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SEGMENT REPORTING
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
SEGMENT REPORTING

NOTE 5 – SEGMENT REPORTING

 

Upon completion of the Share Exchange, the Company re-evaluated its reporting segments. The Company determined it has two reporting segments on the basis of its operations, products, and the economic characteristics of each of its operating segments and corresponds to the manner in which its Chief Operating Decision Maker (“CODM”) reviews and evaluates performance to make decisions about resources to be allocated to the segment. As a result, the Company’s segment structure has been reassessed and now reflects the Company’s legacy O&G operations as well as its newly added emerging renewables initiatives (“Renewables”).

 

 

The O&G segment generates revenue from oil and gas operations whereas Renewables is in the pre-revenue stage, primarily incurring research and development and start-up costs associated with its development of scalable technologies for converting plastic and biomass waste into renewable fuels and chemicals. The CODM is a committee including the Company’s Chief Executive Officer, Chief Operating Officer, and Chief Financial Officer.

 

The Company measures and evaluates its reportable segments based on their respective adjusted net income (loss), general and administrative expenses, research and development costs, and professional fees. The Company excludes certain corporate-related expenses and certain transactions or adjustments that the CODM considers to be non-operational, such as changes in fair value of warrant liabilities, restructuring charges, interest expense and income and amounts related to depreciation, depletion and amortization expense. Although these amounts are excluded, they are included in reported Loss before income taxes within the accompanying unaudited consolidated statements of operations and are included in the reconciliation below. The CODM uses segment adjusted net loss in the budget and forecasting process and to monitor budgets versus actual results, which are used in assessing the performance of the reportable segments and to allocate resources across the reportable segments. The balance sheet is presented on a consolidated basis, as the CODM does not use segment specific asset or liability information, including fixed assets, to assess performance. As a result, segment asset and liability details are disclosed at the aggregate level.

 

A reconciliation of net loss for the reportable segments to the applicable line items within the accompanying consolidated statements of operations is as follows.

 

SCHEDULE OF SEGMENT REPORTING INFORMATION

          
   Three Months Ended
March 31, 2026		 
   O&G   Renewables   Total 
Revenue  $132,965   $-   $132,965 
                
Segment expense:               
General and administrative expenses   -    4,582,553    4,582,553 
Research and development costs   -    208,787    208,787 
Operating lease expense and severance tax   125,662    -    125,662 
Adjusted segment operating income (loss)   7,303    (4,791,340)   (4,784,037)
                
Reconciliation of “Adjusted segment operating income (loss)” to “Loss before income taxes”               
Depreciation, depletion and amortization   64,749    5,453    70,202 
Write off of application costs incurred on abandoned patent applications   -    283,927    283,927 
Interest expense   -    158,985    158,985 
Interest income   -    (67,564)   (67,564)
Foreign currency gain   -    (483)   (483)
Loss before income taxes  $(57,446)  $(5,171,658)  $(5,229,104)

 

 

          
   Three Months Ended
March 31, 2025		 
   O&G   Renewables   Total 
Revenue  $    -   $-   $- 
Segment expense:               
General and administrative expenses   -    992,599    992,599 
Research and development costs   -    607,368    607,368 
Adjusted segment operating loss   -    (1,599,967)   (1,599,967)
                
Reconciliation of “Adjusted segment operating loss” to “Loss before income taxes”               
Depreciation and amortization   -    4,218    4,218 
Interest expense   -    98,630    98,630 
Grant income   -    (691,207)   (691,207)
Changes in fair value of warrant liability   -    5,453    5,453 
Foreign currency gain   -    (6,449)   (6,449)
Loss before income taxes  $-   $(1,010,612)  $(1,010,612)

 

Oil and gas revenues and expenses for the legacy HUSA business have been included in the statement of operations from July 1, 2025. See Note 4 – Acquisition above.

 

         
    Three Months Ended
March 31,		  
    2026     2025  
Depreciation, depletion and amortization:                
O&G   $ 64,749     $ -  
Renewables     5,453       4,218  
Consolidated depreciation, depletion and amortization expense   $ 70,202     $ 4,218  

 

       
   March 31, 2026   December 31, 2025 
Assets:          
O&G  $759,743   $794,963 
Renewables   44,865,783    31,060,466 
Total assets of reportable segments  $45,625,526   $31,855,429