Cover
Cover - shares | 12 Months Ended | |
Dec. 31, 2022 | Mar. 23, 2023 | |
Entity Addresses [Line Items] | ||
Document Type | 20-F/A | |
Amendment Flag | true | |
Amendment Description | Edits to the audit letter | |
Document Registration Statement | false | |
Document Annual Report | true | |
Document Transition Report | false | |
Document Shell Company Report | false | |
Document Period End Date | Dec. 31, 2022 | |
Document Fiscal Period Focus | FY | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 000-500934 | |
Entity Registrant Name | STRATA POWER CORPORATION | |
Entity Central Index Key | 0001227282 | |
Entity Incorporation, State or Country Code | A0 | |
Entity Address, Address Line One | 500 – 4th Avenue SW | |
Entity Address, Address Line Two | Suite 2500 | |
Entity Address, City or Town | Calgary | |
Entity Address, State or Province | AB | |
Entity Address, Country | CA | |
Entity Address, Postal Zip Code | T2P 2V6 | |
Title of 12(g) Security | Common Stock | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | Yes | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | false | |
Document Accounting Standard | U.S. GAAP | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 20,085,119 | |
Auditor Firm ID | 5525 | |
Auditor Name | Fruci & Associates II, PLLC | |
Auditor Location | Spokane, Washington | |
Business Contact [Member] | ||
Entity Addresses [Line Items] | ||
Entity Address, Address Line One | 500 – 4th Avenue SW | |
Entity Address, Address Line Two | Suite 2500 | |
Entity Address, City or Town | Calgary | |
Entity Address, State or Province | AB | |
Entity Address, Country | CA | |
Entity Address, Postal Zip Code | T2P 2V6 | |
City Area Code | 877 | |
Local Phone Number | 237-5443 | |
Contact Personnel Name | Strata Chief Executive Officer |
BALANCE SHEETS
BALANCE SHEETS - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash | $ 80,905 | $ 7,696 |
GST receivables | 9,330 | 2,448 |
Royalty receivables | 39,578 | 19,619 |
Prepaid expenses | 10,697 | 4,106 |
Total current assets | 140,510 | 33,870 |
Reclamation deposits | 95,968 | 101,139 |
Total assets | 236,478 | 135,009 |
Current liabilities | ||
Accounts payable and accrued liabilities | 34,264 | 42,503 |
Accounts payable and accrued liabilities - related party | 15,956 | 22,115 |
Notes payable, net of debt discount | 8,584 | 33,503 |
Derivative liabilities | 14,690 | 210,929 |
Total current liabilities | 73,494 | 309,050 |
Deferred revenue - royalty agreement (Note 9) | 300,000 | 300,000 |
Asset retirement obligation | 71,975 | 214,960 |
Total long-term liabilities | 371,975 | 514,960 |
Total liabilities | 445,469 | 824,010 |
Commitments and Contingencies | ||
Stockholders' equity (deficit) | ||
Preferred stock: no par value, unlimited shares authorized and none issued | 0 | 0 |
Common stock: no par value, unlimited shares authorized; 20,085,119 shares issued and outstanding at December 31, 2022 and 2021, respectively | 0 | 0 |
Additional paid-in capital | 23,404,083 | 23,404,083 |
Common shares to be issued | 5,000 | 5,000 |
Accumulated deficit | (23,214,872) | (23,692,529) |
Accumulated other comprehensive income | (403,202) | (405,555) |
Total stockholders' equity (deficit) | (208,991) | (689,001) |
Total liabilities and stockholders' equity (deficit) | $ 236,478 | $ 135,009 |
BALANCE SHEETS (Parenthetical)
BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock, no par value | $ 0 | $ 0 |
Preferred Stock, Shares Issued | 0 | 0 |
Common stock, no par value | $ 0 | $ 0 |
Common stock shares issued | 20,085,119 | 20,085,119 |
Common stock shares outstanding | 20,085,119 | 20,085,119 |
STATEMENTS OF OPERATIONS AND CO
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Income: | |||
Royalty income | $ 398,427 | $ 31,296 | $ 0 |
Operating Expenses: | |||
Professional fees | 30,687 | 16,164 | 15,378 |
Office and sundry | 632 | 862 | 1,604 |
Consulting fees | 140,806 | 1,356 | 0 |
Transfer agent fees | 552 | 2,636 | 2,263 |
Accretion expense | 16,308 | 15,687 | 12,669 |
License fee | 0 | 59,828 | 0 |
Oil & gas properties expense | 22,263 | 11,088 | 38,069 |
Total operating expenses | 211,248 | 107,621 | 69,983 |
Other income (expense): | |||
Interest income | 1,799 | 509 | 952 |
Other income | 143,950 | 0 | 0 |
Amortization of debt discount | (51,000) | (21,000) | 0 |
Interest expense | (2,903) | (3,907) | (240) |
Loss on issuance of convertible note | 0 | (55,049) | 0 |
Gain on disposal of properties | 0 | 0 | 29,437 |
Foreign exchange gain (loss) | 3,380 | (2,918) | (7,812) |
Change in fair value of derivative liability | 195,252 | (59,773) | 24,687 |
Total other income (expense) | 290,478 | (142,138) | 47,024 |
Net income (loss) | 477,657 | (218,463) | (22,959) |
Other comprehensive income (loss) | |||
Foreign currency translation adjustment | 2,353 | (245) | (738) |
Comprehensive income (loss) | $ 480,010 | $ (218,708) | $ (23,697) |
Earnings per common share (Note 3) | |||
Basic | $ 0.02 | $ (0.01) | $ 0 |
Diluted | $ 0.02 | $ (0.01) | $ 0 |
Weighted average number of shares outstanding: | |||
Basic | 20,085,119 | 20,085,119 | 20,085,119 |
Diluted | 20,085,119 | 20,085,119 | 20,085,119 |
STATEMENTS OF CHANGES IN STOCKH
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Common Shares To Be Issued [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Beginning balance, value at Dec. 31, 2019 | $ 23,404,083 | $ (23,451,107) | $ (404,572) | $ (451,596) | ||
Shares, Outstanding, Beginning Balance at Dec. 31, 2019 | 20,085,119 | |||||
Common shares to be issued from exercise of options and warrants | 5,000 | 5,000 | ||||
Net income and comprehensive income | (22,959) | (738) | (23,697) | |||
Ending balance, value at Dec. 31, 2020 | 23,404,083 | 5,000 | (23,474,066) | (405,310) | (470,293) | |
Shares, Outstanding, Ending Balance at Dec. 31, 2020 | 20,085,119 | |||||
Net income and comprehensive income | (218,463) | (245) | (218,708) | |||
Ending balance, value at Dec. 31, 2021 | 23,404,083 | 5,000 | (23,692,529) | (405,555) | (689,001) | |
Shares, Outstanding, Ending Balance at Dec. 31, 2021 | 20,085,119 | |||||
Net income and comprehensive income | 477,657 | 2,353 | 480,010 | |||
Ending balance, value at Dec. 31, 2022 | $ 23,404,083 | $ 5,000 | $ (23,214,872) | $ (403,202) | $ (208,991) | |
Shares, Outstanding, Ending Balance at Dec. 31, 2022 | 20,085,119 |
STATEMENTS OF CASH FLOWS
STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities | |||
Net income (loss) | $ 477,657 | $ (218,463) | $ (22,959) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | |||
Accrued interest | 2,903 | 3,905 | 229 |
Accretion expense | 16,308 | 15,687 | 12,669 |
Amortization of debt discount | 51,000 | 21,000 | 0 |
Change in fair value of derivative liabilities | (195,252) | 59,773 | (24,687) |
Loss on issuance of convertible note | 0 | 55,049 | 0 |
Gain on disposal of oil and gas properties | 0 | 0 | (29,437) |
Change in PetroSteam license | 0 | 59,828 | 0 |
Change in assets and liabilities | |||
GST receivable | (6,881) | (101) | (66) |
Royalty receivable | (19,959) | (19,619) | 0 |
Prepaid expenses | (6,591) | (4,106) | 461 |
Accounts payable and accrued liabilities | 7,716 | (58,864) | 43,956 |
Accrued liabilities – related party | (21,907) | 0 | (27) |
Asset retirement obligation | (143,950) | 0 | 0 |
Net cash provided by (used in) operating activities | 161,044 | (85,911) | (19,861) |
Cash flows from investing activities | |||
Reclamation Deposits | (1,798) | (509) | (882) |
Proceeds from the sale of property | 0 | 0 | 29,437 |
Net cash provided by (used in) investing activities | (1,798) | (509) | 28,555 |
Cash flows from financing activities | |||
Proceeds from exercise of options and warrants | 0 | 0 | 5,000 |
Proceeds from issuance of convertible note | 0 | 72,000 | 0 |
Payments on convertible note | (78,209) | 0 | 0 |
Net cash provided by (used in) financing activities | (78,209) | 72,000 | 5,000 |
Foreign exchange effect on cash | (7,828) | 399 | 3,466 |
Net increase (decrease) in cash | 73,209 | (14,021) | 17,160 |
Cash, beginning balance | 7,696 | 21,717 | 4,557 |
Cash, ending balance | 80,905 | 7,696 | 21,717 |
Supplemental disclosure of cash paid for: | |||
Interest | 0 | 0 | 0 |
Income taxes | 0 | 0 | 0 |
Non-cash investing and financing activities | |||
Debt discount due to derivative liabilities | $ 0 | $ 72,000 | $ 0 |
NATURE OF BUSINESS
NATURE OF BUSINESS | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF BUSINESS | NOTE 1. NATURE OF BUSINESS Strata Power Corporation (the “Company”) is currently engaged in the acquisition, exploration and, if warranted, feasible development of heavy oil projects in the Peace River oil sands region in Northern Alberta, Canada. The Company was incorporated under the laws of the State of Nevada on November 18, 1998 and commenced operations in January 1999. The Company completed its initial public offering in February 2000. The Company is presently incorporated under the Canada Business Corporations Act. On December 27, 2018, the Company filed a Certificate of Amendment with Corporations Canada changing its name from Strata Oil & Gas Inc. to Strata Power Corporation. As of December 31, 2022, the Company has a 50 7 8,704 10 1 |
ABILITY TO CONTINUE AS A GOING
ABILITY TO CONTINUE AS A GOING CONCERN | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ABILITY TO CONTINUE AS A GOING CONCERN | NOTE 2. ABILITY TO CONTINUE AS A GOING CONCERN As shown in the accompanying financial statements, the Company has realized some revenue from its present operations. During the year ended December 31, 2022, the Company had net income of $ 477,657 161,044 23,214,872 The Company's ability to continue as a going concern is dependent on its ability to develop its oil and gas properties and ultimately achieve profitable operations, and to generate sufficient cash flow from financing and operations to meet its obligations as they become payable. The Company expects that it will need approximately $ 200,000 |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 3. SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate so as to make the information presented not misleading. Risks and Uncertainties The Company is subject to additional risks and uncertainties due to the COVID-19 pandemic. The extent of the impact on the Company’s business is uncertain and difficult to predict. The Company considered the impact of COVID-19 on the assumptions and estimates used and determined that there has been no material impact on the Company’s year-to-date results of operations. The Company cannot reasonably estimate with any degree of certainty the future impact COVID-19 may have on the Company’s results of operations, financial position and liquidity. Management’s Estimates and Assumptions The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the balance sheet date, and revenues and expenses for the period then ended. Management believes that all applicable estimates and adjustments are appropriate. Actual results could differ significantly from those estimates. Concentration of Revenue For the year ended December 31, 2022, the Company had a concentration of revenue related to a single royalty contract, accounting for 100 Oil and Gas Property Payments and Exploration Costs All costs incurred in the acquisition, exploration and development of natural gas and oil interests are capitalized as incurred. Capitalized costs associated with proven properties are amortized using the units-of-production method over the estimated life of the probable reserve. Capitalized costs associated with unproved properties are excluded from the amortization calculations and assessed, at least annually, to determine if impairment has occurred, until such time as those costs are proven. Impairment amounts are immediately expensed and no costs have been capitalized through December 31, 2022. Cash and Cash Equivalents The Company considers all highly liquid investments purchased with a maturity of 90 days or less to be cash equivalents. The Company maintains cash and cash equivalent balances with financial institutions that may exceed federally insured limits. There were no GST Receivables Goods and Services Tax (GST) receivables are presented net of an allowance for doubtful accounts. Receivables consist of goods and services input tax credits. The allowance for doubtful accounts on GST receivables was $nil at December 31, 2022 and 2021. Impairment of Long-lived Assets In accordance with ASC 360, Property, Plant and Equipment, Asset Retirement Obligations In accordance with ASC 410, Asset Retirement and Environmental Obligations, Income Taxes The Company follows the asset and liability method of accounting for income taxes whereby deferred tax assets and liabilities are recognized for the future tax consequences of differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. If it is determined that the realization of the future tax benefit is not more likely than not, the Company establishes a valuation allowance. Foreign Exchange Translation The Company's functional currency is the Canadian dollar but reports its financial statements in US dollars. The Company translates its Canadian dollar balances to US dollars in the following manner: Assets and liabilities have been translated using the rate of exchange at the balance sheet date. Equity transactions and results of operations have been translated at historical rates. Translation gains or losses resulting from the changes in the exchange rates are accumulated as other comprehensive income or loss in a separate component of stockholders' equity. All amounts included in the accompanying financial statements and footnotes are stated in U.S. dollars. Derivative Financial Instruments The Company reviews the terms of its equity instruments and other financing arrangements to determine whether there are embedded derivative instruments that are required to be accounted for separately as a derivative financial instrument. Also, in connection with the issuance of financing instruments, the Company has issued freestanding warrants that are accounted for as derivative instrument liabilities because they are exercisable in a currency other than the functional currency of the Company and thus do not meet the “fixed-for-fixed” criteria of ASC 815-40-15. The warrants are exercisable in United States dollars and the Company’s functional currency is the Canadian dollar. Derivative financial instruments are initially measured at their fair value. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported as charges or credits to income. For derivative financial instruments, the Company uses the Black-Scholes option pricing model to value the derivative instruments. Any exercise or cancellation of an equity instrument which meets the classification of a derivative financial instrument is trued-up to fair value at that date and the fair value of the exercised instrument is then reclassified from liability to additional paid in capital. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is reassessed at the end of each reporting period. If reclassification is required, the fair value of the derivative instrument, as of the determination date, is reclassified. Any previous charges or credits to income for changes in the fair value of the derivative instrument are not reversed. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within 12 months of the balance sheet date. Stock Based Compensation In accordance with ASC 718, “Compensation – Stock Compensation” (“ASC 718”), which was adopted as of January 1, 2019, the Company measures all employee stock-based compensation awards using a fair value method on the date of grant and recognizes such expense in its financial statements over the requisite service period. The Company uses the Black-Scholes pricing model to determine the fair value of stock-based compensation awards on the date of grant. The Black-Scholes pricing model requires management to make assumptions regarding option lives, expected volatility, and risk-free interest rates. The Company accounts for employee stock-based compensation in accordance with the guidance of FASB ASC Topic 718, Compensation—Stock Compensation, The Company uses historical data to estimate option exercise, forfeiture and employee termination within the valuation model. For non-employees, the expected term of the options approximates the full term of the options. The risk-free interest rate is based on a treasury instrument whose term is consistent with the expected term of the stock options. The Company has not paid and does not anticipate paying dividends on its common stock; therefore, the expected dividend yield is assumed to be zero. In addition, accounting standard requires companies to utilize an estimated forfeiture rate when calculating the expense for the reporting period. Based on its best estimate, management applied the estimated forfeiture rate of nil in determining the expense recorded in the accompanying Statements of Operations and Comprehensive Income (Loss). Expected volatilities are calculated using the historical volatility of the Company’s stock. When applicable, the Company will use historical data to estimate option exercise, forfeiture and employees’ termination within the valuation model. For non-employees, the expected term of the options approximates the full term of the options. Earnings (Loss) Per Share of Common Stock Basic earnings (loss) per share of common stock is computed by dividing net income (loss) available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted earnings per share of common stock reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company. Dilutive potential common shares are calculated in accordance with the treasury stock method, which assumes that proceeds from the exercise of all warrants and options are used to repurchase common stock at market value. The number of shares remaining after the proceeds are exhausted represents the potentially dilutive effect of the securities. For the years ended December 31, 2022 and 2021, all of the outstanding options and warrants had an exercise price above the average stock price for year-end period. Accordingly, all of the potentially dilutive shares were excluded from the computation of diluted shares outstanding as they would have had an anti-dilutive impact on the Company’s income (loss) from continuing operations. Fair Value of Financial Instruments The book values of GST receivables, notes receivable, accounts payable and accrued expenses approximate their respective fair values due to the short-term nature of these instruments. The fair value hierarchy under GAAP distinguishes between assumptions based on market data (observable inputs) and an entity’s own assumptions (unobservable inputs). The hierarchy consists of three levels: · Level one · Level two · Level three Determining which category an asset or liability falls within the hierarchy requires significant judgment. Hierarchy disclosures are evaluated at each balance sheet date. Liabilities measured at fair value are summarized as follows as of: Liabilities measured at fair value Fair Value Measurement at Fair Value Measurement at December 31, 2022 December 31, 2021 Using Using Level 3 Total Level 3 Total Derivative liabilities $ 14,690 $ 14,690 $ 210,929 $ 210,929 Asset Retirement Obligation (see Note 8) 71,975 71,975 214,960 214,960 In 2021, the Company issued a convertible note in which the conversion rate is variable. As a result, a derivative liability was recorded (see Note 9). In addition, the Company has warrants with a strike price currency different than the functional currency as has recorded a derivative liability associated with that. The Company measures and reports the fair value liability for these derivative liabilities on a recurring basis. The fair value liabilities have been recorded as determined utilizing the Black-Scholes option pricing model. A slight change in an unobservable input like historical volatility could have a significant impact on the fair value measurement of the derivative liabilities. See Note 6 “Derivative Liabilities” for further discussion of the inputs used in determining the fair value. Revenue Recognition The Company has adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 606, Revenue from Contracts with Customers utheast portion of the Peace River oil sands area that were sold in May 2019 (see Note 4) and recognizes revenue at the time petroleum is sold. The Company’s revenue recognition policy standards include the following elements under ASU 606: 1. Identify the contract with the customer. The contract is documented in the Purchase and Sale Agreement dated 5/14/2019. 2. Identify the performance obligations in the contract. The performance obligation in the contract required Strata to relinquish its interest in three oil sands located in the southeast portion of the Peace River oil sands area. 3. Determine the transaction price. The transaction price was C$ 60,000 4. Allocate the transaction price to the performance obligations in the contract. The Company only has one performance obligation, the transfer of the rights to the three oil sands leases, which has already been fulfilled. 5. Recognize revenue when (or as) the entity satisfies a performance obligation. The C$60,000 was recognized as a sale of the shallower oil sands rights in 2019, resulting in a gain from the disposition of the leases. The 2.5% overriding petroleum royalties are recognized as revenue in the period that the other party produces and sells petroleum from the oil sands leases, which began in September 2021. The royalties that have been received to date have been highly variable, as the amounts are dependent upon the monthly production, the demand of the buyers, the spot price of petroleum, etc. As such, management has determined that the revenue recognition shall be treated as variable consideration as defined in ASC 606. Variable consideration should only be recognized to the extent that it is probable that a significant reversal of revenue will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Given the fact that royalties to date have been highly variable with a great degree of uncertainty, and any attempts to estimate future revenue would likely result in a significant reversal of revenue, royalty revenue will be recognized when payments and settlement statements are received, in the period for which the petroleum was produced. It is at that time that any uncertainty related to royalty payments is resolved. The Company applied ASC 606 using the modified retrospective method applied to contracts not yet completed as of the date of adoption. Comprehensive Income (Loss) Comprehensive income (loss) is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. The Company's items of other comprehensive income (loss) are foreign currency translation adjustments. Related Party Transactions A related party is generally defined as (i) any person who holds 10% or more of the Company’s securities and their immediate families, (ii) the Company’s management, (iii) an entity or person who directly or indirectly controls, is controlled by or is under common control and/or management with the Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. New Accounting Pronouncements In August 2020, the FASB issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470- 20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”), which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity. This ASU (1) simplifies the accounting for convertible debt instruments and convertible preferred stock by removing the existing guidance in ASC 470-20, Debt: Debt with Conversion and Other Options, that requires entities to account for beneficial conversion features and cash conversion features in equity, separately from the host convertible debt or preferred stock; (2) revises the scope exception from derivative accounting in ASC 815-40 for freestanding financial instruments and embedded features that are both indexed to the issuer’s own stock and classified in stockholders’ equity, by removing certain criteria required for equity classification; and (3) revises the guidance in ASC 260, Earnings Per Share, to require entities to calculate diluted earnings per share (EPS) for convertible instruments by using the if-converted method. In addition, entities must presume share settlement for purposes of calculating diluted EPS when an instrument may be settled in cash or shares. For SEC filers, excluding smaller reporting companies, ASU 2020-06 is effective for fiscal years beginning after December 15, 2021 including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. For all other entities, ASU 2020-06 is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Entities should adopt the guidance as of the beginning of the fiscal year of adoption and cannot adopt the guidance in an interim reporting period. The Company is currently evaluating the impact that ASU 2020-06 may have on its consolidated financial statements and related disclosures. The Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations. |
ROYALTY INTEREST
ROYALTY INTEREST | 12 Months Ended |
Dec. 31, 2022 | |
Royalty Interest | |
ROYALTY INTEREST | NOTE 4. ROYALTY INTEREST Pursuant to the Purchase and Sale Agreement with an unrelated third party dated May 2019, in which the Company sold three oil sands leases located in the southeast portion of the Peace River oil sands area, the Company retained a 2.5 398,427 31,296 |
PETROSTEAM LICENSE
PETROSTEAM LICENSE | 12 Months Ended |
Dec. 31, 2022 | |
Petrosteam License | |
PETROSTEAM LICENSE | NOTE 5. PETROSTEAM LICENSE On March 20, 2019, the Company entered into an exclusive license agreement with PetroSteam LLC to obtain an exclusive right to deploy patented and field-tested proprietary technologies utilizing steam generation applied to bitumen and heavy oil recovery in the Provinces of Alberta and Saskatchewan. In exchange, the Company issued 2,991,400 12,500,000 |
DERIVATIVE LIABILITIES
DERIVATIVE LIABILITIES | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Liabilities | |
DERIVATIVE LIABILITIES | NOTE 6. DERIVATIVE LIABILITIES Derivative liabilities consist of common stock warrants with an exercise price in a different currency than the Company’s functional currency. In addition, the Company identified embedded derivatives related to a convertible promissory note issued in 2021 (see Note 9). These embedded derivatives include certain conversion features. The derivative liabilities are accounted for as separate liabilities measured at their respective fair values as follows: Derivative liabilities Derivative liabilities associated with: Warrants Convertible Note Total Balance, December 31, 2020 $ 24,336 $ – $ 24,336 Issuance of convertible note – 127,049 127,049 Fair value of expired warrant (1,258 ) – (1,258 ) Change in fair value of derivative liabilities 17,585 43,446 61,031 Foreign exchange effect on derivative liability (229 ) – (229 ) Balance, December 31, 2021 $ 40,434 $ 170,495 $ 210,929 Change in fair value of derivative liabilities (24,757 ) (170,495 ) (195,252 ) Foreign exchange effect on derivative liability (987 ) – (987 ) Balance, December 31, 2022 $ 14,690 $ – $ 14,690 The fair value of the derivative liabilities has been determined using the Black-Scholes option pricing model using the following range of assumptions: Assumptions used for derivatives 2022 2021 2020 Volatility 322.4% 545.20% 411.10% Expected life 0.41 to 9.99 years 0.45 to 2.12 years 0.33 to 3.12 years Risk-free interest rate 3.27% - 4.06% 0.95% - 1.42% 0.20% - 0.67% Dividend yield 0.00% 0.00% 0.00% |
OIL AND GAS PROPERTIES
OIL AND GAS PROPERTIES | 12 Months Ended |
Dec. 31, 2022 | |
Extractive Industries [Abstract] | |
OIL AND GAS PROPERTIES | NOTE 7. OIL AND GAS PROPERTIES During the period June 2006 through January 2007, the Company acquired the rights to multiple oil sands leases within the Peace River area of Alberta, Canada (the “Peace River Properties”). The leases were granted by the Province of Alberta. All the leases were for a 15-year term, required minimum annual lease payments, and granted the Company the right to explore and develop oil sands on the respective leases. On February 22, 2016, the Company acquired an additional 45 oil sands leases by entering into two purchase and sale agreements. The oil sands leases represented 39,680 hectares (98,051 acres) in the Peace River area of Alberta. One of the purchase / sale agreements was with a related party. On May 14, 2019, the Company sold the shallower oil sands rights on two of its oil sands lease blocks in the Cadotte East area to an unrelated third party, but retained the deeper oil sands rights, including the Debolt-Elkton formations. The Company also retained a 2.5% overriding royalty on all petroleum substances produced from the shallower oil sands rights on those two lease blocks. The Company will continue to pay annual lease fees on those two oil sands lease blocks, but at a rate of 50%, and the unrelated third party will pay the other 50%. On three of its oil sands lease blocks in the Reno area, the Company sold 100% of its interest to an unrelated third party and retained a 2.5% overriding royalty on all petroleum substances produced from those oil sands lease blocks. On those three oil sands lease blocks, the unrelated third party has taken over 100% of the annual lease fees. On June 11, 2020, the Company sold the shallower oil sands rights on five of its oil sands leases in the Cadotte Central area to an unrelated third party, but retained the deeper oil sands rights, including the Debolt-Elkton formations. The Company also retained a 2.5% overriding royalty on all petroleum substances produced from those oil sands lease blocks. The Company will continue to pay annual lease fees on those two oil sands lease blocks, but at a rate of 50%, and the third party will pay the other 50%. Throughout 2020, the Company chose to not renew their remaining oil sands leases due to the economic conditions in the Alberta heavy oil sector. All the Company’s lease interests in the Peace River area are subject to royalties payable to the government of the Province of Alberta. The royalty is calculated using a revenue-less-cost formula. In years prior to the recovery of the project’s capital investment, the royalty is 1% of gross revenue. Once the project costs have been recovered, the royalty is the greater of 1% of gross revenue or 25% of net revenue. The Company completed drilling four exploratory wells during the fiscal year ended December 31, 2007. Since then, the Company completed several third-party technical reports on its oil sands leases including a prefeasibility study and developed an oil sands exploration program, which it was not able to execute on due to weak conditions in the heavy oil sector. |
ASSET RETIREMENT OBLIGATIONS
ASSET RETIREMENT OBLIGATIONS | 12 Months Ended |
Dec. 31, 2022 | |
Asset Retirement Obligation Disclosure [Abstract] | |
ASSET RETIREMENT OBLIGATIONS | NOTE 8. ASSET RETIREMENT OBLIGATIONS During 2007, the Company drilled four wells on its Peace River Property, one of which was abandoned. Total future asset retirement obligations for the remaining three wells were estimated by management based on the Company’s working interest in its wells and facilities, estimated costs to remediate, reclaim and abandon the wells and facilities and the estimated timing of the costs to be incurred in future periods. The Company estimated the net present value of its total asset retirement obligations to be approximately $ 214,960 225,229 71,975 143,950 Reclamation expenses for the remaining well are expected to be incurred between 2023 and 2030. The Company used a credit adjusted discount rate of 10% per annum and an inflation rate of 2% to calculate the present value of the asset retirement obligation. Accretion expense of $ 16,308 15,687 12,669 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 9. RELATED PARTY TRANSACTIONS Related party transactions not disclosed elsewhere in these financial statements include: Deferred Revenue - Royalty Agreement The Company has negotiated a royalty agreement with a related party by common CEO and director. In exchange for a non-refundable payment of $300,000, the Company intends to provide a royalty stream to this related party based on the gross production of Vanadium Oxide (“Vanadium”) from the company’s the oil sands leases. For each barrel of bitumen produced from the specified oil sands until March 21, 2039, or upon termination of mining, whichever is earlier, the Company will pay a royalty equal to 25 grams of Vanadium per barrel of bitumen produced, multiplied by the price of Vanadium Pentoxide 98% min in-warehouse Rotterdam published on the last business day of the month in which the gross production of bitumen occurred. The $ 300,000 Notes payable to related party In December 2015, the Company borrowed $ 6,553 7.45 8,584 8,844 353 247 240 In 2021, the Company borrowed $ 72,000 10 127,049 72,000 55,049 51,000 21,000 0 75,659 2,550 3,659 Consulting fees Mr. Newton is the President and a member of the Board of Directors of the Company. Mr. Newton does not bill the Company for his services as President; however, he has a service agreement with the Company. Pursuant to this agreement, the Company recognized consulting expenses of $ 144,549 0 0 15,956 0 Dr. Michael Ranger is a member of the Board of Directors of the Company. Dr. Ranger does not receive compensation for his services as a member of the board; however, he has a service agreement with the Company, including consulting time and expense reimbursement. Pursuant to this agreement, the Company recognized consulting expenses of $ 0 1,356 0 0 22,115 |
SHARE CAPITAL
SHARE CAPITAL | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
SHARE CAPITAL | NOTE 10. SHARE CAPITAL Pursuant to its articles of incorporation, the Company has an unlimited number of common stock shares available for issuance with no par value. As of December 31, 2022, the Company had 20,085,119 91,000 On March 20, 2019, the Company entered into an exclusive license agreement to obtain an exclusive right to deploy patented and field-tested proprietary technologies utilizing steam generation applied to bitumen and heavy oil recovery in the Provinces of Alberta and Saskatchewan. In exchange, the Company issued 2,991,400 59,828 The following table summarizes warrant activity during the years ended December 31, 2022, 2021 and 2020. Warrant activity Number of Weighted Warrants Weighted Outstanding December 31, 2019 2,831,338 $ 1.87 2,831,338 $ 1.87 Issued Canceled / exercised (81,000 ) $ 0.56 Expired (231,100 ) $ 1.54 Outstanding December 31, 2020 2,519,238 $ 1.73 2,519,238 $ 1.73 Issued Canceled / exercised Expired (623,167 ) $ 0.39 Outstanding December 31, 2021 1,896,071 $ 1.64 1,896,071 $ 1.64 Issued – Canceled / exercised – Expired – Outstanding December 31, 2022 1,896,071 $ 1.64 1,896,071 $ 1.64 The following tables summarizes outstanding warrants as of December 31, 2022: Warrants outstanding Warrants Outstanding Range of Exercise Price Number of Weighted Remaining $1.00 - $22.50 1,896,071 $ 1.64 0.41 – 9.99 |
STOCK OPTION PLANS
STOCK OPTION PLANS | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK OPTION PLANS | NOTE 11. STOCK OPTION PLANS Approval of the 2016 Stock Option Plan In November 2016, the Board of Directors approved, and the Company adopted the 2016 Stock Option Plan (“the 2016 Plan”). The 2016 Plan provides for the granting of up to 12,000,000 As of December 31, 2022, there were 11,850,000 2006 Stock Option Plan In June 2006 the stockholders approved, and the Company adopted its 2006 Stock Option Plan (“the 2006 Plan”). The 2006 Plan provides for the granting of up to 800,000 stock options to key employees, directors and consultants, of common shares of the Company. Under the 2006 Plan, the granting of incentive and non-qualified stock options, exercise prices and terms are determined by the Company's Option Committee, a committee designated to administer the 2006 Plan by the Board of Directors. For incentive options, the exercise price shall not be less than the fair market value of the Company's common stock on the grant date. (In the case of options granted to an employee who owns stock possessing more than 10% of the voting power of all classes of the Company's stock on the date of grant, the option price must not be less than 110% of the fair market value of common stock on the grant date.) Options granted are not to exceed terms beyond ten years (five years in the case of an incentive stock option granted to a holder of 10 percent of the Company's common stock). In June 2016, the 2006 Plan expired so that no common stock options may be issued under this Plan. Stock Option Activity Activity under the 2016 and 2006 Plan is summarized as follows: Stock Option Activity Number of Weighted Weighted Aggregate Balance December 31, 2019 447,000 $ 0.79 5.68 0.00 Option granted – $ – Options cancelled – $ – Options exercised (10,000 ) $ 0.05 Balance December 31, 2020 437,000 $ 0.81 3.80 0.00 Option granted – $ – Options cancelled – $ – Options exercised – $ – Balance December 31, 2021 437,000 $ 0.79 2.87 0.00 Option granted – $ – Options cancelled (70,000 ) $ 0.62 Options exercised – $ – Balance December 31, 2022 367,000 $ 0.85 2.24 0.00 Exercisable at December 31, 2022 367,000 $ 0.85 2.24 0.00 The exercise price for outstanding and exercisable common stock options under the 2006 and 2016 Plans at December 31, 2021 range from $0.05 to $1.40 per share. As of December 31, 2022, 2021 and 2020, there was no |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 12. INCOME TAXES The tax effects of temporary differences that give rise to the Company’s deferred tax assets are as follows: Deferred tax assets 2022 2021 2020 Loss carryforwards $ 783,500 $ 879,800 $ 791,000 Oil & Gas properties 1,742,800 1,871,100 1,857,700 Asset retirement obligation 175,700 154,500 134,800 Deferred tax asset 2,702,000 2,905,400 2,783,500 Less valuation allowance (2,702,000 ) (2,905,400 ) (2,783,500 ) Deferred tax asset recognized $ – $ – $ – Upon continuation to Canada in 2004, all losses carried forward at that time expired. As of December 31, 2022, the Company had net Canadian operating loss carryforwards of approximately $ 3.1 million 7.0 million The Company evaluates its valuation allowance requirements based on projected future operations. When circumstances change and this causes a change in management's judgment about the recoverability of deferred tax assets, the impact of the change on the valuation allowance is reflected in current income. During the years ended December 31, 2022, 2021 and 2020, changes in valuation allowance were ($ 203,400 121,900 65,700 The (benefit) provision for income taxes differs from the amount of income tax determined by applying the applicable Canadian statutory federal income tax rate to pre-tax income loss as a result of the following differences: Effective income tax rate schedule 2022 2021 2020 Statutory federal income tax rate -25 -25 -25 Change in valuation allowance -8 4 2 Non-deductible change in fair value of derivative liability -41 -27 -6 Non-deductible accretion expense -3 7 13 Effect of foreign exchange 77 41 16 0 0 0 The Company has evaluated its tax positions for the years ended December 31, 2022, 2021 and 2020 and determined that it has no uncertain tax positions requiring financial statement recognition. Under ASC 740-10-25, the impact of an uncertain income tax position on income tax expense must be recognized at the largest amount that is more-likely-than-not to be sustained. An uncertain income tax position will not be recognized if it has 50% or less likelihood of being sustained. Interest and penalties are accrued on uncertain tax positions as a component of the provision for income taxes. There was no amount of interest and penalties recognized as an expense during 2022, 2021 and 2020. The Company’s income tax returns are generally considered closed to examination when a notice of determination is filed with the taxing authority. No such notice has been filed to date. The most recent tax return filed by the Company is for the year ended December 31, 2017. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 13. COMMITMENTS AND CONTINGENCIES In the ordinary course of business, we may be exposed to claims and threatened litigation, and use various methods to resolve these matters in a manner that we believe serves the best interest of our shareholders and other constituents. When a loss is probable, we disclose the amount of probable loss, or disclose a range of reasonably possible losses if they are material and we are able to estimate such a range. If we cannot provide an estimate, we explain the factors that prevent us from doing so. We believe the recorded reserves in our consolidated financial statements are adequate in light of the probable and estimable liabilities. We do not presently believe that any claims or litigation will be material to our results of operations, cash flows, or financial condition. Environmental Matters The Company is engaged in oil and gas exploration and may become subject to certain liabilities as they relate to environmental cleanup of sites or other environmental restoration procedures as they relate to the exploration of oil and gas. Should it be determined that a liability exists with respect to any environmental clean-up or restoration, the liability to cure such a violation could fall upon the Company. No claim has been made, nor is the Company aware of any liability, which it may have, as it relates to any environmental clean-up, restoration or the violation of any rules or regulations relating thereto. Liabilities for expenditures are recorded when environmental assessment and/or remediation is probable, and the costs can be reasonably estimated. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 14. SUBSEQUENT EVENTS In accordance with SFAS 165 (ASC 855-10) management has performed an evaluation of subsequent events through the date that the financial statements were available to be issued and has determined that it does not have any material subsequent events to disclose in these financial statements. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate so as to make the information presented not misleading. |
Risks and Uncertainties | Risks and Uncertainties The Company is subject to additional risks and uncertainties due to the COVID-19 pandemic. The extent of the impact on the Company’s business is uncertain and difficult to predict. The Company considered the impact of COVID-19 on the assumptions and estimates used and determined that there has been no material impact on the Company’s year-to-date results of operations. The Company cannot reasonably estimate with any degree of certainty the future impact COVID-19 may have on the Company’s results of operations, financial position and liquidity. |
Management’s Estimates and Assumptions | Management’s Estimates and Assumptions The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the balance sheet date, and revenues and expenses for the period then ended. Management believes that all applicable estimates and adjustments are appropriate. Actual results could differ significantly from those estimates. |
Concentration of Revenue | Concentration of Revenue For the year ended December 31, 2022, the Company had a concentration of revenue related to a single royalty contract, accounting for 100 |
Oil and Gas Property Payments and Exploration Costs | Oil and Gas Property Payments and Exploration Costs All costs incurred in the acquisition, exploration and development of natural gas and oil interests are capitalized as incurred. Capitalized costs associated with proven properties are amortized using the units-of-production method over the estimated life of the probable reserve. Capitalized costs associated with unproved properties are excluded from the amortization calculations and assessed, at least annually, to determine if impairment has occurred, until such time as those costs are proven. Impairment amounts are immediately expensed and no costs have been capitalized through December 31, 2022. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments purchased with a maturity of 90 days or less to be cash equivalents. The Company maintains cash and cash equivalent balances with financial institutions that may exceed federally insured limits. There were no |
GST Receivables | GST Receivables Goods and Services Tax (GST) receivables are presented net of an allowance for doubtful accounts. Receivables consist of goods and services input tax credits. The allowance for doubtful accounts on GST receivables was $nil at December 31, 2022 and 2021. |
Impairment of Long-lived Assets | Impairment of Long-lived Assets In accordance with ASC 360, Property, Plant and Equipment, |
Asset Retirement Obligations | Asset Retirement Obligations In accordance with ASC 410, Asset Retirement and Environmental Obligations, |
Income Taxes | Income Taxes The Company follows the asset and liability method of accounting for income taxes whereby deferred tax assets and liabilities are recognized for the future tax consequences of differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. If it is determined that the realization of the future tax benefit is not more likely than not, the Company establishes a valuation allowance. |
Foreign Exchange Translation | Foreign Exchange Translation The Company's functional currency is the Canadian dollar but reports its financial statements in US dollars. The Company translates its Canadian dollar balances to US dollars in the following manner: Assets and liabilities have been translated using the rate of exchange at the balance sheet date. Equity transactions and results of operations have been translated at historical rates. Translation gains or losses resulting from the changes in the exchange rates are accumulated as other comprehensive income or loss in a separate component of stockholders' equity. All amounts included in the accompanying financial statements and footnotes are stated in U.S. dollars. |
Derivative Financial Instruments | Derivative Financial Instruments The Company reviews the terms of its equity instruments and other financing arrangements to determine whether there are embedded derivative instruments that are required to be accounted for separately as a derivative financial instrument. Also, in connection with the issuance of financing instruments, the Company has issued freestanding warrants that are accounted for as derivative instrument liabilities because they are exercisable in a currency other than the functional currency of the Company and thus do not meet the “fixed-for-fixed” criteria of ASC 815-40-15. The warrants are exercisable in United States dollars and the Company’s functional currency is the Canadian dollar. Derivative financial instruments are initially measured at their fair value. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported as charges or credits to income. For derivative financial instruments, the Company uses the Black-Scholes option pricing model to value the derivative instruments. Any exercise or cancellation of an equity instrument which meets the classification of a derivative financial instrument is trued-up to fair value at that date and the fair value of the exercised instrument is then reclassified from liability to additional paid in capital. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is reassessed at the end of each reporting period. If reclassification is required, the fair value of the derivative instrument, as of the determination date, is reclassified. Any previous charges or credits to income for changes in the fair value of the derivative instrument are not reversed. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within 12 months of the balance sheet date. |
Stock Based Compensation | Stock Based Compensation In accordance with ASC 718, “Compensation – Stock Compensation” (“ASC 718”), which was adopted as of January 1, 2019, the Company measures all employee stock-based compensation awards using a fair value method on the date of grant and recognizes such expense in its financial statements over the requisite service period. The Company uses the Black-Scholes pricing model to determine the fair value of stock-based compensation awards on the date of grant. The Black-Scholes pricing model requires management to make assumptions regarding option lives, expected volatility, and risk-free interest rates. The Company accounts for employee stock-based compensation in accordance with the guidance of FASB ASC Topic 718, Compensation—Stock Compensation, The Company uses historical data to estimate option exercise, forfeiture and employee termination within the valuation model. For non-employees, the expected term of the options approximates the full term of the options. The risk-free interest rate is based on a treasury instrument whose term is consistent with the expected term of the stock options. The Company has not paid and does not anticipate paying dividends on its common stock; therefore, the expected dividend yield is assumed to be zero. In addition, accounting standard requires companies to utilize an estimated forfeiture rate when calculating the expense for the reporting period. Based on its best estimate, management applied the estimated forfeiture rate of nil in determining the expense recorded in the accompanying Statements of Operations and Comprehensive Income (Loss). Expected volatilities are calculated using the historical volatility of the Company’s stock. When applicable, the Company will use historical data to estimate option exercise, forfeiture and employees’ termination within the valuation model. For non-employees, the expected term of the options approximates the full term of the options. |
Earnings (Loss) Per Share of Common Stock | Earnings (Loss) Per Share of Common Stock Basic earnings (loss) per share of common stock is computed by dividing net income (loss) available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted earnings per share of common stock reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company. Dilutive potential common shares are calculated in accordance with the treasury stock method, which assumes that proceeds from the exercise of all warrants and options are used to repurchase common stock at market value. The number of shares remaining after the proceeds are exhausted represents the potentially dilutive effect of the securities. For the years ended December 31, 2022 and 2021, all of the outstanding options and warrants had an exercise price above the average stock price for year-end period. Accordingly, all of the potentially dilutive shares were excluded from the computation of diluted shares outstanding as they would have had an anti-dilutive impact on the Company’s income (loss) from continuing operations. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The book values of GST receivables, notes receivable, accounts payable and accrued expenses approximate their respective fair values due to the short-term nature of these instruments. The fair value hierarchy under GAAP distinguishes between assumptions based on market data (observable inputs) and an entity’s own assumptions (unobservable inputs). The hierarchy consists of three levels: · Level one · Level two · Level three Determining which category an asset or liability falls within the hierarchy requires significant judgment. Hierarchy disclosures are evaluated at each balance sheet date. Liabilities measured at fair value are summarized as follows as of: Liabilities measured at fair value Fair Value Measurement at Fair Value Measurement at December 31, 2022 December 31, 2021 Using Using Level 3 Total Level 3 Total Derivative liabilities $ 14,690 $ 14,690 $ 210,929 $ 210,929 Asset Retirement Obligation (see Note 8) 71,975 71,975 214,960 214,960 In 2021, the Company issued a convertible note in which the conversion rate is variable. As a result, a derivative liability was recorded (see Note 9). In addition, the Company has warrants with a strike price currency different than the functional currency as has recorded a derivative liability associated with that. The Company measures and reports the fair value liability for these derivative liabilities on a recurring basis. The fair value liabilities have been recorded as determined utilizing the Black-Scholes option pricing model. A slight change in an unobservable input like historical volatility could have a significant impact on the fair value measurement of the derivative liabilities. See Note 6 “Derivative Liabilities” for further discussion of the inputs used in determining the fair value. |
Revenue Recognition | Revenue Recognition The Company has adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 606, Revenue from Contracts with Customers utheast portion of the Peace River oil sands area that were sold in May 2019 (see Note 4) and recognizes revenue at the time petroleum is sold. The Company’s revenue recognition policy standards include the following elements under ASU 606: 1. Identify the contract with the customer. The contract is documented in the Purchase and Sale Agreement dated 5/14/2019. 2. Identify the performance obligations in the contract. The performance obligation in the contract required Strata to relinquish its interest in three oil sands located in the southeast portion of the Peace River oil sands area. 3. Determine the transaction price. The transaction price was C$ 60,000 4. Allocate the transaction price to the performance obligations in the contract. The Company only has one performance obligation, the transfer of the rights to the three oil sands leases, which has already been fulfilled. 5. Recognize revenue when (or as) the entity satisfies a performance obligation. The C$60,000 was recognized as a sale of the shallower oil sands rights in 2019, resulting in a gain from the disposition of the leases. The 2.5% overriding petroleum royalties are recognized as revenue in the period that the other party produces and sells petroleum from the oil sands leases, which began in September 2021. The royalties that have been received to date have been highly variable, as the amounts are dependent upon the monthly production, the demand of the buyers, the spot price of petroleum, etc. As such, management has determined that the revenue recognition shall be treated as variable consideration as defined in ASC 606. Variable consideration should only be recognized to the extent that it is probable that a significant reversal of revenue will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Given the fact that royalties to date have been highly variable with a great degree of uncertainty, and any attempts to estimate future revenue would likely result in a significant reversal of revenue, royalty revenue will be recognized when payments and settlement statements are received, in the period for which the petroleum was produced. It is at that time that any uncertainty related to royalty payments is resolved. The Company applied ASC 606 using the modified retrospective method applied to contracts not yet completed as of the date of adoption. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. The Company's items of other comprehensive income (loss) are foreign currency translation adjustments. |
Related Party Transactions | Related Party Transactions A related party is generally defined as (i) any person who holds 10% or more of the Company’s securities and their immediate families, (ii) the Company’s management, (iii) an entity or person who directly or indirectly controls, is controlled by or is under common control and/or management with the Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. |
New Accounting Pronouncements | New Accounting Pronouncements In August 2020, the FASB issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470- 20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”), which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity. This ASU (1) simplifies the accounting for convertible debt instruments and convertible preferred stock by removing the existing guidance in ASC 470-20, Debt: Debt with Conversion and Other Options, that requires entities to account for beneficial conversion features and cash conversion features in equity, separately from the host convertible debt or preferred stock; (2) revises the scope exception from derivative accounting in ASC 815-40 for freestanding financial instruments and embedded features that are both indexed to the issuer’s own stock and classified in stockholders’ equity, by removing certain criteria required for equity classification; and (3) revises the guidance in ASC 260, Earnings Per Share, to require entities to calculate diluted earnings per share (EPS) for convertible instruments by using the if-converted method. In addition, entities must presume share settlement for purposes of calculating diluted EPS when an instrument may be settled in cash or shares. For SEC filers, excluding smaller reporting companies, ASU 2020-06 is effective for fiscal years beginning after December 15, 2021 including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. For all other entities, ASU 2020-06 is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Entities should adopt the guidance as of the beginning of the fiscal year of adoption and cannot adopt the guidance in an interim reporting period. The Company is currently evaluating the impact that ASU 2020-06 may have on its consolidated financial statements and related disclosures. The Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Liabilities measured at fair value | Liabilities measured at fair value Fair Value Measurement at Fair Value Measurement at December 31, 2022 December 31, 2021 Using Using Level 3 Total Level 3 Total Derivative liabilities $ 14,690 $ 14,690 $ 210,929 $ 210,929 Asset Retirement Obligation (see Note 8) 71,975 71,975 214,960 214,960 |
DERIVATIVE LIABILITIES (Tables)
DERIVATIVE LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Liabilities | |
Derivative liabilities | Derivative liabilities Derivative liabilities associated with: Warrants Convertible Note Total Balance, December 31, 2020 $ 24,336 $ – $ 24,336 Issuance of convertible note – 127,049 127,049 Fair value of expired warrant (1,258 ) – (1,258 ) Change in fair value of derivative liabilities 17,585 43,446 61,031 Foreign exchange effect on derivative liability (229 ) – (229 ) Balance, December 31, 2021 $ 40,434 $ 170,495 $ 210,929 Change in fair value of derivative liabilities (24,757 ) (170,495 ) (195,252 ) Foreign exchange effect on derivative liability (987 ) – (987 ) Balance, December 31, 2022 $ 14,690 $ – $ 14,690 |
Assumptions used for derivatives | Assumptions used for derivatives 2022 2021 2020 Volatility 322.4% 545.20% 411.10% Expected life 0.41 to 9.99 years 0.45 to 2.12 years 0.33 to 3.12 years Risk-free interest rate 3.27% - 4.06% 0.95% - 1.42% 0.20% - 0.67% Dividend yield 0.00% 0.00% 0.00% |
SHARE CAPITAL (Tables)
SHARE CAPITAL (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Warrant activity | Warrant activity Number of Weighted Warrants Weighted Outstanding December 31, 2019 2,831,338 $ 1.87 2,831,338 $ 1.87 Issued Canceled / exercised (81,000 ) $ 0.56 Expired (231,100 ) $ 1.54 Outstanding December 31, 2020 2,519,238 $ 1.73 2,519,238 $ 1.73 Issued Canceled / exercised Expired (623,167 ) $ 0.39 Outstanding December 31, 2021 1,896,071 $ 1.64 1,896,071 $ 1.64 Issued – Canceled / exercised – Expired – Outstanding December 31, 2022 1,896,071 $ 1.64 1,896,071 $ 1.64 |
Warrants outstanding | Warrants outstanding Warrants Outstanding Range of Exercise Price Number of Weighted Remaining $1.00 - $22.50 1,896,071 $ 1.64 0.41 – 9.99 |
STOCK OPTION PLANS (Tables)
STOCK OPTION PLANS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Option Activity | Stock Option Activity Number of Weighted Weighted Aggregate Balance December 31, 2019 447,000 $ 0.79 5.68 0.00 Option granted – $ – Options cancelled – $ – Options exercised (10,000 ) $ 0.05 Balance December 31, 2020 437,000 $ 0.81 3.80 0.00 Option granted – $ – Options cancelled – $ – Options exercised – $ – Balance December 31, 2021 437,000 $ 0.79 2.87 0.00 Option granted – $ – Options cancelled (70,000 ) $ 0.62 Options exercised – $ – Balance December 31, 2022 367,000 $ 0.85 2.24 0.00 Exercisable at December 31, 2022 367,000 $ 0.85 2.24 0.00 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Deferred tax assets | Deferred tax assets 2022 2021 2020 Loss carryforwards $ 783,500 $ 879,800 $ 791,000 Oil & Gas properties 1,742,800 1,871,100 1,857,700 Asset retirement obligation 175,700 154,500 134,800 Deferred tax asset 2,702,000 2,905,400 2,783,500 Less valuation allowance (2,702,000 ) (2,905,400 ) (2,783,500 ) Deferred tax asset recognized $ – $ – $ – |
Effective income tax rate schedule | Effective income tax rate schedule 2022 2021 2020 Statutory federal income tax rate -25 -25 -25 Change in valuation allowance -8 4 2 Non-deductible change in fair value of derivative liability -41 -27 -6 Non-deductible accretion expense -3 7 13 Effect of foreign exchange 77 41 16 0 0 0 |
NATURE OF BUSINESS (Details Nar
NATURE OF BUSINESS (Details Narrative) | Dec. 31, 2022 ha Integer |
Peace River [Member] | |
Ownership percentage | 50% |
Total oil sands leases owned | 7 |
Land Area (in hectares) | ha | 8,704 |
Alberta permits [Member] | |
Number of leases | 10 |
Number of wells | 1 |
ABILITY TO CONTINUE AS A GOIN_2
ABILITY TO CONTINUE AS A GOING CONCERN (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Net loss | $ 477,657 | $ (218,463) | $ (22,959) |
Cash flows from operations | 161,044 | (85,911) | $ (19,861) |
Accumulated deficit | 23,214,872 | $ 23,692,529 | |
Funding requirements during the next twelve months | $ 200,000 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES (Details - Fair value derivative liabilities) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Defined Benefit Plan Disclosure [Line Items] | |||
Derivative liability | $ 14,690 | $ 210,929 | $ 24,336 |
Asset Retirement Obligation | 71,975 | 214,960 | |
Transaction price | 60,000 | ||
Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Derivative liability | 14,690 | 210,929 | |
Asset Retirement Obligation | $ 71,975 | $ 214,960 |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Product Information [Line Items] | ||
Cash equivalent balances | $ 0 | $ 0 |
Revenues [Member] | Customer Concentration Risk [Member] | One Customer [Member] | ||
Product Information [Line Items] | ||
Concentration risk | 100% |
ROYALTY INTEREST (Details Narra
ROYALTY INTEREST (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Royalty Interest | ||
Royalty interest | 2.50% | |
Royalties | $ 398,427 | $ 31,296 |
PETROSTEAM LICENSE (Details Nar
PETROSTEAM LICENSE (Details Narrative) - Petrosteam | Mar. 20, 2019 USD ($) shares |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Stock issued for patent license, shares | shares | 2,991,400 |
Contractual obligation | $ | $ 12,500,000 |
DERIVATIVE LIABILITIES (Details
DERIVATIVE LIABILITIES (Details - Fair value) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Offsetting Assets [Line Items] | ||
Derivative liability, beginning balance | $ 210,929 | $ 24,336 |
Issuance of convertible note | 127,049 | |
Fair value of expired warrant | (1,258) | |
Change in fair value of derivative liability | (195,252) | 61,031 |
Foreign exchange effect on derivative liability | (987) | (229) |
Derivative liability, ending balance | 14,690 | 210,929 |
Warrant [Member] | ||
Offsetting Assets [Line Items] | ||
Derivative liability, beginning balance | 40,434 | 24,336 |
Issuance of convertible note | 0 | |
Fair value of expired warrant | (1,258) | |
Change in fair value of derivative liability | (24,757) | 17,585 |
Foreign exchange effect on derivative liability | (987) | (229) |
Derivative liability, ending balance | 14,690 | 40,434 |
Convertible Note [Member] | ||
Offsetting Assets [Line Items] | ||
Derivative liability, beginning balance | 170,495 | 0 |
Issuance of convertible note | 127,049 | |
Fair value of expired warrant | 0 | |
Change in fair value of derivative liability | (170,495) | 43,446 |
Foreign exchange effect on derivative liability | 0 | 0 |
Derivative liability, ending balance | $ 0 | $ 170,495 |
DERIVATIVE LIABILITIES (Detai_2
DERIVATIVE LIABILITIES (Details - Assumptions) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Measurement Input, Price Volatility [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair value assumptions for derviative liabilities | 322.4% | 545.20% | 411.10% |
Measurement Input, Expected Term [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair value assumptions for derviative liabilities | 0.41 to 9.99 years | 0.45 to 2.12 years | 0.33 to 3.12 years |
Measurement Input, Risk Free Interest Rate [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair value assumptions for derviative liabilities | 3.27% - 4.06% | 0.95% - 1.42% | 0.20% - 0.67% |
Measurement Input, Expected Dividend Rate [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair value assumptions for derviative liabilities | 0.00% | 0.00% | 0.00% |
ASSET RETIREMENT OBLIGATIONS (D
ASSET RETIREMENT OBLIGATIONS (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Asset Retirement Obligation Disclosure [Abstract] | |||
Asset retirement obligations | $ 71,975 | $ 214,960 | |
Undiscounted future liability | 225,229 | ||
Other income | 143,950 | 0 | $ 0 |
Accretion expense | $ 16,308 | $ 15,687 | $ 12,669 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | ||||
Amortization of Debt Discount (Premium) | $ 51,000 | $ 21,000 | $ 0 | |
Consulting Fees | 140,806 | 1,356 | 0 | |
Mr. Newton [Member] | ||||
Related Party Transaction [Line Items] | ||||
Consulting Fees | 144,549 | 0 | 0 | |
Accounts payable and accrued liabilities related party | 15,956 | 0 | ||
Mr. Michael Ranger [Member] | ||||
Related Party Transaction [Line Items] | ||||
Consulting Fees | 0 | 1,356 | 0 | |
Accounts payable and accrued liabilities related party | 0 | 22,115 | ||
Vanadium [Member] | ||||
Related Party Transaction [Line Items] | ||||
Deferred revenue | $ 300,000 | |||
Note Payable Related Party 2015 [Member] | ||||
Related Party Transaction [Line Items] | ||||
Proceeds from note payable | $ 6,553 | |||
Interest rate | 7.45% | |||
Notes Payable, Related Parties | $ 8,584 | 8,844 | ||
Interest Expense, Related Party | 353 | 247 | $ 240 | |
Note Payable Related Party 2021 [Member] | ||||
Related Party Transaction [Line Items] | ||||
Proceeds from note payable | 72,000 | |||
Notes Payable, Related Parties | 0 | 75,659 | ||
Interest Expense, Related Party | $ 2,550 | 3,659 | ||
Debt Instrument, Interest Rate, Stated Percentage | 10% | |||
Derivative Asset, Fair Value, Gross Liability | $ 127,049 | |||
Amortization of Debt Discount (Premium) | 51,000 | $ 21,000 | ||
Note Payable Related Party 2021 [Member] | Debt Discount [Member] | ||||
Related Party Transaction [Line Items] | ||||
Derivative Asset, Fair Value, Gross Liability | 72,000 | |||
Note Payable Related Party 2021 [Member] | Loss On Issuance Of Note [Member] | ||||
Related Party Transaction [Line Items] | ||||
Derivative Asset, Fair Value, Gross Liability | $ 55,049 |
SHARE CAPITAL (Details - Warran
SHARE CAPITAL (Details - Warrants activity) - Warrant [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Class of Warrant or Right [Line Items] | |||
Warrants outstanding, beginning balance | 1,896,071 | 2,519,238 | 2,831,338 |
Weighted Average Exercise Price Outstanding beginning | $ 1.64 | $ 1.73 | $ 1.87 |
Warrants Exercisable outstanding | 1,896,071 | 2,519,238 | 2,831,338 |
Weighted Average Exercise Price outstanding | $ 1.64 | $ 1.73 | $ 1.87 |
Warrants canceled / exercised | 0 | (81,000) | |
Warrants canceled / exercised | $ 0.56 | ||
Warrants expired | 0 | (623,167) | (231,100) |
Warrants expired | $ 0.39 | $ 1.54 | |
Warrants issued | 0 | ||
Warrants canceled / exercised | 0 | 81,000 | |
Warrants expired | 0 | 623,167 | 231,100 |
Warrants outstanding, ending balance | 1,896,071 | 1,896,071 | 2,519,238 |
Weighted Average Exercise Price Outstanding, ending | $ 1.64 | $ 1.64 | $ 1.73 |
Warrants Exercisable outstanding | 1,896,071 | 1,896,071 | 2,519,238 |
Weighted Average Exercise Price outstanding | $ 1.64 | $ 1.64 | $ 1.73 |
SHARE CAPITAL (Details - Warr_2
SHARE CAPITAL (Details - Warrant outstanding) - $ / shares | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Warrant [Member] | ||||
Class of Warrant or Right [Line Items] | ||||
Warrants Outstanding | 1,896,071 | 1,896,071 | 2,519,238 | 2,831,338 |
Price $1.00 - $22.50 | ||||
Class of Warrant or Right [Line Items] | ||||
Weighted Average Exercise Price | $ 1.64 | |||
Remaining Contractual Life | 0.41 – 9.99 |
SHARE CAPITAL (Details Narrativ
SHARE CAPITAL (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 20, 2019 | Dec. 31, 2022 | Dec. 31, 2021 | |
Offsetting Assets [Line Items] | |||
Common stock shares outstanding | 20,085,119 | 20,085,119 | |
Additional shares of common stock | 91,000 | ||
License Agreement [Member] | |||
Offsetting Assets [Line Items] | |||
Stock issued for license agreement, shares | 2,991,400 | ||
Stock issued for license agreement, value | $ 59,828 |
STOCK OPTION PLANS (Details - O
STOCK OPTION PLANS (Details - Option activity) - Share-Based Payment Arrangement, Option [Member] - USD ($) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Options Outstanding | 437,000 | 437,000 | 447,000 | |
Weighted Average Exercise Price Outstanding, beginning | $ 0.79 | $ 0.81 | $ 0.79 | |
Options Outstanding | 2 years 2 months 26 days | 2 years 10 months 13 days | 3 years 9 months 18 days | 5 years 8 months 4 days |
Options Outstanding | $ 0 | $ 0 | $ 0 | |
Options granted | 0 | 0 | 0 | |
Option granted | $ 0 | $ 0 | $ 0 | |
Options cancelled | 70,000 | 0 | 0 | |
Option cancelled | $ 0.62 | $ 0 | $ 0 | |
Options exercised | 0 | 0 | (10,000) | |
Options exercised | $ 0 | $ 0 | $ 0.05 | |
Options exercised | 0 | 0 | 10,000 | |
Options cancelled | (70,000) | 0 | 0 | |
Options Outstanding | 367,000 | 437,000 | 437,000 | 447,000 |
Weighted Average Exercise Price Outstanding, ending | $ 0.85 | $ 0.79 | $ 0.81 | $ 0.79 |
Options Outstanding | $ 0 | $ 0 | $ 0 | $ 0 |
Options exercisable | 367,000 | |||
Weighted Average Exercise Price Exercisable | $ 0.85 | |||
Options exercisable | 2 years 2 months 26 days | |||
Options exercisable | $ 0 |
STOCK OPTION PLANS (Details Nar
STOCK OPTION PLANS (Details Narrative) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 0 | $ 0 | $ 0 |
2016 Plan [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Shares authorized under plan | 12,000,000 | ||
Shares available for grant | 11,850,000 |
INCOME TAXES (Details - Deferre
INCOME TAXES (Details - Deferred tax assets) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Income Tax Disclosure [Abstract] | |||
Loss carryforwards | $ 783,500 | $ 879,800 | $ 791,000 |
Oil & Gas properties | 1,742,800 | 1,871,100 | 1,857,700 |
Asset retirement obligation | 175,700 | 154,500 | 134,800 |
Deferred tax asset | 2,702,000 | 2,905,400 | 2,783,500 |
Less valuation allowance | (2,702,000) | (2,905,400) | (2,783,500) |
Deferred tax asset recognized | $ 0 | $ 0 | $ 0 |
INCOME TAXES (Details - Income
INCOME TAXES (Details - Income tax rate) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal income tax rate | (25.00%) | (25.00%) | (25.00%) |
Change in valuation allowance | (8.00%) | 4% | 2% |
Non-deductible change in fair value of derivative Liability | (41.00%) | (27.00%) | (6.00%) |
Non-deductible accretion expense | (3.00%) | 7% | 13% |
Effect of foreign exchange | 77% | 41% | 16% |
Total | 0% | 0% | 0% |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Loss Carryforwards [Line Items] | |||
Changes in valuation allowance | $ 203,400 | $ 121,900 | $ 65,700 |
Canada Revenue Agency [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carry-forwards | 3,100,000 | ||
Canadian oil and gas dedication pools | $ 7,000,000 |