Quarterly report pursuant to Section 13 or 15(d)

ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables)

v3.21.2
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables)
 6 Months Ended
Jun. 30, 2021
Accounting Policies [Abstract]  
Schedule of Accounts Payable and Accrued Liabilities
For presentation purposes, accounts payable and accrued liabilities have been combined. As of June 30, 2021 and December 31, 2020, accounts payable and accrued liabilities consists of:
 
 
 
As of
 
June 30,
2021
 
 
As of
 
December
31, 2020
 
Accounts payable
 
$
3,913,431
 
 
$
9,724,136
 
Accrued compensation and related liabilities
 
 
3,860,015
 
 
 
3,034,688
 
Accrued interest payable
 
 
1,707,373
 
 
 
2,093,649
 
Accr
u
ed construction costs
 
 
17,699,190
 
 
 
-
 
Other accrued expenses
 
 
5,906,756
 
 
 
3,146,478
 
Current portion of asset retirement obligations
 
 
4,263,113
 
 
 
3,716,000
 
Current portion of environmental liabilities
 
 
1,311,213
 
 
 
883,000
 
 
 
$
38,661,091
 
 
$
22,597,951
 
Schedule of Asset Retirement Obligations
The following table provides a reconciliation of the changes in asset retirement obligations for the six months ended June 30, 2021 and the year ended December 31, 2020.
 
 
Six months ended

June 30, 2021
 
 
Year ended

December 31, 2020
 
Asset retirement obligations - beginning of period
 
$
21,478,977
 
 
$
-
 
Additions related to acquisition of refinery
 
 
-
 
 
 
21,901,977
 
Disbursements
 
 
(1,545,046
)
 
 
(135,000
)
Accretion
 
 
490,000
 
 
 
652,000
 
Revised obligation estimates
 
 
-
 
 
 
(940,000
)
Asset retirement obligations - end of period
 
$
20,423,931
 
 
$
21,478,977
 
Schedule of changes in derivative liability
The following is the recorded fair value of the mandatorily redeemable equity instruments of subsidiary as of June 30, 2021:
 
 
 
Carrying

Value
 
 
Total Fair

Value
 
 
Quoted prices

in active

markets for

identical

assets - Level

1
 




 
 




 
Significant

other

observable

inputs - Level

2
 



 
 



 
Significant

unobservable

inputs - Level

3
 


 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mandatorily redeemable equity instruments of subsidiary
 
$
12,623,420
 
 
$
12,623,420
 
 
$
-
 
 
$
-
 
 
$
12,623,420
 
The following presents changes in the mandatorily redeemable equity instruments of subsidiary (Class B Units) through the six months ended June 30, 2021 and the year ended December 31, 2020:
 
 
 
Six months ended

June 30, 2021
 
 
Year ended

December 31,
2020
 
Beginning Balance
 
$
5,123,000
 
 
$
-
 
New unit issuances
 
 
4,406,508
 
 
 
3,101,344
 
Change in fair value recognized in earnings
 
 
3,093,912
 
 
 
2,021,656
 
Ending Balance
 
$
12,623,420
 
 
$
5,123,000
 
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share
The following table presents: 1) instruments that were dilutive for the six months ended June 30, 2020 that were included in the diluted earnings per share, and 2) instruments that were anti-dilutive for the six months ended June 30, 2021 that were excluded from diluted earnings per share as they would have been antidilutive:
 
 
 
Six months ended

June 30, 2021
 
 
Six months ended

June 30, 2020
 
Convertible notes and accrued interest
 
 
7,372,205
 
 
 
10,007,550
 
Convertible preferred stock - Series B
 
 
-
 
 
 
1,181,818
 
Stock options and warrants
 
 
19,437,735
 
 
 
17,705,000
 
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed
Below is a table that shows the major classes of assets acquired and liabilities assumed by GCEH as a result of the transaction:
 
 
As of April 15, 2021
 
Assets
 
 
 
 
Cash
 
$
263,755
 
Furniture and equipment
 
 
1,428
 
Other long-term assets
 
 
184,017
 
Patents
 
 
3,450,000
 
Trade Name
 
 
90,000
 
Goodwill
 
 
1,355,077
 
Liabilities
 
 
 
 
Accrued Expenses
 
 
(344,277
)
Total
 
$
5,000,000