| Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, the unaudited interim financial statements do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. The accompanying unaudited condensed consolidated financial statements include the accounts of Leopard Energy, Inc. (formerly known as Cyber Apps World Inc.) (the “Company”). These financial statements are condensed and, therefore, do not include all disclosures normally required by accounting principles generally accepted in the United States of America. Therefore, these statements should be read in conjunction with the most recent annual financial statements of the Company for the year ended July 31, 2023, included in the Company’s Form 10-K filed with the Securities and Exchange Commission. In particular, the Company’s significant accounting principles were presented as Note 2 to the Financial Statements in that report. In the opinion of management, all adjustments necessary for a fair presentation have been included in the accompanying interim condensed financial statements and consist of only normal recurring adjustments. The results of operations presented in the accompanying interim condensed financial statements are not necessarily indicative of the results that may be expected for the full year ending July 31, 2024. Going Concern The accompanying unaudited interim consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the discharge of liabilities in the normal course of business for the foreseeable future. As reflected in the accompanying unaudited interim financial statements for the nine months ended April 30, 2024, the Company incurred net loss of $199,947. As of April 30, 2024, the Company had accumulated deficit of $11,672,094 and a working capital deficit of $202,492. Management believes these factors raise substantial doubt about the Company’s ability to continue as a going concern for the next twelve months. The Company’s financial statements for the three and nine months ended April 30, 2024, have been prepared on a going concern basis, which contemplates the realization of assets and settlement of liabilities and commitments in the normal course of business. The Company during the three and nine months ended April 30, 2024, started to cash the first revenues from the 5% royalty interest in a package of seven (7) producing oil wells located in the Eagle Ford Shale, Lavaca County, Texas (the “Eagle Acquisition”), acquired on January 17, 2024. Management recognized that the Company’s continued existence is dependent upon its ability to obtain needed working capital through additional equity and/or debt financing and revenue to cover expenses as the Company continues to incur losses. Since its incorporation, the Company has financed its operations through advances from its controlling stockholders, third-party convertible debt, and the sale of its common stock. Management’s plans are to finance operations through the sale of equity or other investments for the foreseeable future, as the Company does not receive significant revenue from its business operations. There is no guarantee that the Company will be successful in arranging financing on acceptable terms. The Company’s ability to raise additional capital is affected by trends and uncertainties beyond its control. The Company does not currently have any arrangements for financing, and it may not be able to find such financing if required. Obtaining additional financing would be subject to a number of factors, including investor sentiment. Market factors may make the timing, amount, terms or conditions of additional financing unavailable to it. These uncertainties raise substantial doubt about the ability of the Company to continue as a going concern. The accompanying financial statements do not include any adjustments that might result from the outcome of these uncertainties. Since its acquisition of a controlling interest in August 2023, Zenith Energy Ltd. (“Zenith Energy”), our controlling stockholder, has provided approximately $307,500 in working capital on behalf of the Company and also put in $45,000 paid in capital. Zenith Energy has indicated that intends to continue to finance the Company and its expansion into the energy sector, pending the receipt of additional financing. The Company’s significant accounting policies are summarized in Note 2 of the Company’s Annual Report on Form 10-K for the year ended July 31, 2023. There were no significant changes to these accounting policies during the three and nine months ended April 30, 2024, and the Company does not expect that the adoption of other recent accounting pronouncements will have a material impact on its financial statements. Restatement of previously issued consolidated financial statements The Company identified series of misstatements and restated its previously issued financial statements for the years ended July 31, 2023 and 2022 in the Form 10-K filed with SEC on April 17, 2024 Accordingly, the Company has restated the accompanying unaudited consolidated financial statements for the nine-month ended April 30, 2023 that were previously included in the Form 10-Q filed with the SEC on July 6, 2023. The restatement primarily relates to equity retrospectively restatement, convertible bonds redemption liability and liabilities write off upon controlling interest transfer in August 2023. Major Restatement Background In October 2022, the stockholders representing a majority of the Company's issued voting shares, as well as the Company's Board of Directors approved a reverse stock split whereby each 840 pre-split shares of common stock shall be exchanged for one post-split share of common stock. Common stock, additional paid-in capital and per share data was not presented on a retroactive basis to reflect the reverse stock split in previously filed 10-K. The Company corrected the Changes in Stockholder’s Equity to retrospectively state the movement. Subsequently on August 23, 2023, the original major stockholder, JanBella Group, LLC, sold the 100,000 Series A Preferred Shares it held to Zenith Energy Ltd. for consideration of approximately $398,400. In the change in control transaction, Zenith Energy acquired 99.87% of the voting power of the Company. Upon the share transfer, Zenith Energy bear the settlement for all existing convertible promissory notes and also partial accounts payable balance, the remining liabilities balance were written off per controlling interest transfer. The Company previously recorded the redemption of convertible promissory notes and payment of accounts payable balance by Zenith Energy as other income. After reassessing the situation, the Company corrected the mistake to record the portion paid by Zenith Energy as a paid in capital from stockholder. The Company also reversed an other income generated from tax payable balance written off previously recorded in the three month ended April 30, 2023 based on the fact that the former stockholder JanBella Group, LLC did not pay off the tax balance by the completion of controlling interest transfer. The impact of restatement The following table summarized the effect of the restatement on each financial statement line items as of and for the nine month ended April 30, 2023, as indicated: Summary of restatement – Unaudited consolidated statements of operations and comprehensive loss For the three month period ended For the nine month period ended 30-Apr-23 RESTATED 30-Apr-23 PREVIOUSLY FILED 30-Apr-23 RESTATED 30-Apr-23 PREVIOUSLY FILED $ $ $ $ Net Sales - - - - Cost of Goods Sold - - - - Gross Income - - - - General and administrative 23,860 29,321 86,065 47,884 Negotiating expenses - - - - Total operating expenses 23,860 29,321 86,065 47,884 Operating loss (23,860 ) (29,321 ) (86,065 ) (47,884 ) Net loss (23,860 ) (29,321 ) (86,065 ) (47,884 ) Net loss per share – basic and diluted (0.01 ) (0.01 ) (0.08 ) (0.04 ) Weighted average shares outstanding – basic and diluted 1,272,892 1,272,892 1,079,077 1,272,892 Summary of restatement – unaudited consolidated statement of changes in stockholders’ deficit UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ DEFICIT For the nine-month period ended April 30, 2023 (Unaudited and Restated) Common Stock Preferred Stock Number Par Value Number Par Value paid in Capital Accumulated Deficit Total $ $ $ $ $ Opening balance as of July 31, 2022 961,448 961 - - 11,123,597 (11,323,253 ) (198,695 ) Issuance of Common stock from convertible notes conversion 98,160 98 - - 23,388 - 23,486 Issuance of Common Stock 37,079 37 - - - - 37 Cancellation of Common shares (37,079 ) (37 ) - - - - (37 ) Net Loss - - - - - (23,758 ) (23,758 ) Closing Balance as of October, 2022 1,059,608 1,059 - - 11,146,985 (11,347,011 ) (198,967 ) Issuance of Common Stock 2,034 2 - - - - 2 Issuance of Preferred stock 300,000 300 - - 300 Cancellation of Preferred stock (200,000 ) (200 ) - - (200 ) Net Loss (38,447 ) (38,447 ) Closing Balance as of January 30, 2023 1,061,643 1,061 100,000 100 11,146,985 (11,385,458 ) (237,312 ) Issuance of Common Stock 211,273 211 - - 8,200 - 8,411 Net Loss - - - - (23,860 ) (23,860 ) Closing Balance as of April 30, 2023 1,272,916 1,272 100,000 100 11,155,185 (11,409,318 ) (252,761 ) UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ DEFICIT For the nine-month period ended April 30, 2023 (Previously filed) Common Stock Preferred Stock Additional Shares Number Par Value Number Par Value Paid in Capital to be issued Accumulated Deficit Total $ $ $ $ $ $ Opening Balance as of July 31, 2022 807,616,147 444,701 100,000 100 10,654,292 - (10,882,935 ) 216,158 Issuance of Common Stock 98,045,405 62,052 - - (30,152 ) - 31,900 Preferred Stock Issued - - 200,000 200 - - - 200 Cancellation of Common Shares (904,390,639 ) - - - - - - - Round up Shares 2,004 2 - - (2 ) - - - Net Loss - - - - - (47,884 ) (47,884 ) Closing Balance as of April 30, 2023 1,272,917 506,755 300,000 300 10,624,138 - (10,930,818 ) 200,374 Summary of restatement – unaudited condensed consolidated statement of cash flows For the nine month period ended April 30, 2023 2023 (Unaudited and Restated) (Previously filed) $ $ Cash flows from operating activities Net loss for the period (86,065 ) (47,884 ) Adjustments to reconcile net loss to cash used in operating activities: Original initial discount and legal processing 19,340 Change in operating assets and liabilities Deposits & prepayments - - Accounts payable and accrued liabilities 5,364 (27,078 ) Net cash provided from (used in) operating activities (61,361 ) (74,961 ) Cash flows from investing activities Software development (60,942 ) (60,942 ) Net cash used in investing activities (60,942 ) (60,942 ) Cash flows from financing activities Change in convertible notes payable 102,436 103,486 Proceeds from Loan 22,000 - Loan Repayment (11,000 ) - Proceeds from issuance of preferred shares 100 200 Proceeds from issuance of common shares 8,450 62,054 Proceeds from issuance of additional paid in capital - (30,154 ) Net cash provided by financing activities 121,986 135,586 Change in Cash (317 ) (317 ) Cash – beginning of period 320 320 Cash – end of period 3 3 |
