Creek Road Miners, Inc. [CRKR] Filings

10-Q 1 form10-q.htm

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		98-0357690
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

35 E Horizon Ridge Pkwy, Suite 110-502 Henderson, Nevada		89002
(Address of principal executive offices)		(Zip Code)

(435) 900-1949

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each Class		Trading Symbol(s)		Name of each Exchange on which registered
N/A		N/A		N/A

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐	Accelerated filer ☐
Non-accelerated filer ☒	Smaller reporting company ☒
	Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock as of the latest practicable date.

Title of Class		Number of Shares Outstanding on November 7, 2022
Common Stock, $0.0001 par value		12,276,036

TABLE OF CONTENTS

PART I	FINANCIAL INFORMATION
Item 1.	Condensed Consolidated Financial Statements	2
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	36
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	47
Item 4.	Controls and Procedures	47

PART II	OTHER INFORMATION
Item 1.	Legal Proceedings	48
Item 1A.	Risk Factors	48
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	48
Item 3.	Defaults Upon Senior Securities	48
Item 4.	Mine Safety Disclosures	48
Item 6.	Exhibits	49

SIGNATURES		50

PART 1 — FINANCIAL INFORMATION

Item 1. Condensed Consolidated Financial Statements

Creek Road Miners, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

	September 30,			December 31,
	2022			2021
	(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	451,212		$	2,785,188
Accounts receivable		—			427
Prepaid expenses		158,014			107,749
Deposits on mining equipment		4,673,680			7,613,230
Cryptocurrency		7,350			302,654
Current assets associated with discontinued operations		—			18,725
Total current assets		5,290,256			10,827,973
Other assets:
Property and equipment, net of accumulated depreciation of $582,696 and $89,136, respectively		7,028,279			2,226,360
Right of use asset, net of accumulated amortization of $426,918 and $299,583 respectively		—			127,335
Investment		225,000			—
Deposits and other assets		110,350			18,201
Total assets	$	12,653,885		$	13,199,869

Liabilities and Stockholders’ Deficit
Current liabilities:
Accounts payable and accrued expenses	$	2,878,131		$	801,747
Accrued interest and expenses – related parties		2,846,909			2,231,558
Convertible notes payable		1,400,000			—
Lease liability, current portion		—			33,977
Secured convertible debenture – related party		2,496,850			2,500,000
Current liabilities associated with discontinued operations		485,712			472,029
Total current liabilities		10,107,602			6,039,311
Non-current liabilities:
Lease liability, long term portion		—			101,116
Secured convertible debenture – related party		2,496,850			2,500,000
SBA/PPP loans payable		149,900			361,595
Total non-current liabilities		2,646,750			2,962,711
Total liabilities		12,754,352			9,002,022
Commitments and contingencies		-			-
Stockholders’ equity:
Preferred stock; 5,000,000 shares authorized:
Series A convertible preferred stock; $0.0001 par value; 500,000 shares authorized; 242,534 and 223,964 shares issued and outstanding, respectively		24			22
Series B convertible preferred stock; $0.0001 par value; 20,000 shares authorized; 1,420 and 3,720 shares issued and outstanding, respectively		—			—
Series C convertible preferred stock; $0.0001 par value; 15,000 shares authorized; 7,630 shares issued and outstanding, respectively		1			1
Preferred stock value		1			1
Common stock; $0.0001 par value; 100,000,000 shares authorized; 12,296,735 and 8,191,382 shares issued and outstanding, respectively		1,229			819
Additional paid-in capital		54,139,405			51,506,854
Accumulated deficit		(54,241,126	)		(47,309,849	)
Total stockholders’ equity		(100,467	)		4,197,847
Total liabilities and stockholders’ equity	$	12,653,885		$	13,199,869

See notes to unaudited condensed consolidated financial statements

Creek Road Miners, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(Unaudited)

	2022			2021			2022			2021
	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2022			2021			2022			2021
Revenue:
Cryptocurrency mining	$	7,955		$	—		$	517,602		$	—

Operating costs and expenses:
Cryptocurrency mining costs (exclusive of depreciation and amortization shown below)		284,700			—			1,071,458			—
Depreciation and amortization		164,520			12,154			493,560			24,503
Stock based compensation		156,190			436,479			2,545,431			2,473,954
General and administrative		1,127,503			1,503,738			2,825,272			3,715,015
Impairment of mined cryptocurrency		1,035			—			107,174			—
Total operating expenses		1,733,948			1,952,371			7,042,895			6,213,472
Loss from operations		(1,725,993	)		(1,952,371	)		(6,525,293	)		(6,213,472	)

Other income (expense):
Realized loss on sale of cryptocurrency		—			—			(131,075	)		—
PPP loan forgiveness		—			—			197,662			—
Interest expense		(64,139	)		(294,498	)		(454,833	)		(764,009	)
Total other income (expense)		(64,139	)		(294,498	)		(388,246	)		(764,009	)

Loss from operations before provision for income taxes		(1,790,132	)		(2,246,869	)		(6,913,539	)		(6,977,481	)
Provision for income taxes		—			—			—			—
Loss from continuing operations		(1,790,132	)		(2,246,869	)		(6,913,539	)		(6,977,481	)

Discontinued operations:
Income (loss) from discontinued operations		(6	)		(208,377	)		(17,738	)		200,155
Gain on sale of discontinued operations		—			1,853,169			—			1,853,169
Net income (loss) from discontinued ops.		(6	)		1,644,792			(17,738	)		2,053,324

Net loss	$	(1,790,138	)	$	(602,077	)	$	(6,931,277	)	$	(4,924,157	)

Dividends on preferred stock		(87,797	)		(196,242	)		(272,399	)		(266,094	)
Earnings attributable to common stockholders	$	(1,877,935	)	$	(798,319	)	$	(7,203,676	)	$	(5,190,251	)

Earnings (loss) per common share:
Earnings (loss) per share from continuing operations, basic and diluted	$	(0.15	)	$	(0.43	)	$	(0.63	)	$	(1.87	)
Earnings per share from discontinued operations, basic and diluted	$	—		$	0.29		$	—		$	0.53
Earnings (loss) per share, basic and diluted	$	(0.15	)	$	(0.14	)	$	(0.63	)	$	(1.34	)
Weighted average common shares outstanding, basic and diluted		12,656,994			5,607,877			11,430,285			3,865,416

See notes to unaudited condensed consolidated financial statements

Creek Road Miners, Inc. and Subsidiaries

Condensed Consolidated Statements of Stockholders’ Equity

For the Three Months Ended September 30, 2022

(Unaudited)

	Shares		Amount		Shares		Amount		Shares			Amount		Shares			Amount			Capital			Deficit			Interest		Deficit
	Series A Preferred Stock Par value $0.0001				Series B Preferred Stock Par value $0.0001				Series C Preferred Stock Par value $0.0001					Common Stock Par value $0.0001						Additional Paid In			Accumulated			Non-controlling		Stockholders’
	Shares		Amount		Shares		Amount		Shares			Amount		Shares			Amount			Capital			Deficit			Interest		Deficit

Balance, June 30, 2022		226,915	$	23		1,400	$	-		7,880		$	1		12,524,209		$	1,251		$	54,868,200		$	(52,450,988	)	$	-	$	2,418,487

Warrants issued for services		-		-		-		-		-			-		-			-			-			-			-		-
Issuance of series A preferred stock to settle accrued liabilities and compensation		9,249		1		-		-		-			-		-			-			92,489			-			-		92,490
Exercise of warrants		-		-		-		-		-			-		166,660			17			83,313			-			-		83,330
Issuance of series A preferred stock to settle compensation		15,619		1		-		-		-			-		-			-			156,187			-			-		156,188
Issuance of series B preferred stock to settle liabilities		-		-		20		-		-			-		-			-			19,463			-			-		19,463
Conversion of series C preferred stock to common		-		-		-		-		(250	)		-		185,167			19			(19	)		-			-		-
Exchange of warrant shares for convertible note		-		-		-		-		-			-		(579,301	)		(58	)		(899,942	)		-			-		(900,000	)
Dividend on series A preferred stock		-		-		-		-		-			-		-			-			(68,634	)		-			-		(68,634	)
Dividend on series B preferred stock		-		-		-		-		-			-		-			-			(19,163	)		-			-		(19,163	)
Net loss		-		-		-		-		-			-		-			-			-			(1,790,138	)		-		(1,790,138	)
Balance, September 30, 2022		242,534	$	24		1,420	$	-		7,630		$	1		12,296,735		$	1,229		$	54,139,405		$	(54,241,126	)	$	-	$	(100,467	)

See notes to unaudited condensed consolidated financial statements

Creek Road Miners, Inc. and Subsidiaries

Condensed Consolidated Statements of Stockholders’ Equity

For the Nine Months Ended September 30, 2022

(Unaudited)

	Series A Preferred Stock Par value $0.0001						Series B Preferred Stock Par value $0.0001					Series C Preferred Stock Par value $0.0001					Common Stock Par value $0.0001						Additional Paid In			Accumulated			Non-controlling		Stockholders’
	Shares			Amount			Shares			Amount		Shares			Amount		Shares			Amount			Capital			Deficit			Interest		Deficit

Balance, December 31, 2021		223,964		$	22			3,720		$	-		7,880		$	1		8,191,382		$	819		$	51,506,854		$	(47,309,849	)	$	-	$	4,197,847

Warrants issued for services		-			-			-			-		-			-		-			-			472,501			-			-		472,501
Issuance of series A preferred stock to settle accrued liabilities and compensation		9,249			1			-			-		-			-		-			-			92,489			-			-		92,490
Exercise of warrants		-			-			-			-		-			-		766,660			77			983,253			-			-		983,330
Replacement warrants issued		-			-			-			-		-			-		-			-			1,608,000			-			-		1,608,000
Exercise of stock options		-			-			-			-		-			-		185,216			19			(19	)		-			-		-
Issuance of common stock for services		-			-			-			-		-			-		30,000			3			44,997			-			-		45,000
Issuance of common stock for investment		-			-			-			-		-			-		169,205			17			99,983			-			-		100,000
Issuance of common		-			-			-			-		-			-		11,502			-			-			-			-		-
Issuance of series A preferred stock to settle compensation		41,993			5			-			-		-			-		-			-			419,923			-			-		419,928
Issuance of series B preferred stock to settle liabilities		-			-			172			-		-			-		-			-			170,303			-			-		170,303
Conversion of series A preferred stock to common		(23,423	)		(3	)		-			-		-			-		1,338,456			134			(131	)		-			-		-
Conversion of series B preferred stock to common		-			-			(2,472	)		-		-			-		1,962,448			195			(195	)		-			-		-
Conversion of series C preferred stock to common		-			-			-			-		(250	)		-		185,167			19			(19	)		-			-		-
Conversion of secured convertible debenture to Common stock		-			-			-			-		-			-		36,000			4			6,296			-			-		6,300
Exchange of warrant shares for convertible note		-			-			-			-		-			-		(579,301	)		(58	)		(899,942	)		-			-		(900,000	)
Dividend on series A preferred stock		-			-			-			-		-			-		-			-			(200,936	)		-			-		(200,936	)
Dividend on series B preferred stock		-			-			-			-		-			-		-			-			(71,463	)		-			-		(71,463	)
Net loss		-						-			-		-			-		-			-			-			(6,931,277	)		-		(6,931,277	)
Balance, September 30, 2022		242,534		$	24			1,420		$	-		7,630		$	1		12,296,735		$	1,229		$	54,139,405		$	(54,241,126	)	$	-	$	(100,467	)

See notes to unaudited condensed consolidated financial statements

Creek Road Miners, Inc. and Subsidiaries

Condensed Consolidated Statements of Stockholders’ Equity

For the Three and Nine Months Ended September 30, 2021

(Unaudited)

	Series A Preferred Stock Par value $0.0001				Series B Preferred Stock Par value $0.0001				Series C Preferred Stock Par value $0.0001				Common Stock Par value $0.0001				Additional Paid In		Accumulated			Non-controlling			Stockholders’
	Shares		Amount		Shares		Amount		Shares		Amount		Shares		Amount		Capital		Deficit			Interest			Deficit

Balance, June 30, 2021		226,542	$	22		2,500	$	1		-	$	-		3,629,252	$	363	$	27,648,732	$	(34,361,226	)	$	(12,498	)	$	(6,724,606	)

Creek Road Miners, Inc. [CRKR] Filings
10-Q	[2022-11-14]
10-Q	[2022-08-15]
10-Q	[2022-05-16]
10-K	[2022-03-31]
S-1	[2022-01-24]
10-Q	[2021-11-15]
S-1	[2021-09-22]
10-Q	[2021-08-13]
10-Q	[2021-05-17]
S-1	[2021-04-21]
10-K	[2021-03-29]
10-Q	[2020-11-16]
10-Q	[2020-08-14]
10-Q	[2020-05-15]
10-K	[2020-03-30]
10-Q	[2019-11-14]
10-Q	[2019-08-14]
10-Q	[2019-05-15]
10-K	[2019-04-01]
10-Q	[2018-11-14]
S-1	[2018-10-11]
10-Q	[2018-08-14]
10-Q	[2018-05-14]
10-K	[2018-04-02]
10-Q	[2017-11-14]
10-Q	[2017-08-21]
10-Q	[2017-05-22]
10-K	[2017-04-17]
10-Q	[2016-11-21]
10-Q	[2016-08-15]
10-Q	[2016-05-23]
10-K	[2016-04-14]
10-Q	[2015-11-16]
10-Q	[2015-08-07]
10-Q	[2015-05-15]
10-K	[2015-03-17]
10-Q	[2014-11-05]
10-Q	[2014-08-11]
10-Q	[2014-05-07]
10-K	[2014-03-03]
10-Q	[2013-11-08]
10-Q	[2013-08-07]
10-Q	[2013-05-15]
10-K	[2013-04-01]
10-Q	[2012-11-14]
10-Q	[2012-08-14]
10-Q	[2012-05-15]
10-K	[2012-04-16]
10-Q	[2012-03-13]
10-Q	[2012-03-05]
10-Q	[2012-03-02]
10-K	[2012-01-13]