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Segment Information
 9 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
Segment Information

Note 14. Segment Information

 

The Company’s reportable business segments have been identified based on the differences in products or services provided. The Company’s E&P segment is comprised of oil and gas properties which are currently related to its assets in Colorado. The Cryptocurrency Mining segment generates revenue through Cryptocurrency Mining activities from assets that we acquired through the Merger. All such activities currently operate under a contract with Atlas as described above.

 

Summarized financial information for the Company’s reportable segments is shown in the following table. The accounting policies of the segments are the same as those described for the Company. Management evaluates the performance of its segments based on operating income, defined as operating revenues less operating costs. Income before income taxes, for the purpose of reconciling the operating income amount shown below to consolidated income before income taxes, is the sum of operating income, interest expense. Corporate general and administrative costs, depreciation expense and taxes, other than income taxes, are allocated to the segments.

  

   E&P   Cryptocurrency Mining   Total 
Three months ended September 30, 2023            
Revenues  $—   $457,951   $457,951 
Depreciation, depletion and amortization expense   —    425,468    425,468 
Impairment of cryptocurrency mining equipment   —    —    — 
Loss from operations   (5.542.986)   (949,411)   (6,492,397)
Interest expense (1)   (6,797)   (60,947)   (67,744)
Interest income (1)   74,755    10,411    85,166 
Liquidated damages (1)   (152,521)   (21,242)   (173,763)
Loss on adjustment to fair value – warrant liabilities (1)   (22,176,617)   (2,678,468)   (24,855,085)
Loss on adjustment to fair value - AR Debentures   —    (2,141,000)   (2,141,000)
Loss on adjustment to fair value – Obligation Shares (1)   (676,678)   (94,240)   (770,918)
Assets  $28,595,051   $3,982,396   $32,577,447 
                
Three months ended September 30, 2022               
Revenues  $—   $—   $— 
Depreciation, depletion and amortization expense   —    —    — 
Loss from operations   (276,789)   —    (276,789)
Interest expense   —    —    — 
Interest income   —    —    — 
Other expense   —    —    — 
Other income   —    —    — 
Assets  $1,197,243   $—   $1,197,243 

 

(1) Amounts are allocated to each segment as they are incurred at the corporate level.

 

 

   E&P  

Cryptocurrency

Mining

   Total 
Nine months ended September 30, 2023               
Revenues  $—   $637,269   $637,269 
Depreciation, depletion and amortization expense   —    558,319    558,319 
Impairment of cryptocurrency mining equipment   —    16,794,688    16,794,688 
Loss from operations   (6,769,956)   (19,485,769)   (26,255,725)
Interest expense (1)   (8,849)   (102,614)   (111,463)
Interest income (1)   92,827    35,375    128,202 
Liquidated damages (1)   (152,521)   (21,242)   (173,763)
Loss on adjustment to fair value – warrant liabilities (1)   (22,176,617)   (2,678,468)   (24,855,085)
Loss on adjustment to fair value – AR Debentures   —    (2,882,000)   (2,882,000)
Loss on adjustment to fair value – Obligation Shares (1)   (973,224)   (503,879)   (1,477,103)
Assets  $28,595,051   $3,982,396   $32,577,447 
                
June 7, 2022 (date of inception) through September 30, 2022               
Revenues  $—   $—   $— 
Depreciation, depletion and amortization expense   —    —    — 
Operating income   (309,511)   —    (309,511)
Interest expense   —    —    — 
Interest income   —    —    — 
Other expense   —    —    — 
Other income   —    —    — 
Assets  $1,197,243   $—   $1,197,243 

 

(1) Amounts are allocated to each segment as they are incurred at the corporate level.

 

The following table presents the breakout of other assets, which represent corporate assets not allocated to segments at September 30, 2023 and 2022:

 

   2023   2022 
   As of September 30, 
   2023   2022 
Cash and cash equivalents  $7,241,811   $— 
Prepaid expenses   271,839    —