The following discussion should be read in conjunction with our condensed
consolidated financial statements and notes to our financial statements included
elsewhere in this report. This discussion contains forward-looking statements
that involve risks and uncertainties. Actual results could differ materially
from those anticipated in these forward-looking statements as a result of
various factors discussed elsewhere in this report.
Overview
Sino American Oil Company (the "Company") is a development stage enterprise that
was originally incorporated, on April 2, 2010, under the laws of the State of
Nevada. The Company is in the Oil and Gas Exploration, Development and
Production Business and has been since inception. The Company had appointed
Ronald Hughes as CEO from the company formation to December 16, 2016 and then
appointed Richard Tang to be the CEO and sole director on December 16, 2016. On
November 11, 2018, the Company filed a re-domestication to have its domestic
corporation be administered under the laws of the State of Wyoming. On January
31, 2021, the Company appointed Jeffrey Standen, as CEO and Director to
negotiate and oversee the exploration, development, acquisition and development
of new oil and natural gas reserves as well as explore new sources of revenue
opportunities.
Sino American Oil Company plans to grow shareholder value through securing oil
and natural gas reserves and negotiating oil and natural gas exploration,
development and production deals within the United States of America and Canada.
The focused industries are oil & gas exploration, oil & gas development, and oil
& gas production sales. We anticipate being able to generate revenue on the sale
of oil and gas.
Sino American Oil Company is currently negotiating deals within a very large
exploration area oil field owners located in the Western Canadian sedimentary
basin. The deals involve oil and gas production acquisitions, mineral land
acquisitions and further production increases through production optimization
and drilling activities as well as production infrastructure installations.
On January 16, 2020, the Company received a Cease Trade Order from the British
Columbia Securities Commission for failure to file records required as an OTC
reporting issuer. We are working to remedy this Order.
Results of Operations for the Three Months Ended June 30, 2021, Compared to the
Three Months Ended June 30, 2020
We have not generated any revenue to date.
Officer compensation was $24,000 compared to $24,000, for the three months ended
June 30, 2021 and 2020, respectively. Officer compensation is accrued at $24,000
per quarter for our CEO. In addition, during the current period we granted
725,000 shares of common stock for total non-cash expense of $725.
Consulting expense was $54,976 compared to $0 for the three months ended June
30, 2021 and 2020, respectively.
Consulting expense - related party was $45,000 compared to $0 for the three
months ended June 30, 2021 and 2020, respectively. During the three months ended
June 30, 2021, we incurred consulting expense of $15,000 per month for services
provided by Triage.
General and administrative expense ("G&A") was $11,302 compared to $196 for the
three months ended June 30, 2021 and 2020, respectively. G&A expense increased
primarily due to legal expense.
Results of Operations for the Nine Months Ended June 30, 2021, Compared to the
Nine Months Ended June 30, 2020
We have not generated any revenue to date.
Officer compensation was $74,000 compared to $72,000 for the nine months ended
June 30, 2021 and 2020, respectively. Officer compensation is accrued at $24,000
per quarter for our CEO.
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Consulting expense was $99,976 compared to $0 for the nine months ended June 30,
2021 and 2020, respectively. During the nine months ended June 30, 2021.
Consulting expense - related party was $105,365 compared to $0 for the nine
months ended June 30, 2021 and 2020, respectively. During the nine months ended
June 30, 2021, we incurred consulting expense of $15,000 per month for services
provided by Triage.
General and administrative expense ("G&A") was $104,081 compared to $712 for the
nine months ended June 30, 2021 and 2020, respectively. G&A expense increased
primarily due to audit, legal and accounting expense. We also incurred $58,000
of expense related to oil and gas fees.
Liquidity and Capital Resources
Cash flow from operations
Cash used in operating activities for the nine months ended June 30, 2021 was
$101,408 as compared to $712 of cash used in operating activities for the nine
months ended June 30, 2020.
Cash Flows from Financing
For the nine months ended June 30, 2021, we received $20,000 from the sale of
common stock and $90,850 from related party loans. In the prior period we
received $712 from a related party loan.
Going Concern
The accompanying unaudited financial statements have been prepared on a going
concern basis, which contemplates the realization of assets and the satisfaction
of liabilities in the normal course of business. The Company has no source of
revenue, has suffered recurring losses since inception and has no assurance of
future profitability. The Company will continue to require financing from
external sources to finance its operating and investing activities until
sufficient positive cash flows from operations can be generated. There is no
assurance that financing or profitability will be achieved, accordingly, there
is substantial doubt about the Company's ability to continue as a going concern.
The financial statements of the Company do not include any adjustments that may
result from the outcome of these uncertainties.
Off-Balance Sheet Arrangements
We have no off-balance sheet arrangements.
Critical Accounting Policies
We have identified the policies outlined below as critical to our business
operations and an understanding of our results of operations. Refer to Note 2 -
Summary of Significant Accounting Policies for discussion.
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