NOTE 4-Equity Investment Accounted for at Cost

During the year ended December 31, 2024, the Company received distributions, totaling $922,719, from Hupecol Meta representing the Company’s share of distributable net profits. During 2024, the Company invested $1.9 million for required capital contributions related to drilling operations in Colombia to Hupecol Meta.

The Company’s carrying value of its holdings in Hupecol Meta, was $4.5 million as of December 31, 2023, as reflected in the line item “Equity investment - Hupecol Meta” in the Company’s consolidated balance sheets.

Impairments

The Company performs annual business reviews of its equity investments accounted for at cost to determine whether the carrying value in that investment is impaired. As of December 31, 2024, the Company determined it was necessary to take an impairment charge of $6,392,874 for its investment in Hupecol Meta due to indications that its earnings performance has deteriorated, and the investment is no longer viewed as viable. The Company determined that it is unlikely to receive any substantial amount of proceeds upon the sale of Hupecol Meta, rendering the value of the investment fully impaired.