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Related Party Transactions
 9 Months Ended
Sep. 30, 2024
Related Party Transactions [Abstract]  
Related Party Transactions

Note 14 – Related Party Transactions

 

Energy Evolution is a related party of Empire as it beneficially owns approximately 31.4% of Empire’s outstanding shares of common stock as of September 30, 2024. Additionally, a board member of Energy Evolution was appointed to Empire’s board in October 2021. This board member separately beneficially owns approximately 20.3% of Empire’s outstanding shares of common stock as of September 30, 2024. The board member also is a majority owner of PIE. In October 2021 another Energy Evolution member was appointed to Empire’s board of directors.

 

Empire has a JDA with PIE to perform completions or workovers on specified mutually agreed upon wells. In the third quarter of 2024, Empire issued PIE 205,427 shares of common stock of Empire as payment in full for this outstanding note balance of $1.1 million (see Note 8).

 

On February 16, 2024, Empire issued the Note to Energy Evolution. Energy Evolution advanced Empire $5,000,000 under the Note in the first quarter of 2024. On May 24, 2024, Energy Evolution elected to convert the Note to shares of common stock of Empire and received 800,000 shares under the terms of the Note (see Note 8).

 

Empire elected to partially exercise a Purchase Option in the second quarter of 2024 and acquired 60% of certain New Mexico interests from Energy Evolution. See Note 3 for additional information.

 

On June 28, 2024, Energy Evolution exercised warrants of Empire and received 128,800 shares in exchange for $644,000. See Note 10 for additional information.