PART I [Item 1. Business](index=5&type=section&id=Item%201.%20Business) The company transitioned to cryptocurrency mining in 2021 and faces going concern risks pending a merger Company Overview & History - Company incorporated May 2, 2001, in Delaware[17](index=17&type=chunk)[35](index=35&type=chunk) - Transitioned from pop culture events and gelatin machine sales to cryptocurrency mining in October 2021[17](index=17&type=chunk)[35](index=35&type=chunk) - Legacy eCommerce site discontinued June 30, 2022[17](index=17&type=chunk)[35](index=35&type=chunk) - Sold assets related to live pop culture events to Informa for **$722,429 in other income** on August 6, 2021[36](index=36&type=chunk) - Sold Jevo assets and operations for **$1,500,000**, recognizing a gain of approximately **$1,130,740** on September 15, 2021[37](index=37&type=chunk) Merger Agreement - Merger Agreement with Prairie Operating Co, LLC entered on October 24, 2022[18](index=18&type=chunk)[39](index=39&type=chunk) - Company to deliver **2,000,000 shares** of common stock or **33.33% of outstanding common stock** post-restructuring to Prairie members[19](index=19&type=chunk)[40](index=40&type=chunk) - Convert Prairie options into **8,000,000 restricted performance-based common stock options** at $0.25 per share, exercisable upon specific production hurdles[19](index=19&type=chunk)[40](index=40&type=chunk) - Restructuring includes converting all outstanding preferred stock, convertible debentures, warrants, and notes into common stock, followed by a **1-23 to 1-30 reverse stock split**[20](index=20&type=chunk)[41](index=41&type=chunk) Nature of Business - Cryptocurrency Mining - Substantially all revenue generated from Bitcoin mining, commenced October 24, 2021[21](index=21&type=chunk)[252](index=252&type=chunk) - Since June 30, 2022, **no meaningful cryptocurrency awards or revenue** from mining[21](index=21&type=chunk)[26](index=26&type=chunk)[163](index=163&type=chunk) - Bitcoin price volatility is a major factor affecting profitability[25](index=25&type=chunk)[27](index=27&type=chunk)[167](index=167&type=chunk) - Bitcoin market price as of December 31, 2022, was **$16,547**, a **60% decrease** since early 2022 and **75% from its all-time high**[27](index=27&type=chunk)[259](index=259&type=chunk) - Natural gas costs (for electricity) increased by approximately **260% in 2022**[27](index=27&type=chunk)[259](index=259&type=chunk) - Bitcoin halving events (next anticipated March 2024, reducing reward to 3.125 BTC/block) impact mining rewards[25](index=25&type=chunk)[167](index=167&type=chunk)[257](index=257&type=chunk) Mining Equipment - As of December 31, 2022, owned **510 Bitmain S19J Pro (51.0 Ph/s)** and **270 Bitmain S19 (24.3 Ph/s)** miners, none in service[22](index=22&type=chunk)[164](index=164&type=chunk)[253](index=253&type=chunk) - Agreement with Bitmain for **600 S19XP miners (84 Ph/s)** with an estimated purchase commitment of **$6,762,000**[23](index=23&type=chunk)[165](index=165&type=chunk)[254](index=254&type=chunk) - All 600 Bitmain miners undelivered until shipping fees are paid[23](index=23&type=chunk)[165](index=165&type=chunk)[254](index=254&type=chunk) Bitmain S19XP Miner Commitment | Item | Amount | | :---------------------- | :----------- | | Estimated total amount due | $4,016,600 | | Less: Payments made | $3,969,000 | | Remaining amount due | $47,600 | Mining Results - No meaningful cryptocurrency awards or revenue from mining since June 30, 2022[24](index=24&type=chunk)[166](index=166&type=chunk)[255](index=255&type=chunk)[301](index=301&type=chunk) Cryptocurrency Mining Activity | Metric | 2022 (US$) | 2021 (US$) | | :-------------------------------- | :----------- | :----------- | | Revenue recognized from crypto mined | $517,602 | $369,804 | | Mining pool operating fees | $(10,452) | $(7,398) | | Impairment of cryptocurrencies | $(107,174) | $(59,752) | | Realized loss on sale of cryptocurrency | $(127,222) | $0 | | Realized gain on sale of cryptocurrency | $3,853 | $0 | | Balance December 31 | $0 | $302,654 | Government Regulation - Increasing governmental regulation of cryptocurrency in the U.S. and internationally[28](index=28&type=chunk)[169](index=169&type=chunk)[260](index=260&type=chunk) - President Biden's March 9, 2022 executive order instructs federal agencies to consider regulatory measures, including a U.S. Central Bank digital currency[28](index=28&type=chunk)[169](index=169&type=chunk)[260](index=260&type=chunk) - Future regulatory changes are unpredictable but could materially affect the business[28](index=28&type=chunk)[169](index=169&type=chunk)[260](index=260&type=chunk) Intellectual Property - No patents owned in connection with existing or planned blockchain and cryptocurrency operations[29](index=29&type=chunk) Liquidity and Ability to Continue as a Going Concern - Historically relied on financing, incurred significant losses, and negative cash flow[30](index=30&type=chunk)[199](index=199&type=chunk)[263](index=263&type=chunk) - **Substantial doubt** about the company's ability to continue as a going concern[31](index=31&type=chunk)[200](index=200&type=chunk)[264](index=264&type=chunk) - Ability to continue is dependent on closing the merger with Prairie or obtaining debt/equity financing[33](index=33&type=chunk)[202](index=202&type=chunk)[266](index=266&type=chunk) - Existing cash resources expected to be depleted in early 2023 if financing or merger not secured[31](index=31&type=chunk)[200](index=200&type=chunk)[264](index=264&type=chunk) Net Loss | Year Ended December 31 | Net Loss | | :--------------------- | :----------- | | 2022 | $(13,401,076) | | 2021 | $(19,202,114) | Financial Position as of Dec 31, 2022 | Metric | Amount | | :-------------------- | :------------- | | Cash and cash equivalents | $246,358 | | Working capital deficit | $(8.1) million | | Accumulated deficit | $(61) million | Employees - **2 full-time employees** as of March 31, 2023[34](index=34&type=chunk) Where You Can Find More Information - Company website: www.creekroadminers.com[42](index=42&type=chunk) - SEC filings available at http://www.sec.gov[42](index=42&type=chunk) [Item 1A. Risk Factors](index=9&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant operational, financial, and stock-related risks, including merger uncertainty Risks Related to Our Company - Historically incurred significant losses and may be unable to maintain profitability[44](index=44&type=chunk) - Merger with Prairie is subject to closing conditions and **may not be completed**, leading to adverse effects[45](index=45&type=chunk)[46](index=46&type=chunk) - Inability to complete merger or obtain financing may force sale of cryptocurrency miners[50](index=50&type=chunk) - **Significant additional capital required** for operations; failure to obtain could limit growth[51](index=51&type=chunk) - Cost of new cryptocurrency mining equipment is capital intensive and may increase[55](index=55&type=chunk) - Reliance on third-party mining pool service providers for revenue payouts[56](index=56&type=chunk) - Bitcoin halving events could reduce mining rewards if not offset by price increases[57](index=57&type=chunk) - Insiders beneficially own approximately **90% of common stock**, limiting minority stockholder influence[60](index=60&type=chunk) - Reliance on a small number of cryptocurrency mining equipment suppliers[61](index=61&type=chunk) - Exposure to credit risk on prepayments to mining equipment suppliers[62](index=62&type=chunk) - Difficulty securing adequate insurance for cryptocurrency mining equipment[63](index=63&type=chunk) - Risk of losing private keys to digital wallets, resulting in loss of digital assets[66](index=66&type=chunk) - Cybersecurity breaches and adverse software events pose risks to digital asset storage[67](index=67&type=chunk) - Significant power requirements for miners and potential government restrictions on electricity supply[71](index=71&type=chunk) - Interruptions to internet access could disrupt operations[72](index=72&type=chunk) - Reliance primarily on a single model of miner (Bitmain Antminer) increases system-wide risk[73](index=73&type=chunk) - Difficulty finding suitable locations for mobile data centers[74](index=74&type=chunk) - Dependence on a small number of key personnel[75](index=75&type=chunk) - Breaches of data systems or unintended disclosure of data could lead to large expenditures and reputational harm[78](index=78&type=chunk) - Risks associated with PCI compliance[79](index=79&type=chunk) - Failure to comply with loan agreements could result in default[80](index=80&type=chunk) - Government regulations related to the Internet could increase costs or negatively affect business[81](index=81&type=chunk) Financial Performance Summary | Metric | Dec 31, 2022 | Dec 31, 2021 | | :-------------------- | :------------- | :------------- | | Net Loss | $(13,418,814) | $(17,270,703) | | Stockholders' Deficit | $(6,525,056) | $4,197,847 | Risks Related to the Price of Bitcoin - Stock price correlated with Bitcoin's volatile trading price[112](index=112&type=chunk) - Internet disruptions could adversely affect cryptocurrency prices and mining ability[113](index=113&type=chunk) - Geopolitical and economic events create uncertainty in cryptocurrency supply and demand[114](index=114&type=chunk) - Limited acceptance and widespread use of cryptocurrency in retail and commercial markets[115](index=115&type=chunk) - Under-regulated Bitcoin markets may lead to significant volatility or manipulation[116](index=116&type=chunk)[117](index=117&type=chunk) - Potential for future illegality of cryptocurrencies in various countries[119](index=119&type=chunk) - Risk of loss, theft, or restriction on access to cryptocurrencies (e.g, private key loss, cybersecurity threats)[120](index=120&type=chunk)[124](index=124&type=chunk) - Bitcoin forks (e.g, Bitcoin Cash, Bitcoin Gold) may affect the value of held or mined Bitcoin[121](index=121&type=chunk)[122](index=122&type=chunk) - Incorrect or fraudulent cryptocurrency transactions may be irreversible[123](index=123&type=chunk) Risks Relating to Ownership of Our Common Stock - Paul L Kessler, Executive Chairman, beneficially owns approximately **78% of common stock**, limiting minority stockholder influence[94](index=94&type=chunk)[495](index=495&type=chunk) - Future equity or convertible debt issuances could result in **significant dilution** for existing stockholders[95](index=95&type=chunk) - Common stock quoted on OTCQB, leading to limited liquidity and potential unfavorable impact on stock price[96](index=96&type=chunk)[97](index=97&type=chunk) - Stock price is likely to be **highly volatile** due to limited public float and thin trading[98](index=98&type=chunk)[99](index=99&type=chunk)[100](index=100&type=chunk) - Subject to **'penny stock rules,'** making securities more difficult to sell[103](index=103&type=chunk)[105](index=105&type=chunk) - **No cash dividends paid historically**, nor expected in the foreseeable future; return on investment limited to stock price appreciation[106](index=106&type=chunk) - Board has broad discretion to issue additional securities (common and preferred stock), potentially causing substantial dilution[107](index=107&type=chunk) - Exercise of outstanding options and warrants could substantially dilute existing investments[108](index=108&type=chunk)[109](index=109&type=chunk) Internal Controls and Financial Reporting Risks - Failure to maintain effective internal controls (Sarbanes-Oxley Section 404) could result in financial statement restatement and loss of investor confidence[110](index=110&type=chunk)[111](index=111&type=chunk) - Testing and maintaining internal controls can divert management attention[111](index=111&type=chunk) [Item 1B. Unresolved Staff Comments](index=19&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) This item is not applicable to the company - Not applicable[125](index=125&type=chunk) [Item 2. Properties](index=19&type=section&id=Item%202.%20Properties) The company does not own any properties - No properties owned[126](index=126&type=chunk) [Item 3. Legal Proceedings](index=19&type=section&id=Item%203.%20Legal%20Proceedings) The company disputes an alleged default on a $2.5 million convertible debenture from Barlock Capital - Involved in ordinary course legal proceedings, not expected to materially affect financial statements[126](index=126&type=chunk) - Dispute with Barlock Capital Management LLC over alleged event of default on a **$2,496,850 secured convertible debenture**[127](index=127&type=chunk) - Barlock demanded payment of **$5,004,978.76**[127](index=127&type=chunk) - Company disputes the default, citing Alpha Note issuance and former CEO's resignation as invalid reasons[128](index=128&type=chunk) - If default is confirmed, the debenture's principal, accrued interest, and liquidated damages would be due, with interest accruing at up to **18% per annum**[129](index=129&type=chunk) [Item 4. Mine Safety Disclosures](index=19&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[130](index=130&type=chunk)[131](index=131&type=chunk) PART II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=24&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's volatile OTCQB-traded stock has 71 holders, with no dividends paid and recent unregistered sales Market Information and Number of Holders - Common stock quoted on OTCQB under symbol "CRKR"[133](index=133&type=chunk) - **71 record holders** of common stock as of December 31, 2022[134](index=134&type=chunk) Stock Price Performance | Period | High Bid | Low Bid | | :-------------------------- | :--------- | :-------- | | **Year Ended Dec 31, 2022:** | | | | First Quarter | $2.95 | $1.45 | | Second Quarter | $1.80 | $0.29 | | Third Quarter | $0.52 | $0.19 | | Fourth Quarter | $0.22 | $0.05 | | **Year Ended Dec 31, 2021:** | | | | First Quarter | $5.00 | $0.61 | | Second Quarter | $4.33 | $2.05 | | Third Quarter | $2.81 | $1.45 | | Fourth Quarter | $3.90 | $1.04 | Dividends - Never paid cash dividends on common stock[135](index=135&type=chunk) - Intends to retain all funds for business operations and expansion[135](index=135&type=chunk) Recent Sales of Unregistered Securities - Implemented a **1-for-20 reverse stock split** effective January 23, 2020[137](index=137&type=chunk) - Granted warrants to consultants (300,000 shares at $1.00, 180,000 shares at $1.5278) in March 2021[138](index=138&type=chunk) - Issued Series A preferred stock to Scott D Kaufman for compensation ($62,490 each quarter in 2021)[139](index=139&type=chunk)[140](index=140&type=chunk)[145](index=145&type=chunk) - Granted warrants to directors (30,000 shares at $1.50) in October 2021[141](index=141&type=chunk) - Granted **7,000,000 common stock options** to Directors and employees in December 2021, vesting based on VWAP targets ($2.50, $3.00, $3.50, $4.00)[144](index=144&type=chunk) - Issued Series A preferred stock to Paul L Kessler for compensation ($6,730 in Dec 2021, $49,410 in Q1/Q2 2022, $29,580 in Q3 2022, $37,920 in Q4 2022)[145](index=145&type=chunk)[150](index=150&type=chunk)[151](index=151&type=chunk) - Issued 169,205 shares of common stock to Highwire Energy Partners, Inc in May 2022[148](index=148&type=chunk) - Alpha Capital Anstalt returned 600,000 common shares in connection with a settlement for a convertible promissory note in August 2022[149](index=149&type=chunk) [Item 6. [Reserved]](index=26&type=section&id=Item%206.%20%5BReserved%5D) This item is reserved and not required - Not required[154](index=154&type=chunk) [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) The company's transition to crypto mining resulted in a net loss of $(13.4) million amid market volatility Company Overview - Incorporated May 2, 2001, in Delaware[159](index=159&type=chunk) - Transitioned from legacy operations (pop culture events, gelatin machines, eCommerce) to cryptocurrency mining starting October 2021[159](index=159&type=chunk)[163](index=163&type=chunk) - Sold pop culture event assets to Informa in August 2021, recognizing **$722,429 in other income**[160](index=160&type=chunk) - Sold Jevo assets in September 2021 for **$1,500,000**, recognizing a gain of approximately **$1,130,740**[161](index=161&type=chunk) - Entered Merger Agreement with Prairie Operating Co, LLC on October 24, 2022[162](index=162&type=chunk) Cryptocurrency Mining & Equipment - Substantially all revenue from Bitcoin mining, commenced October 24, 2021[163](index=163&type=chunk) - As of December 31, 2022, **780 Bitmain S19J Pro and S19 miners (total 75.3 Ph/s)** were owned but not in service[164](index=164&type=chunk) - Agreement for **600 Bitmain S19XP miners (84 Ph/s)**; **$3,969,000 paid as deposits**, $47,600 remaining due, miners undelivered[165](index=165&type=chunk) - No meaningful cryptocurrency awards or revenue from mining since June 30, 2022[163](index=163&type=chunk) Mining Results - Revenue increased **40% in 2022** due to mining operations starting in late 2021[195](index=195&type=chunk) Cryptocurrency Mining Activity | Metric | 2022 (US$) | 2021 (US$) | | :-------------------------------- | :----------- | :----------- | | Revenue recognized from crypto mined | $517,602 | $369,804 | | Mining pool operating fees | $(10,452) | $(7,398) | | Impairment of cryptocurrencies | $(107,174) | $(59,752) | | Realized loss on sale of cryptocurrency | $(127,222) | $0 | | Realized gain on sale of cryptocurrency | $3,853 | $0 | | Balance December 31 | $0 | $302,654 | Factors Affecting Profitability - Business heavily dependent on volatile Bitcoin market price[167](index=167&type=chunk) - Bitcoin price **decreased 60% in 2022** and **75% from its all-time high**[27](index=27&type=chunk)[167](index=167&type=chunk)[259](index=259&type=chunk) - Natural gas costs **increased by approximately 260% in 2022**, increasing mining costs[27](index=27&type=chunk)[167](index=167&type=chunk)[259](index=259&type=chunk) - Bitcoin halving events (next in March 2024) reduce mining rewards[167](index=167&type=chunk) Competition - Faces significant competition in cryptocurrency mining, including equipment acquisition, capital raising, and low-cost energy[168](index=168&type=chunk) Government Regulation - Increasing governmental regulation of cryptocurrency, including President Biden's executive order in March 2022[169](index=169&type=chunk) - Future regulatory changes are unpredictable and could materially affect the business[169](index=169&type=chunk) Critical Accounting Policies and Estimates - Financial statements require significant estimates and assumptions[170](index=170&type=chunk)[172](index=172&type=chunk) - Cryptocurrency (Bitcoin) classified as current asset and accounted for as **indefinite-lived intangible asset**, assessed for impairment annually[177](index=177&type=chunk)[275](index=275&type=chunk) - Revenue from cryptocurrency mining recognized when mining pool operator successfully places a block and consideration is confirmed[183](index=183&type=chunk)[285](index=285&type=chunk) - Fair value of cryptocurrency award determined using market rate at time of receipt[184](index=184&type=chunk)[286](index=286&type=chunk) - Cryptocurrency mining costs include mining pool fees, natural gas, turbine, and mobile data center rentals, excluding depreciation[185](index=185&type=chunk)[287](index=287&type=chunk) - No specific definitive GAAP guidance for cryptocurrency accounting, requiring significant management judgment[184](index=184&type=chunk)[286](index=286&type=chunk) Reverse Stock Split - **1-for-20 reverse stock split** effective January 23, 2020[186](index=186&type=chunk) Stock-Based Compensation - Stock-based compensation for employees and non-employees measured at grant date fair value and expensed over service period[187](index=187&type=chunk) Income Taxes - Income taxes accounted for using asset and liability method; deferred tax assets reduced by valuation allowance if not likely to be realized[188](index=188&type=chunk) Discontinued Operations - Legacy operations (pop culture events, Jevo assets, eCommerce site) discontinued[191](index=191&type=chunk) - Related assets, liabilities, and financial results classified as discontinued operations[192](index=192&type=chunk) Results of Operations - Comparison of Years Ended December 31, 2022 and 2021 - Cryptocurrency mining costs **increased 280%** due to operations starting in October 2021[197](index=197&type=chunk) - Depreciation and amortization **increased 485%** due to addition of mining equipment[197](index=197&type=chunk) - Stock-based compensation **decreased 78%** due to decreased issuances[197](index=197&type=chunk) - General and administrative expenses **decreased 38%** due to lesser marketing and consulting expenses[197](index=197&type=chunk) - Impairment of mined cryptocurrency **increased 79%** due to drop in Bitcoin price[197](index=197&type=chunk) - Net loss from continuing operations **decreased 30%** due to lower stock-based compensation and G&A, partially offset by **$5.2M fixed asset impairment**[198](index=198&type=chunk) Consolidated Results of Operations | Metric | 2022 (US$) | 2021 (US$) | Change ($) | Change (%) | | :------------------------------------ | :----------- | :----------- | :----------- | :--------- | | Revenue: Cryptocurrency mining | $517,602 | $369,804 | $147,798 | 40% | | Operating costs and expenses: | | | | | | Cryptocurrency mining costs | $1,071,458 | $281,790 | $789,668 | 280% | | Depreciation and amortization | $658,080 | $112,512 | $545,568 | 485% | | Stock based compensation | $2,681,201 | $12,338,424 | $(9,657,223) | (78)% | | General and administrative | $3,606,522 | $5,782,687 | $(2,181,267) | (38)% | | Impairment of mined cryptocurrency | $107,174 | $59,752 | $47,422 | 79% | | Total operating expenses | $8,124,435 | $18,575,165 | $(10,455,832) | (56)% | | Loss from operations | $(7,606,833) | $(18,210,464) | $10,603,630 | 58% | | Net loss from continuing operations | $(13,401,076) | $(19,202,114) | $5,801,038 | 30% | | Net income (loss) from discontinued operations | $(17,738) | $1,931,411 | $(1,949,146) | (101)% | | Total net loss | $(13,418,814) | $(17,270,703) | $3,851,892 | 22% | Going Concern Analysis - **Substantial doubt** about the company's ability to continue as a going concern due to historical losses, negative cash flow, and significant deficits[199](index=199&type=chunk)[200](index=200&type=chunk) - Continuation is dependent on closing the merger with Prairie or obtaining debt/equity financing[202](index=202&type=chunk) - Existing cash resources expected to be depleted in early 2023 without additional financing or merger completion[200](index=200&type=chunk) Financial Position as of Dec 31, 2022 | Metric | Amount | | :-------------------- | :------------- | | Cash and cash equivalents | $246,358 | | Working capital deficit | $(8.1) million | | Accumulated deficit | $(61) million | Liquidity and Capital Resources - Decrease in cash primarily due to operating and investing activities, partially offset by financing[204](index=204&type=chunk) - Net cash used in operating activities in 2022 was **$2.19M**, driven by net loss, offset by fixed asset impairment and increased payables[205](index=205&type=chunk) - Net cash used in investing activities in 2022 was **$1.81M**, mainly from property and equipment purchases, offset by mining equipment deposits[207](index=207&type=chunk) - Net cash provided by financing activities in 2022 was **$1.47M**, from warrant exercises and note payable[208](index=208&type=chunk) - Working capital shifted to an **$8.1M deficit** in 2022 due to decreased cash/deposits and increased liabilities[210](index=210&type=chunk) Consolidated Cash Flow Summary | Cash Flow Activity | 2022 (US$) | 2021 (US$) | | :-------------------------------- | :----------- | :----------- | | Net cash used in operating activities | $(2,192,607) | $(6,969,723) | | Net cash used in investing activities | $(1,815,520) | $(9,928,726) | | Net cash provided by financing activities | $1,469,297 | $17,785,933 | | Net increase (decrease) in cash | $(2,538,830) | $887,484 | | Cash and cash equivalents, end of period | $246,358 | $2,785,187 | Working Capital | Metric | Dec 31, 2022 (US$) | Dec 31, 2021 (US$) | Change (US$) | | :---------------------- | :----------------- | :----------------- | :------------- | | Current assets | $5,050,740 | $10,827,973 | $(5,777,233) | | Current liabilities | $13,168,256 | $6,039,311 | $7,128,945 | | Working capital (deficit) | $(8,117,516) | $4,788,662 | $(12,906,178) | Off-Balance Sheet Arrangements - No off-balance sheet arrangements[211](index=211&type=chunk) Recently Issued Accounting Pronouncements - Recent accounting pronouncements not expected to materially impact financial statements[212](index=212&type=chunk) [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This item is not required for the company - Not required[213](index=213&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=32&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) The auditor expressed substantial doubt about the company's ability to continue as a going concern Report of Independent Registered Public Accounting Firm - MaughanSullivan LLC provided an **unqualified opinion** on consolidated financial statements for 2022 and 2021[218](index=218&type=chunk) - **Substantial doubt** about the company's ability to continue as a going concern due to losses and accumulated deficit[219](index=219&type=chunk) - Critical audit matters included accounting for cryptocurrency mining revenue and fair value of mining computer equipment[223](index=223&type=chunk)[224](index=224&type=chunk)[226](index=226&type=chunk) Consolidated Balance Sheets - Accumulated deficit increased to **$(60,728,664)** in 2022 from **$(47,309,849)** in 2021[229](index=229&type=chunk) Consolidated Balance Sheet Summary | Metric | Dec 31, 2022 | Dec 31, 2021 | Change ($) | Change (%) | | :------------------------------------ | :----------- | :----------- | :----------- | :--------- | | Cash and cash equivalents | $246,358 | $2,785,188 | $(2,538,830) | (91.1)% | | Deposits on mining equipment | $4,673,680 | $7,613,230 | $(2,939,550) | (38.6)% | | Cryptocurrency | $0 | $302,654 | $(302,654) | (100)% | | Total current assets | $5,050,740 | $10,827,973 | $(5,777,233) | (53.3)% | | Property and equipment, net | $1,632,007 | $2,226,360 | $(594,353) | (26.7)% | | Total assets | $6,793,097 | $13,199,869 | $(6,406,772) | (48.5)% | | Accounts payable and accrued expenses | $3,232,855 | $801,747 | $2,431,108 | 303.2% | | Accrued interest and expenses – related parties | $3,055,989 | $2,231,558 | $824,431 | 36.9% | | Convertible notes payable | $1,400,000 | $0 | $1,400,000 | N/A | | Secured convertible debentures – related party(ies) | $4,993,700 | $2,500,000 | $2,493,700 | 99.7% | | Total current liabilities | $13,168,256 | $6,039,311 | $7,128,945 | 118.0% | | Total liabilities | $13,318,156 | $9,002,022 | $4,316,134 | 47.9% | | Total stockholders' equity (deficit) | $(6,525,059) | $4,197,847 | $(10,722,906) | (255.4)% | Consolidated Statements of Operations - Impairment of fixed assets of **$5,231,752 in 2022** significantly contributed to other expenses[231](index=231&type=chunk) Consolidated Statement of Operations Summary | Metric | 2022 (US$) | 2021 (US$) | Change ($) | Change (%) | | :------------------------------------ | :----------- | :----------- | :----------- | :--------- | | Revenue: Cryptocurrency mining | $517,602 | $369,804 | $147,798 | 40% | | Operating costs and expenses: | | | | | | Cryptocurrency mining costs | $1,071,458 | $281,790 | $789,668 | 280% | | Depreciation and amortization | $658,080 | $112,512 | $545,568 | 485% | | Stock based compensation | $2,681,201 | $12,338,424 | $(9,657,223) | (78)% | | General and administrative | $3,606,522 | $5,787,790 | $(2,181,268) | (37.7)% | | Impairment of mined cryptocurrency | $107,174 | $59,752 | $47,422 | 79.4% | | Total operating expenses | $8,124,435 | $18,580,268 | $(10,455,833) | (56.3)% | | Loss from operations | $(7,606,833) | $(18,210,464) | $10,603,631 | 58.2% | | Other income (expense), net | $(5,794,243) | $(991,650) | $(4,802,593) | (484.3)% | | Loss from continuing operations | $(13,401,076) | $(19,202,114) | $5,801,038 | 30.2% | | Net income (loss) from discontinued operations | $(17,738) | $1,931,411 | $(1,949,149) | (100.9)% | | Net loss | $(13,418,814) | $(17,270,703) | $3,851,889 | 22.3% | | Earnings (loss) per share, basic and diluted | $(1.18) | $(3.71) | $2.53 | 68.2% | Consolidated Statements of Stockholders' Equity (Deficit) - Net loss of **$(13,418,814) in 2022** was the primary driver of the shift to stockholders' deficit[234](index=234&type=chunk) - Additional paid-in capital increased by **$2,695,501 in 2022**, reflecting warrant exercises and preferred stock issuances for compensation[234](index=234&type=chunk) Stockholders' Equity (Deficit) Summary | Metric | Dec 31, 2022 (US$) | Dec 31, 2021 (US$) | Change (US$) | | :------------------------------------ | :----------------- | :----------------- | :------------- | | Total Stockholders' Equity (Deficit) | $(6,525,059) | $4,197,847 | $(10,722,906) | | Accumulated Deficit | $(60,728,664) | $(47,309,849) | $(13,418,815) | | Additional Paid-In Capital | $54,202,355 | $51,506,854 | $2,695,501 | Consolidated Statements of Cash Flows - Operating cash outflow improved in 2022 due to lower net loss, higher fixed asset impairment, and increased payables[240](index=240&type=chunk) - Investing cash outflow improved in 2022 due to proceeds from crypto sales and lower net deposits on mining equipment[240](index=240&type=chunk) - Financing cash inflow significantly decreased in 2022 due to lower proceeds from stock/warrant issuances compared to 2021[240](index=240&type=chunk) Consolidated Cash Flow Summary | Cash Flow Activity | 2022 (US$) | 2021 (US$) | Change ($) | | :-------------------------------- | :----------- | :----------- | :----------- | | Net cash used in operating activities | $(2,192,607) | $(6,969,723) | $4,777,116 | | Net cash used in investing activities | $(1,815,520) | $(9,928,726) | $8,113,206 | | Net cash provided by financing activities | $1,469,297 | $17,785,933 | $(16,316,636) | | Net increase (decrease) in cash | $(2,538,830) | $887,484 | $(3,426,314) | | Cash and cash equivalents, end of period | $246,357 | $2,785,187 | $(2,538,830) | Notes to the Consolidated Financial Statements - Detailed notes on organization, business, accounting policies, and financial instruments[244](index=244&type=chunk) - Reiteration of **going concern uncertainty**[263](index=263&type=chunk)[264](index=264&type=chunk)[265](index=265&type=chunk) - Deposits on mining equipment totaled **$4,673,680** as of Dec 31, 2022, with **$3,969,000** for miners and **$704,680** for mobile data centers[298](index=298&type=chunk) - Cryptocurrency balance was **$0** as of Dec 31, 2022, with **$107,174 impairment** recognized in 2022[300](index=300&type=chunk) - Property and equipment, net, was **$1,632,007** as of Dec 31, 2022, with a **$5,231,752 impairment** on fixed assets recorded in 2022[302](index=302&type=chunk) - Related party balances as of Dec 31, 2022, include **$3,055,989** in accrued interest and expenses and **$4,993,700** in current secured convertible debentures[307](index=307&type=chunk) - Convertible notes payable totaled **$1,400,000** as of Dec 31, 2022, including the Creecal Note ($500,000) and Alpha Note ($900,000)[360](index=360&type=chunk)[363](index=363&type=chunk) - SBA/PPP loans payable totaled **$149,900** as of Dec 31, 2022, with **$197,662** of a Second Draw PPP loan forgiven in March 2022[374](index=374&type=chunk) - Subsequent event: Master Services Agreement with Atlas Power Hosting, LLC for cryptocurrency mining services, with fees deducted from mined currency[444](index=444&type=chunk) [Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=69&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) There were no changes in or disagreements with the company's accountants on accounting and financial disclosure - No changes in or disagreements with accountants on accounting and financial disclosure[446](index=446&type=chunk) [Item 9A. Controls and Procedures](index=69&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective Evaluation of Disclosure Controls and Procedures - Disclosure controls and procedures were **effective** at a reasonable assurance level as of December 31, 2022[448](index=448&type=chunk) Management's Report on Internal Control over Financial Reporting - Management concluded internal control over financial reporting was **effective** as of December 31, 2022, based on COSO 2013 framework[451](index=451&type=chunk) Inherent Limitations on the Effectiveness of Controls - Control systems have inherent limitations, providing only **reasonable assurance** against errors or fraud[452](index=452&type=chunk) - Limitations include faulty judgment, human error, circumvention, and management override[453](index=453&type=chunk) Changes in Internal Controls Over Financial Reporting - **No material changes** in internal control over financial reporting during the last fiscal year[454](index=454&type=chunk) [Item 9B. Other Information](index=70&type=section&id=Item%209B.%20Other%20Information) The maturity date of a $500,000 convertible promissory note was extended - Maturity date of **$500,000 convertible promissory note** extended to earlier of May 31, 2023, or Merger closing[455](index=455&type=chunk) [Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=70&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - Not applicable[456](index=456&type=chunk) PART III [Item 10. Directors, Executive Officers and Corporate Governance](index=71&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) The company is led by its Executive Chairman and CEO, with one independent director overseeing key committees Directors and Executive Officers - Paul L Kessler has over 30 years of experience as an investor, financier, and venture capitalist[460](index=460&type=chunk) - John D Maatta has served as EVP and COO of The CW Television Network[461](index=461&type=chunk) - Scott Sheikh has expertise in logistics, emerging technologies (blockchain), and crypto mining law[462](index=462&type=chunk) Board of Directors and Executive Officers | Name | Age | Position | Date of Appointment | | :---------------- | :-- | :-------------------------------- | :------------------ | | Paul L. Kessler | 62 | Executive Chairman | March 17, 2013 | | John D. Maatta | 71 | Director and Chief Executive Officer | May 25, 2011 | | Scott Sheikh | 41 | Chief Operating Officer and General Counsel | December 23, 2021 | | Michael Breen | 60 | Director | March 29, 2017 | Term of Office & Family Relationships - Directors serve a one-year term[464](index=464&type=chunk) - No family relationships between officers and directors[465](index=465&type=chunk) Corporate Governance - Michael Breen is the **only independent director** as per NASDAQ rules[466](index=466&type=chunk) - Audit Committee and Compensation Committee are both chaired by Mr Breen[467](index=467&type=chunk)[468](index=468&type=chunk) - Company does not have an audit committee financial expert due to size and cost control[467](index=467&type=chunk) - Adopted a Code of Ethical Conduct for all employees, officers, and directors[470](index=470&type=chunk) - One Section 16(a) report for Mr Maatta was delinquent in 2022[471](index=471&type=chunk) Legal Proceedings (Directors/Officers) - No material legal proceedings involving directors or officers adverse to the company[472](index=472&type=chunk) - No directors or executive officers involved in bankruptcy, criminal offenses, or securities law violations in the past ten years[472](index=472&type=chunk) [Item 11. Executive Compensation](index=73&type=section&id=Item%2011.%20Executive%20Compensation) Executive compensation included salaries and stock awards, with performance-based options cancelled in 2022 Compensation of Executive Officers - Options granted in December 2021 to Kessler, Maatta, and Sheikh (vesting based on VWAP targets) were **cancelled in 2022**[474](index=474&type=chunk)[478](index=478&type=chunk) - Compensation for 2022 included Series A preferred stock for settlement of compensation for Kessler ($166,320), Maatta ($133,330), Sheikh ($152,580), Kaufman ($69,720), and Urban ($6,850)[479](index=479&type=chunk)[480](index=480&type=chunk)[481](index=481&type=chunk) Summary Compensation Table | Name | Fiscal Year | Salary | Stock Awards | All other Compensation | Total | | :------------------------------------ | :---------- | :------- | :----------- | :--------------------- | :------ | | Paul L. Kessler, Executive Chairman | 2022 | $48,342 | $166,320 | $14,355 | $229,017 | | | 2021 | $48,219 | $6,700,480 | $12,015 | $6,760,714 | | John D. Maatta, President and CEO | 2022 | $0 | $133,330 | $0 | $133,330 | | | 2021 | $0 | $85,564 | $60,000 | $145,564 | | Scott Sheikh, COO and General Counsel | 2022 | $84,142 | $152,580 | $3,008 | $239,730 | | | 2021 | $99,362 | $2,231,250 | $536 | $2,331,148 | | Scott D. Kaufman, Former President and CEO | 2022 | $22,104 | $69,720 | $811 | $92,635 | | | 2021 | $19,518 | $6,964,563 | $200,111 | $7,184,192 | | Alan L. Urban, Former CFO | 2022 | $196,610 | $6,850 | $49,495 | $252,955 | | | 2021 | $0 | $2,231,250 | $0 | $2,331,250 | Outstanding Equity at Fiscal Year Ended December 31, 2022 Outstanding Equity Awards | Name | Options/Warrants Exercisable () | Options/Warrants Unexercisable () | Exercise Price ($) | Expiration Date | | :---------------- | :------------------------------- | :--------------------------------- | :----------------- | :-------------- | | Paul L. Kessler | 15,000 | 15,000 | $0.25 | 1/22/2024 | | John D. Maatta | 100,000 | 100,000 | $0.25 | 8/3/2025 | | John D. Maatta | 20,000 | 20,000 | $0.25 | 1/22/2024 | Compensation of Directors - Non-employee directors receive meeting fees ($1,000 in-person, $250-$500 telephonic) and a $750 monthly retainer, which was accrued and unpaid in 2021 and 2020[490](index=490&type=chunk) - Company may issue stock to non-employee directors in lieu of cash compensation[490](index=490&type=chunk) Director Compensation Table | Name | Fiscal Year | Fees earned or paid in cash | Stock Awards | Officer Compensation | Total | | :-------------------- | :---------- | :------------------------ | :----------- | :------------------- | :------ | | Paul L. Kessler | 2022 | $0 | $0 | $229,017 | $229,017 | | | 2021 | $0 | $0 | $6,760,714 | $6,760,714 | | John D. Maatta | 2022 | $0 | $0 | $133,330 | $133,330 | | | 2021 | $0 | $30,096 | $145,564 | $175,660 | | Michael Breen | 2022 | $0 | $0 | $0 | $0 | | | 2021 | $0 | $30,096 | $0 | $30,096 | [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=76&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Executive officers and directors as a group beneficially own 92.4% of the company's shares Beneficial Ownership - Paul L Kessler exercises voting and investment power over shares held by Bristol Investment Fund, Ltd and related entities[495](index=495&type=chunk) - Scott D Kaufman exercises voting and investment power over shares held by Barlock 2019 Fund LP and Barlock Capital Management, LLC[496](index=496&type=chunk) Security Ownership Table | Name | Shares Beneficially Owned | Percentage of Shares | | :------------------------------------ | :------------------------ | :------------------- | | Bristol Investment Fund, Ltd. | 33,750,725 | 77.9% | | Barlock 2019 Fund LP | 19,500,757 | 61.4% | | Leviston Resources, LLC | 25,237,808 | 68.3% | | Paul L. Kessler | 34,130,821 | 81.4% | | John D. Maatta | 6,334,343 | 32.4% | | Scott Sheikh | 721,866 | 5.6% | | Michael Breen | 77,500 | 0.6% | | All Directors and Executive Officers as a group (4 persons) | 40,884,454 | 92.4% | Equity Compensation Plan Information - 2021 Incentive Stock Award Plan authorizes **10,000,000 shares** for grant[500](index=500&type=chunk) Equity Compensation Plan Table | Plan category | Number of securities to be issued upon exercise of outstanding options, warrants and rights (a) | Weighted average exercise price of outstanding options, warrants and rights (b) | Number of securities remaining available for future issuance under equity compensation plans (c) | | :------------------------------ | :-------------------------------------------------------------------------------- | :---------------------------------------------------- | :------------------------------------------------------------------------------------------------ | | 2021 Incentive Stock Award Plan | 0 | N/A | 10,000,000 | [Item 13. Certain Relationships and Related Transactions, and Director Independence](index=77&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Michael Breen is the sole independent director on the three-member board Related Party Transactions - Detailed related party transactions are in Note 8 of financial statements[502](index=502&type=chunk) Director Independence - Michael Breen is the **sole independent director** on the three-member board[503](index=503&type=chunk) - OTCQB does not have director independence requirements[503](index=503&type=chunk) - Board annually assesses director independence[504](index=504&type=chunk) [Item 14. Principal Accounting Fees and Services](index=78&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Maughan Sullivan LLC provided audit and tax services totaling approximately $45,700 in 2022 and 2021 - All audit and non-audit services require pre-approval by the audit committee[511](index=511&type=chunk) - Certain services prohibited by the SEC are not provided by the auditor[511](index=511&type=chunk) Accounting Fees | Category | 2022 | 2021 | | :--------------- | :------- | :------- | | Audit Fees | $37,756 | $37,732 | | Tax Fees | $8,500 | $8,000 | | Total | $45,732 | $45,732 | PART IV [Item 15. Exhibits and Financial Statement Schedules](index=88&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists financial statements and an index of exhibits filed with the report - Financial statements are incorporated by reference from Item 8[513](index=513&type=chunk) - Exhibit index includes merger agreements, corporate governance documents, securities agreements, and employment contracts[515](index=515&type=chunk)[516](index=516&type=chunk)[517](index=517&type=chunk) [Item 16. Form 10-K Summary](index=90&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company has elected not to include a summary of the Form 10-K - Company elected not to include a Form 10-K summary[518](index=518&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: September 30, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to _____________ Commission File No. 000-33383 CREEK ROAD MINERS, INC. (Exact name of registrant as specified in its charter) Delaware 98-0357 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: June 30, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to _____________ Commission File No. 000-33383 CREEK ROAD MINERS, INC. (Exact name of registrant as specified in its charter) (State or other juris ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: March 31, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to _____________ Commission File No. 000-33383 CREEK ROAD MINERS, INC. (Exact name of registrant as specified in its charter) Delaware 98-0357690 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended: December 31, 2021 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to _____________ Commission File No. 000-33383 CREEK ROAD MINERS, INC. (Exact name of registrant as specified in its charter) (State or other jurisdict ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: September 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Park City, UT 84098 For the transition period from __________ to __________ Commission File Number: 000-33383 CREEK ROAD MINERS, INC. (Exact name of registrant as specified in its charter) Delawa ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: June 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number: 000-33383 CREEK ROAD MINERS, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of ...

OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number: 000-33383 WIZARD BRANDS, INC. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: March 31, 2021 (Exact name of registrant as specified in its charter) (State or other jurisdiction o ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Form 10-K (Mark One) [X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended DECEMBER 31, 2020 [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE EXCHANGE ACT OF 1934 For the transition period from _______________________ to __________________________ Commission File Number 000-33383 WIZARD BRANDS, INC. (Exact name of registrant as specified in charter) Delaware 98-035 ...