v3.26.3
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables)
 9 Months Ended
Sep. 30, 2026
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Accounts, Notes, Loans and Financing Receivable
The following table reflects the Company's beginning and ending balances of its accounts receivables from purchasers of its oil and gas for the three and nine months ended September 30, 2026 and September 30, 2025.
For the Three Months Ended
September 30, 2026September 30, 2025
Beginning balance of accounts receivable from purchasers of oil and gas$41,907,240 $36,251,914 
Ending balance of accounts receivable from purchasers of oil and gas48,168,956 32,354,972 
For the Nine Months Ended
September 30, 2026September 30, 2025
Beginning balance of accounts receivable from purchasers of oil and gas$29,591,571 $33,774,968 
Ending balance of accounts receivable from purchasers of oil and gas48,168,956 32,354,972 
The following table reflects the Company's accounts receivable from purchasers of its oil and gas and allowance for credit losses as of September 30, 2026 and December 31, 2025.
September 30, 2026December 31, 2025
Accounts receivable from purchasers of oil and gas$48,261,388 $29,591,571 
Allowance for credit losses(92,432)— 
Accounts receivable from purchasers of oil and gas, net$48,168,956 $29,591,571 
The following table reflects the Company's joint interest billing receivables and allowance for credit losses as of September 30, 2026 and December 31, 2025.
September 30, 2026December 31, 2025
Joint interest billing receivables$1,578,672 $1,824,753 
Allowance for credit losses(251,633)(200,762)
Joint interest billing receivables, net$1,327,039 $1,623,991 
Schedule of Provisions for Credit Loss Expense
The following table indicates the Company's provisions for credit loss expense associated with its accounts receivable from purchasers of its oil and gas ("O&G") during the three and nine months ended September 30, 2026 and September 30, 2025.
For the Three Months Ended
For the Nine Months Ended
September 30, 2026September 30, 2025September 30, 2026September 30, 2025
Credit loss expense, O&G$— $— $92,432 $— 
The following table indicates the Company's provisions for credit loss expense associated with its joint interest billing receivables during the three and nine months ended September 30, 2026 and September 30, 2025.
For the Three Months Ended
For the Nine Months Ended
September 30, 2026September 30, 2025September 30, 2026September 30, 2025
Credit loss expense, JIB$50,871 $907 $50,871 $19,029 
Schedule of Depletion and Depletion per Barrel of Oil Equivalents Rate The following table shows total depletion and the depletion per barrel-of-oil-equivalent rate, for the three and nine months ended September 30, 2026 and 2025.
For the Three Months Ended
For the Nine Months Ended
September 30, 2026September 30, 2025September 30, 2026September 30, 2025
Depletion$20,616,930 $24,902,199 $61,588,426 $72,381,413 
Depletion rate, per barrel-of-oil-equivalent (Boe)$10.86 $13.02 $11.28 $13.15 
Schedule of Property, Plant and Equipment Estimated Useful Lives
Depreciation of buildings and structures, equipment, software, leasehold improvements, automobiles, and UAV is calculated using the straight-line method based upon the following estimated useful lives:
Leasehold improvements
3‑5 years
Office equipment and software
3‑7 years
Equipment
5‑10 years
Automobiles4 years
Buildings and structures7 years
UAV3 years
Schedule of Depreciation Expense
The following table provides information on the Company's depreciation expense for the three and nine months ended September 30, 2026 and 2025.
For the Three Months Ended
For the Nine Months Ended
September 30, 2026September 30, 2025September 30, 2026September 30, 2025
Depreciation$72,479 $105,933 $214,912 $309,211 
Schedule of Gain (Loss) on Disposal of Assets
During the three and nine months ended September 30, 2026 and 2025, the Company recorded a gain (loss) on disposal of assets, which was impacted by the sale of owned vehicles, as follows:
For the Three Months Ended
For the Nine Months Ended
September 30, 2026September 30, 2025September 30, 2026September 30, 2025
Sale of owned vehicles$— $— $23,142 $(6,974)
Sale of leased vehicles52,331 105,642 133,339 392,519 
Gain (loss) on disposal of assets$52,331 $105,642 $156,481 $385,545 
During the three and nine months ended September 30, 2026 and 2025, the Company recorded a gain (loss) on disposal of assets, which was impacted by the sale of leased vehicles, as follows:

For the Three Months EndedFor the Nine Months Ended
September 30, 2026September 30, 2025September 30, 2026September 30, 2025
Sale of owned vehicles$— $— $23,142 $(6,974)
Sale of leased vehicles52,331 105,642 133,339 392,519 
Gain (loss) on disposal of assets$52,331 $105,642 $156,481 $385,545 
Schedule of Weighted Average Notes Payable Balances and Interest Rate
The following table reflects the weighted average notes payable balances and the weighted average interest rate on the weighted average notes payable outstanding during the period as of and for the three and nine months ended September 30, 2026 and 2025.
Three Months EndedNine Months Ended
September 30, 2026September 30, 2025September 30, 2026September 30, 2025
Weighted average notes payable balance
$1,306,897 $1,295,192 $659,230 $646,316 
Weighted average interest rate on weighted average notes payable7.09 %7.94 %7.95 %8.85 %
Schedule of Interest Paid Related to Notes Payable
The following table shows interest paid related to notes payable for the three and nine months ended September 30, 2026 and 2025. This interest is included within "Interest (expense)" in the Condensed Statements of Operations.
Three Months Ended
Nine Months Ended
September 30, 2026September 30, 2025September 30, 2026September 30, 2025
Interest paid for notes payable$23,172 $25,710 $39,319 $42,876 
Schedule of Components of Income Tax Benefits (Provisions)
The Company recorded the following federal and state income tax benefits (provisions) for the three and nine months ended September 30, 2026 and 2025.
For the Three Months Ended
For the Nine Months Ended
September 30, 2026September 30, 2025September 30, 2026September 30, 2025
Deferred federal income tax benefit (provision)$(1,571,208)$12,558,220 $8,589,134 $3,965,817 
Current state income tax benefit (provision)124,460 (39,816)(30,776)(323,670)
Deferred state income tax benefit (provision)58,791 282,543 954,052 10,198 
Benefit from (Provision for) Income Taxes$(1,387,957)$12,800,947 $9,512,410 $3,652,345 
Effective tax rate (1)
(9.12)%
19.87%
5.23%
14.30%

(1) The Company’s overall effective tax rate is calculated as Benefit from (Provision for) Income Taxes divided by Income (Loss) Before Benefit from (Provision for) Income Taxes. The effective tax rates for the three and nine months ended September 30, 2026 were lower than the federal statutory corporate tax rate, primarily impacted by the recording of a valuation allowance on the Company's federal net deferred tax assets. A tax expense of $23.2 million related to the valuation allowance was recorded as part of the estimated annual effective tax rate in the nine months ended September 30, 2026. The effective tax rates for the three and nine months ended September 30, 2025 were lower than the federal statutory corporate tax rates, primarily impacted by state income taxes.
Schedule of Share-Based Compensation Expense The following table summarizes the Company's share-based compensation, included with General and administrative expense within our Condensed Statements of Operations, incurred for the three and nine months ended September 30, 2026 and 2025.
Three Months Ended
Nine Months Ended
September 30, 2026September 30, 2025September 30, 2026September 30, 2025
Share-based compensation$2,497,039 $1,618,600 $6,171,443 $4,661,397 
Share-based compensation expense charged against income for share-based awards during the three and nine months ended September 30, 2026 and 2025 was as follows. These amounts are included in General and administrative expense in the Condensed Statements of Operations.
Three Months Ended
Nine Months Ended
September 30, 2026September 30, 2025September 30, 2026September 30, 2025
Share-based compensation expense from:
Employee stock options
$— $— $— $— 
Restricted stock unit grants
1,440,421 1,097,438 4,170,754 3,367,412 
Performance stock unit awards
1,056,618 521,162 2,000,689 1,293,985 
Total share-based compensation$2,497,039 $1,618,600 $6,171,443 $4,661,397