Quarterly report pursuant to Section 13 or 15(d)

Business Acquisition

Business Acquisition
6 Months Ended
Jun. 30, 2020
Business Acquisition  
Note 3. Business Acquisition

As discussed in Note 1, on February 3, 2020, the Company, through its subsidiary Elysium Energy, LLC (“Elysium Energy”) completed an acquisition of working interests in certain oil and gas leases in Texas and Louisiana.The aggregate consideration transferred for the working interests of $29,496,356 substantially consisted of (i) the net proceeds from the Company’s borrowings on February 3, 2020 with various lenders represented by 405 Woodbine, LLC and Camber Energy, Inc, less (ii) the net effect of the resolution of February 3, 2020 on all amounts outstanding under the Company’s December 2018 promissory note with RPM Investments in exchange for a new note with EMC Capital Partners, LLC (including the pay-down of such new note as a result of the post-closing adjustments). See Note 7 to the consolidated financial statements for further information on all of these borrowings. The aggregate consideration has been provisionally allocated to the fair value of assets and liabilities as follows:


Provisional Fair Value of Assets and Liabilities








Oil and Gas Properties


$ 31,010,684


Asset retirement obligations assumed



(1,514,328 )








$ 29,496,356



Proforma unaudited condensed selected financial data for the three and six months ended June 30, 2019 as though the Elysium Energy Acquisition had taken place at January 1, 2019 are as follows:




Three Months


June 30,




Six Months


June 30,










$ 15,613,974



$ 28,200,088











Net loss


$ 3,742,608



$ (8,865,491 )










Net loss per share


$ 0.04



$ (0.10 )