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Note 9 - Shareholders' Equity | 9 Months Ended
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Sep. 30, 2025
Notes to Financial Statements |
Equity [Text Block] | 9. SHAREHOLDERS’ EQUITY Equity Issuance On January 22, 2025, the Company entered into an underwriting agreement for the offering of 4,871,400 shares of common stock, at a price to the public of $2.65 per share (such offering, the “Offering”). The sale of 4,871,400 shares of common stock (including the full 635,400 over-allotment option) in connection with the Offering, closed on January 23, 2025. The Company generated approximately $11.9 million of net proceeds from the Offering, after deducting the underwriting discounts and commissions and offering costs payable by us, and plans to use such proceeds for the development of its recent acquisition in Montana, general corporate purposes, and working capital, or for other purposes that our board of directors, in their good faith, deems to be in the best interest of the Company. Additionally, management used $1.574 million from the over-allotment option exercise to purchase shares of common stock from Sage Road Capital, LLC (whose co-manager, Joshua L. Batchelor, was a then member of the Board of Directors of the Company) and its affiliates at a price equal to the public offering price of the Offering, less underwriting discounts, which sale took place in January 2025, as discussed below. Related Party Share Repurchase On January 27, 2025, the Company entered into a Share Repurchase Agreement with Banner Oil & Gas, LLC (“Banner”), Woodford Petroleum, LLC (“Woodford”), and Sage Road Energy II, LP, (“Sage Road”, and together with Banner and Woodford, the “Selling Stockholders”). In his capacity as co-Managing Partner of Sage Road Capital, LLC, which indirectly controls and manages certain funds which own a majority interest in Banner, Woodford and Sage Road, Joshua L. Batchelor, a then member of the Board of Directors of the Company, may be deemed to beneficially own the shares of common stock held by the Selling Stockholders. Pursuant to the Share Repurchase Agreement, the Company, in a private transaction, outside of, and separate from the Company’s previously disclosed share repurchase program, on January 27, 2025, repurchased (a) 534,020 shares of common stock held by Banner, (b) 41,229 shares of common stock held by Woodford, and (c) 60,151 shares of common stock held by Sage Road, for an aggregate of $1.574 million or approximately $2.48 per share, which was the net price per share of the 4,871,400 shares of common stock sold in our underwritten public offering which closed on January 23, 2025, less underwriting discounts and commissions, and which represented an 8.2% premium to the closing sales price of the Company's common stock on January 27, 2025. The share repurchase program was approved by the disinterested members of the Board of Directors of the Company, as well as the Company’s Audit Committee, comprised solely of independent directors not affiliated with Mr. Batchelor or the Selling Stockholders. Stock Option Plans The Company may grant stock options under its incentive plan covering shares of common stock to employees of the Company. Stock options, when exercised, are settled through the payment of the exercise price in exchange for new shares of stock underlying the option. These awards typically expire ten years from the grant date. For the three and nine months ended September 30, 2025 and 2024, there was no compensation expense related to stock options. As of September 30, 2025 and September 30, 2024, all stock options had vested. No stock options were granted or exercised during the three and nine months ended September 30, 2025 and 2024. The stock options had de minimis intrinsic values for the periods reported. Presented below is information for stock options outstanding and exercisable as of September 30, 2025, and December 31, 2024:
|  | September 30, 2025 |  |  | December 31, 2024 |
|  |  |  |  |  | Weighted |  |  |  |  |  |  | Weighted |
|  |  |  |  |  | Average |  |  |  |  |  |  | Average |
|  | Number of |  |  | Exercise |  |  | Number of |  |  | Exercise |
|  | Shares |  |  | Price |  |  | Shares |  |  | Price |
Stock options outstanding and exercisable |  |  | 16,500 |  |  | $ | 10.00 |  |  |  | 22,176 |  |  | $ | 30.48 |
The following table summarizes information for stock options outstanding and for stock options exercisable at September 30, 2025 by the remaining contractual term:
Options Outstanding and Exercisable |
|  |  | Exercise |  |  | Weighted |  |  | Remaining |
|  |  | Price |  |  | Average |  |  | Contractual |
Number of |  |  | Range |  |  | Exercise |  |  | Term |
Shares |  |  | Low |  |  | High |  |  | Price |  |  | (years) |
16,500 |  |  | $ | 7.20 |  |  | $ | 11.60 |  |  | $ | 10.00 |  |  |  | 2.0 |
Restricted Stock The Company grants restricted stock under its incentive plans covering shares of common stock to employees and directors of the Company. All of the restricted stock awards are time-based awards and are amortized ratably from grant date over a requisite service period. Forfeitures of restricted stock awards are recognized as they occur. Restricted stock granted to employees is reduced by shares forfeited to pay withholding tax. Non-vested shares of restricted stock are not included in common shares outstanding until vesting has occurred. The following table presents the changes in non-vested restricted stock awards to all employees and directors for the nine months ended September 30, 2025:
|  |  |  |  |  | Weighted-Avg. |
|  |  |  |  |  | Grant Date |
|  |  |  |  |  | Fair Value |
|  | Shares |  |  | Per Share |
Non-vested restricted stock as of December 31, 2024 |  |  | 1,450,695 |  |  | $ | 1.41 |
Granted |  |  | 1,140,000 |  |  | $ | 2.03 |
Vested |  |  | (1,023,515 | ) |  | $ | 1.58 |
Forfeited |  |  | (76,000 | ) |  | $ | 2.03 |
Non-vested restricted stock as of September 30, 2025 |  |  | 1,491,180 |  |  | $ | 1.74 |
For the nine months ended September 30, 2025 and 2024, the Company recognized $1.5 million and $0.9 million, respectively, of stock compensation expense related to restricted stock grants. Unrecognized compensation cost related to non-vested awards not yet recorded in the Company’s Condensed Consolidated Statements of Operations as of September 30, 2025 was $1.2 million. This cost is expected to be recognized over a weighted average period of 1.7 years. Share Repurchase Program On January 29, 2025, the Board of Directors of the Company authorized and approved an extension of the ongoing share repurchase program for up to $5.0 million of the outstanding shares of the Company’s common stock originally approved by the Board of Directors on April 26, 2023 and subsequently extended. Subject to any future extension in the discretion of the Board of Directors of the Company, the repurchase program is now scheduled to expire on June 30, 2026, when a maximum of $5.0 million of the Company’s common stock has been repurchased, or when such program is discontinued by the Board of Directors. Under the stock repurchase program, shares are repurchased from time to time in the open market or through negotiated transactions at prevailing market prices, or by other means in accordance with federal securities laws. Repurchases are made at management’s discretion at prices management considers to be attractive and in the best interests of both the Company and its stockholders, subject to the availability of stock, general market conditions, the trading price of the stock, alternative uses for capital, and the Company’s financial performance. The repurchase program is funded using the Company’s working capital. The repurchased shares are cancelled and therefore will not be held in treasury or reissued. The following table presents the activity in the share repurchase program for the three and nine months ended September 30, 2025 and 2024:
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
|  | 2025 |  |  | 2024 |  |  | 2025 |  |  | 2024 |
|  | (in thousands) |  |  |  |  |  |  |  |  |
Shares repurchased |  |  | - |  |  |  | 19 |  |  |  | 197 |  |  |  | 483 |
Weighted average price per share |  | $ | - |  |  | $ | 1.050 |  |  | $ | 1.610 |  |  | $ | 1.090 |
Value of shares repurchased |  | $ | - |  |  | $ | 20 |  |  | $ | 316 |  |  | $ | 526 |

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