Summary of Significant Accounting Policies (Policies) |
6 Months Ended |
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Jun. 30, 2026 | |
| Accounting Policies [Abstract] | |
| Basis of Presentation | Basis of Presentation
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, or U.S. GAAP, for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X of the U.S. Securities and Exchange Commission, or the SEC. Accordingly, certain information and footnote disclosures normally included in annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations.
In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the Company’s financial position, results of operations, changes in stockholders’ equity and cash flows for the periods presented. The results of operations for the interim periods presented are not necessarily indicative of the results that may be expected for the full fiscal year or for any future period. The December 31, 2025 condensed balance sheet was derived from the audited financial statements of March GL, the predecessor entity and accounting acquirer in the Business Combination.
The comparative unaudited condensed consolidated statements of operations, stockholders’ equity and cash flows for the three and six months ended June 30, 2025 reflect the historical results and cash flows of March GL, as the accounting predecessor, and have been retrospectively adjusted, where applicable, to reflect the exchange ratio established in the Business Combination.
These unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements and related notes included in the Company’s Prospectus dated April 27, 2026 and April 29, 2026, after the Registration Statement on Form S-1, as amended (File No. 333-294995) was declared effective on April 27, 2026, which includes the financial statements of March GL, Greenland Exploration and Pelican.
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| Reclassifications | Reclassifications
Certain prior period amounts have been reclassified to conform to the current period presentation. These reclassifications had no effect on previously reported total assets, total liabilities, stockholders’ equity, net loss or cash flows.
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| Principles of Consolidation | Principles of Consolidation
The consolidated financial statements include the financial statements of the Company and its wholly owned subsidiaries. All transactions and balances between the Company and its subsidiaries have been eliminated upon consolidation.
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| Use of Estimates | Use of Estimates
The preparation of consolidated financial statements in conformity with U.S. GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
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| Oil and Natural Gas Properties — Full Cost Method | Oil and Natural Gas Properties — Full Cost Method
The Company follows the full cost method of accounting for its oil and natural gas exploration and development activities in accordance with Rule 4-10(c) of Regulation S-X. Under the full cost method, all costs associated with the acquisition, exploration and development of oil and natural gas properties are capitalized. The Company currently maintains Greenland as its sole oil and natural gas cost center.
Capitalized costs include property acquisition costs, geological and geophysical costs, costs of carrying and retaining undeveloped properties, costs of drilling and equipping exploratory wells, including unsuccessful exploratory wells, development costs, and the costs of equipment and facilities used in the Company’s oil and natural gas exploration and development activities. Internal costs are capitalized only to the extent they are directly identified with acquisition, exploration or development activities conducted by or for the Company. General corporate overhead, public-company costs and administrative costs that are not directly attributable to oil and natural gas acquisition, exploration or development activities are expensed as incurred.
Costs associated with unproved properties and major development projects are excluded from the depletion base until the properties are evaluated, proved reserves are established, or impairment is otherwise indicated. The Company evaluates its unproved properties periodically for evidence of impairment, considering factors such as the remaining term of the applicable exploration license, the results of exploration activities, planned future operations, and the Company’s intention and ability to continue evaluating the properties. Costs determined to be impaired are transferred to the full cost pool and become subject to depletion.
Upon the establishment of proved oil and natural gas reserves and the commencement of production, capitalized costs included in the full cost pool, together with estimated future development and abandonment costs, net of estimated salvage values, will be depleted using the unit-of-production method based on proved reserves. As of June 30, 2026, the Company had no proved oil and natural gas reserves and had not commenced production. Accordingly, no depletion expense was recorded for the Company’s oil and natural gas properties during the three or six months ended June 30, 2026.
The net capitalized costs of oil and natural gas properties are subject to a quarterly full cost ceiling test. Under the ceiling test, capitalized costs, net of accumulated depletion and related deferred income taxes, may not exceed the present value of estimated future net revenues from proved reserves, discounted at 10%, plus the cost of unproved properties not subject to depletion and certain other permitted adjustments, net of related income tax effects. If net capitalized costs exceed the applicable ceiling, the excess is recognized as an impairment expense and may not subsequently be restored.
Sales or other dispositions of oil and natural gas properties are generally accounted for as adjustments to capitalized costs, with no gain or loss recognized, unless the disposition would significantly alter the relationship between capitalized costs and proved reserves attributable to the applicable cost center.
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| Prepaid Exploration Costs | Prepaid Exploration Costs
Amounts paid in advance for oil and natural gas exploration-related goods or services are recorded as prepaid exploration costs until the related goods or services are received. Upon receipt, such amounts are transferred to oil and natural gas properties to the extent they qualify for capitalization under the Company’s full cost accounting policy. Amounts relating to general corporate, financing, public-company or other nonqualifying activities are expensed as incurred.
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| Property and Equipment | Property and Equipment
Property and equipment are stated at cost, less accumulated depreciation. Depreciation is recorded using the straight-line method over the estimated useful lives of the related assets once the assets are placed in service. Expenditures for maintenance and repairs are expensed as incurred, while expenditures that materially extend the useful life of an asset or improve its functionality are capitalized. Upon retirement or disposal, the related cost and accumulated depreciation are removed from the accounts, and any resulting gain or loss is recognized in the condensed consolidated statements of operations.
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| Stock-Based Compensation | Stock-Based Compensation
The Company accounts for share-based payment awards in accordance with ASC Topic 718, Compensation—Stock Compensation. Equity-classified awards granted to employees, officers and nonemployee directors are measured at fair value on the grant date. Compensation cost is recognized over the requisite service period, generally the vesting period, using the straight-line attribution method for awards containing only service-based vesting conditions. The Company accounts for forfeitures as they occur.
Restricted stock units are measured using the quoted market price of the Company’s common stock on the grant date. The fair value of stock options is estimated using the Black-Scholes option-pricing model, which requires management to make assumptions regarding expected volatility, expected term, risk-free interest rate and expected dividend yield. Because the Company had limited company-specific trading history, expected volatility was estimated using information from comparable publicly traded companies. The expected term was estimated using the simplified method because the Company lacked sufficient historical exercise data.
Foreign Currency Remeasurement
The Company’s reporting currency and functional currency is the U.S. dollar. Transactions denominated in currencies other than the U.S. dollar are remeasured into U.S. dollars at the exchange rate in effect on the transaction date. Monetary assets and liabilities denominated in foreign currencies are remeasured at the applicable exchange rate in effect at the balance sheet date. Nonmonetary assets and liabilities are remeasured using historical exchange rates, as applicable. Foreign currency transaction gains and losses resulting from the settlement or remeasurement of foreign currency-denominated transactions are recognized in earnings in the period in which they arise and are included in other income (expense), net in the condensed consolidated statements of operations.
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| Cash and Cash Equivalents | Cash and Cash Equivalents
The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. The Company maintains cash at financial institutions which may at times exceed federally insured amounts. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on our cash and cash equivalents. The Company did not have cash equivalents as of June 30, 2026, and December 31, 2025.
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| Emerging Growth Company | Emerging Growth Company
The Company is an emerging growth company and has elected to take advantage of the extended transition period for complying with new or revised accounting standards applicable to public companies. Accordingly, the Company may adopt new or revised accounting standards on the timeline applicable to private companies, and its financial statements may not be comparable to those of companies that comply with public company effective dates.
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| Operating Segments | Operating Segments
ASC Topic 280, Segment Reporting, establishes standards for companies to report financial statement information about operating segments, products and services, geographic areas, and major customers. Operating segments are defined as components of an enterprise that engage in business activities from which they may earn revenues and incur expenses, and for which discrete financial information is available that is regularly reviewed by the Company’s chief operating decision maker (“CODM”) in deciding how to allocate resources and assess performance.
The Company’s CODM has been identified as the Chief Executive Officer, who reviews the Company’s assets, operating results, and financial metrics on a consolidated basis to make decisions regarding resource allocation and to assess overall financial performance. Based on this evaluation, management has determined that the Company operates as a single reportable segment.
The CODM assesses performance for the single operating segment and allocates resources based primarily on net income (loss), which is reported on the accompanying statement of operations, and total assets, which are reported on the balance sheet. Because the Company has not generated revenues and has not commenced drilling operations as of June 30, 2026, the CODM does not review discrete profitability measures or operating results by geographic area or activity. There are no other significant expenses reviewed by the CODM and not disclosed above.
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| Risks and Uncertainties | Risks and Uncertainties
The Company is subject to risks and uncertainties common to companies in the oil and gas exploration industry, including, but not limited to, risks associated with exploration and development activities, the ability to obtain required permits and approvals, availability and cost of drilling services and equipment, commodity price volatility, access to capital, dependence on third-party contractors and service providers, environmental and regulatory matters, operations in remote geographic locations, and the successful execution of the Company’s business plan.
The Company’s operations and financial results may also be affected by general economic conditions, changes in capital markets, inflation, interest rates, geopolitical developments, regulatory changes, and other factors outside of the Company’s control.
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