Financial Performance - For the three months ended June 30, 2024, the company reported a loss from operations of $8,568,797, an increase of $5.7 million compared to the same period in 2023 [103]. - Total operating costs and expenses for the six months ended June 30, 2024, were $16,613,438, reflecting an increase of $13.7 million compared to the same period in 2023 [103]. - General and administrative expenses for the three months ended June 30, 2024, increased by $5.7 million compared to the same period in 2023, primarily due to employee and benefit expenses [104]. - The net cash used in operating activities totaled $8.4 million for the six months ended June 30, 2024, an increase of $3.4 million from $5.1 million in the same period of 2023 [117]. - The company had a net loss of $17.6 million for the six months ended June 30, 2024, with an accumulated deficit of $96.4 million [120]. Acquisition and Investments - The company entered into a securities purchase agreement for a total of $20.0 million, which includes 39,614 shares of common stock and 20,000 shares of Series E Preferred Stock [95]. - The NRO Acquisition for the Central Weld Assets is valued at $94.5 million, consisting of $83.0 million in cash and $11.5 million in deferred cash payments [100]. - The company anticipates closing the NRO Acquisition by August 15, 2024, subject to securing necessary financing [101]. - The company expects to raise approximately $74.0 million in cash to close the NRO Acquisition, but currently lacks sufficient cash or committed capital for this purpose [112]. Cash Flow and Liquidity - As of June 30, 2024, the company reported a working capital deficit of $7.9 million, compared to a working capital of $8.1 million as of December 31, 2023 [117]. - Cash and cash equivalents decreased from $13.0 million as of December 31, 2023, to $2.2 million as of June 30, 2024 [117]. - The company anticipates that its cash balance will decline until financing is obtained through public or private capital markets [120]. Operational Updates - The company plans to commence its initial drilling program in August 2024, starting with an 8-well pad targeting the Niobrara B and C formations [99]. - As of June 30, 2024, the company has not had any drilling or completion operations on its Genesis Assets, which include 24,351 net mineral acres [98]. - The company divested all cryptocurrency mining assets in January 2024, with a sale consideration of $1.0 million in cash and $1.0 million in deferred cash payments [102]. - The company recognized a $1.0 million loss on the sale of cryptocurrency mining equipment during the six months ended June 30, 2024 [110]. - For the six months ended June 30, 2024, the net loss from discontinued operations decreased by $15.8 million compared to the same period in 2023, primarily due to the completion of the Crypto Sale in January 2024 [110]. Interest and Income - Interest income for the three months ended June 30, 2024, increased to $55,139, up from $43,037 in the same period in 2023 [105]. - Net cash used in investing activities increased to $11.8 million for the six months ended June 30, 2024, compared to $3.3 million in the same period of 2023 [118]. Funding Strategy - The company plans to fund its business and strategic plans with cash on hand and proceeds from warrant exercises, with expectations of $24.0 million from common stock warrants [121].
Prairie Operating(PROP) - 2024 Q2 - Quarterly Report