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, 2022, Compared to the
Three Months Ended June 30, 2021
We have not generated any revenue to date.
Officer compensation was $0 compared to $24,000, for the three months ended June
30, 2022 and 2021, respectively. Officer compensation was accrued at $24,000 per
quarter for our former CEO.
Consulting expense was $0 compared to $54,976 for the three months ended June
30, 2022 and 2021, respectively.
Consulting expense - related party was $0 compared to $45,000 for the three
months ended June 30, 2022 and 2021, respectively. In the prior period we
incurred consulting expense of $15,000 per month for services provided by
Triage.
General and administrative expense ("G&A") was $46,748 compared to $11,302 for
the three months ended June 30, 2022 and 2021, respectively. G&A expense
increased in the current period primarily due an increase in legal fees of
$26,088.
Interest expense was $778 compared to $778 for the three months ended June 30,
2022 and 2021, respectively.
For the three months ended June 30, 2022, we had a net loss of $47,526, compared
to $135,056 in the prior period.
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Results of Operations for the Nine Months Ended June 30, 2022, Compared to the
Nine Months Ended June 30, 2021
We have not generated any revenue to date.
Officer compensation was $0 compared to $74,000, for the nine months ended June
30, 2022 and 2021, respectively. In the prior period officer compensation was
accrued at $24,000 per quarter for our former CEO.
Consulting expenses were $90,000 compared to $99,976 for the nine months ended
June 30, 2022 and 2021, respectively.
Consulting expenses - related party was $90,000 compared to $105,365 for the
nine months ended June 30, 2022 and 2021, respectively. We incurred consulting
expenses of $15,000 per month for services provided by Triage.
General and administrative expenses ("G&A") were $127,351 compared to $104,081
for the nine months ended June 30, 2022 and 2021, respectively. G&A expenses
increased in the current period primarily due to increased professional fees.
Interest expenses were $2,335 compared to $1,308 for the nine months ended June
30, 2022 and 2021, respectively.
For the nine months ended June 30, 2022, we had a net loss of $309,686 compared
to $384,370 in the prior period.
Liquidity and Capital Resources
Cash flow from operations
Cash used in operating activities for the nine months ended June 30, 2022, was
$74,935 as compared to $101,408 of cash used in operating activities for the
nine months ended June 30, 2021.
Cash Flows from Financing
For the nine months ended June 30, 2022, we received $43,077 from related party
loans and $31,848 from other loans. In the prior period we received $37,309 from
related party loans, $53,541 from other loans and $20,000 from the sale of
stock.
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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