Results of Operations
For the years ended October 31, 2020 and 2019, we had no income and incurred
$950 and $775, respectively, in professional fees.
The following table provides selected financial data about our company for the
years ended October 31, 2020 and 2019.
Balance Sheet Data: 10/31/20 10/31/19
Cash $ - $ -
Total assets $ - $ -
Total liabilities $ 64,154 $ 63,204
Shareholders' deficit $ (64,154 ) $ (63,204 )
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Liquidity and Capital Resources
Our cash balance at October 31, 2020 was $0, with $7,353 in accounts payable and
$56,801 in loans payable to related parties. If we experience a shortage of
funds in the next twelve months, we may utilize additional funds from our
director, Michael Noble and our major shareholder, Robert Gelfand, who have
agreed to advance funds for operations, however they have no formal commitment,
arrangement or legal obligation to advance or loan funds to us.
Plan of Operation
Our current cash balance is $0, which is not sufficient to cover the expenses we
will incur during the next twelve months. In order to achieve our business plan
goals, we must lease property and will need to realize revenue from oil & gas
sales. We are an exploration stage company and have generated $3,918 in revenue
from inception to October 31, 2020. We have sold $60,000 in equity securities to
pay for our start-up operations.
Our auditor has issued a going concern opinion. This means that there is
substantial doubt that we can continue as an on-going business for the next
twelve months unless we generate sufficient revenues from oil & gas sales. There
is no assurance we will ever reach that point. In the meantime, the continuation
of the Company is dependent upon the continued financial support from our
shareholders, our ability to obtain necessary equity financing to continue
operations and the attainment of profitable operations.
Our plan of operation for the fiscal year 2021 will be on pursuing the
acquisition of leases and/or existing oil and gas wells which have potential for
production. We will also be searching for other business opportunities in the
event we cannot acquire any new wells or leases. We anticipate spending $10,000
on professional fees, including fees payable for complying with reporting
obligations, $5,000 in general administrative costs and $1,500 in working
capital. Total expenditures over the next 12 months are therefore expected to be
approximately $16,500. If we are able to secure a new oil or gas lease the cost
would be in addition to this anticipated expenditure amount.
New management intends to bring the Company current in its filings with the
Securities and Exchange Commission and maintain compliance going forward. Prior
management failed to maintain compliance and was subsequently removed by a vote
of the majority of the shareholders. The Company filed a report on Form 10-Q
for the period ended April 30, 2017, but has been delinquent for financial
filings required from July 31, 2017 to the current date. During the period from
May 1, 2017 to the period covered by this report (November 1, 2018 to October
31, 2020) there were no material events that occurred that were not reported as
a subsequent event in financial filings or on Form 8-K. Current management and
a majority shareholder will provide funds to pay the costs of compliance until
such a time as the Company generates revenue to fund operations.
Off-Balance Sheet Arrangements
We have no off-balance sheet arrangements.
Going Concern
Our auditor has issued a going concern opinion. This means that there is
substantial doubt that we can continue as an on-going business for the next
twelve months unless we obtain additional capital to pay our bills. This is
because no revenues are anticipated until we begin extracting minerals if they
are found. There is no assurance we will ever reach that point.
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