This discussion should be read in conjunction with the other sections contained herein, including the risk factors and the consolidated financial statements and related schedules contained herein. The various sections of this discussion contain a number of forward-looking statements, all of which are based on our current expectations and could be affected by the uncertainties and risk factors described throughout this report as well as other matters on which we have no control. Our actual results may differ materially from those anticipated in these forward-looking statements due to certain factors, including, but not limited to, those set forth in this report. See “Risk Factors” and “Caution Regarding Forward-Looking Statements”.
The Company was incorporated in
The future of our business depends on its ability to obtain financing and its future profitable operations. Management intends to raise additional capital through a private placement and a public offering of its common stock, if necessary. Our auditors have expressed a going concern opinion that raises substantial doubt about the Company’s ability to continue as a going concern.
The Company’s financial statements are prepared in accordance with generally accepted accounting principles.
Under the going concern assumption, an entity is generally considered to continue as a going concern for the foreseeable future without the intention or need to wind up, go out of business, or seek protection from creditors in accordance with laws or regulations. . Accordingly, assets and liabilities are recognized on the basis that the entity will be able to realize its assets and discharge its liabilities in the normal course of business.
The Company’s ability to continue as a going concern depends on its ability to successfully execute the plan described in the business paragraph and eventually achieve profitable operations. The accompanying financial statements do not include any adjustments that may be necessary if the Company is unable to continue as a going concern.
Over the next fiscal year, the Company’s foreseeable cash needs will be linked to the continued development of its business operations, the maintenance of its good reputation and the making of the required deposits with the
Historically, it has relied primarily on internally generated funds and funds from equity sales to fund its operations and growth. Management may raise additional capital through future public or private offerings of Company stock or through loans from private investors, although there can be no assurance that it will be able to obtain such financing. Failure of the Company to do so could have a material adverse effect on it and its shareholders.
Results of Operations
For the year ended
Over the years ended
During the year ended
Cash and capital resources
During the year ended
during the year ended
At various times during the year ended
In summary, our cash flows were as follows:
Fiscal Year Ended
December 31, 20212020
Net cash used in operating activities
Net cash used in investing activities
(95,791 ) (30,000 ) Net cash provided by financing activities 452,900 139,394 Net change in cash and cash equivalents 217 - Cash and cash equivalents, beginning of year - - Cash and cash equivalents, end of year $ 217 $ - Short Term
In the short term, the Company has not generated sufficient revenue to cover its operations. Based on past history, the Company will continue to have insufficient revenues to satisfy current and recurring liabilities as the Company continues its exploration activities.
Other than targeted acquisitions, the Company has no material commitments for capital expenditures over the next year, but if operations are initiated, significant capital will be required to pay for participation, investigation, exploration, acquisition and working capital.
Need for Additional Financing
The Company does not have sufficient capital to meet its cash requirements. The Company will need to seek loans or equity investments to cover these cash requirements. Once exploration begins, its need for additional funding will likely increase significantly.
No commitment to provide additional funds has been made by the management of the Company or other shareholders. Accordingly, there can be no assurance that additional funds will be made available to enable us to meet Company expenses when they may be incurred.
The Company will require substantial additional capital to support its proposed future oil exploration activities. The Company has minimal revenues. The Company has no committed source of funds as of the date hereof. No representation is made that funds will be available should the need arise. If the funds cannot be raised when needed, the Company may not be able to carry out its business plan, may never realize sales or royalty income and may go bankrupt due to these uncertainties.
Decisions regarding future participation in exploration wells or geophysical studies or other activities will be made on a case-by-case basis. The Company may, in any particular case, decide to participate or refuse to participate. If it participates, the Company may pay its share of the costs to maintain the Company’s proportionate interest through cash flow, debt or equity financing. If participation is declined, the Company may choose to subcontract, not consent, sell or otherwise negotiate a cost-sharing method to maintain an ongoing interest in the prospect.
Off-balance sheet arrangements
Critical Accounting Policies
The discussion and analysis of our financial condition and results of operations are based on our consolidated financial statements, which have been prepared in accordance with
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