þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 46-4527741 | |
(State or Other Jurisdiction of | (I.R.S. Employer | |
Incorporation or Organization) | Identification No.) | |
4315 South Drive | ||
Houston, Texas | 77053 | |
(Address of Principal Executive Offices) | (Zip Code) |
Large accelerated filer o | Accelerated filer o | Non-accelerated filer o | Smaller reporting company þ | |||
(Do not check if a smaller reporting company.) |
Page | ||
• | containing a projection of revenues, income (including income loss), earnings (including earnings loss) per share, capital expenditures, dividends, capital structure, or other financial items; |
• | of the plans and objectives of management for future operations, including plans or objectives relating to the products or services of Glori; |
• | of future economic performance, including any such statement contained in a discussion and analysis of financial condition by the management or in the results of operations included pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”); |
• | of the assumptions underlying or relating to any statement described above; or |
• | containing a projection or estimate of such other items as may be specified by rule or regulation of the SEC. |
• | our ability to continue as a going concern; |
• | the potential delisting of our common stock from NASDAQ; |
• | our ability to secure additional capital to fund operations; |
• | our ability to service our debt and make future required payments; |
• | the sustained or an increased decline of oil and gas commodity prices; |
• | increase in oil production rate and ultimate quantity of oil recovered using our AERO System; |
• | the percentage of the world’s reservoirs that are suitable for our AERO System; |
• | our ability to prove our technology and develop and maintain positive relationships with our customers and prospective customers; |
• | competition and competitive factors in the markets in which we operate; |
• | demand for our AERO System and our expectations regarding future projects; |
• | adaptability of our AERO System and our development of additional capabilities that will expand the types of oil fields to which we can apply our technology; |
• | our plans and ability to acquire and develop additional currently producing mature oil fields and the AERO System’s impact on these fields; |
• | our plans to develop some abandoned and low producing mature oil fields; |
• | the expected cost of recovering oil using our AERO System in our projects; |
• | potential environmental or other liabilities associated with our acquired properties; |
• | any projections, including earnings, revenues, expenses or any other financial items; |
• | the impact of legislation and regulations on our operations; |
• | our ability to compete with other enhanced oil recovery methods; |
• | our ability to generate positive cash flows, including from the acquisition of oil producing properties, increases in oil prices, and improvement in our AERO System revenues; |
• | our cash needs and expectations regarding cash flow from operations; |
• | our ability to manage and grow our business and execution of our business strategy; |
• | our financial performance; |
• | our estimates of oil reserves; and |
• | the costs associated with being a public company. |
December 31, 2015 | June 30, 2016 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 8,380 | $ | 3,144 | |||
Accounts receivable | 1,456 | 792 | |||||
Commodity derivatives | 3,411 | 1,243 | |||||
Prepaid expenses and other current assets | 314 | 297 | |||||
Total current assets | 13,561 | 5,476 | |||||
Property and equipment: | |||||||
Proved oil and gas properties - successful efforts | 48,454 | 49,772 | |||||
Other property and equipment | 6,439 | 6,522 | |||||
54,893 | 56,294 | ||||||
Less: accumulated depreciation, depletion and amortization | (47,578 | ) | (48,497 | ) | |||
Total property and equipment, net | 7,315 | 7,797 | |||||
Deferred charges | — | 228 | |||||
Deferred tax asset | 1,161 | — | |||||
Total assets | $ | 22,037 | $ | 13,501 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 1,430 | $ | 644 | |||
Accrued expenses | 1,180 | 1,214 | |||||
Current portion of long-term debt shown net of unamortized deferred loan costs of $191 and $156 as of December 31, 2015 and June 30, 2016, respectively | 289 | 10,067 | |||||
Current deferred tax liability | 1,161 | — | |||||
Total current liabilities | 4,060 | 11,925 | |||||
Long-term liabilities: | |||||||
Long-term debt, less current portion shown net of unamortized deferred loan costs of $36 as of December 31, 2015 | 10,009 | 37 | |||||
Asset retirement obligation | 1,457 | 1,403 | |||||
Total long-term liabilities | 11,466 | 1,440 | |||||
Total liabilities | 15,526 | 13,365 | |||||
Commitments and contingencies (Note 10) | |||||||
Stockholders' equity: | |||||||
Preferred stock, $.0001 par value, 5,000,000 shares authorized, no shares issued and outstanding as of December 31, 2015 and June 30, 2016 | — | — | |||||
Common stock, $.0001 par value, 100,000,000 shares authorized, 31,861,357 and 32,115,998 shares issued and outstanding as of December 31, 2015 and June 30, 2016, respectively | 3 | 3 | |||||
Additional paid-in capital | 106,934 | 107,207 | |||||
Accumulated deficit | (100,426 | ) | (107,074 | ) | |||
Total stockholders' equity | 6,511 | 136 | |||||
Total liabilities and stockholders' equity | $ | 22,037 | $ | 13,501 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2015 | 2016 | 2015 | 2016 | ||||||||||||
(Unaudited) | (Unaudited) | ||||||||||||||
Revenues: | |||||||||||||||
Oil and gas revenues | $ | 2,136 | $ | 1,163 | $ | 4,136 | $ | 2,187 | |||||||
Service revenues | 496 | 72 | 1,063 | 246 | |||||||||||
Total revenues | 2,632 | 1,235 | 5,199 | 2,433 | |||||||||||
Operating expenses: | |||||||||||||||
Oil and gas operations | 2,500 | 1,240 | 4,892 | 3,131 | |||||||||||
Service operations | 534 | 213 | 1,055 | 486 | |||||||||||
Science and technology | 629 | 309 | 1,103 | 643 | |||||||||||
Selling, general and administrative | 1,534 | 1,403 | 3,252 | 2,821 | |||||||||||
Depreciation, depletion and amortization | 1,039 | 496 | 2,107 | 1,002 | |||||||||||
Total operating expenses | 6,236 | 3,661 | 12,409 | 8,083 | |||||||||||
Loss from operations | (3,604 | ) | (2,426 | ) | (7,210 | ) | (5,650 | ) | |||||||
Other income (expense): | |||||||||||||||
Interest expense | (530 | ) | (392 | ) | (1,245 | ) | (735 | ) | |||||||
(Loss) gain on commodity derivatives | (980 | ) | (437 | ) | 389 | (282 | ) | ||||||||
Other income (expense) | 10 | 2 | (5 | ) | 13 | ||||||||||
Total other expense, net | (1,500 | ) | (827 | ) | (861 | ) | (1,004 | ) | |||||||
Net loss before taxes on income | (5,104 | ) | (3,253 | ) | (8,071 | ) | (6,654 | ) | |||||||
Income tax benefit | (188 | ) | (6 | ) | (171 | ) | (6 | ) | |||||||
Net loss | (4,916 | ) | (3,247 | ) | $ | (7,900 | ) | $ | (6,648 | ) | |||||
Net loss per common share, basic and diluted | $ | (0.15 | ) | $ | (0.10 | ) | $ | (0.25 | ) | $ | (0.21 | ) | |||
Weighted average common shares outstanding, basic and diluted | 31,803 | 32,050 | 31,684 | 32,026 |
Stockholders' equity | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
Additional | Total | ||||||||||||||||||
Common stock | paid-in | Accumulated | stockholders' | ||||||||||||||||
Shares | Par value | capital | deficit | equity | |||||||||||||||
Balances as of December 31, 2015 | 31,861,357 | $ | 3 | $ | 106,934 | $ | (100,426 | ) | $ | 6,511 | |||||||||
Stock based compensation | 254,641 | — | 273 | — | 273 | ||||||||||||||
Net loss | — | — | — | (6,648 | ) | (6,648 | ) | ||||||||||||
Balances as of June 30, 2016 | 32,115,998 | $ | 3 | $ | 107,207 | $ | (107,074 | ) | $ | 136 |
Six Months Ended June 30, | |||||||
2015 | 2016 | ||||||
(Unaudited) | |||||||
Cash flows from operating activities: | |||||||
Net loss | $ | (7,900 | ) | $ | (6,648 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
Depreciation, depletion and amortization of property and equipment | 2,107 | 1,002 | |||||
Stock-based compensation | 838 | 273 | |||||
Bad debt expense | 36 | 66 | |||||
Amortization of deferred loan costs | 194 | 110 | |||||
Accretion of end-of-term charge | 40 | — | |||||
Unrealized loss on change in fair value of commodity derivatives | 1,382 | 2,168 | |||||
Non-cash increase in debt (paid-in-kind interest) | — | 52 | |||||
Accretion of discount on long-term debt | 28 | — | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | 186 | 598 | |||||
Prepaid expenses and other current assets | (101 | ) | 17 | ||||
Accounts payable | (1,437 | ) | (786 | ) | |||
Deferred revenues | (620 | ) | — | ||||
Accrued expenses | (587 | ) | (116 | ) | |||
Net cash used in operating activities | (5,834 | ) | (3,264 | ) | |||
Cash flows from investing activities: | |||||||
Purchase of and additions to proved oil and gas property | (4,403 | ) | (1,305 | ) | |||
Purchase of other property and equipment | (312 | ) | (83 | ) | |||
Net cash used in investing activities | (4,715 | ) | (1,388 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from the exercise of stock options | 130 | — | |||||
Payments on long-term debt | (2,216 | ) | (316 | ) | |||
Payments for deferred loan costs and deferred charges | (40 | ) | (268 | ) | |||
Net cash used in financing activities | (2,126 | ) | (584 | ) | |||
Net decrease in cash and cash equivalents | (12,675 | ) | (5,236 | ) | |||
Cash and cash equivalents, beginning of period | 29,751 | 8,380 | |||||
Cash and cash equivalents, end of period | $ | 17,076 | $ | 3,144 | |||
Non-cash financing and investing activities: | |||||||
Asset retirement obligation assumed | 432 | 13 | |||||
Non-cash increase in debt (paid-in-kind interest) | — | 52 | |||||
Supplemental cash flow information: | |||||||
Interest paid | $ | 1,338 | $ | 805 |
December 31, 2015 | June 30, 2016 | ||||||
(Unaudited) | |||||||
Proved oil and gas properties - successful efforts | $ | 48,454 | $ | 49,772 | |||
Unproved oil and gas properties | 443 | 531 | |||||
Construction in progress | 594 | 594 | |||||
Laboratory and warehouse facility | 648 | 648 | |||||
Laboratory and field service equipment | 3,355 | 3,355 | |||||
Office equipment, computer equipment, vehicles and other | 1,399 | 1,394 | |||||
54,893 | 56,294 | ||||||
Less: accumulated depreciation, depletion and amortization (1) | (47,578 | ) | (48,497 | ) | |||
Total property and equipment, net | $ | 7,315 | $ | 7,797 |
Three Months Ended June 30, | |||||||
2015 | 2016 | ||||||
Depreciation and amortization expense | $ | 159 | 144 | ||||
Depletion expense | 840 | 312 | |||||
Accretion of asset retirement obligation | 40 | 40 | |||||
Total depreciation, depletion and amortization of property and equipment | $ | 1,039 | $ | 496 |
Six Months Ended June 30, | |||||||
2015 | 2016 | ||||||
(Unaudited) | |||||||
Depreciation and amortization expense | $ | 314 | $ | 295 | |||
Depletion expense | 1,717 | 624 | |||||
Accretion of asset retirement obligation | 76 | 83 | |||||
Total depreciation, depletion and amortization of property and equipment | $ | 2,107 | $ | 1,002 |
Fair value measurements using | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
December 31, 2015 | |||||||||||||||
Short-term commodity derivatives, asset | $ | — | $ | 3,411 | $ | — | $ | 3,411 |
Fair value measurements using | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
(Unaudited) | |||||||||||||||
June 30, 2016 | |||||||||||||||
Short-term commodity derivatives, asset | $ | — | $ | 1,243 | $ | — | $ | 1,243 |
Period | Notional Amount (Bbl) | Swap ($/Bbl) | Floor ($/Bbl) | Ceiling ($/Bbl) | |||||||||||
July 2016 - December 2016 | 39,300 | $ | 82.46 | ||||||||||||
January 2017 - June 2017 | 18,100 | $ | 42.50 | $ | 55.60 |
Fair value as of | ||||||
December 31, 2015 | June 30, 2016 | |||||
Asset commodity derivatives: | ||||||
Current assets | 3,411 | 1,278 | ||||
Current liabilities | — | (35 | ) | |||
Total commodity derivatives | 3,411 | 1,243 |
Three Months Ended June 30, | |||||||
2015 | 2016 | ||||||
(Unaudited) | |||||||
Unrealized loss on commodity derivatives | $ | (1,605 | ) | $ | (1,161 | ) | |
Realized gain on commodity derivatives | 625 | 724 | |||||
$ | (980 | ) | $ | (437 | ) |
Six Months Ended June 30, | |||||||
2015 | 2016 | ||||||
(Unaudited) | |||||||
Unrealized loss on commodity derivatives | $ | (1,382 | ) | $ | (2,168 | ) | |
Realized gain on commodity derivatives | 1,771 | 1,886 | |||||
$ | 389 | $ | (282 | ) |
Year ending June 30, | Amount | |||
(Unaudited) | ||||
2017 | 10,223 | |||
2018 | 8 | |||
2019 | 9 | |||
2020 | 9 | |||
2021 | 10 | |||
Thereafter | 1 | |||
$ | 10,260 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2015 | 2016 | 2015 | 2016 | ||||||||||||
(Unaudited) | (Unaudited) | ||||||||||||||
Numerator: | |||||||||||||||
Net loss | $ | (4,916 | ) | $ | (3,247 | ) | $ | (7,900 | ) | $ | (6,648 | ) | |||
Denominator: | |||||||||||||||
Weighted-average common shares outstanding - basic | 31,803 | 32,050 | 31,684 | 32,026 | |||||||||||
Effect of dilutive securities | — | — | — | — | |||||||||||
Weighted-average common shares - diluted | 31,803 | 32,050 | 31,684 | 32,026 | |||||||||||
Net loss per common share - basic and diluted | $ | (0.15 | ) | $ | (0.10 | ) | $ | (0.25 | ) | $ | (0.21 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||
2015 | 2016 | 2015 | 2016 | |||||||
(Unaudited) | (Unaudited) | |||||||||
Common stock warrants ($10 strike price) | 5,321 | 5,321 | 5,321 | 5,321 | ||||||
Common stock options | 2,048 | 2,714 | 2,154 | 2,754 | ||||||
Restricted shares | 132 | 427 | 102 | 565 |
Year Ending June 30, | ||||
(Unaudited) | ||||
2017 | $ | 165 | ||
$ | 165 |
Year ended December 31, | ||
2015 | ||
Risk-free interest rate | 1.55 | % |
Expected volatility | 66 | % |
Expected dividend yield | — | |
Expected life (in years) | 6.00 | |
Expected forfeiture rate | — |
Number of options | Weighted average exercise price per share | Weighted average remaining contractual term (years) | Aggregate intrinsic value | |||||||||
Outstanding as of December 31, 2015 | 2,834,635 | $ | 1.01 | 6.9 | $ | 89,000 | ||||||
Awarded (unaudited) | — | |||||||||||
Exercised (unaudited) | — | |||||||||||
Forfeited or Expired (unaudited) | (151,515 | ) | 2.18 | |||||||||
Outstanding as of June 30, 2016 (unaudited) | 2,683,120 | $ | 0.94 | 5.2 | $ | — | ||||||
Exercisable as of December 31, 2015 | 1,934,605 | $ | 0.84 | 5.7 | $ | 89,000 | ||||||
Exercisable as of June 30, 2016 (unaudited) | 1,949,161 | $ | 0.89 | 3.7 | $ | — |
Shares | Weighted-average grant date fair value | |||||
Non-vested awards outstanding, December 31, 2015 | 844,592 | $ | 2.67 | |||
Vested | (284,682 | ) | 2.52 | |||
Forfeited | (293,797 | ) | 2.55 | |||
Non-vested awards outstanding, June 30, 2016 | 266,113 | $ | 2.97 |
Oil and Gas | AERO Services | Corporate | Total | ||||||||||||
(Unaudited) | |||||||||||||||
Three months ended June 30, 2015 | |||||||||||||||
Revenues | $ | 2,136 | $ | 496 | $ | — | $ | 2,632 | |||||||
Total operating expenses | 2,500 | 534 | 2,163 | 5,197 | |||||||||||
Depreciation, depletion and amortization | 912 | 109 | 18 | 1,039 | |||||||||||
Loss from operations | (1,276 | ) | (147 | ) | (2,181 | ) | (3,604 | ) | |||||||
Other expense, net | (980 | ) | — | (520 | ) | (1,500 | ) | ||||||||
Income tax benefit | — | — | (188 | ) | (188 | ) | |||||||||
Net loss | $ | (2,256 | ) | $ | (147 | ) | $ | (2,513 | ) | $ | (4,916 | ) |
Oil and Gas | AERO Services | Corporate | Total | ||||||||||||
(Unaudited) | |||||||||||||||
Three months ended June 30, 2016 | |||||||||||||||
Revenues | $ | 1,163 | $ | 72 | $ | — | $ | 1,235 | |||||||
Total operating expenses | 1,240 | 213 | 1,712 | 3,165 | |||||||||||
Depreciation, depletion and amortization | 372 | 57 | 67 | 496 | |||||||||||
Loss from operations | (449 | ) | (198 | ) | (1,779 | ) | (2,426 | ) | |||||||
Other expense, net | (437 | ) | — | (390 | ) | (827 | ) | ||||||||
Income tax benefit | — | — | (6 | ) | (6 | ) | |||||||||
Net loss | $ | (886 | ) | $ | (198 | ) | $ | (2,163 | ) | $ | (3,247 | ) |
Oil and Gas | AERO Services | Corporate | Total | ||||||||||||
(Unaudited) | |||||||||||||||
Six Months Ended June 30, 2015 | |||||||||||||||
Revenues | $ | 4,136 | $ | 1,063 | $ | — | $ | 5,199 | |||||||
Total operating expenses | 4,892 | 1,055 | 4,355 | 10,302 | |||||||||||
Depreciation, depletion and amortization | 1,865 | 209 | 33 | 2,107 | |||||||||||
Loss from operations | (2,621 | ) | (201 | ) | (4,388 | ) | (7,210 | ) | |||||||
Other income (expense), net | 389 | — | (1,250 | ) | (861 | ) | |||||||||
Income tax benefit | — | — | (171 | ) | (171 | ) | |||||||||
Net loss | (2,232 | ) | (201 | ) | (5,467 | ) | (7,900 | ) |
Oil and Gas | AERO Services | Corporate | Total | ||||||||||||
(Unaudited) | |||||||||||||||
Six Months Ended June 30, 2016 | |||||||||||||||
Revenues | $ | 2,187 | $ | 246 | $ | — | $ | 2,433 | |||||||
Total operating expenses | 3,131 | 486 | 3,464 | 7,081 | |||||||||||
Depreciation, depletion and amortization | 747 | 147 | 108 | 1,002 | |||||||||||
Loss from operations | (1,691 | ) | (387 | ) | (3,572 | ) | (5,650 | ) | |||||||
Other expense, net | (282 | ) | — | (722 | ) | (1,004 | ) | ||||||||
Income tax benefit | — | — | (6 | ) | (6 | ) | |||||||||
Net loss | (1,973 | ) | (387 | ) | (4,288 | ) | (6,648 | ) |
Three Months Ended June 30, | Six months ended June 30, | ||||||||||||||
2015 | 2016 | 2015 | 2016 | ||||||||||||
Revenues: | |||||||||||||||
Oil and gas revenues | $ | 2,136 | $ | 1,163 | $ | 4,136 | $ | 2,187 | |||||||
Service revenues | 496 | 72 | 1,063 | 246 | |||||||||||
Total revenues | 2,632 | 1,235 | 5,199 | 2,433 | |||||||||||
Operating expenses: | |||||||||||||||
Oil and gas operations | 2,500 | 1,240 | 4,892 | 3,131 | |||||||||||
Service operations | 534 | 213 | 1,055 | 486 | |||||||||||
Science and technology | 629 | 309 | 1,103 | 643 | |||||||||||
Selling, general and administrative | 1,534 | 1,403 | 3,252 | 2,821 | |||||||||||
Depreciation, depletion and amortization | 1,039 | 496 | 2,107 | 1,002 | |||||||||||
Total operating expenses | 6,236 | 3,661 | 12,409 | 8,083 | |||||||||||
Loss from operations | (3,604 | ) | (2,426 | ) | (7,210 | ) | (5,650 | ) | |||||||
Other income (expense): | |||||||||||||||
Interest expense | (530 | ) | (392 | ) | (1,245 | ) | (735 | ) | |||||||
(Loss) gain on commodity derivatives | (980 | ) | (437 | ) | 389 | (282 | ) | ||||||||
Other income (expense) | 10 | 2 | (5 | ) | 13 | ||||||||||
Total other expense, net | (1,500 | ) | (827 | ) | (861 | ) | (1,004 | ) | |||||||
Income tax benefit | (188 | ) | (6 | ) | (171 | ) | (6 | ) | |||||||
Net loss | $ | (4,916 | ) | $ | (3,247 | ) | $ | (7,900 | ) | $ | (6,648 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2015 | 2016 | 2015 | 2016 | ||||||||||||
Revenues (in thousands): | |||||||||||||||
Oil revenues | $ | 2,108 | $ | 1,163 | $ | 4,075 | $ | 2,175 | |||||||
Natural gas revenues | 28 | — | 61 | 12 | |||||||||||
Total oil and gas revenues | $ | 2,136 | $ | 1,163 | $ | 4,136 | $ | 2,187 | |||||||
Sales volumes: | |||||||||||||||
Oil volumes (MBbls) | 37 | 27 | 77 | 60 | |||||||||||
Gas volumes (MMcf) | 19 | — | 40 | 13 | |||||||||||
Gas volumes (MBoe) | 3 | — | 7 | 2 | |||||||||||
Total volumes (MBoe) | 40 | 27 | 84 | 62 | |||||||||||
Price: | |||||||||||||||
Average oil price received per Bbl | $ | 57.06 | $ | 42.60 | $ | 53.05 | $ | 36.08 | |||||||
Average oil price per Bbl including price swap settlements | $ | 73.99 | $ | 69.18 | $ | 76.18 | $ | 67.36 | |||||||
Average gas price per Mcf | $ | 1.47 | $ | — | $ | 1.53 | $ | 0.96 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2015 | 2016 | 2015 | 2016 | ||||||||||||
Lease operating expense | $ | 1,664 | $ | 768 | $ | 3,086 | $ | 2,049 | |||||||
Ad valorem taxes | 36 | 74 | 174 | 122 | |||||||||||
Severance taxes | 99 | 54 | 192 | 101 | |||||||||||
Acquisition expenses | 18 | 22 | 44 | 48 | |||||||||||
Oil and gas overhead expense | 683 | 322 | 1,396 | 811 | |||||||||||
Oil and gas operations expense | $ | 2,500 | $ | 1,240 | $ | 4,892 | $ | 3,131 |
Six Months Ended June 30, | |||||||
2015 | 2016 | ||||||
Net cash used in operating activities | $ | (5,834 | ) | $ | (3,264 | ) | |
Net cash used in investing activities | $ | (4,715 | ) | $ | (1,388 | ) | |
Net cash used in financing activities | $ | (2,126 | ) | $ | (584 | ) |
Payments Due By Period | ||||||||||||||||||||
Contractual Obligations | Total | Less Than 1 Year | 1-3 Years | 3-5 Years | More Than 5 Years | |||||||||||||||
Operating lease obligations(1) | $ | 165 | $ | 165 | $ | — | $ | — | $ | — | ||||||||||
Asset retirement obligation(2) | 1,618 | 215 | 113 | 685 | 605 | |||||||||||||||
Long-term debt(3) | 11,066 | 11,025 | 20 | 20 | 1 | |||||||||||||||
Total | $ | 12,849 | $ | 11,405 | $ | 133 | $ | 705 | $ | 606 |
(1) | Our commitments for operating leases primarily relate to the leases of office and warehouse facilities in Houston, Texas and warehouse facilities in Gull Lake, Saskatchewan. |
(2) | Relates to our oil properties, net of accretion. Current asset retirement obligations included in Accrued expenses on the June 30, 2016 condensed consolidated balance sheet. |
(3) | Includes expected future interest payments. |
Exhibit | Description |
10.1 | Separation Agreement by and between Glori Energy Inc. and Stuart Page (incorporated by reference to Exhibit 10.1 of the Company's Form 8-K, filed June 8, 2016) |
10.2 | Advisor Agreement by and between Glori Energy Inc. and Stuart Page (incorporated by reference to Exhibit 10.2 of the Company's Form 8-K, filed June 8, 2016) |
10.3 | Amendment to Incentive Option Agreement by and between Glori Energy Inc. and Stuart Page (incorporated by reference to Exhibit 10.3 of the Company's Form 8-K, filed June 8, 2016) |
31.1* | Certification by Kevin P. Guilbeau, Interim Chief Executive Officer and Executive Co-Chairman of the Board, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
31.2* | Certification by Victor M. Perez, Chief Financial Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
32.1* | Certification by Kevin P. Guilbeau, Interim Chief Executive Officer and Co-Chairman of the Board, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
32.2* | Certification by Victor M. Perez, Chief Financial Officer, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
101.INS* | XBRL Instance Document |
101.SCH* | XBRL Taxonomy Extension Schema Document |
101.CAL* | XBRL Taxonomy Extension Calculation Linkbase Document |
101.DEF* | XBRL Taxonomy Extension Definition Linkbase Document |
101.LAB* | XBRL Taxonomy Extension Label Linkbase Document |
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase Document |
* | Filed herewith |
August 11, 2016 |
Date |
Glori Energy Inc. | ||
Registrant | ||
By: | /s/ Victor M. Perez | |
Victor M. Perez Chief Financial Officer (Principal Financial Officer) |
1. | I have reviewed this Quarterly Report on Form 10-Q of the Company; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Kevin P. Guilbeau |
Kevin P. Guilbeau |
Interim Chief Executive Officer and Executive Co-Chairman of the Board |
1. | I have reviewed this Quarterly Report on Form 10-Q of the Company; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrants other certifying officer and I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Victor M. Perez |
Victor M. Perez |
Chief Financial Officer |
1. | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company. |
/s/ Kevin P. Guilbeau |
Kevin P. Guilbeau |
Interim Chief Executive Officer and Executive Co-Chairman of the Board |
1. | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company. |
/s/ Victor M. Perez |
Victor M. Perez |
Chief Financial Officer |
Document and Entity Information - shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Aug. 09, 2016 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Glori Energy Inc. | |
Trading Symbol | GLRI | |
Entity Central Index Key | 0001597131 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 32,382,111 |
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Unamortized deferred loan costs, current | $ 156 | $ 191 |
Unamortized deferred loan costs, noncurrent | $ 36 | |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 32,115,998 | 31,861,357 |
Common stock, shares outstanding | 32,115,998 | 31,861,357 |
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Revenues: | ||||
Oil and gas revenues | $ 1,163 | $ 2,136 | $ 2,187 | $ 4,136 |
Service revenues | 72 | 496 | 246 | 1,063 |
Total revenues | 1,235 | 2,632 | 2,433 | 5,199 |
Operating expenses: | ||||
Oil and gas operations | 1,240 | 2,500 | 3,131 | 4,892 |
Service operations | 213 | 534 | 486 | 1,055 |
Science and technology | 309 | 629 | 643 | 1,103 |
Selling, general and administrative | 1,403 | 1,534 | 2,821 | 3,252 |
Depreciation, depletion and amortization | 496 | 1,039 | 1,002 | 2,107 |
Total operating expenses | 3,661 | 6,236 | 8,083 | 12,409 |
Loss from operations | (2,426) | (3,604) | (5,650) | (7,210) |
Other income (expense): | ||||
Interest expense | (392) | (530) | (735) | (1,245) |
(Loss) gain on commodity derivatives | (437) | (980) | (282) | 389 |
Other income (expense) | 2 | 10 | 13 | (5) |
Total other expense, net | (827) | (1,500) | (1,004) | (861) |
Net loss before taxes on income | (3,253) | (5,104) | (6,654) | (8,071) |
Income tax benefit | (6) | (188) | (6) | (171) |
Net loss | $ (3,247) | $ (4,916) | $ (6,648) | $ (7,900) |
Net loss per common share, basic and diluted (in dollars per share) | $ (0.10) | $ (0.15) | $ (0.21) | $ (0.25) |
Weighted average common shares outstanding, basic and diluted (in shares) | 32,050 | 31,803 | 32,026 | 31,684 |
Condensed Consolidated Statement of Stockholders' Equity - 6 months ended Jun. 30, 2016 - USD ($) $ in Thousands |
Total |
Common Stock [Member] |
Additional Paid-in Capital [Member] |
Accumulated Deficit [Member] |
---|---|---|---|---|
Beginning balance at Dec. 31, 2015 | $ 6,511 | $ 3 | $ 106,934 | $ (100,426) |
Beginning balance (in shares) at Dec. 31, 2015 | 31,861,357 | 31,861,357 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Stock based compensation | $ 273 | 273 | ||
Stock based compensation (in shares) | 254,641 | |||
Net loss | (6,648) | (6,648) | ||
Ending balance at Jun. 30, 2016 | $ 136 | $ 3 | $ 107,207 | $ (107,074) |
Ending balance (in shares) at Jun. 30, 2016 | 32,115,998 | 32,115,998 |
Organization and Nature of Business |
6 Months Ended |
---|---|
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of Business | ORGANIZATION AND NATURE OF BUSINESS Glori Energy Technology Inc., a Delaware corporation (formerly Glori Energy Inc.) ("GETI"), was incorporated in November 2005 (as successor in interest to Glori Oil LLC) to increase production and recovery from mature oil wells using state of the art biotechnology solutions. Glori Energy Inc., GETI, Glori Canada Ltd., Glori Holdings Inc., Glori California Inc., OOO Glori Energy and Glori Energy Production Inc. ("GEP") are collectively referred to as the “Company” in the condensed consolidated financial statements. |
Summary of Significant Accounting Policies |
6 Months Ended |
---|---|
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation We have prepared the condensed consolidated financial statements included herein pursuant to the rules and regulations of the U.S. Securities and Exchange Commission. Certain information and disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to these rules and regulations. In the opinion of management, these condensed consolidated financial statements contain all adjustments necessary to present fairly the Company’s condensed consolidated balance sheets as of December 31, 2015 and June 30, 2016 (unaudited), condensed consolidated statements of operations for the three and six months ending June 30, 2015 and June 30, 2016 (unaudited), condensed consolidated statement of stockholders’ equity for the six months ended June 30, 2016 (unaudited) and condensed consolidated statements of cash flows for the six months ended June 30, 2015 and June 30, 2016 (unaudited). All such adjustments represent normal recurring items. The financial information contained in this report for the three and six months ended June 30, 2015 and June 30, 2016, and as of June 30, 2016, is unaudited. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements as of and for the year ended December 31, 2015 and the notes thereto. Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of Glori Energy Inc. and its wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of the condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Recently Adopted Accounting Pronouncements In the first quarter of 2016, ASU No. 2015-03, "Interest--Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs" became effective for the Company. The standard moved the presentation of the Company's deferred loan costs from an asset to a contra-liability account thus reducing the liability balance of loans by the amount of the deferred loan costs. The deferred loan costs are amortized to interest expense over the life of the loan. The standard was applied retrospectively and accordingly the December 31, 2015 previously reported total current and non-current loan principal balance of $10,525,000 is now shown net of total deferred loan costs of $227,000 and the June 30, 2016 total current and non-current loan principal balance of $10,260,000 is now shown net of total deferred loan costs of $156,000. The change did not have an impact to net income. In August 2014, the FASB issued Accounting Standards Update No. 2014-15: Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (ASU 2014-15). ASU 2014-15 asserts that management should evaluate whether there are relevant conditions or events that are known and reasonably knowable that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date the financial statements are issued or are available to be issued when applicable. If conditions or events at the date the financial statements are issued raise substantial doubt about an entity’s ability to continue as a going concern, disclosures are required which will enable users of the financial statements to understand the conditions or events as well as management’s evaluation and plan. ASU 2014-15 is effective for the annual period ending after December 15, 2016, and for annual and interim periods thereafter; early application is permitted. Glori adopted this standard during the second quarter of 2016. Early adoption did not have an impact on the financial statements. See NOTE 3 of this report for a discussion about liquidity considerations and Glori's ability to continue as a going concern. |
Liquidity Considerations and Ability to Continue as a Going Concern |
6 Months Ended |
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Jun. 30, 2016 | |
Risks and Uncertainties [Abstract] | |
Liquidity Considerations and Ability to Continue as a Going Concern | LIQUIDITY CONSIDERATIONS AND ABILITY TO CONTINUE AS A GOING CONCERN As a small company with an emerging technology, the Company has generated negative cash flows from operations since inception. The downturn in the oil market has resulted in a decrease in oil revenues from Company-owned oil properties, and a decrease in AERO services revenues as the exploration & production ("E&P") industry significantly reduced its capital expenditures. As a result of these factors, the Company continues to generate negative cash flows from operations. The significant decrease in oil prices has also made it difficult for the Company to execute on its strategy of acquiring producing properties, which would contribute to its revenues and cash flows, due to potential sellers' reluctance to sell at distressed prices. Additionally, the current oil price environment has negatively affected the availability of capital to Glori and the E&P industry in general. These factors have also resulted in a dramatic decrease in the Company's share price, which also impacts the ability to raise new capital. Cash has decreased from $8.4 million at December 31, 2015 to $3.1 million at June 30, 2016 due to the net cash used in operating activities of $3.3 million, the repayment of debt of $316 thousand, capital expenditures of $1.4 million and other uses of $300 thousand. As of August 2016, the Company does not have lines of credit available to it. As a result of the negative operating cash flows, the Company will need to raise capital over the next six to nine months to fund its operations and to repay or refinance the term note of $10.2 million, owed by GEP, which matures March 2017. The Company may have difficulty obtaining such additional financing as a result of the decrease in oil prices, its negative cash flows from operations and the significant decrease in its share price. In order to address this challenging environment, the Company made significant cost reductions, both in its administrative and professional staff, and lease operating expenses. The Company has limited its capital spending primarily to the implementation of its AERO technology at the Coke field, most of which was completed in the first quarter of 2016. Additionally, the Company is actively pursuing alternatives to raise capital in order to funds its operations and position the Company to take advantage of identified opportunities to acquire abandoned fields which the Company believes have significant economic quantities of oil remaining and are compatible with its AERO technology. In August 2015, the Company implemented the first phase of AERO at the Coke field. In March 2016 it completed installation of phase II of AERO implementation. Phase II incorporates the addition of two AERO injection wells to increase the proportion of the field that is impacted by AERO technology. The Company now has three injection wells running in total. Additionally, the Company applied to the United States Department of Energy’s Loan Programs Office (“LPO”) for a $150 million loan guarantee in connection with a project applying AERO to previously abandoned reservoirs in the U. S. Based on LPO’s evaluation of Part I of the application, in March 2016, LPO invited the Company to submit Part II of its application. In May 2016, the Company submitted Part II of the application, however, the ultimate outcome of the application and whether a loan guarantee will be issued cannot be predicted. It is currently anticipated that the loan guarantee, if issued, will fund up to 75% of project costs. The balance would need to be raised and contributed by the Company. If the loan guarantee is ultimately not issued by the LPO, or if the final terms of the loan guarantee are not advantageous, the Company plans to seek alternative financing to enable it to acquire and redevelop certain identified abandoned fields which fit its criteria. On March 18, 2016, GEP entered into an amendment to the credit agreement on the senior secured term loan facility with its lender, Stellus Capital Investment Corporation, which had the effect of removing the financial ratio covenants and the semi-annual collateral value redeterminations until maturity in March 2017 (see NOTE 7). On October 23, 2015, the Company received a notice from the Listing Qualifications Department of the NASDAQ Stock Market LLC indicating that, for the previous 30 consecutive business days, the bid price for our common stock had closed below the minimum $1.00 per share required for continued inclusion on The NASDAQ Capital Market under NASDAQ Listing Rule 5550(a)(2). The Company was afforded 180 calendar days, or until April 20, 2016, to regain compliance with the minimum bid price requirement. In order to regain compliance, shares of the Company’s common stock must maintain a minimum bid closing price of at least $1.00 per share for a minimum of ten consecutive business days, subject to NASDAQ's discretion to increase such ten-day period. On April 25, 2016, the Company received a letter from NASDAQ granting the Company an additional 180 days to regain compliance with the minimum bid price requirement. The Company has until October 17, 2016 to regain compliance with the bid price requirement. In addition, the Company must continue to meet the continued listing criteria, including maintaining stockholders' equity of at least $2.5 million. As a result of its net losses, including the impairment of oil and gas properties incurred in 2014 and 2015 as a result of the decrease in oil prices, the Company's stockholders' equity was below the required $2.5 million as of June 30, 2016. In order to maintain its NASDAQ listing, the Company will need to raise equity in the near-term in amounts sufficient to satisfy the $2.5 million stockholders' equity requirement. Additionally, based on the Company's recent share price, in order to meet the minimum $1.00 bid price per share requirement, the Company would most likely have to implement a reverse stock split which requires the approval of shareholders at a shareholder meeting. In light of the Company's non-compliance with these continuing listing requirements, the Company may elect to voluntarily delist from the NASDAQ. The Company is currently evaluating its alternatives. If the Company's common stock is delisted, it would likely trade in the over-the-counter market. In the event of termination of the Company's NASDAQ listing, the Company may determine to re-apply to re-establish its NASDAQ listing at such later date as the Company is able to meet the initial listing requirements. Such NASDAQ delisting or further declines in our stock price could impair our ability to raise additional capital to finance our operations and additional capital expenditures and could significantly increase the ownership dilution to shareholders caused by our issuing equity or other transactions. Glori's listing does not affect the Company’s business operations or its SEC reporting requirements and does not cause a default under any material agreement. The significant risks, uncertainties, significant working capital deficit, historical operating losses and resulting cash used in operations described above raise substantial doubt about the Company's ability to continue as a going concern. The consolidated financial statements have been prepared on the going concern basis of accounting, which contemplates continuity of operations, realization of assets, and satisfaction of liabilities and commitments, in the normal course of business. The consolidated financial statements do not include any adjustments that might result from the outcome of the going concern uncertainty. |
Property and Equipment |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment | PROPERTY AND EQUIPMENT Property and equipment consists of the following (in thousands):
(1) Excludes accretion of asset retirement obligation. Depreciation, depletion, amortization and impairment consists of the following (in thousands):
On July 1, 2015 the Company sold its mineral interests in the "Etzold Field" located in Seward County, Kansas. The Etzold Field was originally purchased in 2010 as a greenfield lab to advance the development of the Company's AERO technology, and the operations have historically been included in the Company's Oil and Gas Segment (see NOTE 12). With the purchase of the larger Coke Field and with the Company's future acquisition plans, the Company made the strategic decision to divest the Etzold Field. Prior to the sale the Company had associated net assets of $89,000, which were composed primarily of the purchase and development charges less accumulated depreciation and depletion and associated liabilities of $435,000 related to the plugging and abandonment obligation associated with the Etzold Field. In exchange for the leasehold interest in the field, the Company received $75,000 and the purchaser's assumption of the related asset retirement obligation. The Company recognized a gain on the sale of $422,000. For the three months and six months ended June 30, 2015, the Company had revenues of $41 thousand and $57 thousand, respectively, and a net loss of $20 thousand and $104 thousand, respectively, associated with the Etzold Field. On June 1, 2015, GEP executed a purchase and sale agreement to acquire certain proved oil and gas mineral leases in Refugio County, Texas (the “Bonnie View Field”) from a third party seller for $2,644,000. The carrying value of the Bonnie View Field assets is also increased by an asset retirement obligation associated with plugging and abandoning the Bonnie View Field assets of $432,000. The effective date of the purchase was May 1, 2015. The Bonnie View Field does not meet the definition of a significant acquisition which would require pro forma financial information. |
Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | FAIR VALUE MEASUREMENTS FASB standards define fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The standard also establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 2 – Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; or other inputs that are observable or can be corroborated by observable market data. Level 3 – Unobservable inputs that are supported by little or no market activity and that are financial instruments whose values are determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant judgment or estimation. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. The following table summarizes the financial assets measured at fair value, on a recurring basis as of December 31, 2015 and June 30, 2016 (in thousands):
The Level 2 instruments presented in the table above consists of derivative instruments made up of commodity price swaps at December 31, 2015 and commodity swaps and put and call options at June 30, 2016. The fair values of the Company's commodity derivative instruments are based upon the NYMEX futures prices of oil compared to the contracted per barrel rate to be received or paid. For the swaps, the Company records a liability associated with the futures contracts when the futures price of oil is greater than the contracted per barrel rate to be received and an asset when the futures price of oil is less than the contracted per barrel rate to be received. For the oil put and call options (collars), the Company records a liability when the futures price of oil is greater than the contracted ceiling price to be received and an asset when the futures prices of oil is lower than the contracted floor to be received. |
Derivative Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments | DERIVATIVE INSTRUMENTS The Company utilizes derivative financial instruments to manage risks related to changes in oil prices. The Company is currently engaged in oil commodity price swaps where a fixed price is received from the counterparty for a portion of the Company's oil production. In return the Company pays a floating price based upon NYMEX oil prices. In June 2016, Glori executed option contracts including oil call agreements as well as oil put agreements covering certain portions of our anticipated 2017 oil production. No net premiums were paid as a result of these option agreements. Although these arrangements are designed to reduce the downside risk of a decline in oil prices on the covered production, they conversely limit potential income from increases in oil prices and expose the Company to the credit risk of counterparties. The Company endeavors to manage the default risk of counterparties by engaging in these agreements with only high credit quality companies and through the continuous monitoring of their performance. As of June 30, 2016, the Company had the following open positions on outstanding commodity derivative contracts:
The derivative contracts are carried at fair value on the condensed consolidated balance sheet as assets or liabilities. Derivatives for oil are netted on the Consolidated Balance Sheets as they are all contracts with the same counterparty. The following table presents the fair value and balance sheet location of each classification of commodity derivative contracts on a gross basis without regard to same-counterparty netting:
The Company has not elected to designate any of these as derivative contracts for hedge accounting. Accordingly, for each reporting period the contracts are marked-to-market and the resulting unrealized changes in the fair value of the assets and liabilities are recognized on the condensed consolidated statements of operations. The settlements of the closed derivative contracts result in realized gains and losses recorded on the Company's condensed consolidated statements of operations. The unrealized and realized gains and losses on derivative instruments are recognized in the (loss) gain on commodity derivatives line item located in other income (expense). The following tables summarize the unrealized and realized gain (loss) on commodity derivatives (in thousands):
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Long-Term Debt |
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt | LONG-TERM DEBT On June 11, 2012, the Company entered into a secured term promissory note in the amount of $8.0 million. The note contained a 10.0% annual interest rate subject to increase based upon an increase in the prime rate. The loan was secured by substantially all assets of the Company with the exception of the Coke Field Assets. The lender also received a warrant to purchase shares of the Company’s stock which was exchanged for 18,208 common shares upon consummation of the Merger. Equal monthly principal payments were due over 27 months beginning in April 2013 through June 2015 plus an end of term charge of $280,000. The loan agreement contained covenants which place restrictions on the incurrence of debt, liens and capital expenditures. On March 2, 2015 the Company elected to prepay the entire remaining indebtedness. The payment included remaining principal of $888,000 and the end of term charge of $280,000. On March 14, 2014 in connection with the closing of the acquisition of the Coke Field, the Company entered into a financing agreement of $18.0 million in order to fund a portion of the $38.0 million in cash required for the acquisition. The $18.0 million note is a senior secured term loan of GEP and is secured by the Coke Field and shares of common stock of GEP. The loan has a three year term bearing interest at 11.0% per annum, subject to increase upon a LIBOR rate increase above 1%. The credit agreement required quarterly principal payments equal to 50% of the excess cash flows, as defined, from GEP's oil properties during the first year and 75% thereafter subject to a minimum quarterly principal payment of $112,500 plus interest. The loan was funded net of closing costs of 2%, or $360,000, which is shown on the condensed consolidated balance sheets as a reduction of proceeds and amortized over the loan term. The loan agreement contains covenants which place restrictions on GEP’s ability to incur additional debt, incur other liens, make other investments, capital expenditures and the sale of assets. On March 18, 2016, GEP entered into an amendment to the credit agreement on the senior secured term loan facility with its lender, Stellus Capital Investment Corporation, which had the effect of removing the previously required financial ratio covenants and semi-annual collateral value redetermination until maturity in March 2017. In connection with the amendment, the interest rate on the loan increased to 13.0% per annum from 11.0%. The additional 2.0% may be “paid in kind”, and added to the principal amount, or paid in cash at the election of the Company. In addition, principal of $37,500 plus interest is payable monthly compared to the minimum principal payments of $112,500 plus interest which was previously payable quarterly. Without this amendment we likely would not have been able to meet all of our financial covenants in the future. For the three months ending June 30, 2016, the Company elected the additional 2.0% interest to be paid in kind and debt increased by $52,000. As of December 31, 2015 and June 30, 2016 the outstanding loan balance was $10.5 million and $10.2 million, respectively. Maturities on long-term debt during the next five years are as follows (in thousands).
The maturities above are presented on the June 30, 2016 condensed consolidated balance sheet net of debt issuance costs of $156 thousand. |
Loss Per Share |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Per Share | LOSS PER SHARE The Company follows current guidance for share-based payments which are considered as participating securities. Share-based payment awards that contain non-forfeitable rights to dividends, whether paid or unpaid, are designated as participating securities and are included in the computation of basic earnings per share. However, in periods of net loss, participating securities other than common stock are not included in the calculation of basic loss per share because there is not a contractual obligation for owners of these securities to share in the Company’s losses, and the effect of their inclusion would be anti-dilutive. The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data):
The following weighted average securities outstanding during the three and six months ended June 30, 2015 and June 30, 2016 were not included in the calculation of diluted shares outstanding as they would have been anti-dilutive (in thousands):
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Income Taxes |
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Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES At December 31, 2015 and June 30, 2016, the Company has net operating loss carryforwards for federal income tax reporting purposes of approximately $64.3 million and $71.3 million, respectively, which will begin to expire in the year 2025, and tax credits of approximately $504,000, which will begin to expire in 2027. The NOL carry forward has been reduced by approximately $5.4 million of loss carryforwards that management estimates will expire due to limitations from changes in control. The Company has recorded a valuation allowance against the Company's deferred tax assets. The effective tax rate for the three and six months ended June 30, 2015 and 2016 varies from the statutory rate primarily due to the effect of the valuation allowance. For the three and six months ended June 30, 2015 the Company had an income tax benefit of $188,000 and $171,000, respectively, due to a reduction in taxes payable on foreign income as the Company revised its methodology for service fee applications charged to foreign subsidiaries. For the three and six months ended June 30, 2016 the Company had an income tax benefit of $6,000 due to the utilization of net operating losses to recover previously paid foreign income taxes. |
Commitments and Contingencies |
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Jun. 30, 2016 | ||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Litigation From time to time, the Company may be subject to legal proceedings and claims that arise in the ordinary course of business. The Company is not currently a party to any material litigation or proceedings and is not aware of any material litigation or proceedings, pending or threatened against it. Commitments The Company leases two buildings in Houston, Texas and a warehouse facility in Gull Lake, Saskatchewan under operating leases. The Company entered into a two-year lease agreement in October 2014, for 7,805 square feet of office space in Houston's Westchase District for approximately $18,000 per month. The Company does not intend to renew this lease upon expiration in October 2016. The Company's original Houston building lease, which contains office space, warehouse space and a laboratory, expires in May 2017 and is leased for $11,000 per month. The Saskatchewan warehouse is a month-to-month lease which rents for C$1,000 per month and is cancelable with 30 days' notice. Approximate minimum future rental payments under these noncancelable operating leases as of June 30, 2016 are as follows (in thousands):
Total rent expense was approximately $120,000 and $180,000 for the three and six months ended June 30, 2015 and $90,000 and $180,000 for the three and six months ended and June 30, 2016, respectively. |
Stock-Based Compensation |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | STOCK-BASED COMPENSATION Stock Incentive Plan In December 2014, the Company shareholders approved the adoption of the 2014 Long Term Incentive Plan ("the 2014 Plan") which authorized 2,000,000 shares to be available for issuance to officers, directors, employees, and consultants of the Company. Options are issued at an exercise price equal to the fair market value of the Company’s common stock at the grant date. Generally, the options vest 25 percent after 1 year, and thereafter ratably each month over the following 36 months, and may be exercised for a period of 10 years subject to vesting. Stock-based compensation expense, included primarily in selling, general and administrative expense, was $417,000 and $40,000 for the three months ended June 30, 2015 and June 30, 2016 and $838,000 and $273,000 for the six months ended June 30, 2015 and June 30, 2016, respectively. The Company has future unrecognized compensation expense for nonvested shares at June 30, 2016 of $1.1 million with a weighted average vesting period of 2.5 years. Stock Option Awards: The Company has computed the fair value of all options granted during the year ended December 31, 2015, using the Black-Scholes option pricing model using the following assumptions:
The following table summarizes the activity of the Company’s plan related to stock options:
The weighted-average grant date fair value for equity options granted during the six months ended June 30, 2015 and June 30, 2016 was $2.40 and $2.40, respectively. There were no option awards issued in the three months ended June 30, 2015 and June 30, 2016. The total fair value of options vested during the three months ended June 30, 2015 and June 30, 2016 was $95,000 and $33,000, respectively. The total fair value of options vested during both the six months ended June 30, 2015 and June 30, 2016 was $160,000. Restricted Share Awards: In addition to options the Company has granted restricted share awards to certain executives and members of the board of directors. The following table shows a summary of restricted stock activity for the six months ended June 30, 2016:
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Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | SEGMENT INFORMATION The Company generates revenues through the production and sale of oil and natural gas (the “Oil and Gas Segment”) and through the Company’s AERO services provided to third party oil companies (the “AERO Services Segment”). The Oil and Gas Segment produces and develops the Company’s acquired oil and natural gas interests. The revenues derived from the segment are from sales to the first purchaser. The Company uses two such arrangements for oil sales, one for the Coke and Quitman fields located in Wood County, Texas and one for the Bonnie View Field in Refugio County, Texas. The AERO Services Segment derives revenues from external customers by providing the Company’s biotechnology solution of enhanced oil recovery through a two-step process consisting of (1) the Analysis Phase and (2) the Field Deployment Phase. The Analysis Phase work is a reservoir screening process whereby the Company obtains field samples and evaluates the Company’s potential for AERO Services Segment success. This process is performed at the Company’s Houston laboratory facility. The science and technology expenses shown on the Company’s condensed consolidated statements of operations are the expenses that are directly attributable to the Analysis Phase and expenses associated with the Company’s on-going research and development of its technology and are included in the "Corporate Segment". In the Field Deployment Phase, the Company deploys skid mounted injection equipment used to inject nutrient solution in the oil reservoir. The work in this phase is performed in oil fields of customers located in the United States and internationally and in the Company’s own oil fields. The service operations expense shown on the Company’s condensed consolidated statements of operations are the expenses that are directly attributable to the Field Deployment Phase and included in the AERO Services Segment. Earnings of industry segments exclude income taxes, interest income, interest expense and unallocated corporate expenses. Although the AERO Services Segment provides enhanced oil recovery services to the Oil and Gas Segment, the Company does not utilize intercompany charges. The direct costs of the services such as the injection solution, transportation of the solution and expenses associated with the injection are charged directly to the Oil and Gas Segment. All of the AERO Services Segment capital expenditures and depreciation expenses associated with injection equipment are viewed as part of the AERO Services Segment. The following table sets forth the operating segments of the Company and the associated revenues and expenses (in thousands):
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Summary of Significant Accounting Policies (Policies) |
6 Months Ended |
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Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | We have prepared the condensed consolidated financial statements included herein pursuant to the rules and regulations of the U.S. Securities and Exchange Commission. Certain information and disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to these rules and regulations. In the opinion of management, these condensed consolidated financial statements contain all adjustments necessary to present fairly the Company’s condensed consolidated balance sheets as of December 31, 2015 and June 30, 2016 (unaudited), condensed consolidated statements of operations for the three and six months ending June 30, 2015 and June 30, 2016 (unaudited), condensed consolidated statement of stockholders’ equity for the six months ended June 30, 2016 (unaudited) and condensed consolidated statements of cash flows for the six months ended June 30, 2015 and June 30, 2016 (unaudited). All such adjustments represent normal recurring items. The financial information contained in this report for the three and six months ended June 30, 2015 and June 30, 2016, and as of June 30, 2016, is unaudited. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements as of and for the year ended December 31, 2015 and the notes thereto. |
Principles of Consolidation | The accompanying condensed consolidated financial statements include the accounts of Glori Energy Inc. and its wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | The preparation of the condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. |
Recently Adopted Accounting Pronouncements | In the first quarter of 2016, ASU No. 2015-03, "Interest--Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs" became effective for the Company. The standard moved the presentation of the Company's deferred loan costs from an asset to a contra-liability account thus reducing the liability balance of loans by the amount of the deferred loan costs. The deferred loan costs are amortized to interest expense over the life of the loan. The standard was applied retrospectively and accordingly the December 31, 2015 previously reported total current and non-current loan principal balance of $10,525,000 is now shown net of total deferred loan costs of $227,000 and the June 30, 2016 total current and non-current loan principal balance of $10,260,000 is now shown net of total deferred loan costs of $156,000. The change did not have an impact to net income. In August 2014, the FASB issued Accounting Standards Update No. 2014-15: Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (ASU 2014-15). ASU 2014-15 asserts that management should evaluate whether there are relevant conditions or events that are known and reasonably knowable that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date the financial statements are issued or are available to be issued when applicable. If conditions or events at the date the financial statements are issued raise substantial doubt about an entity’s ability to continue as a going concern, disclosures are required which will enable users of the financial statements to understand the conditions or events as well as management’s evaluation and plan. ASU 2014-15 is effective for the annual period ending after December 15, 2016, and for annual and interim periods thereafter; early application is permitted. Glori adopted this standard during the second quarter of 2016. Early adoption did not have an impact on the financial statements. See NOTE 3 of this report for a discussion about liquidity considerations and Glori's ability to continue as a going concern. |
Property and Equipment (Tables) |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment | Property and equipment consists of the following (in thousands):
(1) Excludes accretion of asset retirement obligation. Depreciation, depletion, amortization and impairment consists of the following (in thousands):
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Fair Value Measurements (Tables) |
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of financial assets measured at fair value | The following table summarizes the financial assets measured at fair value, on a recurring basis as of December 31, 2015 and June 30, 2016 (in thousands):
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Derivative Instruments (Tables) |
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments | As of June 30, 2016, the Company had the following open positions on outstanding commodity derivative contracts:
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Schedule of Derivative Assets and Liabilities at Fair Value | The following table presents the fair value and balance sheet location of each classification of commodity derivative contracts on a gross basis without regard to same-counterparty netting:
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Gain (Loss) on Derivatives | The following tables summarize the unrealized and realized gain (loss) on commodity derivatives (in thousands):
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Long-Term Debt (Tables) |
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Maturities of Long-term Debt | Maturities on long-term debt during the next five years are as follows (in thousands).
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Loss Per Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data):
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Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following weighted average securities outstanding during the three and six months ended June 30, 2015 and June 30, 2016 were not included in the calculation of diluted shares outstanding as they would have been anti-dilutive (in thousands):
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Commitments and Contingencies (Tables) |
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Jun. 30, 2016 | ||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||
Schedule of Minimum Future Capital Lease Payments | Approximate minimum future rental payments under these noncancelable operating leases as of June 30, 2016 are as follows (in thousands):
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Stock-Based Compensation (Tables) |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value Assumptions | The Company has computed the fair value of all options granted during the year ended December 31, 2015, using the Black-Scholes option pricing model using the following assumptions:
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Schedule of Stock Option Activity | The following table summarizes the activity of the Company’s plan related to stock options:
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Schedule of Restricted Stock Activity | The following table shows a summary of restricted stock activity for the six months ended June 30, 2016:
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Segment Information (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | The following table sets forth the operating segments of the Company and the associated revenues and expenses (in thousands):
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Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
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Accounting Policies [Abstract] | ||
Long-term debt | $ 10,260 | $ 10,525 |
Deferred loan costs | 156 | $ 227 |
Long-term debt | $ 10,260 |
Liquidity Considerations and Ability to Continue as a Going Concern (Details) $ in Thousands |
1 Months Ended | 6 Months Ended | |||
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Mar. 31, 2016
USD ($)
injection_well
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Jun. 30, 2016
USD ($)
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Jun. 30, 2015
USD ($)
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Dec. 31, 2015
USD ($)
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Dec. 31, 2014
USD ($)
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Risks and Uncertainties [Abstract] | |||||
Cash and cash equivalents | $ 3,144 | $ 17,076 | $ 8,380 | $ 29,751 | |
Net cash used in operating activities | (3,264) | (5,834) | |||
Repayments of long-term debt | 316 | $ 2,216 | |||
Capital expenditures | 1,400 | ||||
Other uses | 300 | ||||
Debt Instrument [Line Items] | |||||
Long-term debt | 10,260 | ||||
Number of additions to productive oil wells | injection_well | 2 | ||||
Total productive oil wells | injection_well | 3 | ||||
11% Senior Secured Term Loan [Member] | Glori Energy Production, Inc. [Member] | Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 10,200 | $ 10,500 | |||
United States Department of Energy Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 150,000 | ||||
Percentage of project costs funded by loan guarantee (up to) | 75.00% |
Property and Equipment - Depreciation, Depletion, and Amortization (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
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Property, Plant and Equipment [Abstract] | ||||
Depreciation and amortization expense | $ 144 | $ 159 | $ 295 | $ 314 |
Depletion expense | 312 | 840 | 624 | 1,717 |
Accretion of asset retirement obligation | 40 | 40 | 83 | 76 |
Total depreciation, depletion and amortization of property and equipment | $ 496 | $ 1,039 | $ 1,002 | $ 2,107 |
Property and Equipment - Etzold Field (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jul. 01, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Long Lived Assets Held-for-sale [Line Items] | |||||
Revenues | $ 1,163 | $ 2,136 | $ 2,187 | $ 4,136 | |
Net loss | $ 2,426 | 3,604 | $ 5,650 | 7,210 | |
Etzold Field [Member] | |||||
Long Lived Assets Held-for-sale [Line Items] | |||||
Net assets | 89 | 89 | |||
Revenues | 41 | 57 | |||
Net loss | 20 | 104 | |||
Etzold Field [Member] | Mining Properties and Mineral Rights [Member] | |||||
Long Lived Assets Held-for-sale [Line Items] | |||||
Asset retirement obligation | $ 435 | $ 435 | |||
Purchase consideration for mineral interests | $ 75 | ||||
Gain on sale of mineral interests | $ 422 |
Property and Equipment - Bonnie View Assets (Details) - Glori Energy Production, Inc. [Member] - Bonnie View Assets [Member] - USD ($) $ in Thousands |
Jun. 01, 2015 |
Jun. 30, 2015 |
---|---|---|
Business Acquisition [Line Items] | ||
Purchase price | $ 2,644 | |
Asset retirement obligation | $ 432 |
Derivative Instruments - Outstanding Commodity Derivative Contracts (Details) - Not Designated as Hedging Instrument [Member] - Commodity Contract [Member] |
6 Months Ended |
---|---|
Jun. 30, 2016
$ / bbl
bbl
| |
July 2016 - December 2016 [Member] | |
Derivative [Line Items] | |
Notional amount (Bbls) | bbl | 39,300 |
Swap (usd per barrel) | 82.46 |
January 2017 - June 2017 [Member] | |
Derivative [Line Items] | |
Notional amount (Bbls) | bbl | 18,100 |
Floor (usd per barrel) | 42.50 |
Ceiling (usd per barrel) | 55.60 |
Derivative Instruments - Asset Commodity Derivatives (Details) - Commodity Contract [Member] - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Asset commodity derivatives: | ||
Current assets | $ 1,278 | $ 3,411 |
Current liabilities | (35) | 0 |
Total commodity derivatives | $ 1,243 | $ 3,411 |
Derivative Instruments - Realized and Unrealized Gain (Loss) on Derivatives (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized loss on commodity derivatives | $ (2,168) | $ (1,382) | ||
Not Designated as Hedging Instrument [Member] | Commodity Contract [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized loss on commodity derivatives | $ (1,161) | $ (1,605) | (2,168) | (1,382) |
Realized gain on commodity derivatives | 724 | 625 | 1,886 | 1,771 |
Gain (loss) on oil and natural gas derivatives | $ (437) | $ (980) | $ (282) | $ 389 |
Long-Term Debt - Maturities on Long-Term Debt (Details) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Debt Disclosure [Abstract] | ||
2017 | $ 10,223 | |
2018 | 8 | |
2019 | 9 | |
2020 | 9 | |
2021 | 10 | |
Thereafter | 1 | |
Total | 10,260 | $ 10,525 |
Deferred loan costs | $ 156 | $ 227 |
Loss Per Share - Summary of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Numerator: | ||||
Net loss | $ (3,247) | $ (4,916) | $ (6,648) | $ (7,900) |
Denominator: | ||||
Weighted-average common shares outstanding - basic (in shares) | 32,050 | 31,803 | 32,026 | 31,684 |
Effect of dilutive securities (in shares) | 0 | 0 | 0 | 0 |
Weighted-average common shares - diluted (in shares) | 32,050 | 31,803 | 32,026 | 31,684 |
Net loss per common share - basic and diluted (in dollars per share) | $ (0.10) | $ (0.15) | $ (0.21) | $ (0.25) |
Loss Per Share - Summary of Antidilutive Securities (Details) - $ / shares shares in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Common stock warrant strike price (in dollars per share) | $ 10 | $ 10 | $ 10 | $ 10 |
Common Stock Warrants [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Securities excluded in the calculation of diluted shares outstanding (in shares) | 5,321 | 5,321 | 5,321 | 5,321 |
Common Stock Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Securities excluded in the calculation of diluted shares outstanding (in shares) | 2,714 | 2,048 | 2,754 | 2,154 |
Restricted Shares [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Securities excluded in the calculation of diluted shares outstanding (in shares) | 427 | 132 | 565 | 102 |
Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Dec. 31, 2015 |
|
Income Tax Disclosure [Abstract] | |||||
NOL carryforward | $ 71,300 | $ 71,300 | $ 64,300 | ||
Tax credit carryforward | 504 | 504 | $ 504 | ||
Reduction to NOL carryforward not applied and likely to expire | 5,400 | ||||
Income tax benefit | $ 6 | $ 188 | $ 6 | $ 171 |
Commitments and Contingencies - Narrative (Details) |
1 Months Ended | 3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|---|
Oct. 31, 2014
USD ($)
ft²
|
Jun. 30, 2016
USD ($)
|
Jun. 30, 2015
USD ($)
|
Jun. 30, 2016
CAD
building
|
Jun. 30, 2016
USD ($)
building
|
Jun. 30, 2015
USD ($)
|
|
Operating Leased Assets [Line Items] | ||||||
Number of buildings | building | 2 | 2 | ||||
Rent expense | $ 90,000 | $ 120,000 | $ 180,000 | $ 180,000 | ||
Office Building [Member] | ||||||
Operating Leased Assets [Line Items] | ||||||
Lease term | 2 years | |||||
Square footage | ft² | 7,805 | |||||
Monthly rental amount | $ 18,000 | |||||
Office, Warehouse, and Laboratory [Member] | ||||||
Operating Leased Assets [Line Items] | ||||||
Monthly rental amount | $ 11,000 | |||||
Warehouse [Member] | ||||||
Operating Leased Assets [Line Items] | ||||||
Monthly rental amount | CAD | CAD 1,000 | |||||
Notice required for lease termination | 30 days | 30 days |
Commitments and Contingencies - Summary of Minimum Future Capital Lease Payments (Details) $ in Thousands |
Jun. 30, 2016
USD ($)
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
2017 | $ 165 |
Total | $ 165 |
Stock-Based Compensation - Fair Value Assumptions (Details) - Stock Option [Member] |
12 Months Ended |
---|---|
Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate | 1.55% |
Expected volatility | 66.00% |
Expected dividend yield | 0.00% |
Expected life (in years) | 6 years |
Expected forfeiture rate | 0.00% |
Stock-Based Compensation - Restricted Stock Activity (Details) - Restricted Shares [Member] |
6 Months Ended |
---|---|
Jun. 30, 2016
$ / shares
shares
| |
Shares | |
Non-vested awards outstanding, beginning balance (in shares) | shares | 844,592 |
Vested (in shares) | shares | (284,682) |
Forfeited (in shares) | shares | (293,797) |
Non-vested awards outstanding, ending balance (in shares) | shares | 266,113 |
Weighted-average grant date fair value | |
Non-vested awards outstanding, beginning balance (in dollars per share) | $ / shares | $ 2.67 |
Vested (in dollars per share) | $ / shares | 2.52 |
Forfeited (in dollars per share) | $ / shares | 2.55 |
Non-vested awards outstanding, ending balance (in dollars per share) | $ / shares | $ 2.97 |
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