CannAwake 10-Q 14 Aug 14 2014 Q2 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
	Jun. 30, 2014	Aug. 04, 2014
Document and Entity Information [Abstract]	'	'
Entity Registrant Name	'Delta International Oil & Gas Inc.	'
Entity Central Index Key	'0001112985	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Document Type	'10-Q	'
Document Period End Date	30-Jun-14	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q2	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock Shares Outstanding	'	32,338,826

Consolidated_Balance_Sheets_Un

Consolidated Balance Sheets (Unaudited) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Current Assets:	'	'
Cash	$1,486,052	$1,833,407
Receivable from sale of bidding rights and oil and gas properties	3,500,042	3,500,042
Total current assets	4,986,094	5,333,449
Investment in mineral properties	94,062	117,351
Investments in unproved oil and gas properties	1,290,398	1,609,889
Investment in oil refinery	87,731	109,452
Property and equipment	58,492	61,698
Other assets	7,864	8,234
TOTAL ASSETS	6,524,641	7,240,073
Current Liabilities:	'	'
Accounts payable	17,040	1,744
Accrued expenses	182,043	144,000
Notes payable	75,000	75,000
Liabilities for uncertain tax positions	60,298	75,228
Total current liabilities	334,381	295,972
Long-term deferred tax liability	633,590	633,590
Long-term debt payable to related parties	150,655	150,655
Total liabilities	1,118,626	1,080,217
Commitments and Contingencies	'	'
Stockholders' Equity:	'	'
Preferred stock $0.0001 par value-authorized 10,000,000 shares; no shares issued and outstanding at June 30, 2014 and December 31, 2013, respectively	'	'
Common stock $0.0001 par value - authorized 250,000,000 shares; 32,338,826 shares issued and outstanding at June 30, 2014 and December 31, 2013, respectively	3,233	3,233
Additional paid-in capital	7,070,232	7,021,482
Accumulated deficit	-1,104,291	-398,344
Accumulated other comprehensive loss	-563,159	-466,515
Total stockholders' equity	5,406,015	6,159,856
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$6,524,641	$7,240,073

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets (Parenthetical) (Unaudited) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Balance Sheets [Abstract]	'	'
Preferred stock, par value	$0.00	$0.00
Preferred stock, authorized	10,000,000	10,000,000
Preferred stock, shares issued	'	'
Preferred stock, shares outstanding	'	'
Common stock, par value	$0.00	$0.00
Common stock, authorized	250,000,000	250,000,000
Common stock, shares issued	32,338,826	32,338,826
Common stock, shares outstanding	32,338,826	32,338,826

Consolidated_Statements_of_Ope

Consolidated Statements of Operations (Unaudited) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Costs and Expenses:	'	'	'	'
General and administrative	$199,096	$177,671	$440,931	$359,001
Total cost and expenses	199,096	177,671	440,931	359,001
Loss from operations	-199,096	-177,671	-440,931	-359,001
Other Income (Expense):	'	'	'	'
Foreign exchange gain (loss)	-29,451	73,386	-258,540	-53,544
Interest expense	-3,238	-12,597	-6,476	-25,195
Life insurance proceeds	'	1,000,249	'	1,000,249
Other Income (expense)	-32,689	1,061,038	-265,016	921,510
Income (loss) before income taxes	-231,785	883,367	-705,947	562,509
Provision for income taxes	'	'	'	'
Net Income (loss)	($231,785)	$883,367	($705,947)	$562,509
Net income (loss) per common share:	'	'	'	'
Basic	($0.01)	$0.03	($0.02)	$0.02
Diluted	($0.01)	$0.03	($0.02)	$0.02
Weighted average common shares - Basic	32,338,826	32,086,826	32,338,826	32,080,528
Weighted average common shares - Diluted	32,338,826	32,428,557	32,338,826	32,389,517

Consolidated_Statements_of_Com

Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Statement of Comprehensive Income [Abstract]	'	'	'	'
Net earnings (loss)	($231,785)	$883,367	($705,947)	$562,509
Other comprehensive income (loss):	'	'	'	'
Foreign currency translation adjustment	-4,337	-196,670	-96,644	-154,246
Net change in other comprehensive income (loss)	-4,337	-154,246	-96,644	-154,246
Comprehensive income (loss)	($236,122)	$408,263	($802,591)	$408,263

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (Unaudited) (USD $)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Cash flows from Operating Activities:	'	'
Net income (loss)	($705,947)	$562,509
Warrants issued for services	48,750	16,250
Adjustments to reconcile net earnings (loss) to net cash used in operating activities:	'	'
Changes in operating assets and liabilities	53,339	-213,279
Net cash provided (used) in operating activities	-603,858	365,480
Cash flows from investing activities:	'	'
Oil and gas properties exploration and development costs	'	-28,389
Proceeds from sales of oil and gas properties and bidding rights	'	500,000
Net cash provided by investing activities	'	471,611
Cash flows from financing activities:	'	'
Settlement of notes payable to related parties	'	-623,970
Net cash provided by financing activities	'	-623,970
Effect of Exchange Rates on Cash	256,503	38,342
Net increase in cash	-347,355	251,463
Cash - Beginning of period	1,833,407	1,949,896
Cash - End of period	1,486,052	2,201,359
Changes in operating assets and liabilities consists of:	'	'
Increase (decrease) in accounts payable and accrued expenses	53,339	-213,279
Changes in assets and liabilities	53,339	-213,279
Supplemental disclosure of cash flow information:	'	'
Cash paid for interest	'	130,686
Cash paid for income taxes	'	'
Supplementary information:	'	'
Non cash financing and investing activities:	'	'

Basis_of_Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2014
Basis of Presentation [Abstract]	'
BASIS OF PRESENTATION	'
	1. BASIS OF PRESENTATION
	The accompanying unaudited interim consolidated financial statements of Delta International Oil & Gas Inc. (“Delta” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission, and should be read in conjunction with the audited consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosure contained in the audited financial statements for the most recent fiscal year end December 31, 2013 as reported on Form 10-K, have been omitted.

Reclassifications

Reclassifications	6 Months Ended
	Jun. 30, 2014
Reclassifications [Abstract]	'
Reclassifications	'
	2. Reclassifications
	Certain prior year amounts in the consolidated financial statements have been reclassified to conform to the current year presentation.

EarningsLoss_Per_Share

Earnings(Loss) Per Share	6 Months Ended
	Jun. 30, 2014
Earnings (Loss) Per Share [Abstract]	'
EARNINGS (LOSS) PER SHARE	'
	3. EARNINGS (LOSS) PER SHARE
	Basic earnings per share are computed by dividing net earnings by the weighted average number of common shares outstanding during the period.  Diluted earnings per common share are computed by dividing net earnings by the weighted average number of common share and potential common share outstanding during the period.  Potential common shares consist of outstanding common stock purchase warrants.  For the three and six months ended June 30, 2014 and 2013, there were 0, 0, 0 and 308,989, respectively of potentially dilutive common shares outstanding.

Receivable_from_Sale_of_Biddin

Receivable from Sale of Bidding Rights and Oil and Gas Properties	6 Months Ended
	Jun. 30, 2014
Receivable from Sale of Bidding Rights and Oil and Gas Properties [Abstract]	'
RECEIVABLE FROM SALE OF BIDDING RIGHTS AND OIL AND GAS PROPERTIES	'
	4. RECEIVABLE FROM SALE OF BIDDING RIGHTS AND OIL AND GAS PROPERTIES
	On March 30, 2012 the Company entered into the Cooperation Agreement with PPL. Under the Cooperation Agreement, PPL agreed to pay us $7,000,000 for certain exploration and exploitation rights to oil and gas deposits and certain bidding rights held by Delta on the following areas: Valle de Lerma in the province of Salta; San Salvador de Jujuy; Libertador General San Martin in the province of Jujuy; and Selva Maria in the province of Formosa.  Pursuant to a separate Agreement dated March 31, 2012, the Company has agreed with PPL to assign and transfer 50% of SAHF's current ownership of the Tartagal and Morillo (i.e., a 9% interest in the concession) to PPL for a purchase price of $500,000. PPL has also agreed in an Undertaking to provide funds to the operating entities of Valle de Lerma and Selva Maria (the San Salvador and Libertador concessions were awarded to another party, whose bid exceeded that of the Company for these concessions), in the aggregate amount of up to $10,000,000 (Selva Maria is pending for approval from the government, which is standard procedure in Argentina).
	As of December 31, 2012, the Company had received deposits in the amount of $3,499,958 from PPL on account of remainder of the proceeds has been recorded as a $4.0 million receivable from the sale of bidding rights and oil and gas properties. PPL is not current with the payment schedule set forth in the Cooperation Agreement, and the Company is in discussions with PPL to ensure that all payments provided for under the Cooperation Agreement are made within the time frame as required for concession financial commitments. In 2013, the Company received an additional payment of $500,000 .   During the third quarter of 2014, the Company received an additional payment of $200,000.

Related_Party_Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2014
Related Party Transactions [Abstract]	'
RELATED PARTY TRANSACTIONS	'
	5. RELATED PARTY TRANSACTIONS
	As of June 30, 2014 and December 31, 2013, the Company owes three shareholders $150,655.

Equity

Equity	6 Months Ended
	Jun. 30, 2014
Equity [Abstract]	'
EQUITY	'
	6. EQUITY
	On May 10, 2013, the Board of Directors of the Company authorized the issuance of a common stock purchase warrant effective May 1, 2013, to purchase 1,000,000 shares of common stock, on or before April 30, 2018, at an exercise price of $0.20 per share, to Phillips W. Smith, a director of the Company.  The number of shares of common stock as to which the warrant is exercisable vests in 24 monthly installments on the final day of each month during the term of the warrant, commencing May 31, 2013, and is vested in full as of April 30, 2015.  If Mr. Smith ceases to be an active member of the Company’s Board of Directors at any time in the two-year period May 1, 2013 through April 30, 2015, vesting will cease as of the last full month during which he was an active member of the Board.  The fair value of these warrants was $195,000 on the date of grant determined using the Black-Scholes option pricing model with the following inputs:  Exercise price of $0.20, expected term of 5 years, stock price of $0.20, volatility of 195%, discount rate of 5% and no expected dividends.  During the six months ended June 30, 2014 and 2013, the Company expensed $48,750 and $16,250, respectively, related to this award.

Commitments_And_Contingencies

Commitments And Contingencies	6 Months Ended
	Jun. 30, 2014
Commitments And Contingencies (Abstract)	'
COMMITMENTS AND CONTINGENCIES	'
	7.  COMMITMENTS AND CONTINGENCIES
	ECONOMIC AND POLITICAL RISK
	The Company is exposed in the inherent risks for the foreseeable future of conducting business internationally. Language barriers, foreign laws and tariffs and taxation issues all have a potential effect on the Company’s ability to transact business. Political instability may increase the difficulties and costs of doing business. Accordingly, events resulting from changes in the economic and political climate could have a material effect on the Company.
	OPERATING LEASES
	The Company entered into a lease agreement in February 2012 for 3,551 square feet of office space for its principal office in Arizona.  The lease expired in February 2013 and the Company has moved and has a two-year lease expiring in February 2015.
	Rent expense was $17,157 and $38,781 for the six months ended June 30, 2014 and 2013, respectively.
	EMPLOYMENT AGREEMENTS
	On April 26, 2010, the Company’s Board of Directors approved five-year term executive employment agreements (“Employment Agreements”) between the Company and Dr. Daniel R. Peralta, the Company’s former Chairman and Chief Executive Officer, and Malcolm W. Sherman, the Company’s Executive Vice President.  Mr. Sherman’s Employment Agreement was effective March 23, 2010, and provides for a fixed annual salary of $300,000, which is limited by agreement of the executive and the Board to $235,000. Under the Employment Agreement, he is eligible for participation in a bonus pool with other senior executives, the quarterly bonus amounts being based on financial performance comparisons with prior fiscal quarters, beginning with the quarterly reports of the Company for the year 2006 and each subsequent year during the respective terms of each of the Employment Agreements. Such bonus will be pooled with those of other senior executives and computed based on a total bonus pool equal to 15% of the net profits of the Company as set forth in the Company’s SEC filings.
	COUNTRY RISK
	The Company has significant operations in the Argentina. The operating results of the Company may be adversely affected by changes in the political and social conditions in the Argentina and by changes in Argentinean government policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things. The Company can give no assurance that those changes in political and other conditions will not result in have a material adverse effect upon the Company’s business and financial condition.
	EXCHANGE RISK
	The Company cannot guarantee the Argentinean Peso and US dollar exchange rate will remain steady, therefore the Company could post the same profit for two comparable periods and post higher or lower profit depending on exchange rate of Peso and US dollar. The exchange rate could fluctuate depending on changes in the political and economic environments without notice.

EarningsLoss_Per_Share_Details

Earnings(Loss) Per Share (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Earnings (Loss) Per Share [Abstract]	'	'	'	'
Potential common shares	0	0	0	308,989

Receivable_from_Sale_of_Biddin1

Receivable from Sale of Bidding Rights and Oil and Gas Properties (Details) (USD $)	1 Months Ended	3 Months Ended	12 Months Ended
	Mar. 31, 2012	Sep. 30, 2014	Dec. 31, 2013	Dec. 31, 2012
Receivable from Sale of Bidding Rights and Oil and Gas Properties (Textual)	'	'	'	'
Proceed from sale of Principle Petroleum Ltd.	$7,000,000	'	'	'
Percentage sale of share in SAHF's	50.00%	'	'	'
Percentage of interest in the concession	9.00%	'	'	'
Proceed from sale of share in SAHF's	500,000	'	'	'
Maximum limit to provide funds to the operating entities	10,000,000	'	'	'
Amount received as deposit for purchase exploration and exploitation rights	'	'	'	3,499,958
Receivable from the sale of bidding rights and oil and gas properties	'	'	'	4,000,000
Additional payments received from the sale of bidding rights and oil and gas properties	'	$200,000	$500,000	'

Related_Party_Transactions_Det

Related Party Transactions (Details) (USD $)	6 Months Ended	12 Months Ended
	Jun. 30, 2014	Dec. 31, 2013
	Shareholder	Shareholder
Related Party Transactions (Textual)	'	'
Long-term debt payable to related parties	$150,655	$150,655
Number of Shareholders	3	3

Equity_Details

Equity (Details) (USD $)	6 Months Ended		1 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	10-May-13
			Warrant [member]
Stockholders Equity Textuals	'	'	'
Warrants to purchase common shares	'	'	1,000,000
Warrants exercise price	'	'	$0.20
Fair value of warrants	'	'	$195,000
Volatility rate	'	'	195.00%
Expected term	'	'	'5 years
Stock price	'	'	$0.20
Discount rate	'	'	5.00%
Dividend rate	'	'	0.00%
Fair value assumptions, exercise price	'	'	$0.20
Share-based compensation expense	$48,750	$16,250	'
Vesting period description	'	'	'The number of shares of common stock as to which the warrant is exercisable vests in 24 monthly installments on the final day of each month during the term of the warrant, commencing May 31, 2013, and is vested in full as of April 30, 2015.

Commitments_And_Contingencies_

Commitments And Contingencies (Details) (USD $)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
	sqft
Commitments And Contingencies Textuals	'	'
Area of leased office space	3,551	'
Lease expiration period	'The lease expired in February 2013 and the Company has moved and has a two-year lease expiring in February 2015.	'
Rent expense	$17,157	$38,781
Mr. Sherman [Member]	'	'
Commitments And Contingencies Textuals	'	'
Fixed annual salary	300,000	'
Decrease in fixed annual salary	$235,000	'
Percentage of bonus	15.00%	'