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. 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.
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 December 31, 2022, compared to
the Three Months Ended December 31, 2022
We have not generated any revenue to date.
Consulting expense was $0 compared to $45,000 for the three months ended
December 31, 2022 and 2021, respectively. We are no longer using the consultant
that was compensated in the prior period.
Consulting expense - related party was $0 compared to $45,000 for the three
months ended December 31, 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 $59,100 compared to $34,384 for
the three months ended December 31, 2022 and 2021, respectively. G&A expense
increased in the current period primarily due an increase in audit and legal
fees.
Interest expense was $787 compared to $787 for the three months ended December
31, 2022 and 2021, respectively.
For the three months ended December 312022, we had a net loss of $59,887,
compared to $125,171 in the prior period.
Liquidity and Capital Resources
Cash flow from operations
Cash used in operating activities for the three months ended December 31, 2022,
was $5,500 as compared to $36,214 of cash used in operating activities for the
three months ended December 31, 2021.
Cash Flows from Financing
For the three months ended December 31, 2022, we received $5,500 from related
party loans. In the prior period we received $20,000 from related party loans
and $21,848 from other loans.
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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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