Suite 1425  
Entity Address, City or Town Houston  
Entity Address, State or Province TX  
Entity Address, Postal Zip Code 77002  
City Area Code (713)  
Local Phone Number 222-6966  
Title of 12(b) Security Common Stock, $0.001 par value per share  
Trading Symbol HUSA  
Security Exchange Name NYSEAMER  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Non-accelerated Filer  
Entity Small Business true  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   10,906,353
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Consolidated Balance Sheets - USD ($)
Jun. 30, 2023
Dec. 31, 2022
CURRENT ASSETS    
Cash $ 5,532,834 $ 4,547,210
Accounts receivable – oil and gas sales 278,546 164,575
Prepaid expenses and other current assets 181,506 84,544
TOTAL CURRENT ASSETS 5,992,886 4,796,329
PROPERTY AND EQUIPMENT    
Costs subject to amortization 62,774,064 62,786,267
Costs not being amortized 2,343,126 2,343,126
Office equipment 90,004 90,004
Total 65,207,194 65,219,397
Accumulated depletion, depreciation, amortization, and impairment (60,693,947) (60,602,051)
PROPERTY AND EQUIPMENT, NET 4,513,247 4,617,346
Equity investment – Hupecol Meta LLC 2,584,086 2,102,139
Right of use asset 179,366 212,202
Other assets 3,167 3,167
TOTAL ASSETS 13,272,752 11,731,183
CURRENT LIABILITIES    
Accounts payable 79,678 113,741
Accrued expenses 17,354 16,035
Current portion of lease liability 70,183 65,385
TOTAL CURRENT LIABILITIES 167,215 195,161
LONG-TERM LIABILITIES    
Lease liability, net of current portion 109,967 146,359
Reserve for plugging and abandonment costs 60,587 72,789
TOTAL LONG-TERM LIABILITIES 170,554 219,148
TOTAL LIABILITIES 337,769 414,309
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS’ EQUITY    
Common stock, par value $0.001; 12,000,000 shares authorized 10,906,353 and 10,327,646 shares issued and outstanding, respectively 10,907 10,328
Additional paid-in capital 86,908,002 85,094,266
Accumulated deficit (73,983,926) (73,787,720)
TOTAL SHAREHOLDERS’ EQUITY 12,934,983 11,316,874
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 13,272,752 $ 11,731,183
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Consolidated Balance Sheets (Parenthetical) - $ / shares
Jun. 30, 2023
Dec. 31, 2022
Statement of Financial Position [Abstract]    
Common stock, par value $ 0.001 $ 0.001
Common stock, shares authorized 12,000,000 12,000,000
Common stock, shares issued 10,906,353 10,327,646
Common stock, shares outstanding 10,906,353 10,327,646
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Consolidated Statements of Operations (Unaudited) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Income Statement [Abstract]        
OIL AND GAS REVENUE $ 204,390 $ 462,989 $ 434,414 $ 886,809
EXPENSES OF OPERATIONS        
Lease operating expense and severance tax 101,714 150,485 215,400 311,757
General and administrative expense 716,615 258,896 1,046,434 628,996
Depreciation and depletion 44,941 51,501 91,896 109,740
Total operating expenses 863,270 460,882 1,353,730 1,050,493
Income (loss) from operations (658,880) 2,107 (919,316) (163,684)
OTHER INCOME        
Interest income 44,135 2,258 74,635 2,489
Other income 314,364 648,475
Total other income 358,499 2,258 723,110 2,489
Net income (loss) before taxes (300,381) 4,365 (196,206) (161,195)
Income tax expense
Net income (loss) $ (300,381) $ 4,365 $ (196,206) $ (161,195)
Basic income (loss) per common share $ (0.03) $ 0.00 $ (0.02) $ (0.02)
Basic weighted average number of common shares outstanding 10,896,996 9,923,338 10,659,076 9,923,338
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Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($)
Common Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
Total
Balance, value at Dec. 31, 2021 $ 9,928 $ 83,345,456 $ (73,043,441) $ 10,311,943
Balance, shares at Dec. 31, 2021 9,928,338      
Stock-based compensation 85,485 85,485
Net income (loss) (165,560) (165,560)
Balance, value at Mar. 31, 2022 $ 9,928 83,430,941 (73,209,001) 10,231,868
Balance, shares at Mar. 31, 2022 9,928,338      
Balance, value at Dec. 31, 2021 $ 9,928 83,345,456 (73,043,441) 10,311,943
Balance, shares at Dec. 31, 2021 9,928,338      
Net income (loss)       (161,195)
Balance, value at Jun. 30, 2022 $ 9,928 83,456,461 (73,204,636) 10,261,753
Balance, shares at Jun. 30, 2022 9,928,338      
Balance, value at Mar. 31, 2022 $ 9,928 83,430,941 (73,209,001) 10,231,868
Balance, shares at Mar. 31, 2022 9,928,338      
Stock-based compensation 25,520 25,520
Net income (loss) 4,365 4,365
Balance, value at Jun. 30, 2022 $ 9,928 83,456,461 (73,204,636) 10,261,753
Balance, shares at Jun. 30, 2022 9,928,338      
Balance, value at Dec. 31, 2022 $ 10,328 85,094,266 (73,787,720) 11,316,874
Balance, shares at Dec. 31, 2022 10,327,646      
Stock-based compensation 84,445 84,445
Issuance of common stock $ 295 901,205 901,500
Issuance of common stock, shares 294,872      
Net income (loss) 104,175 104,175
Balance, value at Mar. 31, 2023 $ 10,623 86,079,916 (73,683,545) 12,406,994
Balance, shares at Mar. 31, 2023 10,622,518      
Balance, value at Dec. 31, 2022 $ 10,328 85,094,266 (73,787,720) 11,316,874
Balance, shares at Dec. 31, 2022 10,327,646      
Net income (loss)       (196,206)
Balance, value at Jun. 30, 2023 $ 10,907 86,908,002 (73,983,926) 12,934,983
Balance, shares at Jun. 30, 2023 10,906,353      
Balance, value at Mar. 31, 2023 $ 10,623 86,079,916 (73,683,545) 12,406,994
Balance, shares at Mar. 31, 2023 10,622,518      
Stock-based compensation 77,870 77,870
Issuance of common stock $ 284 750,216 750,500
Issuance of common stock, shares 283,835      
Net income (loss) (300,381) (300,381)
Balance, value at Jun. 30, 2023 $ 10,907 $ 86,908,002 $ (73,983,926) $ 12,934,983
Balance, shares at Jun. 30, 2023 10,906,353      
XML 14 R6.htm IDEA: XBRL DOCUMENT v3.23.2
Consolidated Statements of Cash Flows (Unaudited) - USD ($)
6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES    
Net loss $ (196,206) $ (161,195)
Adjustments to reconcile net loss to net cash used in operations:    
Depreciation and depletion 91,896 109,740
Accretion of asset retirement obligation 2,678 3,697
Stock-based compensation 162,315 111,005
Amortization of right of use asset 32,836 30,169
Earnings distribution from Hupecol Meta LLC (648,475)
Changes in operating assets and liabilities:    
Increase in accounts receivable (113,971) (52,164)
Increase in prepaid expenses and other current assets 534,155 (14,467)
Decrease in accounts payable and accrued expenses (51,101) (24,552)
Decrease in operating lease liability (31,594) (31,594)
Net cash used in operating activities (217,467) (29,361)
CASH FLOWS FROM INVESTING ACTIVITIES    
Payments for the acquisition and development of oil and gas properties (14,162)
Payments for capital contribution for equity investment (448,909) (248,282)
Net cash used in investing activities (448,909) (262,444)
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceeds from issuance of common stock for cash, net of offering costs 1,652,000
Net cash provided by financing activities 1,652,000
Increase (decrease) in cash 985,624 (291,805)
Cash, beginning of period 4,547,210 4,894,577
Cash, end of period 5,532,834 4,602,772
SUPPLEMENTAL CASH FLOW INFORMATION    
Interest paid
Taxes paid
SUPPLEMENTAL NON-CASH INVESTING AND FINANCING ACTIVITIES    
Changes in estimate of asset retirement obligations, net 1,259
Changes in accrued equity investment contributions and distributions $ 33,038
XML 15 R7.htm IDEA: XBRL DOCUMENT v3.23.2
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES
6 Months Ended
Jun. 30, 2023
Accounting Policies [Abstract]  
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

NOTE 1 – BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

 

The accompanying unaudited consolidated financial statements of Houston American Energy Corp., a Delaware corporation (the “Company”), have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q. They do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for a complete financial presentation. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, considered necessary for a fair presentation, have been included in the accompanying unaudited consolidated financial statements. Operating results for the periods presented are not necessarily indicative of the results that may be expected for the full year.

 

These unaudited consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and footnotes, which are included as part of the Company’s Form 10-K for the year ended December 31, 2022.

 

Consolidation

 

The accompanying consolidated financial statements include all accounts of the Company and its subsidiaries (HAEC Louisiana E&P, Inc., HAEC Oklahoma E&P, Inc., and HAEC Caddo Lake E&P, Inc.). All significant inter-company balances and transactions have been eliminated in consolidation.

 

Liquidity and Capital Requirements

 

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business for the twelve-month period following the issuance date of these consolidated financial statements. With limited exceptions, the Company has incurred continuing losses since 2011, with an accumulated deficit of $74 million as of June 30, 2023.

 

The Company believes that it has the ability to fund, from cash on hand, its operating costs and anticipated drilling operations for at least the next twelve months following the issuance of these financial statements.

 

The actual timing and number of wells drilled during 2023 and beyond will be principally controlled by the operators of the Company’s acreage, based on a number of factors, including but not limited to availability of financing, performance of existing wells on the subject acreage, energy prices and industry condition and outlook, costs of drilling and completion services and equipment and other factors beyond the Company’s control or that of its operators.

 

In the event that the Company pursues additional acreage acquisitions or expands its drilling plans, the Company may be required to secure additional funding beyond our resources on hand. While the Company may, among other efforts, seek additional funding from “at-the-market” sales of common stock, and private sales of equity and debt securities, it presently does not have any commitments to provide additional funding, has limited shares of common stock available to support capital raising efforts and there can be no assurance that the Company can secure the necessary capital to fund its share of drilling, acquisition or other costs on acceptable terms or at all. If, for any reason, the Company is unable to fund its share of drilling and completion costs, it would forego participation in one or more of such wells. In such event, the Company may be subject to penalties or to the possible loss of some of its rights and interests in prospects with respect to which it fails to satisfy funding obligations and it may be required to curtail operations and forego opportunities.

 

Accounting Principles and Use of Estimates

 

The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America. In preparing financial statements, management makes informed judgments and estimates that affect the reported amounts of assets and liabilities as of the date of the financial statements and affect the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, management reviews its estimates, including those related to such potential matters as litigation, environmental liabilities, income taxes and the related valuation allowance, determination of proved reserves of oil and gas and asset retirement obligations. Changes in facts and circumstances may result in revised estimates and actual results may differ from these estimates.

 

 

Concentration of Credit Risk

 

Financial instruments that potentially subject the Company to a concentration of credit risk include cash, cash equivalents (if any) and any marketable securities (if any). The Company had cash deposits of $5.1 million in excess of the FDIC’s current insured limit on interest bearing accounts of $250,000 as of June 30, 2023. The Company also had cash deposits of $5,500 in Colombian banks at June 30, 2023 that are not insured by the FDIC. The Company has not experienced any losses on its deposits of cash and cash equivalents.

 

Earnings (Loss) per Share

 

Basic earnings (loss) per share is computed by dividing net earnings (loss) available to common shareholders by the weighted average common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common shares were exercised or converted in common shares that then shared in the earnings of the Company. In periods in which the Company reports a net loss, dilutive securities are excluded from the calculation of diluted net loss per share amounts as the effect would be anti-dilutive.

 

Recently Issued Accounting Pronouncements

 

In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses of Financial Instruments, which was codified in Accounting Standards Codification (“ASC”) 326, Financial Instruments — Credit Losses (“ASC 326”). The standard changes the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. Because the Company is a smaller reporting company based on the most recent determination as of November 15, 2019, ASC 326 became effective for the Company for fiscal years beginning after December 15, 2022. As such, the Company adopted ASC 326 effective January 1, 2023, utilizing the modified retrospective transition method. Upon adoption, the Company updated its impairment model to utilize a forward-looking current expected credit losses (“CECL”) model in place of the incurred loss methodology for financial instruments measured at amortized cost, primarily including its accounts receivable and contract asset. In relation to available-for-sale (“AFS”) debt securities, the guidance eliminates the concept of “other-than-temporary” impairment, and instead focuses on determining whether any impairment is a result of a credit loss or other factors. The adoption of ASC 326 did not have a material impact on our unaudited condensed consolidated financial statements as of the adoption date.

 

XML 16 R8.htm IDEA: XBRL DOCUMENT v3.23.2
REVENUE FROM CONTRACTS WITH CUSTOMERS
6 Months Ended
Jun. 30, 2023
Revenue from Contract with Customer [Abstract]  
REVENUE FROM CONTRACTS WITH CUSTOMERS

NOTE 2 – REVENUE FROM CONTRACTS WITH CUSTOMERS

 

Disaggregation of Revenue from Contracts with Customers

 

The following table disaggregates revenue by significant product type for the three and six-month periods ended June 30, 2023 and 2022:

 

  

Three Months Ended

June 30, 2023

  

Three Months Ended

June 30, 2022

  

Six Months Ended

June 30, 2023

  

Six Months Ended

June 30, 2022

 
Oil sales  $150,767   $263,427   $313,049   $542,905 
Natural gas sales   16,963    119,824    41,874    191,206 
Natural gas liquids sales   36,660    79,738    79,491    152,698 
Total revenue from customers  $204,390   $462,989   $434,414   $886,809 

 

There were no significant contract liabilities or transaction price allocations to any remaining performance obligations as of June 30, 2023 or 2022.

 

 

XML 17 R9.htm IDEA: XBRL DOCUMENT v3.23.2
OIL AND GAS PROPERTIES
6 Months Ended
Jun. 30, 2023
Segment Reporting [Abstract]  
OIL AND GAS PROPERTIES

NOTE 3 – OIL AND GAS PROPERTIES

 

During the six months ended June 30, 2023, the Company incurred costs attributable to final expenses related to the plugging and abandonment of the Lou Brock well.

 

During the three and six months ended June 30, 2023, the Company recorded depletion expense of $44,941 and $79,640, respectively. During the three and six months ended June 30, 2022, the Company recorded depletion expense of $91,896 and $109,740, respectively.

 

Geographical Information

 

The Company currently has properties in two geographical areas, the United States and Colombia. Revenues for the six months ended June 30, 2023 and long lived assets (net of depletion, amortization, and impairments) as of June 30, 2023 attributable to each geographical area are presented below:

 

  

Six Months Ended

June 30, 2023

  

As of

June 30, 2023

 
   Revenues   Long Lived Assets, Net 
United States  $434,414   $2,170,121 
Colombia       2,343,126 
Total  $434,414   $4,513,247 

 

Revenues and long-lived assets attributable to the Company’s investments in Hupecol Meta LLC (“Hupecol Meta”), and its underlying assets and operations in Colombia, are excluded from the above table.

 

XML 18 R10.htm IDEA: XBRL DOCUMENT v3.23.2
EQUITY INVESTMENT
6 Months Ended
Jun. 30, 2023
Equity Investment  
EQUITY INVESTMENT

NOTE 4 – EQUITY INVESTMENT

 

The Company’s carrying value of its holdings in Hupecol Meta is reflected in the line item “equity investment – Hupecol Meta LLC” on the Company’s Consolidated Balance Sheet.

 

During the six months ended June 30, 2023, the Company made capital contributions totaling $481,947, to Hupecol Meta to cover its share of required capital contributions. During the six months ended June 30, 2023, the Company received distributions, totaling $648,475, from Hupecol Meta representing the Company’s share of distributable net profits.

 

XML 19 R11.htm IDEA: XBRL DOCUMENT v3.23.2
STOCK-BASED COMPENSATION EXPENSE
6 Months Ended
Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION EXPENSE

NOTE 5 – STOCK-BASED COMPENSATION EXPENSE

 

In 2008, the Company adopted the Houston American Energy Corp. 2008 Equity Incentive Plan (the “2008 Plan”). The terms of the 2008 Plan, as amended in 2012 and 2013, allow for the issuance of up to 480,000 shares of the Company’s common stock pursuant to the grant of stock options and restricted stock.

 

In 2017, the Company adopted the Houston American Energy Corp. 2017 Equity Incentive Plan (the “2017 Plan”). The terms of the 2017 Plan, allow for the issuance of up to 400,000 shares of the Company’s common stock pursuant to the grant of stock options and restricted stock.

 

In 2021, the Company adopted the Houston American Energy 2021 Equity Incentive Plan (the “2021 Plan” and, together with the 2008 Plan and the 2017 Plan, the “Plans”). The terms of the 2021 Plan allow for the issuance of up to 500,000 shares of the Company’s common stock pursuant to the grant of stock options and restricted stock.

 

Persons eligible to participate in the Plans are key employees, consultants and directors of the Company.

 

The Company periodically grants options to employees, directors and consultants under the Plans and is required to make estimates of the fair value of the related instruments and recognize expense over the period benefited, usually the vesting period.

 

 

Stock Option Activity

 

A summary of stock option activity and related information for the six months ended June 30, 2023 is presented below:

 

   Options  

Weighted-Average

Exercise Price

  

Aggregate

Intrinsic Value

 
             
Outstanding at January 1, 2023   944,177   $2.08      
Granted   60,000    2.09      
Exercised             
Forfeited             
Outstanding at June 30, 2023   1,004,177   $2.45   $286,160 
Exercisable at June 30, 2023   958,851   $2.46   $284,240 

 

During the six months ended June 30, 2023, options to purchase an aggregate of 60,000 shares of the Company’s common stock were granted to the Company’s directors. The options have a ten-year life, are exercisable at $2.09 per share, vest 20% on the date of grant and 80% nine months from the date of grant. The grant date fair value of these stock options was $119,252 based on the Black-Scholes Option Pricing model based on the following assumptions: market value of common stock on grant date – $2.13; risk free interest rate based on the applicable US Treasury bill rate – 0%; dividend yield – 0%; volatility factor based on the trading history of the Company – 116%; weighted average expected life in years – 10; and expected forfeiture rate – 0%.

 

During the three and six months ended June 30, 2023, the Company recognized $77,870 and $162,315, respectively, of stock-based compensation expense attributable to the amortization of stock options. As of June 30, 2023, total unrecognized stock-based compensation expense related to non-vested stock options was approximately $119,253. The unrecognized expense is expected to be recognized over a weighted average period of 2.23 years and the weighted average remaining contractual term of the outstanding options and exercisable options at June 30, 2023 is 5.78 years and 6.13 years, respectively.

 

As of June 30, 2023, there were 181,333 shares of common stock available for issuance pursuant to future stock or option grants under the Plans.

 

Stock-Based Compensation Expense

 

The following table reflects total stock-based compensation recorded by the Company for the six months ended June 30, 2023 and 2022:

 

   2023   2022 
  

Six Months Ended

June 30,

 
   2023   2022 
         
Stock-based compensation expense included in general and administrative expense  $162,315   $111,005 
Earnings per share effect of share-based compensation expense – basic and diluted  $(0.02)  $(0.01)

 

XML 20 R12.htm IDEA: XBRL DOCUMENT v3.23.2
CAPITAL STOCK
6 Months Ended
Jun. 30, 2023
Equity [Abstract]  
CAPITAL STOCK

NOTE 6 – CAPITAL STOCK

 

Common Stock – At-the Market Offering

 

In November 2022, the Company entered into an At-the-Market Sales Agreement (the “Sales Agreement”) with Univest Securities, LLC (“Univest”) pursuant to which the Company could sell (the “2022 ATM Offering”), at its option, up to an aggregate of $3.5 million in shares of its common stock through Univest, as sales agent. Sales of shares under the Sales Agreement (the “2022 ATM Offering”) were made, in accordance with placement notices delivered to Univest, which notices set parameters under which shares could be sold. The 2022 ATM Offering was made pursuant to a shelf registration statement by methods deemed to be “at the market,” as defined in Rule 415 promulgated under the Securities Act of 1933. The Company paid Univest a commission in cash equal to 3% of the gross proceeds from the sale of shares in the 2022 ATM Offering. The Company reimbursed Univest for $25,000 of expenses incurred in connection with the 2022 ATM Offering.

 

During the six months ended June 30, 2023, the Company sold an aggregate of 578,707 shares in connection with the 2022 ATM Offering and received proceeds, net of commissions and expenses, of $1,652,000.

 

 

Warrants

 

A summary of warrant activity and related information for 2023 is presented below:

 

   Warrants  

Weighted-Average

Exercise Price

  

Aggregate

Intrinsic Value

 
             
Outstanding at January 1, 2023   94,400   $ 2.46               
Issued             
Exercised             
Expired             
Outstanding at June 30, 2023   94,400   $2.46   $- 
Exercisable at June 30, 2023   94,400   $2.46   $- 

 

XML 21 R13.htm IDEA: XBRL DOCUMENT v3.23.2
EARNINGS PER COMMON SHARE
6 Months Ended
Jun. 30, 2023
Earnings Per Share [Abstract]  
EARNINGS PER COMMON SHARE

NOTE 7 – EARNINGS PER COMMON SHARE

 

Earnings (loss) per common share-basic is calculated by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Net income (loss) per common share-diluted assumes the conversion of all potentially dilutive securities and is calculated by dividing net (loss) income by the sum of the weighted average number of shares of common stock, as defined above, outstanding plus potentially dilutive securities. Net income (loss) per common share-diluted considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of the potential common shares, as defined above, would have an anti-dilutive effect.

 

The calculation of earnings (loss) per common share for the periods indicated below were as follows:

 

Numerator:  2023   2022   2023   2022 
   Three Months Ended June 30,   Six Months Ended June 30, 
Numerator:  2023   2022   2023   2022 
Net income (loss)  $(300,381)  $4,365   $(196,206)  $(161,195)
                     
Effect of common stock equivalents                
Net income (loss) adjusted for common stock equivalents  $(300,381)  $4,365   $(196,206)  $(161,195)
                     
Denominator:                    
Weighted average common shares – basic   10,896,996    9,923,338    10,659,076    9,923,338 
                     
Dilutive effect of common stock equivalents:                    
Options and warrants       455,953         
                     
Denominator:                    
Weighted average common shares – diluted   10,896,996    10,379,291    10,659,076    9,923,338 
                     
Earnings (loss) per common share – basic  $(0.03)  $0.00   $(0.02)  $(0.02)
Earnings (loss) per common share – diluted  $(0.03)  $0.00   $(0.02)  $(0.02)

 

For the three and six months ended June 30, 2023 and 2022, the following warrants and options to purchase shares of common stock were excluded from the computation of diluted net loss per share, as the inclusion of such shares would be anti-dilutive:

 

   2023   2022   2023   2022 
   Six Months Ended June 30,   Three Months Ended June 30, 
   2023   2022   2023   2022 
Stock warrants   94,400    94,400    94,400    94,400 
Stock options   1,004,177    74,000    1,004,177    990,177 
Total   1,098,577    168,400    1,098,577    1,084,577 

 

 

XML 22 R14.htm IDEA: XBRL DOCUMENT v3.23.2
COMMITMENTS AND CONTINGENCIES
6 Months Ended
Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES

NOTE 8 – COMMITMENTS AND CONTINGENCIES

 

Lease Commitment

 

The Company leases office facilities under an operating lease agreement that expires October 31, 2025. During the three and six months ended June 30, 2023, the operating cash outflows related to operating lease liabilities totaled $21,560 and $43,121, respectively, and the expense for the right of use asset for operating leases totaled $22,161 and $44,322, respectively. As of June 30, 2023, the Company’s operating lease had a weighted-average remaining term of 2.3 years and a weighted average discount rate of 12%. As of June 30, 2023, the lease agreement requires future payments as follows:

 

Year  Amount 
2023  $43,770 
2024   88,801 
2025   75,051 
Total future lease payments   207,622 
Less: imputed interest   27,472 
Present value of future operating lease payments   180,150 
Less: current portion of operating lease liabilities   70,183 
Operating lease liabilities, net of current portion  $109,967 
Right of use assets  $179,366 

 

Total base rental expense was $22,570 and $22,161 for the three months ended June 30, 2023 and 2022, respectively, and $45,731 and $46,836 for the six months ended June 30, 2023 and 2022, respectively. The Company does not have any capital leases or other operating lease commitments.

XML 23 R15.htm IDEA: XBRL DOCUMENT v3.23.2
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies)
6 Months Ended
Jun. 30, 2023
Accounting Policies [Abstract]  
Consolidation

Consolidation

 

The accompanying consolidated financial statements include all accounts of the Company and its subsidiaries (HAEC Louisiana E&P, Inc., HAEC Oklahoma E&P, Inc., and HAEC Caddo Lake E&P, Inc.). All significant inter-company balances and transactions have been eliminated in consolidation.

 

Liquidity and Capital Requirements

Liquidity and Capital Requirements

 

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business for the twelve-month period following the issuance date of these consolidated financial statements. With limited exceptions, the Company has incurred continuing losses since 2011, with an accumulated deficit of $74 million as of June 30, 2023.

 

The Company believes that it has the ability to fund, from cash on hand, its operating costs and anticipated drilling operations for at least the next twelve months following the issuance of these financial statements.

 

The actual timing and number of wells drilled during 2023 and beyond will be principally controlled by the operators of the Company’s acreage, based on a number of factors, including but not limited to availability of financing, performance of existing wells on the subject acreage, energy prices and industry condition and outlook, costs of drilling and completion services and equipment and other factors beyond the Company’s control or that of its operators.

 

In the event that the Company pursues additional acreage acquisitions or expands its drilling plans, the Company may be required to secure additional funding beyond our resources on hand. While the Company may, among other efforts, seek additional funding from “at-the-market” sales of common stock, and private sales of equity and debt securities, it presently does not have any commitments to provide additional funding, has limited shares of common stock available to support capital raising efforts and there can be no assurance that the Company can secure the necessary capital to fund its share of drilling, acquisition or other costs on acceptable terms or at all. If, for any reason, the Company is unable to fund its share of drilling and completion costs, it would forego participation in one or more of such wells. In such event, the Company may be subject to penalties or to the possible loss of some of its rights and interests in prospects with respect to which it fails to satisfy funding obligations and it may be required to curtail operations and forego opportunities.

 

Accounting Principles and Use of Estimates

Accounting Principles and Use of Estimates

 

The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America. In preparing financial statements, management makes informed judgments and estimates that affect the reported amounts of assets and liabilities as of the date of the financial statements and affect the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, management reviews its estimates, including those related to such potential matters as litigation, environmental liabilities, income taxes and the related valuation allowance, determination of proved reserves of oil and gas and asset retirement obligations. Changes in facts and circumstances may result in revised estimates and actual results may differ from these estimates.

 

 

Concentration of Credit Risk

Concentration of Credit Risk

 

Financial instruments that potentially subject the Company to a concentration of credit risk include cash, cash equivalents (if any) and any marketable securities (if any). The Company had cash deposits of $5.1 million in excess of the FDIC’s current insured limit on interest bearing accounts of $250,000 as of June 30, 2023. The Company also had cash deposits of $5,500 in Colombian banks at June 30, 2023 that are not insured by the FDIC. The Company has not experienced any losses on its deposits of cash and cash equivalents.

 

Earnings (Loss) per Share

Earnings (Loss) per Share

 

Basic earnings (loss) per share is computed by dividing net earnings (loss) available to common shareholders by the weighted average common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common shares were exercised or converted in common shares that then shared in the earnings of the Company. In periods in which the Company reports a net loss, dilutive securities are excluded from the calculation of diluted net loss per share amounts as the effect would be anti-dilutive.

 

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

 

In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses of Financial Instruments, which was codified in Accounting Standards Codification (“ASC”) 326, Financial Instruments — Credit Losses (“ASC 326”). The standard changes the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. Because the Company is a smaller reporting company based on the most recent determination as of November 15, 2019, ASC 326 became effective for the Company for fiscal years beginning after December 15, 2022. As such, the Company adopted ASC 326 effective January 1, 2023, utilizing the modified retrospective transition method. Upon adoption, the Company updated its impairment model to utilize a forward-looking current expected credit losses (“CECL”) model in place of the incurred loss methodology for financial instruments measured at amortized cost, primarily including its accounts receivable and contract asset. In relation to available-for-sale (“AFS”) debt securities, the guidance eliminates the concept of “other-than-temporary” impairment, and instead focuses on determining whether any impairment is a result of a credit loss or other factors. The adoption of ASC 326 did not have a material impact on our unaudited condensed consolidated financial statements as of the adoption date.

 

XML 24 R16.htm IDEA: XBRL DOCUMENT v3.23.2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)
6 Months Ended
Jun. 30, 2023
Revenue from Contract with Customer [Abstract]  
SCHEDULE OF DISAGGREGATES REVENUE BY SIGNIFICANT PRODUCT

The following table disaggregates revenue by significant product type for the three and six-month periods ended June 30, 2023 and 2022:

 

  

Three Months Ended

June 30, 2023

  

Three Months Ended

June 30, 2022

  

Six Months Ended

June 30, 2023

  

Six Months Ended

June 30, 2022

 
Oil sales  $150,767   $263,427   $313,049   $542,905 
Natural gas sales   16,963    119,824    41,874    191,206 
Natural gas liquids sales   36,660    79,738    79,491    152,698 
Total revenue from customers  $204,390   $462,989   $434,414   $886,809 
XML 25 R17.htm IDEA: XBRL DOCUMENT v3.23.2
OIL AND GAS PROPERTIES (Tables)
6 Months Ended
Jun. 30, 2023
Segment Reporting [Abstract]  
SCHEDULE OF REVENUES AND LONG LIVED ASSETS ATTRIBUTABLE TO GEOGRAPHICAL AREA

The Company currently has properties in two geographical areas, the United States and Colombia. Revenues for the six months ended June 30, 2023 and long lived assets (net of depletion, amortization, and impairments) as of June 30, 2023 attributable to each geographical area are presented below:

 

  

Six Months Ended

June 30, 2023

  

As of

June 30, 2023

 
   Revenues   Long Lived Assets, Net 
United States  $434,414   $2,170,121 
Colombia       2,343,126 
Total  $434,414   $4,513,247 
XML 26 R18.htm IDEA: XBRL DOCUMENT v3.23.2
STOCK-BASED COMPENSATION EXPENSE (Tables)
6 Months Ended
Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]  
SUMMARY OF STOCK OPTION ACTIVITY

A summary of stock option activity and related information for the six months ended June 30, 2023 is presented below:

 

   Options  

Weighted-Average

Exercise Price

  

Aggregate

Intrinsic Value

 
             
Outstanding at January 1, 2023   944,177   $2.08      
Granted   60,000    2.09      
Exercised             
Forfeited             
Outstanding at June 30, 2023   1,004,177   $2.45   $286,160 
Exercisable at June 30, 2023   958,851   $2.46   $284,240 
SCHEDULE OF STOCK-BASED COMPENSATION

The following table reflects total stock-based compensation recorded by the Company for the six months ended June 30, 2023 and 2022:

 

   2023   2022 
  

Six Months Ended

June 30,

 
   2023   2022 
         
Stock-based compensation expense included in general and administrative expense  $162,315   $111,005 
Earnings per share effect of share-based compensation expense – basic and diluted  $(0.02)  $(0.01)
XML 27 R19.htm IDEA: XBRL DOCUMENT v3.23.2
CAPITAL STOCK (Tables)
6 Months Ended
Jun. 30, 2023
Equity [Abstract]  
SUMMARY OF WARRANT ACTIVITY

A summary of warrant activity and related information for 2023 is presented below:

 

   Warrants  

Weighted-Average

Exercise Price

  

Aggregate

Intrinsic Value

 
             
Outstanding at January 1, 2023   94,400   $ 2.46               
Issued             
Exercised             
Expired             
Outstanding at June 30, 2023   94,400   $2.46   $- 
Exercisable at June 30, 2023   94,400   $2.46   $- 
XML 28 R20.htm IDEA: XBRL DOCUMENT v3.23.2
EARNINGS PER COMMON SHARE (Tables)
6 Months Ended
Jun. 30, 2023
Earnings Per Share [Abstract]  
SCHEDULE OF EARNINGS (LOSS) PER COMMON SHARE

The calculation of earnings (loss) per common share for the periods indicated below were as follows:

 

Numerator:  2023   2022   2023   2022 
   Three Months Ended June 30,   Six Months Ended June 30, 
Numerator:  2023   2022   2023   2022 
Net income (loss)  $(300,381)  $4,365   $(196,206)  $(161,195)
                     
Effect of common stock equivalents                
Net income (loss) adjusted for common stock equivalents  $(300,381)  $4,365   $(196,206)  $(161,195)
                     
Denominator:                    
Weighted average common shares – basic   10,896,996    9,923,338    10,659,076    9,923,338 
                     
Dilutive effect of common stock equivalents:                    
Options and warrants       455,953         
                     
Denominator:                    
Weighted average common shares – diluted   10,896,996    10,379,291    10,659,076    9,923,338 
                     
Earnings (loss) per common share – basic  $(0.03)  $0.00   $(0.02)  $(0.02)
Earnings (loss) per common share – diluted  $(0.03)  $0.00   $(0.02)  $(0.02)
SCHEDULE OF ANTI-DILUTIVE SECURITIES EXCLUDED FROM COMPUTATION OF DILUTED NET INCOME LOSS

For the three and six months ended June 30, 2023 and 2022, the following warrants and options to purchase shares of common stock were excluded from the computation of diluted net loss per share, as the inclusion of such shares would be anti-dilutive:

 

   2023   2022   2023   2022 
   Six Months Ended June 30,   Three Months Ended June 30, 
   2023   2022   2023   2022 
Stock warrants   94,400    94,400    94,400    94,400 
Stock options   1,004,177    74,000    1,004,177    990,177 
Total   1,098,577    168,400    1,098,577    1,084,577 
XML 29 R21.htm IDEA: XBRL DOCUMENT v3.23.2
COMMITMENTS AND CONTINGENCIES (Tables)
6 Months Ended
Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]  
SCHEDULE OF FUTURE PAYMENTS UNDER LEASE AGREEMENT

 

Year  Amount 
2023  $43,770 
2024   88,801 
2025   75,051 
Total future lease payments   207,622 
Less: imputed interest   27,472 
Present value of future operating lease payments   180,150 
Less: current portion of operating lease liabilities   70,183 
Operating lease liabilities, net of current portion  $109,967 
Right of use assets  $179,366 
XML 30 R22.htm IDEA: XBRL DOCUMENT v3.23.2
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)
Jun. 30, 2023
Dec. 31, 2022
Line of Credit Facility [Line Items]    
Accumulated decifit $ 73,983,926 $ 73,787,720
Cash deposits 5,100,000  
Cash FDIC insured amount 250,000  
Colombian Banks [Member]    
Line of Credit Facility [Line Items]    
Cash deposits $ 5,500  
XML 31 R23.htm IDEA: XBRL DOCUMENT v3.23.2
SCHEDULE OF DISAGGREGATES REVENUE BY SIGNIFICANT PRODUCT (Details) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Disaggregation of Revenue [Line Items]        
Total revenue from customers $ 204,390 $ 462,989 $ 434,414 $ 886,809
Oil Sales [Member]        
Disaggregation of Revenue [Line Items]        
Total revenue from customers 150,767 263,427 313,049 542,905
Natural Gas Sales [Member]        
Disaggregation of Revenue [Line Items]        
Total revenue from customers 16,963 119,824 41,874 191,206
Natural Gas Liquids Sales [Member]        
Disaggregation of Revenue [Line Items]        
Total revenue from customers $ 36,660 $ 79,738 $ 79,491 $ 152,698
XML 32 R24.htm IDEA: XBRL DOCUMENT v3.23.2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details Narrative) - USD ($)
Jun. 30, 2023
Jun. 30, 2022
Revenue from Contract with Customer [Abstract]    
Remaining performance obligations $ 0 $ 0
XML 33 R25.htm IDEA: XBRL DOCUMENT v3.23.2
SCHEDULE OF REVENUES AND LONG LIVED ASSETS ATTRIBUTABLE TO GEOGRAPHICAL AREA (Details) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Revenues from External Customers and Long-Lived Assets [Line Items]        
Revenues $ 204,390 $ 462,989 $ 434,414 $ 886,809
Long Lived Assets, Net 4,513,247   4,513,247  
UNITED STATES        
Revenues from External Customers and Long-Lived Assets [Line Items]        
Revenues     434,414  
Long Lived Assets, Net 2,170,121   2,170,121  
COLOMBIA        
Revenues from External Customers and Long-Lived Assets [Line Items]        
Revenues      
Long Lived Assets, Net $ 2,343,126   $ 2,343,126  
XML 34 R26.htm IDEA: XBRL DOCUMENT v3.23.2
OIL AND GAS PROPERTIES (Details Narrative) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Segment Reporting [Abstract]        
Depletion expense $ 44,941 $ 91,896 $ 79,640 $ 109,740
XML 35 R27.htm IDEA: XBRL DOCUMENT v3.23.2
EQUITY INVESTMENT (Details Narrative)
6 Months Ended
Jun. 30, 2023
USD ($)
Equity Investment  
Direct investment operations $ 481,947
Distributions investment operations $ 648,475
XML 36 R28.htm IDEA: XBRL DOCUMENT v3.23.2
SUMMARY OF STOCK OPTION ACTIVITY (Details)
6 Months Ended
Jun. 30, 2023
USD ($)
$ / shares
shares
Share-Based Payment Arrangement [Abstract]  
Options, Outstanding, Beginning Balance | shares 944,177
Weighted-Average Exercise Price, Outstanding, Beginning Balance | $ / shares $ 2.08
Options, Granted | shares 60,000
Weighted-Average Exercise Price, Granted | $ / shares $ 2.09
Options, Exercised | shares
Weighted-Average Exercise Price, Exercised | $ / shares
Options, Forfeited | shares
Weighted-Average Exercise Price, Forfeited | $ / shares
Options, Outstanding, Ending Balance | shares 1,004,177
Weighted-Average Exercise Price, Outstanding, Ending Balance | $ / shares $ 2.45
Aggregate Intrinsic Value, Outstanding, Ending Balance | $ $ 286,160
Options, Exercisable, Ending Balance | shares 958,851
Weighted-Average Exercise Price, Exercisable, Ending Balance | $ / shares $ 2.46
Aggregate Intrinsic Value, Exercisable, Ending Balance | $ $ 284,240
XML 37 R29.htm IDEA: XBRL DOCUMENT v3.23.2
SCHEDULE OF STOCK-BASED COMPENSATION (Details) - USD ($)
6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Share-Based Payment Arrangement [Abstract]    
Stock-based compensation expense included in general and administrative expense $ 162,315 $ 111,005
Earnings per share effect of share-based compensation expense - basic $ (0.02) $ (0.01)
Earnings per share effect of share-based compensation expense - diluted $ (0.02) $ (0.01)
XML 38 R30.htm IDEA: XBRL DOCUMENT v3.23.2
STOCK-BASED COMPENSATION EXPENSE (Details Narrative) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2023
Mar. 31, 2023
Jun. 30, 2023
Dec. 31, 2021
Dec. 31, 2017
Dec. 31, 2008
Common Stock [Member]            
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]            
Number of shares issued 283,835 294,872        
Common Stock [Member] | Director [Member]            
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]            
Number of shares issued     60,000      
Exercise price $ 2.09   $ 2.09      
Vesting percentage     20.00%      
Stcok option description     The grant date fair value of these stock options was $119,252 based on the Black-Scholes Option Pricing model based on the following assumptions: market value of common stock on grant date – $2.13; risk free interest rate based on the applicable US Treasury bill rate – 0%; dividend yield – 0%; volatility factor based on the trading history of the Company – 116%; weighted average expected life in years – 10; and expected forfeiture rate – 0%.      
2008 Equity Incentive Plan [Member] | Maximum [Member]            
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]            
Number of options authorized to purchase shares of common stock           480,000
2017 Equity Incentive Plan [Member] | Maximum [Member]            
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]            
Number of options authorized to purchase shares of common stock         400,000  
2021 Equity Incentive Plan [Member] | Maximum [Member]            
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]            
Number of options authorized to purchase shares of common stock       500,000    
2021 Equity Incentive Plan [Member]            
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]            
Share based compensation $ 77,870   $ 162,315      
Unrecognized share-based compensation expense related to non-vested stock options $ 119,253   $ 119,253      
Weighted average period for unrecognition of compensation expense     2 years 2 months 23 days      
Weighted average remaining contractual term of the outstanding options     5 years 9 months 10 days      
Weighted average remaining contractual term of the exercisable options     6 years 1 month 17 days      
Common stock available for issuance 181,333   181,333      
XML 39 R31.htm IDEA: XBRL DOCUMENT v3.23.2
SUMMARY OF WARRANT ACTIVITY (Details)
6 Months Ended
Jun. 30, 2023
USD ($)
$ / shares
shares
Equity [Abstract]  
Warrants Outstanding, Beginning Balance 94,400
Weighted-Average Exercise Price Outstanding, Beginning Balance | $ / shares $ 2.46
Warrants, Issued
Weighted-Average Exercise Price, Issued | $ / shares
Warrants, Exercised
Weighted-Average Exercise Price, Exercised | $ / shares
Warrants, Expired
Weighted-Average Exercise Price, Expired | $ / shares
Warrants Outstanding, Ending Balance 94,400
Weighted-Average Exercise Price Outstanding, Ending Balance | $ / shares $ 2.46
Aggregate Intrinsic Value, Outstanding Ending Balance | $
Warrants Outstanding, Exercisable 94,400
Weighted-Average Exercise Price Outstanding, Exercisable 2.46
Aggregate Intrinsic Value, Exercisable | $
XML 40 R32.htm IDEA: XBRL DOCUMENT v3.23.2
CAPITAL STOCK (Details Narrative) - USD ($)
1 Months Ended 6 Months Ended
Nov. 30, 2022
Jun. 30, 2023
Sales Agreement [Member] | Univest Securities, LLC [Member]    
Commission perecentage from gross proceeds of sale of share 3.00%  
Sales Agreement [Member] | Univest Securities, LLC [Member] | Maximum [Member]    
Proceeds from sale of stock $ 3,500,000  
2022 ATM Offering [Member]    
Proceeds from sale of stock   $ 1,652,000
Number shares sold   578,707
2022 ATM Offering [Member] | Univest Securities, LLC [Member]    
Reimbursement of expenses connection with offering $ 25,000  
XML 41 R33.htm IDEA: XBRL DOCUMENT v3.23.2
SCHEDULE OF EARNINGS (LOSS) PER COMMON SHARE (Details) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2023
Mar. 31, 2023
Jun. 30, 2022
Mar. 31, 2022
Jun. 30, 2023
Jun. 30, 2022
Earnings Per Share [Abstract]            
Net income (loss) $ (300,381) $ 104,175 $ 4,365 $ (165,560) $ (196,206) $ (161,195)
Effect of common stock equivalents    
Net income (loss) adjusted for common stock equivalents $ (300,381)   $ 4,365   $ (196,206) $ (161,195)
Weighted average common shares – basic 10,896,996   9,923,338   10,659,076 9,923,338
Options and warrants   455,953  
Weighted average common shares – diluted 10,896,996   10,379,291   10,659,076 9,923,338
Earnings (loss) per common share – basic $ (0.03)   $ 0.00   $ (0.02) $ (0.02)
Earnings (loss) per common share – diluted $ (0.03)   $ 0.00   $ (0.02) $ (0.02)
XML 42 R34.htm IDEA: XBRL DOCUMENT v3.23.2
SCHEDULE OF ANTI-DILUTIVE SECURITIES EXCLUDED FROM COMPUTATION OF DILUTED NET INCOME LOSS (Details) - shares
3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Total 1,098,577 1,084,577 1,098,577 168,400
Warrant [Member]        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Total 94,400 94,400 94,400 94,400
Share-Based Payment Arrangement, Option [Member]        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Total 1,004,177 990,177 1,004,177 74,000
XML 43 R35.htm IDEA: XBRL DOCUMENT v3.23.2
SCHEDULE OF FUTURE PAYMENTS UNDER LEASE AGREEMENT (Details) - USD ($)
Jun. 30, 2023
Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]    
2023 $ 43,770  
2024 88,801  
2025 75,051  
Total future lease payments 207,622  
Less: imputed interest 27,472  
Present value of future operating lease payments 180,150  
Less: current portion of operating lease liabilities 70,183 $ 65,385
Operating lease liabilities, net of current portion 109,967 146,359
Right of use assets $ 179,366 $ 212,202
XML 44 R36.htm IDEA: XBRL DOCUMENT v3.23.2
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]        
Amortization of right of use asset     $ 32,836 $ 30,169
Payments for Rent $ 22,570 $ 22,161 $ 45,731 $ 46,836
Operating Lease Agreement [Member]        
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]        
Operating lease agreement expire date     Oct. 31, 2025  
Operating cash outflows related to operating lease liabilities 21,560   $ 43,121  
Amortization of right of use asset $ 22,161   $ 44,322  
Operating lease, weighted average remaining lease term 2 years 3 months 18 days   2 years 3 months 18 days  
Weighted average discount rate 12.00%   12.00%  
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DE 76-0675953 801 Travis Street Suite 1425 Houston TX 77002 (713) 222-6966 Common Stock, $0.001 par value per share HUSA NYSEAMER Yes Yes Non-accelerated Filer true false false 10906353 5532834 4547210 278546 164575 181506 84544 5992886 4796329 62774064 62786267 2343126 2343126 90004 90004 65207194 65219397 60693947 60602051 4513247 4617346 2584086 2102139 179366 212202 3167 3167 13272752 11731183 79678 113741 17354 16035 70183 65385 167215 195161 109967 146359 60587 72789 170554 219148 337769 414309 0.001 0.001 12000000 12000000 10906353 10906353 10327646 10327646 10907 10328 86908002 85094266 -73983926 -73787720 12934983 11316874 13272752 11731183 434414 886809 204390 462989 215400 311757 101714 150485 1046434 628996 716615 258896 91896 109740 44941 51501 1353730 1050493 863270 460882 -919316 -163684 -658880 2107 74635 2489 44135 2258 648475 314364 723110 2489 358499 2258 -196206 -161195 -300381 4365 -196206 -161195 -300381 4365 -0.02 -0.02 -0.03 0.00 10659076 9923338 10896996 9923338 10327646 10328 85094266 -73787720 11316874 84445 84445 294872 295 901205 901500 104175 104175 10622518 10623 86079916 -73683545 12406994 77870 77870 283835 284 750216 750500 -300381 -300381 10906353 10907 86908002 -73983926 12934983 9928338 9928 83345456 -73043441 10311943 85485 85485 -165560 -165560 9928338 9928 83430941 -73209001 10231868 9928338 9928 83430941 -73209001 10231868 25520 25520 4365 4365 4365 4365 9928338 9928 83456461 -73204636 10261753 9928338 9928 83456461 -73204636 10261753 -196206 -161195 91896 109740 2678 3697 162315 111005 32836 30169 648475 113971 52164 -534155 14467 -51101 -24552 -31594 -31594 -217467 -29361 14162 448909 248282 -448909 -262444 1652000 1652000 985624 -291805 4547210 4894577 5532834 4602772 1259 33038 <p id="xdx_801_eus-gaap--BasisOfPresentationAndSignificantAccountingPoliciesTextBlock_zpYSzStSwhcc" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE 1 – <span id="xdx_820_zjNYDWFmoQJ9">BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The accompanying unaudited consolidated financial statements of Houston American Energy Corp., a Delaware corporation (the “Company”), have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q. They do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for a complete financial presentation. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, considered necessary for a fair presentation, have been included in the accompanying unaudited consolidated financial statements. Operating results for the periods presented are not necessarily indicative of the results that may be expected for the full year.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">These unaudited consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and footnotes, which are included as part of the Company’s Form 10-K for the year ended December 31, 2022.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_84C_eus-gaap--ConsolidationPolicyTextBlock_zWdqnWTOEzmc" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span><span><span id="xdx_863_zNcGAUcZsAWi">Consolidation</span></span></span></i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The accompanying consolidated financial statements include all accounts of the Company and its subsidiaries (HAEC Louisiana E&amp;P, Inc., HAEC Oklahoma E&amp;P, Inc., and HAEC Caddo Lake E&amp;P, Inc.). All significant inter-company balances and transactions have been eliminated in consolidation.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_845_ecustom--LiquidityAndCapitalRequirementsPolicyTextBlock_z972usLMp0Ug" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_86E_zUfYrCoMYzji">Liquidity and Capital Requirements</span></i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business for the twelve-month period following the issuance date of these consolidated financial statements. With limited exceptions, the Company has incurred continuing losses since 2011, with an accumulated deficit of $<span id="xdx_903_eus-gaap--RetainedEarningsAccumulatedDeficit_iNI_pn6n6_di_c20230630_zwMbhVQErH9b" title="Accumulated decifit">74 </span>million as of June 30, 2023.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company believes that it has the ability to fund, from cash on hand, its operating costs and anticipated drilling operations for at least the next twelve months following the issuance of these financial statements.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The actual timing and number of wells drilled during 2023 and beyond will be principally controlled by the operators of the Company’s acreage, based on a number of factors, including but not limited to availability of financing, performance of existing wells on the subject acreage, energy prices and industry condition and outlook, costs of drilling and completion services and equipment and other factors beyond the Company’s control or that of its operators.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In the event that the Company pursues additional acreage acquisitions or expands its drilling plans, the Company may be required to secure additional funding beyond our resources on hand. While the Company may, among other efforts, seek additional funding from “at-the-market” sales of common stock, and private sales of equity and debt securities, it presently does not have any commitments to provide additional funding, has limited shares of common stock available to support capital raising efforts and there can be no assurance that the Company can secure the necessary capital to fund its share of drilling, acquisition or other costs on acceptable terms or at all. If, for any reason, the Company is unable to fund its share of drilling and completion costs, it would forego participation in one or more of such wells. In such event, the Company may be subject to penalties or to the possible loss of some of its rights and interests in prospects with respect to which it fails to satisfy funding obligations and it may be required to curtail operations and forego opportunities.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_844_eus-gaap--UseOfEstimates_zkZ2TA55ZTf" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_868_zAXgZ5B8nNc3">Accounting Principles and Use of Estimates</span></i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America. In preparing financial statements, management makes informed judgments and estimates that affect the reported amounts of assets and liabilities as of the date of the financial statements and affect the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, management reviews its estimates, including those related to such potential matters as litigation, environmental liabilities, income taxes and the related valuation allowance, determination of proved reserves of oil and gas and asset retirement obligations. Changes in facts and circumstances may result in revised estimates and actual results may differ from these estimates.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i> </i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i></i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i> </i></span></p> <p id="xdx_84B_eus-gaap--ConcentrationRiskCreditRisk_zVa4Th9p3VQf" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_864_zmKBpPvst1ok">Concentration of Credit Risk</span></i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Financial instruments that potentially subject the Company to a concentration of credit risk include cash, cash equivalents (if any) and any marketable securities (if any). The Company had cash deposits of $<span id="xdx_900_eus-gaap--Deposits_iI_pn5n6_c20230630_zZony8mFPnl5" title="Cash deposits">5.1</span> million in excess of the FDIC’s current insured limit on interest bearing accounts of $<span id="xdx_904_eus-gaap--CashFDICInsuredAmount_iI_pp0p0_c20230630_zaQOCJnR7tK5" title="Cash FDIC insured amount">250,000</span> as of June 30, 2023. The Company also had cash deposits of $<span id="xdx_903_eus-gaap--Deposits_iI_pp0p0_c20230630__us-gaap--CreditFacilityAxis__custom--ColombianBankMember_zWbgUTqCWz03" title="Cash deposits">5,500</span> in Colombian banks at June 30, 2023 that are not insured by the FDIC. The Company has not experienced any losses on its deposits of cash and cash equivalents.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_847_eus-gaap--EarningsPerSharePolicyTextBlock_zrnHEYh2YzO1" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_860_zPxh8JcEx8Yh">Earnings (Loss) per Share</span></i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Basic earnings (loss) per share is computed by dividing net earnings (loss) available to common shareholders by the weighted average common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common shares were exercised or converted in common shares that then shared in the earnings of the Company. In periods in which the Company reports a net loss, dilutive securities are excluded from the calculation of diluted net loss per share amounts as the effect would be anti-dilutive.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_84B_eus-gaap--NewAccountingPronouncementsPolicyPolicyTextBlock_zpMIGXBH0Uv5" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_860_zT8TzVeEM1Qf">Recently Issued Accounting Pronouncements</span></i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-13, <i>Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses of Financial Instruments</i>, which was codified in Accounting Standards Codification (“ASC”) 326, <i>Financial Instruments — Credit Losses </i>(“ASC 326”). The standard changes the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. Because the Company is a smaller reporting company based on the most recent determination as of November 15, 2019, ASC 326 became effective for the Company for fiscal years beginning after December 15, 2022. As such, the Company adopted ASC 326 effective January 1, 2023, utilizing the modified retrospective transition method. Upon adoption, the Company updated its impairment model to utilize a forward-looking current expected credit losses (“CECL”) model in place of the incurred loss methodology for financial instruments measured at amortized cost, primarily including its accounts receivable and contract asset. In relation to available-for-sale (“AFS”) debt securities, the guidance eliminates the concept of “other-than-temporary” impairment, and instead focuses on determining whether any impairment is a result of a credit loss or other factors. The adoption of ASC 326 did not have a material impact on our unaudited condensed consolidated financial statements as of the adoption date.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_84C_eus-gaap--ConsolidationPolicyTextBlock_zWdqnWTOEzmc" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span><span><span id="xdx_863_zNcGAUcZsAWi">Consolidation</span></span></span></i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The accompanying consolidated financial statements include all accounts of the Company and its subsidiaries (HAEC Louisiana E&amp;P, Inc., HAEC Oklahoma E&amp;P, Inc., and HAEC Caddo Lake E&amp;P, Inc.). All significant inter-company balances and transactions have been eliminated in consolidation.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_845_ecustom--LiquidityAndCapitalRequirementsPolicyTextBlock_z972usLMp0Ug" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_86E_zUfYrCoMYzji">Liquidity and Capital Requirements</span></i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business for the twelve-month period following the issuance date of these consolidated financial statements. With limited exceptions, the Company has incurred continuing losses since 2011, with an accumulated deficit of $<span id="xdx_903_eus-gaap--RetainedEarningsAccumulatedDeficit_iNI_pn6n6_di_c20230630_zwMbhVQErH9b" title="Accumulated decifit">74 </span>million as of June 30, 2023.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company believes that it has the ability to fund, from cash on hand, its operating costs and anticipated drilling operations for at least the next twelve months following the issuance of these financial statements.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The actual timing and number of wells drilled during 2023 and beyond will be principally controlled by the operators of the Company’s acreage, based on a number of factors, including but not limited to availability of financing, performance of existing wells on the subject acreage, energy prices and industry condition and outlook, costs of drilling and completion services and equipment and other factors beyond the Company’s control or that of its operators.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In the event that the Company pursues additional acreage acquisitions or expands its drilling plans, the Company may be required to secure additional funding beyond our resources on hand. While the Company may, among other efforts, seek additional funding from “at-the-market” sales of common stock, and private sales of equity and debt securities, it presently does not have any commitments to provide additional funding, has limited shares of common stock available to support capital raising efforts and there can be no assurance that the Company can secure the necessary capital to fund its share of drilling, acquisition or other costs on acceptable terms or at all. If, for any reason, the Company is unable to fund its share of drilling and completion costs, it would forego participation in one or more of such wells. In such event, the Company may be subject to penalties or to the possible loss of some of its rights and interests in prospects with respect to which it fails to satisfy funding obligations and it may be required to curtail operations and forego opportunities.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> -74000000 <p id="xdx_844_eus-gaap--UseOfEstimates_zkZ2TA55ZTf" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_868_zAXgZ5B8nNc3">Accounting Principles and Use of Estimates</span></i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America. In preparing financial statements, management makes informed judgments and estimates that affect the reported amounts of assets and liabilities as of the date of the financial statements and affect the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, management reviews its estimates, including those related to such potential matters as litigation, environmental liabilities, income taxes and the related valuation allowance, determination of proved reserves of oil and gas and asset retirement obligations. Changes in facts and circumstances may result in revised estimates and actual results may differ from these estimates.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i> </i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i></i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i> </i></span></p> <p id="xdx_84B_eus-gaap--ConcentrationRiskCreditRisk_zVa4Th9p3VQf" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_864_zmKBpPvst1ok">Concentration of Credit Risk</span></i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Financial instruments that potentially subject the Company to a concentration of credit risk include cash, cash equivalents (if any) and any marketable securities (if any). The Company had cash deposits of $<span id="xdx_900_eus-gaap--Deposits_iI_pn5n6_c20230630_zZony8mFPnl5" title="Cash deposits">5.1</span> million in excess of the FDIC’s current insured limit on interest bearing accounts of $<span id="xdx_904_eus-gaap--CashFDICInsuredAmount_iI_pp0p0_c20230630_zaQOCJnR7tK5" title="Cash FDIC insured amount">250,000</span> as of June 30, 2023. The Company also had cash deposits of $<span id="xdx_903_eus-gaap--Deposits_iI_pp0p0_c20230630__us-gaap--CreditFacilityAxis__custom--ColombianBankMember_zWbgUTqCWz03" title="Cash deposits">5,500</span> in Colombian banks at June 30, 2023 that are not insured by the FDIC. The Company has not experienced any losses on its deposits of cash and cash equivalents.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> 5100000 250000 5500 <p id="xdx_847_eus-gaap--EarningsPerSharePolicyTextBlock_zrnHEYh2YzO1" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_860_zPxh8JcEx8Yh">Earnings (Loss) per Share</span></i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Basic earnings (loss) per share is computed by dividing net earnings (loss) available to common shareholders by the weighted average common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common shares were exercised or converted in common shares that then shared in the earnings of the Company. In periods in which the Company reports a net loss, dilutive securities are excluded from the calculation of diluted net loss per share amounts as the effect would be anti-dilutive.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_84B_eus-gaap--NewAccountingPronouncementsPolicyPolicyTextBlock_zpMIGXBH0Uv5" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_860_zT8TzVeEM1Qf">Recently Issued Accounting Pronouncements</span></i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-13, <i>Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses of Financial Instruments</i>, which was codified in Accounting Standards Codification (“ASC”) 326, <i>Financial Instruments — Credit Losses </i>(“ASC 326”). The standard changes the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. Because the Company is a smaller reporting company based on the most recent determination as of November 15, 2019, ASC 326 became effective for the Company for fiscal years beginning after December 15, 2022. As such, the Company adopted ASC 326 effective January 1, 2023, utilizing the modified retrospective transition method. Upon adoption, the Company updated its impairment model to utilize a forward-looking current expected credit losses (“CECL”) model in place of the incurred loss methodology for financial instruments measured at amortized cost, primarily including its accounts receivable and contract asset. In relation to available-for-sale (“AFS”) debt securities, the guidance eliminates the concept of “other-than-temporary” impairment, and instead focuses on determining whether any impairment is a result of a credit loss or other factors. The adoption of ASC 326 did not have a material impact on our unaudited condensed consolidated financial statements as of the adoption date.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_800_eus-gaap--RevenueFromContractWithCustomerTextBlock_z0qWCFUglWSl" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE 2 – <span id="xdx_822_zVRKGcUNceQ8">REVENUE FROM CONTRACTS WITH CUSTOMERS</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Disaggregation of Revenue from Contracts with Customers</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_89D_eus-gaap--DisaggregationOfRevenueTableTextBlock_z9bquUNKwqi7" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The following table disaggregates revenue by significant product type for the three and six-month periods ended June 30, 2023 and 2022:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B0_zNXZvn3bkOH5" style="display: none">SCHEDULE OF DISAGGREGATES REVENUE BY SIGNIFICANT PRODUCT</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_496_20230401__20230630_zfjuP4Xtrdr4" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Three Months Ended</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>June 30, 2023</b></span></p></td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_495_20220401__20220630_zB8KW8prn1af" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Three Months Ended</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>June 30, 2022</b></span></p></td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_494_20230101__20230630_zgeDcMjpUn2i" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Six Months Ended</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>June 30, 2023</b></span></p></td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_493_20220101__20220630_zTz5FExU2pTa" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Six Months Ended</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>June 30, 2022</b></span></p></td><td style="padding-bottom: 1.5pt"> </td></tr> <tr id="xdx_401_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--OilSalesMember_z8E1x3P5cdL1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 28%; text-align: left">Oil sales</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">150,767</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">263,427</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">313,049</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">542,905</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--NaturalGasSalesMember_zbYR2lG8jcmf" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Natural gas sales</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">16,963</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">119,824</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">41,874</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">191,206</td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--NaturalGasLiquidsSalesMember_zYdcn6D2scg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Natural gas liquids sales</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">36,660</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">79,738</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">79,491</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">152,698</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_zx97EhAMzj63" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Total revenue from customers</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">204,390</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">462,989</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">434,414</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">886,809</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p id="xdx_8AE_zY0oWkkO71ic" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">There were <span id="xdx_909_eus-gaap--RevenueRemainingPerformanceObligation_iI_do_c20230630_z2QY7mee31hj" title="Remaining performance obligations"><span id="xdx_907_eus-gaap--RevenueRemainingPerformanceObligation_iI_do_c20220630_zE924Gq1Nc3d" title="Remaining performance obligations">no</span></span> significant contract liabilities or transaction price allocations to any remaining performance obligations as of June 30, 2023 or 2022.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_89D_eus-gaap--DisaggregationOfRevenueTableTextBlock_z9bquUNKwqi7" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The following table disaggregates revenue by significant product type for the three and six-month periods ended June 30, 2023 and 2022:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B0_zNXZvn3bkOH5" style="display: none">SCHEDULE OF DISAGGREGATES REVENUE BY SIGNIFICANT PRODUCT</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_496_20230401__20230630_zfjuP4Xtrdr4" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Three Months Ended</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>June 30, 2023</b></span></p></td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_495_20220401__20220630_zB8KW8prn1af" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Three Months Ended</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>June 30, 2022</b></span></p></td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_494_20230101__20230630_zgeDcMjpUn2i" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Six Months Ended</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>June 30, 2023</b></span></p></td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_493_20220101__20220630_zTz5FExU2pTa" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Six Months Ended</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>June 30, 2022</b></span></p></td><td style="padding-bottom: 1.5pt"> </td></tr> <tr id="xdx_401_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--OilSalesMember_z8E1x3P5cdL1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 28%; text-align: left">Oil sales</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">150,767</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">263,427</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">313,049</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">542,905</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--NaturalGasSalesMember_zbYR2lG8jcmf" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Natural gas sales</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">16,963</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">119,824</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">41,874</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">191,206</td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--NaturalGasLiquidsSalesMember_zYdcn6D2scg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Natural gas liquids sales</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">36,660</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">79,738</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">79,491</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">152,698</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_zx97EhAMzj63" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Total revenue from customers</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">204,390</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">462,989</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">434,414</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">886,809</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 150767 263427 313049 542905 16963 119824 41874 191206 36660 79738 79491 152698 204390 462989 434414 886809 0 0 <p id="xdx_806_eus-gaap--OilAndGasPropertiesTextBlock_zAYsg2lIAFOg" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE 3 – <span id="xdx_826_zMLU3MDFfi8j">OIL AND GAS PROPERTIES</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During the six months ended June 30, 2023, the Company incurred costs attributable to final expenses related to the plugging and abandonment of the Lou Brock well.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During the three and six months ended June 30, 2023, the Company recorded depletion expense of $<span id="xdx_90E_eus-gaap--Depletion_c20230401__20230630_zV4qcSATqqR5" title="Depletion expense">44,941</span> and $<span id="xdx_90A_eus-gaap--Depletion_c20230101__20230630_z6AFwvtiatXa" title="Depletion expense">79,640</span>, respectively. During the three and six months ended June 30, 2022, the Company recorded depletion expense of $<span id="xdx_90A_eus-gaap--Depletion_c20220401__20220630_z1ecjLVs5x2" title="Depletion expense">91,896</span> and $<span id="xdx_90F_eus-gaap--Depletion_c20220101__20220630_zAUIWCc6JaG9" title="Depletion expense">109,740</span>, respectively.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Geographical Information</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_89F_eus-gaap--ScheduleOfRevenuesFromExternalCustomersAndLongLivedAssetsByGeographicalAreasTableTextBlock_zbddIRYQqEog" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company currently has properties in two geographical areas, the United States and Colombia. Revenues for the six months ended June 30, 2023 and long lived assets (net of depletion, amortization, and impairments) as of June 30, 2023 attributable to each geographical area are presented below:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B5_zRa3BLpg9ik7" style="display: none">SCHEDULE OF REVENUES AND LONG LIVED ASSETS ATTRIBUTABLE TO GEOGRAPHICAL AREA</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><p style="margin-top: 0; margin-bottom: 0">Six Months Ended</p> <p style="margin-top: 0; margin-bottom: 0">June 30, 2023</p></td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><p style="margin-top: 0; margin-bottom: 0">As of</p> <p style="margin-top: 0; margin-bottom: 0">June 30, 2023</p></td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">Revenues</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">Long Lived Assets, Net</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; text-align: left">United States</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_987_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pp0p0_c20230101__20230630__srt--StatementGeographicalAxis__country--US_zXgVP2iwwVS8" style="width: 18%; text-align: right" title="Revenues">434,414</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_988_eus-gaap--NoncurrentAssets_iI_pp0p0_c20230630__srt--StatementGeographicalAxis__country--US_zucRhjuwmW8j" style="width: 18%; text-align: right" title="Long Lived Assets, Net">2,170,121</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt">Colombia</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98D_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pdp0_c20230101__20230630__srt--StatementGeographicalAxis__country--CO_z6Y7cNGiIxKa" style="border-bottom: Black 1.5pt solid; text-align: right" title="Revenues"><span style="-sec-ix-hidden: xdx2ixbrl0516">—</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_982_eus-gaap--NoncurrentAssets_iI_pp0p0_c20230630__srt--StatementGeographicalAxis__country--CO_zSQECMeStV5a" style="border-bottom: Black 1.5pt solid; text-align: right" title="Long Lived Assets, Net">2,343,126</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_981_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pp0p0_c20230101__20230630_zQ0GLMRh02L1" style="border-bottom: Black 2.5pt double; text-align: right" title="Revenues">434,414</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98B_eus-gaap--NoncurrentAssets_iI_pp0p0_c20230630_zG7QfA8t0by9" style="border-bottom: Black 2.5pt double; text-align: right" title="Long Lived Assets, Net">4,513,247</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p id="xdx_8AE_zCLsxllgPWt9" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Revenues and long-lived assets attributable to the Company’s investments in Hupecol Meta LLC (“Hupecol Meta”), and its underlying assets and operations in Colombia, are excluded from the above table.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> 44941 79640 91896 109740 <p id="xdx_89F_eus-gaap--ScheduleOfRevenuesFromExternalCustomersAndLongLivedAssetsByGeographicalAreasTableTextBlock_zbddIRYQqEog" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company currently has properties in two geographical areas, the United States and Colombia. Revenues for the six months ended June 30, 2023 and long lived assets (net of depletion, amortization, and impairments) as of June 30, 2023 attributable to each geographical area are presented below:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B5_zRa3BLpg9ik7" style="display: none">SCHEDULE OF REVENUES AND LONG LIVED ASSETS ATTRIBUTABLE TO GEOGRAPHICAL AREA</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><p style="margin-top: 0; margin-bottom: 0">Six Months Ended</p> <p style="margin-top: 0; margin-bottom: 0">June 30, 2023</p></td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><p style="margin-top: 0; margin-bottom: 0">As of</p> <p style="margin-top: 0; margin-bottom: 0">June 30, 2023</p></td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">Revenues</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">Long Lived Assets, Net</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; text-align: left">United States</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_987_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pp0p0_c20230101__20230630__srt--StatementGeographicalAxis__country--US_zXgVP2iwwVS8" style="width: 18%; text-align: right" title="Revenues">434,414</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_988_eus-gaap--NoncurrentAssets_iI_pp0p0_c20230630__srt--StatementGeographicalAxis__country--US_zucRhjuwmW8j" style="width: 18%; text-align: right" title="Long Lived Assets, Net">2,170,121</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt">Colombia</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98D_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pdp0_c20230101__20230630__srt--StatementGeographicalAxis__country--CO_z6Y7cNGiIxKa" style="border-bottom: Black 1.5pt solid; text-align: right" title="Revenues"><span style="-sec-ix-hidden: xdx2ixbrl0516">—</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_982_eus-gaap--NoncurrentAssets_iI_pp0p0_c20230630__srt--StatementGeographicalAxis__country--CO_zSQECMeStV5a" style="border-bottom: Black 1.5pt solid; text-align: right" title="Long Lived Assets, Net">2,343,126</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_981_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pp0p0_c20230101__20230630_zQ0GLMRh02L1" style="border-bottom: Black 2.5pt double; text-align: right" title="Revenues">434,414</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98B_eus-gaap--NoncurrentAssets_iI_pp0p0_c20230630_zG7QfA8t0by9" style="border-bottom: Black 2.5pt double; text-align: right" title="Long Lived Assets, Net">4,513,247</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 434414 2170121 2343126 434414 4513247 <p id="xdx_80A_ecustom--EquityInvestmentsDisclosureTextBlock_zJTnMx0YXwfe" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE 4 – <span id="xdx_825_zFhNbdbuZTtl">EQUITY INVESTMENT</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company’s carrying value of its holdings in Hupecol Meta is reflected in the line item “equity investment – Hupecol Meta LLC” on the Company’s Consolidated Balance Sheet.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During the six months ended June 30, 2023, the Company made capital contributions totaling $<span id="xdx_90D_eus-gaap--CostsIncurredAcquisitionOfOilAndGasProperties_pp0p0_c20230101__20230630_zFBCPImLiw2i" title="Direct investment operations">481,947</span>, to Hupecol Meta to cover its share of required capital contributions. During the six months ended June 30, 2023, the Company received distributions, totaling $<span id="xdx_900_eus-gaap--ProceedsFromSaleOfOilAndGasPropertyAndEquipment_c20230101__20230630_zXrqCnwQnTq" title="Distributions investment operations">648,475</span>, from Hupecol Meta representing the Company’s share of distributable net profits.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> 481947 648475 <p id="xdx_809_eus-gaap--DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock_zUj0A7EJNtq7" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE 5 – <span id="xdx_82C_zKy6MDO091Mk">STOCK-BASED COMPENSATION EXPENSE </span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In 2008, the Company adopted the Houston American Energy Corp. 2008 Equity Incentive Plan (the “2008 Plan”). The terms of the 2008 Plan, as amended in 2012 and 2013, allow for the issuance of up to <span id="xdx_901_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAuthorized_iI_pid_c20081231__us-gaap--PlanNameAxis__custom--TwoThousandAndEightEquityIncentivePlanMember__srt--RangeAxis__srt--MaximumMember_zJXh15quFUr" title="Number of options authorized to purchase shares of common stock">480,000</span> shares of the Company’s common stock pursuant to the grant of stock options and restricted stock.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In 2017, the Company adopted the Houston American Energy Corp. 2017 Equity Incentive Plan (the “2017 Plan”). The terms of the 2017 Plan, allow for the issuance of up to <span id="xdx_90B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAuthorized_iI_pid_c20171231__us-gaap--PlanNameAxis__custom--TwoThousandAndSeventeenEquityIncentivePlanMember__srt--RangeAxis__srt--MaximumMember_z7ASVZdM7V7h" title="Number of options authorized to purchase shares of common stock">400,000</span> shares of the Company’s common stock pursuant to the grant of stock options and restricted stock.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In 2021, the Company adopted the Houston American Energy 2021 Equity Incentive Plan (the “2021 Plan” and, together with the 2008 Plan and the 2017 Plan, the “Plans”). The terms of the 2021 Plan allow for the issuance of up to <span id="xdx_906_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAuthorized_iI_pid_c20211231__us-gaap--PlanNameAxis__custom--TwoThousandAndTwentyOneEquityIncentivePlanMember__srt--RangeAxis__srt--MaximumMember_zM3RBJxSHZq3" title="Number of options authorized to purchase shares of common stock">500,000</span> shares of the Company’s common stock pursuant to the grant of stock options and restricted stock.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Persons eligible to participate in the Plans are key employees, consultants and directors of the Company.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company periodically grants options to employees, directors and consultants under the Plans and is required to make estimates of the fair value of the related instruments and recognize expense over the period benefited, usually the vesting period.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Stock Option Activity</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_898_eus-gaap--ScheduleOfShareBasedCompensationStockOptionsActivityTableTextBlock_zuxo28eTWgpf" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">A summary of stock option activity and related information for the six months ended June 30, 2023 is presented below:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B6_zZy5fXxymTX" style="display: none">SUMMARY OF STOCK OPTION ACTIVITY</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 90%; margin-right: auto"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Options</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><p style="margin-top: 0; margin-bottom: 0">Weighted-Average</p> <p style="margin-top: 0; margin-bottom: 0">Exercise Price</p></td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Aggregate</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Intrinsic Value</b></span></p></td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%">Outstanding at January 1, 2023</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_pid_c20230101__20230630_z6ExkDKQKAx2" style="width: 14%; text-align: right" title="Options, Outstanding, Beginning Balance">944,177</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_c20230101__20230630_zym9U3C75DYe" style="width: 14%; text-align: right" title="Weighted-Average Exercise Price, Outstanding, Beginning Balance">2.08</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pid_c20230101__20230630_fKDEp_zFXbjpGCAafe" style="text-align: right" title="Options, Granted">60,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_pid_c20230101__20230630_fKDEp_zToXYBtDmwek" style="text-align: right" title="Weighted-Average Exercise Price, Granted">2.09</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Exercised</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_c20230101__20230630_zEH4amalSeYb" style="text-align: right" title="Options, Exercised"><span style="-sec-ix-hidden: xdx2ixbrl0548">—</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_c20230101__20230630_zwXte8ukHX55" style="text-align: right" title="Weighted-Average Exercise Price, Exercised"><span style="-sec-ix-hidden: xdx2ixbrl0550">—</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt">Forfeited</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriod_iN_pid_di_c20230101__20230630_zD41G0jKrUKd" style="border-bottom: Black 1.5pt solid; text-align: right" title="Options, Forfeited"><span style="-sec-ix-hidden: xdx2ixbrl0552">—</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriodWeightedAverageExercisePrice_c20230101__20230630_zIOpsrpWQN8i" style="padding-bottom: 1.5pt; text-align: right" title="Weighted-Average Exercise Price, Forfeited"><span style="-sec-ix-hidden: xdx2ixbrl0554">—</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Outstanding at June 30, 2023</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_pid_c20230101__20230630_zbPUmpVaTGcd" style="border-bottom: Black 2.5pt double; text-align: right" title="Options, Outstanding, Ending Balance">1,004,177</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left">$</td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_c20230101__20230630_z1C9V6enk5Ai" style="padding-bottom: 2.5pt; text-align: right" title="Weighted-Average Exercise Price, Outstanding, Ending Balance">2.45</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left">$</td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iI_pp0p0_c20230630_zNaz4GZfR9T4" style="padding-bottom: 2.5pt; text-align: right" title="Aggregate Intrinsic Value, Outstanding, Ending Balance">286,160</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Exercisable at June 30, 2023</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber_iE_pp0p0_c20230101__20230630_zcw6gxdKn00b" style="border-bottom: Black 2.5pt double; text-align: right" title="Options, Exercisable, Ending Balance">958,851</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left">$</td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice_iE_c20230101__20230630_zwMZ1xGxEmvd" style="padding-bottom: 2.5pt; text-align: right" title="Weighted-Average Exercise Price, Exercisable, Ending Balance">2.46</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left">$</td><td id="xdx_980_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1_iI_pp0p0_c20230630_zAENGWT9LEMe" style="padding-bottom: 2.5pt; text-align: right" title="Aggregate Intrinsic Value, Exercisable, Ending Balance">284,240</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p id="xdx_8AE_zzuVaAZCqXJg" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="background-color: white">During the six months ended June 30, 2023, options to purchase an aggregate of <span id="xdx_90E_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20230101__20230630__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__srt--TitleOfIndividualAxis__srt--DirectorMember_zr736yQyUVjf" title="Number of shares issued">60,000</span> shares of the Company’s common stock were granted to the Company’s directors. The options have a ten-year life, are exercisable at $<span id="xdx_907_eus-gaap--SharesIssuedPricePerShare_iI_c20230630__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__srt--TitleOfIndividualAxis__srt--DirectorMember_zQQj5LEukLod" title="Exercise price">2.09</span> per share, vest <span id="xdx_900_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPercentage_pid_uPure_c20230101__20230630__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__srt--TitleOfIndividualAxis__srt--DirectorMember_zsWzIrI3ZdYh" title="Vesting percentage">20%</span> on the date of grant and 80% nine months from the date of grant. <span id="xdx_908_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardDescription_c20230101__20230630__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__srt--TitleOfIndividualAxis__srt--DirectorMember_zXE765MR2Ela" title="Stcok option description">The grant date fair value of these stock options was $119,252 based on the Black-Scholes Option Pricing model based on the following assumptions: market value of common stock on grant date – $2.13; risk free interest rate based on the applicable US Treasury bill rate – 0%; dividend yield – 0%; volatility factor based on the trading history of the Company – 116%; weighted average expected life in years – 10; and expected forfeiture rate – 0%.</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During the three and six months ended June 30, 2023, the Company recognized $<span id="xdx_90F_eus-gaap--AllocatedShareBasedCompensationExpense_pp0p0_c20230401__20230630__us-gaap--PlanNameAxis__custom--TwoThousandTwentyOneEquityIncentivePlanMember_zyi3oUw9xm2h" title="Share based compensation">77,870</span> and $<span id="xdx_900_eus-gaap--AllocatedShareBasedCompensationExpense_pp0p0_c20230101__20230630__us-gaap--PlanNameAxis__custom--TwoThousandTwentyOneEquityIncentivePlanMember_zi5qpd4Gbh4" title="Share based compensation">162,315</span>, respectively, of stock-based compensation expense attributable to the amortization of stock options. As of June 30, 2023, total unrecognized stock-based compensation expense related to non-vested stock options was approximately $<span id="xdx_90A_eus-gaap--EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedStockOptions_iI_pp0p0_c20230630__us-gaap--PlanNameAxis__custom--TwoThousandTwentyOneEquityIncentivePlanMember_zYsRqhYPRft" title="Unrecognized share-based compensation expense related to non-vested stock options">119,253</span>. The unrecognized expense is expected to be recognized over a weighted average period of <span id="xdx_901_eus-gaap--EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedPeriodForRecognition1_dtY_c20230101__20230630__us-gaap--PlanNameAxis__custom--TwoThousandTwentyOneEquityIncentivePlanMember_zCzqqFUARvlh" title="Weighted average period for unrecognition of compensation expense">2.23</span> years and the weighted average remaining contractual term of the outstanding options and exercisable options at June 30, 2023 is <span id="xdx_906_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2_dtY_c20230101__20230630__us-gaap--PlanNameAxis__custom--TwoThousandTwentyOneEquityIncentivePlanMember_zzFsRuEGpD6l" title="Weighted average remaining contractual term of the outstanding options">5.78</span> years and <span id="xdx_904_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1_dtY_c20230101__20230630__us-gaap--PlanNameAxis__custom--TwoThousandTwentyOneEquityIncentivePlanMember_zAnHWFSl5SK" title="Weighted average remaining contractual term of the exercisable options">6.13</span> years, respectively.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of June 30, 2023, there were <span id="xdx_901_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAvailableForGrant_iI_pid_c20230630__us-gaap--PlanNameAxis__custom--TwoThousandTwentyOneEquityIncentivePlanMember_zphs0VojA3R4" title="Common stock available for issuance">181,333</span> shares of common stock available for issuance pursuant to future stock or option grants under the Plans.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Stock-Based Compensation Expense</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_891_eus-gaap--ScheduleOfEmployeeServiceShareBasedCompensationAllocationOfRecognizedPeriodCostsTextBlock_zV28RmLoSvK6" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The following table reflects total stock-based compensation recorded by the Company for the six months ended June 30, 2023 and 2022:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B3_za2XR5LhmYn7" style="display: none">SCHEDULE OF STOCK-BASED COMPENSATION</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49C_20230101__20230630_zsk2WB43yvT4" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_497_20220101__20220630_zPpnFSmOD6N8" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Six Months Ended </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>June 30,</b></span></p></td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr id="xdx_405_eus-gaap--ShareBasedCompensation_i_pp0p0" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 68%; text-align: left">Stock-based compensation expense included in general and administrative expense</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">162,315</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">111,005</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Earnings per share effect of share-based compensation expense – basic and diluted</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"><span id="xdx_905_ecustom--EarningsPerShareEffectOfShareBasedCompensationExpenseBasic_pid_c20230101__20230630_zFyPSn6bpbKi" title="Earnings per share effect of share-based compensation expense - basic"><span id="xdx_902_ecustom--EarningsPerShareEffectOfShareBasedCompensationExpenseDiluted_pid_c20230101__20230630_zaQ2Cxace7tk" title="Earnings per share effect of share-based compensation expense - diluted">(0.02</span></span></td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"><span id="xdx_904_ecustom--EarningsPerShareEffectOfShareBasedCompensationExpenseBasic_pid_c20220101__20220630_z5MrukU0tu8f" title="Earnings per share effect of share-based compensation expense - basic"><span id="xdx_90D_ecustom--EarningsPerShareEffectOfShareBasedCompensationExpenseDiluted_pid_c20220101__20220630_zYsP8iGcfdDl" title="Earnings per share effect of share-based compensation expense - diluted">(0.01</span></span></td><td style="text-align: left">)</td></tr> </table> <p id="xdx_8A3_zBjkQFVgeGq5" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> 480000 400000 500000 <p id="xdx_898_eus-gaap--ScheduleOfShareBasedCompensationStockOptionsActivityTableTextBlock_zuxo28eTWgpf" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">A summary of stock option activity and related information for the six months ended June 30, 2023 is presented below:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B6_zZy5fXxymTX" style="display: none">SUMMARY OF STOCK OPTION ACTIVITY</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 90%; margin-right: auto"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Options</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><p style="margin-top: 0; margin-bottom: 0">Weighted-Average</p> <p style="margin-top: 0; margin-bottom: 0">Exercise Price</p></td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Aggregate</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Intrinsic Value</b></span></p></td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%">Outstanding at January 1, 2023</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_pid_c20230101__20230630_z6ExkDKQKAx2" style="width: 14%; text-align: right" title="Options, Outstanding, Beginning Balance">944,177</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_c20230101__20230630_zym9U3C75DYe" style="width: 14%; text-align: right" title="Weighted-Average Exercise Price, Outstanding, Beginning Balance">2.08</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pid_c20230101__20230630_fKDEp_zFXbjpGCAafe" style="text-align: right" title="Options, Granted">60,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_pid_c20230101__20230630_fKDEp_zToXYBtDmwek" style="text-align: right" title="Weighted-Average Exercise Price, Granted">2.09</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Exercised</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_c20230101__20230630_zEH4amalSeYb" style="text-align: right" title="Options, Exercised"><span style="-sec-ix-hidden: xdx2ixbrl0548">—</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_c20230101__20230630_zwXte8ukHX55" style="text-align: right" title="Weighted-Average Exercise Price, Exercised"><span style="-sec-ix-hidden: xdx2ixbrl0550">—</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt">Forfeited</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriod_iN_pid_di_c20230101__20230630_zD41G0jKrUKd" style="border-bottom: Black 1.5pt solid; text-align: right" title="Options, Forfeited"><span style="-sec-ix-hidden: xdx2ixbrl0552">—</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriodWeightedAverageExercisePrice_c20230101__20230630_zIOpsrpWQN8i" style="padding-bottom: 1.5pt; text-align: right" title="Weighted-Average Exercise Price, Forfeited"><span style="-sec-ix-hidden: xdx2ixbrl0554">—</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Outstanding at June 30, 2023</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_pid_c20230101__20230630_zbPUmpVaTGcd" style="border-bottom: Black 2.5pt double; text-align: right" title="Options, Outstanding, Ending Balance">1,004,177</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left">$</td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_c20230101__20230630_z1C9V6enk5Ai" style="padding-bottom: 2.5pt; text-align: right" title="Weighted-Average Exercise Price, Outstanding, Ending Balance">2.45</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left">$</td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iI_pp0p0_c20230630_zNaz4GZfR9T4" style="padding-bottom: 2.5pt; text-align: right" title="Aggregate Intrinsic Value, Outstanding, Ending Balance">286,160</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Exercisable at June 30, 2023</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber_iE_pp0p0_c20230101__20230630_zcw6gxdKn00b" style="border-bottom: Black 2.5pt double; text-align: right" title="Options, Exercisable, Ending Balance">958,851</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left">$</td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice_iE_c20230101__20230630_zwMZ1xGxEmvd" style="padding-bottom: 2.5pt; text-align: right" title="Weighted-Average Exercise Price, Exercisable, Ending Balance">2.46</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left">$</td><td id="xdx_980_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1_iI_pp0p0_c20230630_zAENGWT9LEMe" style="padding-bottom: 2.5pt; text-align: right" title="Aggregate Intrinsic Value, Exercisable, Ending Balance">284,240</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 944177 2.08 60000 2.09 1004177 2.45 286160 958851 2.46 284240 60000 2.09 0.20 The grant date fair value of these stock options was $119,252 based on the Black-Scholes Option Pricing model based on the following assumptions: market value of common stock on grant date – $2.13; risk free interest rate based on the applicable US Treasury bill rate – 0%; dividend yield – 0%; volatility factor based on the trading history of the Company – 116%; weighted average expected life in years – 10; and expected forfeiture rate – 0%. 77870 162315 119253 P2Y2M23D P5Y9M10D P6Y1M17D 181333 <p id="xdx_891_eus-gaap--ScheduleOfEmployeeServiceShareBasedCompensationAllocationOfRecognizedPeriodCostsTextBlock_zV28RmLoSvK6" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The following table reflects total stock-based compensation recorded by the Company for the six months ended June 30, 2023 and 2022:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B3_za2XR5LhmYn7" style="display: none">SCHEDULE OF STOCK-BASED COMPENSATION</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49C_20230101__20230630_zsk2WB43yvT4" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_497_20220101__20220630_zPpnFSmOD6N8" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Six Months Ended </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>June 30,</b></span></p></td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr id="xdx_405_eus-gaap--ShareBasedCompensation_i_pp0p0" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 68%; text-align: left">Stock-based compensation expense included in general and administrative expense</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">162,315</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">111,005</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Earnings per share effect of share-based compensation expense – basic and diluted</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"><span id="xdx_905_ecustom--EarningsPerShareEffectOfShareBasedCompensationExpenseBasic_pid_c20230101__20230630_zFyPSn6bpbKi" title="Earnings per share effect of share-based compensation expense - basic"><span id="xdx_902_ecustom--EarningsPerShareEffectOfShareBasedCompensationExpenseDiluted_pid_c20230101__20230630_zaQ2Cxace7tk" title="Earnings per share effect of share-based compensation expense - diluted">(0.02</span></span></td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"><span id="xdx_904_ecustom--EarningsPerShareEffectOfShareBasedCompensationExpenseBasic_pid_c20220101__20220630_z5MrukU0tu8f" title="Earnings per share effect of share-based compensation expense - basic"><span id="xdx_90D_ecustom--EarningsPerShareEffectOfShareBasedCompensationExpenseDiluted_pid_c20220101__20220630_zYsP8iGcfdDl" title="Earnings per share effect of share-based compensation expense - diluted">(0.01</span></span></td><td style="text-align: left">)</td></tr> </table> 162315 111005 -0.02 -0.02 -0.01 -0.01 <p id="xdx_804_eus-gaap--StockholdersEquityNoteDisclosureTextBlock_zsUD0i1kdBR8" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE 6 – <span id="xdx_821_zAxzPVHVH1O6">CAPITAL STOCK</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Common Stock – At-the Market Offering</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In November 2022, the Company entered into an At-the-Market Sales Agreement (the “Sales Agreement”) with Univest Securities, LLC (“Univest”) pursuant to which the Company could sell (the “2022 ATM Offering”), at its option, up to an aggregate of $<span id="xdx_90E_eus-gaap--SaleOfStockConsiderationReceivedOnTransaction_pn5n6_c20221101__20221130__us-gaap--TypeOfArrangementAxis__custom--SalesAgreementMember__dei--LegalEntityAxis__custom--UnivestSecuritiesLLCMember__srt--RangeAxis__srt--MaximumMember_zmFri0x4jQi1" title="Sale of stock shares of common stock value">3.5</span> million in shares of its common stock through Univest, as sales agent. Sales of shares under the Sales Agreement (the “2022 ATM Offering”) were made, in accordance with placement notices delivered to Univest, which notices set parameters under which shares could be sold. The 2022 ATM Offering was made pursuant to a shelf registration statement by methods deemed to be “at the market,” as defined in Rule 415 promulgated under the Securities Act of 1933. The Company paid Univest a commission in cash equal to <span id="xdx_906_ecustom--CommissionPerecentageFromGrossProceedsOfSaleOfShare_pid_dp_uPure_c20221101__20221130__us-gaap--TypeOfArrangementAxis__custom--SalesAgreementMember__dei--LegalEntityAxis__custom--UnivestSecuritiesLLCMember_zcXO6ej5y5G2" title="Commission perecentage from gross proceeds of sale of share">3</span>% of the gross proceeds from the sale of shares in the 2022 ATM Offering. The Company reimbursed Univest for $<span id="xdx_908_ecustom--ReimbursementOfExpensesConnectionWithOffering_pp0p0_c20221101__20221130__us-gaap--TypeOfArrangementAxis__custom--SalesAgreementTwoThousandTwentyTwoATMOfferingMember__dei--LegalEntityAxis__custom--UnivestSecuritiesLLCMember_zPamDHvisxu" title="Reimbursement of expenses connection with offering">25,000</span> of expenses incurred in connection with the 2022 ATM Offering.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During the six months ended June 30, 2023, the Company sold an aggregate of <span id="xdx_908_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_c20230101__20230630__us-gaap--TypeOfArrangementAxis__custom--SalesAgreementTwoThousandTwentyTwoATMOfferingMember_zEVV3qhU3WJd" title="Number shares sold">578,707</span> shares in connection with the 2022 ATM Offering and received proceeds, net of commissions and expenses, of $<span id="xdx_900_eus-gaap--SaleOfStockConsiderationReceivedOnTransaction_c20230101__20230630__us-gaap--TypeOfArrangementAxis__custom--SalesAgreementTwoThousandTwentyTwoATMOfferingMember_zqCC32eTjqB8" title="Proceeds from sale of stock">1,652,000</span>.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Warrants</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_898_eus-gaap--ScheduleOfStockholdersEquityNoteWarrantsOrRightsTextBlock_zfzKlUQRIi9i" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">A summary of warrant activity and related information for 2023 is presented below:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8BB_zvr0FjMchR43" style="display: none">SUMMARY OF WARRANT ACTIVITY</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 100%; margin-right: auto"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Warrants</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Weighted-Average</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Exercise Price</b></span></p></td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Aggregate</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Intrinsic Value</b></span></p></td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%">Outstanding at January 1, 2023</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iS_pid_c20230101__20230630_zXPZhaeN2ko9" style="width: 14%; text-align: right" title="Warrants Outstanding, Beginning Balance">94,400</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98C_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionOutstandingExercisePriceRageNumberOfShare_iS_c20230101__20230630_zMZr4gjFFEZe" style="width: 14%; text-align: right" title="Weighted-Average Exercise Price Outstanding, Beginning Balance"> 2.46</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right">          </td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Issued</td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGranted_pid_c20230101__20230630_fKDEp_z97rbYtAq5Aa" style="text-align: right" title="Warrants, Issued"><span style="-sec-ix-hidden: xdx2ixbrl0621">—</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionGrantsInPeriodExercisePrice_pid_c20230101__20230630_zvThNP4Xeodl" style="text-align: right" title="Weighted-Average Exercise Price, Issued"><span style="-sec-ix-hidden: xdx2ixbrl0623">—</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Exercised</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercised_c20230101__20230630_z8b1LRAZlpQ4" style="text-align: right" title="Warrants, Exercised"><span style="-sec-ix-hidden: xdx2ixbrl0625">—</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionExercisedInPeriodExercisePrice_c20230101__20230630_z999EopIJV08" style="text-align: right" title="Weighted-Average Exercise Price, Exercised"><span style="-sec-ix-hidden: xdx2ixbrl0627">—</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt">Expired</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsForfeituresAndExpirations_iN_di_c20230101__20230630_zTVGn28eUe29" style="border-bottom: Black 1.5pt solid; text-align: right" title="Warrants, Expired"><span style="-sec-ix-hidden: xdx2ixbrl0629">—</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td><td id="xdx_98C_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionForfeitedOrExpiredInPeriodExercisePrice_pid_c20230101__20230630_zcL8Hl8SmgAk" style="padding-bottom: 1.5pt; text-align: right" title="Weighted-Average Exercise Price, Expired"><span style="-sec-ix-hidden: xdx2ixbrl0631">—</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Outstanding at June 30, 2023</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iE_pid_c20230101__20230630_z6fPXV9fyfla" style="border-bottom: Black 2.5pt double; text-align: right" title="Warrants Outstanding, Ending Balance">94,400</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left">$</td><td id="xdx_98E_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionOutstandingExercisePriceRageNumberOfShare_iE_c20230101__20230630_z6s2zODcoXGe" style="padding-bottom: 2.5pt; text-align: right" title="Weighted-Average Exercise Price Outstanding, Ending Balance">2.46</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left">$</td><td id="xdx_98E_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWarrantIntrinsicValue_iI_pp0p0_c20230630_zcrt1R2R4Ymi" style="padding-bottom: 2.5pt; text-align: right" title="Aggregate Intrinsic Value, Outstanding Ending Balance"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl0637">-</span></span></td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Exercisable at June 30, 2023</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98D_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercisableNumber_iE_c20230101__20230630_zWCafNuNC65f" style="border-bottom: Black 2.5pt double; text-align: right" title="Warrants Outstanding, Exercisable">94,400</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left">$</td><td id="xdx_98C_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionOutstandingExercisableWeightedAverageExercisePrice_iE_c20230101__20230630_zBSD8uDZgd8k" style="padding-bottom: 2.5pt; text-align: right" title="Weighted-Average Exercise Price Outstanding, Exercisable">2.46</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left">$</td><td id="xdx_985_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsWarrantsExercisableIntrinsicValue1_iI_pp0p0_c20230630_zG3ZOV8tWGee" style="padding-bottom: 2.5pt; text-align: right" title="Aggregate Intrinsic Value, Exercisable"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl0643">-</span></span></td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p id="xdx_8A4_zR4rM59iBvud" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> 3500000 0.03 25000 578707 1652000 <p id="xdx_898_eus-gaap--ScheduleOfStockholdersEquityNoteWarrantsOrRightsTextBlock_zfzKlUQRIi9i" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">A summary of warrant activity and related information for 2023 is presented below:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8BB_zvr0FjMchR43" style="display: none">SUMMARY OF WARRANT ACTIVITY</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 100%; margin-right: auto"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Warrants</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Weighted-Average</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Exercise Price</b></span></p></td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Aggregate</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Intrinsic Value</b></span></p></td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%">Outstanding at January 1, 2023</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iS_pid_c20230101__20230630_zXPZhaeN2ko9" style="width: 14%; text-align: right" title="Warrants Outstanding, Beginning Balance">94,400</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98C_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionOutstandingExercisePriceRageNumberOfShare_iS_c20230101__20230630_zMZr4gjFFEZe" style="width: 14%; text-align: right" title="Weighted-Average Exercise Price Outstanding, Beginning Balance"> 2.46</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right">          </td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Issued</td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGranted_pid_c20230101__20230630_fKDEp_z97rbYtAq5Aa" style="text-align: right" title="Warrants, Issued"><span style="-sec-ix-hidden: xdx2ixbrl0621">—</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionGrantsInPeriodExercisePrice_pid_c20230101__20230630_zvThNP4Xeodl" style="text-align: right" title="Weighted-Average Exercise Price, Issued"><span style="-sec-ix-hidden: xdx2ixbrl0623">—</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Exercised</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercised_c20230101__20230630_z8b1LRAZlpQ4" style="text-align: right" title="Warrants, Exercised"><span style="-sec-ix-hidden: xdx2ixbrl0625">—</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionExercisedInPeriodExercisePrice_c20230101__20230630_z999EopIJV08" style="text-align: right" title="Weighted-Average Exercise Price, Exercised"><span style="-sec-ix-hidden: xdx2ixbrl0627">—</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt">Expired</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsForfeituresAndExpirations_iN_di_c20230101__20230630_zTVGn28eUe29" style="border-bottom: Black 1.5pt solid; text-align: right" title="Warrants, Expired"><span style="-sec-ix-hidden: xdx2ixbrl0629">—</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td><td id="xdx_98C_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionForfeitedOrExpiredInPeriodExercisePrice_pid_c20230101__20230630_zcL8Hl8SmgAk" style="padding-bottom: 1.5pt; text-align: right" title="Weighted-Average Exercise Price, Expired"><span style="-sec-ix-hidden: xdx2ixbrl0631">—</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Outstanding at June 30, 2023</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iE_pid_c20230101__20230630_z6fPXV9fyfla" style="border-bottom: Black 2.5pt double; text-align: right" title="Warrants Outstanding, Ending Balance">94,400</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left">$</td><td id="xdx_98E_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionOutstandingExercisePriceRageNumberOfShare_iE_c20230101__20230630_z6s2zODcoXGe" style="padding-bottom: 2.5pt; text-align: right" title="Weighted-Average Exercise Price Outstanding, Ending Balance">2.46</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left">$</td><td id="xdx_98E_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWarrantIntrinsicValue_iI_pp0p0_c20230630_zcrt1R2R4Ymi" style="padding-bottom: 2.5pt; text-align: right" title="Aggregate Intrinsic Value, Outstanding Ending Balance"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl0637">-</span></span></td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Exercisable at June 30, 2023</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98D_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercisableNumber_iE_c20230101__20230630_zWCafNuNC65f" style="border-bottom: Black 2.5pt double; text-align: right" title="Warrants Outstanding, Exercisable">94,400</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left">$</td><td id="xdx_98C_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionOutstandingExercisableWeightedAverageExercisePrice_iE_c20230101__20230630_zBSD8uDZgd8k" style="padding-bottom: 2.5pt; text-align: right" title="Weighted-Average Exercise Price Outstanding, Exercisable">2.46</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left">$</td><td id="xdx_985_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsWarrantsExercisableIntrinsicValue1_iI_pp0p0_c20230630_zG3ZOV8tWGee" style="padding-bottom: 2.5pt; text-align: right" title="Aggregate Intrinsic Value, Exercisable"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl0643">-</span></span></td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 94400 2.46 94400 2.46 94400 2.46 <p id="xdx_803_eus-gaap--EarningsPerShareTextBlock_zdZmrWrdCS5e" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE 7 – <span id="xdx_823_zwKc8vBBduQ1">EARNINGS PER COMMON SHARE</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Earnings (loss) per common share-basic is calculated by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Net income (loss) per common share-diluted assumes the conversion of all potentially dilutive securities and is calculated by dividing net (loss) income by the sum of the weighted average number of shares of common stock, as defined above, outstanding plus potentially dilutive securities. Net income (loss) per common share-diluted considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of the potential common shares, as defined above, would have an anti-dilutive effect.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_89C_eus-gaap--ScheduleOfEarningsPerShareBasicAndDilutedTableTextBlock_zbzT4KUEzSre" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The calculation of earnings (loss) per common share for the periods indicated below were as follows:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8B7_zA7M8OgHQO4g" style="display: none">SCHEDULE OF EARNINGS (LOSS) PER COMMON SHARE</span> </span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="padding-bottom: 1.5pt; text-align: justify">Numerator:</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49D_20230401__20230630_zp0znI98uAIb" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49E_20220401__20220630_zdtcor4aZqP5" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_499_20230101__20230630_zZAUI8wTVUS9" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49D_20220101__20220630_zxi3bPu39i9l" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Three Months Ended June 30,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Six Months Ended June 30,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt; text-align: justify">Numerator:</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_405_eus-gaap--NetIncomeLoss_maNILATz1oy_zmrm04vGXdPd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%; text-align: left">Net income (loss)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">(300,381</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">4,365</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">(196,206</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">(161,195</td><td style="width: 1%; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_403_ecustom--EffectOfCommonStockEquivalents_maNILATz1oy_zI9Gp6fETGmg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Effect of common stock equivalents</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0654">—</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0655">—</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0656">—</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0657">—</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--NetIncomeLossAvailableToCommonStockholdersBasic_iT_mtNILATz1oy_zgsO37ThbPlc" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Net income (loss) adjusted for common stock equivalents</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(300,381</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">4,365</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(196,206</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(161,195</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Denominator:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_pid_z4xHmNcUR109" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Weighted average common shares – basic</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">10,896,996</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9,923,338</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">10,659,076</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9,923,338</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Dilutive effect of common stock equivalents:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_404_ecustom--DilutiveEffectOfCommonStockEquivalentsOptionsAndWarrants_pid_zxD0PSB1lkpb" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Options and warrants</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0669">—</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">455,953</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0671">—</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0672">—</span></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt">Denominator:</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--WeightedAverageNumberOfDilutedSharesOutstanding_pid_zFHBsZvXuLN7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Weighted average common shares – diluted</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">10,896,996</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">10,379,291</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">10,659,076</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">9,923,338</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--EarningsPerShareBasic_pid_z5dQUQ41C2L3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Earnings (loss) per common share – basic</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0.03</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.00</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0.02</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0.02</td><td style="text-align: left">)</td></tr> <tr id="xdx_401_eus-gaap--EarningsPerShareDiluted_pid_z3qEt5gTwYDk" style="vertical-align: bottom; background-color: White"> <td>Earnings (loss) per common share – diluted</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0.03</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.00</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0.02</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0.02</td><td style="text-align: left">)</td></tr> </table> <p id="xdx_8A1_zagJmG8tTbFb" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_895_eus-gaap--ScheduleOfAntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareTextBlock_zx8C3SdaPd8d" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the three and six months ended June 30, 2023 and 2022, the following warrants and options to purchase shares of common stock were excluded from the computation of diluted net loss per share, as the inclusion of such shares would be anti-dilutive:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8B3_z1NboGogN2S6" style="display: none">SCHEDULE OF ANTI-DILUTIVE SECURITIES EXCLUDED FROM COMPUTATION OF DILUTED NET INCOME LOSS</span> </span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_491_20230101__20230630_zR2bLASGbQxi" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_492_20220101__20220630_zsna5IgF7jva" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_490_20230401__20230630_z0MiV1BlILA6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_492_20220401__20220630_zjDQgU6AHq1a" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Six Months Ended June 30,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Three Months Ended June 30,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_40C_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--WarrantMember_zsWdRl48m2il" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%; text-align: left">Stock warrants</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right">94,400</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right">94,400</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right">94,400</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right">94,400</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--EmployeeStockOptionMember_zLDTOPXFhbBh" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Stock options</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,004,177</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">74,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,004,177</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">990,177</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_zSjlyrzHlkCa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">1,098,577</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">168,400</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">1,098,577</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">1,084,577</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p id="xdx_8AB_zWlYrnUev0se" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> <p id="xdx_89C_eus-gaap--ScheduleOfEarningsPerShareBasicAndDilutedTableTextBlock_zbzT4KUEzSre" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The calculation of earnings (loss) per common share for the periods indicated below were as follows:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8B7_zA7M8OgHQO4g" style="display: none">SCHEDULE OF EARNINGS (LOSS) PER COMMON SHARE</span> </span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="padding-bottom: 1.5pt; text-align: justify">Numerator:</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49D_20230401__20230630_zp0znI98uAIb" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49E_20220401__20220630_zdtcor4aZqP5" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_499_20230101__20230630_zZAUI8wTVUS9" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49D_20220101__20220630_zxi3bPu39i9l" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Three Months Ended June 30,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Six Months Ended June 30,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt; text-align: justify">Numerator:</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_405_eus-gaap--NetIncomeLoss_maNILATz1oy_zmrm04vGXdPd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%; text-align: left">Net income (loss)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">(300,381</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">4,365</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">(196,206</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">(161,195</td><td style="width: 1%; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_403_ecustom--EffectOfCommonStockEquivalents_maNILATz1oy_zI9Gp6fETGmg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Effect of common stock equivalents</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0654">—</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0655">—</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0656">—</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0657">—</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--NetIncomeLossAvailableToCommonStockholdersBasic_iT_mtNILATz1oy_zgsO37ThbPlc" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Net income (loss) adjusted for common stock equivalents</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(300,381</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">4,365</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(196,206</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(161,195</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Denominator:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_pid_z4xHmNcUR109" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Weighted average common shares – basic</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">10,896,996</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9,923,338</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">10,659,076</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9,923,338</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Dilutive effect of common stock equivalents:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_404_ecustom--DilutiveEffectOfCommonStockEquivalentsOptionsAndWarrants_pid_zxD0PSB1lkpb" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Options and warrants</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0669">—</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">455,953</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0671">—</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0672">—</span></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt">Denominator:</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--WeightedAverageNumberOfDilutedSharesOutstanding_pid_zFHBsZvXuLN7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Weighted average common shares – diluted</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">10,896,996</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">10,379,291</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">10,659,076</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">9,923,338</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--EarningsPerShareBasic_pid_z5dQUQ41C2L3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Earnings (loss) per common share – basic</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0.03</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.00</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0.02</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0.02</td><td style="text-align: left">)</td></tr> <tr id="xdx_401_eus-gaap--EarningsPerShareDiluted_pid_z3qEt5gTwYDk" style="vertical-align: bottom; background-color: White"> <td>Earnings (loss) per common share – diluted</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0.03</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.00</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0.02</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0.02</td><td style="text-align: left">)</td></tr> </table> -300381 4365 -196206 -161195 -300381 4365 -196206 -161195 10896996 9923338 10659076 9923338 455953 10896996 10379291 10659076 9923338 -0.03 0.00 -0.02 -0.02 -0.03 0.00 -0.02 -0.02 <p id="xdx_895_eus-gaap--ScheduleOfAntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareTextBlock_zx8C3SdaPd8d" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the three and six months ended June 30, 2023 and 2022, the following warrants and options to purchase shares of common stock were excluded from the computation of diluted net loss per share, as the inclusion of such shares would be anti-dilutive:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8B3_z1NboGogN2S6" style="display: none">SCHEDULE OF ANTI-DILUTIVE SECURITIES EXCLUDED FROM COMPUTATION OF DILUTED NET INCOME LOSS</span> </span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_491_20230101__20230630_zR2bLASGbQxi" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_492_20220101__20220630_zsna5IgF7jva" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_490_20230401__20230630_z0MiV1BlILA6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_492_20220401__20220630_zjDQgU6AHq1a" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Six Months Ended June 30,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Three Months Ended June 30,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_40C_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--WarrantMember_zsWdRl48m2il" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%; text-align: left">Stock warrants</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right">94,400</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right">94,400</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right">94,400</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right">94,400</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--EmployeeStockOptionMember_zLDTOPXFhbBh" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Stock options</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,004,177</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">74,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,004,177</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">990,177</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_zSjlyrzHlkCa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">1,098,577</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">168,400</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">1,098,577</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">1,084,577</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 94400 94400 94400 94400 1004177 74000 1004177 990177 1098577 168400 1098577 1084577 <p id="xdx_80C_eus-gaap--CommitmentsAndContingenciesDisclosureTextBlock_zHUeiGNutDCd" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE 8 – <span id="xdx_82F_zILK7EPEEY5k">COMMITMENTS AND CONTINGENCIES</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Lease Commitment</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company leases office facilities under an operating lease agreement that expires <span id="xdx_90E_eus-gaap--LeaseExpirationDate1_dd_c20230101__20230630__us-gaap--TypeOfArrangementAxis__custom--OperatingLeaseAgreementMember_zjt6TqotxBv7" title="Operating lease agreement expire date">October 31, 2025</span>. During the three and six months ended June 30, 2023, the operating cash outflows related to operating lease liabilities totaled $<span id="xdx_90C_eus-gaap--OperatingLeasePayments_pp0p0_c20230401__20230630__us-gaap--TypeOfArrangementAxis__custom--OperatingLeaseAgreementMember_zQTXeV3CJiB5" title="Operating cash outflows related to operating lease liabilities">21,560</span> and $<span id="xdx_909_eus-gaap--OperatingLeasePayments_pp0p0_c20230101__20230630__us-gaap--TypeOfArrangementAxis__custom--OperatingLeaseAgreementMember_zMAlvixwAd2h" title="Operating cash outflows related to operating lease liabilities">43,121</span>, respectively, and the expense for the right of use asset for operating leases totaled $<span id="xdx_903_eus-gaap--OperatingLeaseRightOfUseAssetAmortizationExpense_pp0p0_c20230401__20230630__us-gaap--TypeOfArrangementAxis__custom--OperatingLeaseAgreementMember_zREOakdmbUii" title="Amortization of right of use asset">22,161</span> and $<span id="xdx_90D_eus-gaap--OperatingLeaseRightOfUseAssetAmortizationExpense_pp0p0_c20230101__20230630__us-gaap--TypeOfArrangementAxis__custom--OperatingLeaseAgreementMember_z1f9ke4nzrij" title="Amortization of right of use asset">44,322</span>, respectively. As of June 30, 2023, the Company’s operating lease had a weighted-average remaining term of <span id="xdx_901_eus-gaap--OperatingLeaseWeightedAverageRemainingLeaseTerm1_iI_dtY_c20230630__us-gaap--TypeOfArrangementAxis__custom--OperatingLeaseAgreementMember_zEpoKhr9L0g1" title="Operating lease, weighted average remaining lease term">2.3</span> years and a weighted average discount rate of <span id="xdx_90D_eus-gaap--OperatingLeaseWeightedAverageDiscountRatePercent_iI_pid_dp_uPure_c20230630__us-gaap--TypeOfArrangementAxis__custom--OperatingLeaseAgreementMember_zpbHneWJbgt1" title="Weighted average discount rate">12</span>%. As of June 30, 2023, the lease agreement requires future payments as follows:</span></p> <p id="xdx_891_eus-gaap--LesseeOperatingLeaseLiabilityMaturityTableTextBlock_zAWcsGlHT4J7" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8BD_zyX2RWJ8Mavc" style="display: none">SCHEDULE OF FUTURE PAYMENTS UNDER LEASE AGREEMENT</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; text-align: left; font-weight: bold">Year</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49D_20230630_zSnQea7qG4Pd" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Amount</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_408_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsRemainderOfFiscalYear_iI_maLOLLPzBzL_ztnkbyEUS1h" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%; text-align: left">2023</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">43,770</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_pp0p0_maLOLLPzBzL_zGkJInyahqWa" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2024</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">88,801</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearTwo_iI_pp0p0_maLOLLPzBzL_zjJDTAFTT4x2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">2025</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">75,051</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iTI_pp0p0_mtLOLLPzBzL_ztJpuSNRCyM2" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Total future lease payments</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">207,622</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iI_pp0p0_zUoH5MEr7Ouh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Less: imputed interest</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">27,472</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--OperatingLeaseLiability_iI_pp0p0_zCBNIoaL0NP2" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Present value of future operating lease payments</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">180,150</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--OperatingLeaseLiabilityCurrent_iI_pp0p0_zflZZgONqBQb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Less: current portion of operating lease liabilities</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">70,183</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_pp0p0" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Operating lease liabilities, net of current portion</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">109,967</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--OperatingLeaseRightOfUseAsset_iI_z66SqEAsgcm7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Right of use assets</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">179,366</span></td><td style="text-align: left"> </td></tr> </table> <p id="xdx_8A7_zGjwwcG2lOna" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total base rental expense was $<span id="xdx_909_eus-gaap--PaymentsForRent_pp0p0_c20230401__20230630_zTdAStcHX4zf">22,570</span></span> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and $<span id="xdx_902_eus-gaap--PaymentsForRent_pp0p0_c20220401__20220630_ziqDh5mDnwhh">22,161</span></span> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">for the three months ended June 30, 2023 and 2022, respectively, and $<span id="xdx_90E_eus-gaap--PaymentsForRent_pp0p0_c20230101__20230630_z58oJhnyF6S2">45,731 </span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and $<span id="xdx_90E_eus-gaap--PaymentsForRent_pp0p0_c20220101__20220630_zoWFdU3DAPvi">46,836 </span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">for the six months ended June 30, 2023 and 2022, respectively. The Company does not have any capital leases or other operating lease commitments.</span></p> 2025-10-31 21560 43121 22161 44322 P2Y3M18D 0.12 <p id="xdx_891_eus-gaap--LesseeOperatingLeaseLiabilityMaturityTableTextBlock_zAWcsGlHT4J7" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8BD_zyX2RWJ8Mavc" style="display: none">SCHEDULE OF FUTURE PAYMENTS UNDER LEASE AGREEMENT</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; text-align: left; font-weight: bold">Year</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49D_20230630_zSnQea7qG4Pd" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Amount</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_408_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsRemainderOfFiscalYear_iI_maLOLLPzBzL_ztnkbyEUS1h" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%; text-align: left">2023</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">43,770</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_pp0p0_maLOLLPzBzL_zGkJInyahqWa" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2024</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">88,801</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearTwo_iI_pp0p0_maLOLLPzBzL_zjJDTAFTT4x2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">2025</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">75,051</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iTI_pp0p0_mtLOLLPzBzL_ztJpuSNRCyM2" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Total future lease payments</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">207,622</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iI_pp0p0_zUoH5MEr7Ouh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Less: imputed interest</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">27,472</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--OperatingLeaseLiability_iI_pp0p0_zCBNIoaL0NP2" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Present value of future operating lease payments</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">180,150</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--OperatingLeaseLiabilityCurrent_iI_pp0p0_zflZZgONqBQb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Less: current portion of operating lease liabilities</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">70,183</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_pp0p0" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Operating lease liabilities, net of current portion</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">109,967</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--OperatingLeaseRightOfUseAsset_iI_z66SqEAsgcm7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Right of use assets</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">179,366</span></td><td style="text-align: left"> </td></tr> </table> 43770 88801 75051 207622 27472 180150 70183 109967 179366 22570 22161 45731 46836 EXCEL 46 Financial_Report.xlsx IDEA: XBRL DOCUMENT begin 644 Financial_Report.xlsx M4$L#!!0 ( ,B #E<'04UB@0 +$ 0 9&]C4')O<',O87!P+GAM M;$V./0L",1!$_\IQO;=!P4)B0-!2L+(/>QLOD&1#LD)^OCG!CVX>;QA&WPIG M*N*I#BV&5(_C(I(/ !47BK9.7:=N')=HI6-Y #OGDK7A.YNJQ<&4GPZ4A!0W_J=0U[R;UEA_6\#MI7E!+ P04 M " #(@ Y7=+M\NNX K @ $0 &1O8U!R;W!S+V-O&ULS9+! 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