Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended |
Nov. 30, 2014 | |
Document and Entity Information | |
Entity Registrant Name | Dominovas Energy Corp |
Entity Trading Symbol | DOMI |
Document Type | 10-Q |
Document Period End Date | 30-Nov-14 |
Amendment Flag | TRUE |
Entity Central Index Key | 1343254 |
Current Fiscal Year End Date | -23 |
Entity Common Stock, Shares Outstanding | 90,545,125 |
Entity Filer Category | Smaller Reporting Company |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Well-known Seasoned Issuer | No |
Document Fiscal Year Focus | 2015 |
Document Fiscal Period Focus | Q1 |
Amendment Description | AMENDMENT NO. 2 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Nov. 30, 2014 | Aug. 31, 2014 |
ASSETS | ||
Cash | $1,049 | $5,096 |
Prepaids | 18,566 | 31,941 |
TOTAL CURRENT ASSETS | 19,615 | 37,037 |
TOTAL ASSETS | 19,615 | 37,037 |
CURRENT LIABILITIES | ||
Accounts payable | 293,346 | 281,815 |
Accrued liabilities | 274,598 | 162,950 |
Convertible debt | 333,000 | 0 |
Notes payable | 50,000 | 50,000 |
Total current liabilities | 947,944 | 494,765 |
Long-Term Liabilities | ||
Lease inducement | 76,998 | 51,640 |
Total liabilities | 1,024,942 | 546,405 |
STOCKHOLDERS' DEFICIT | ||
COMMON STOCK Authorized,200,000,000 common shares with par value of $0.001 Issued and outstanding:90,545,125(August 31,2014-90,525,125) common shares | 90,545 | 90,525 |
ADDITIONAL PAID IN CAPITAL | 5,960,314 | 5,955,334 |
OBLIGATION TO ISSUE SHARES | 21,200 | 0 |
DEFICIT ACCUMULATED DURING DEVELOPMENT STAGE | -7,077,386 | -6,555,227 |
TOTAL STOCKHOLDERS' DEFICIT | -1,005,327 | -509,368 |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $19,615 | $37,037 |
CONSOLIDATED_BALANCE_SHEETS_PA
CONSOLIDATED BALANCE SHEETS PARENTHETICALS (USD $) | Nov. 30, 2014 | Aug. 31, 2014 |
Parentheticals | ||
Common Stock, par value | $0.00 | $0.00 |
Common Stock, shares authorized | 200,000,000 | 200,000,000 |
Common Stock, shares issued | 90,545,125 | 90,525,125 |
Common Stock, shares outstanding | 90,545,125 | 90,525,125 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited) (USD $) | 3 Months Ended | |
Nov. 30, 2014 | Nov. 30, 2013 | |
EXPENSES | ||
Audit and accounting fees | $0 | $19,435 |
Consulting fees | 165,000 | 21,000 |
Financing fees | 165,000 | 0 |
Foreign exchange (gain) loss | -113 | 1,891 |
Investor communications and transfer agent | 3,487 | 0 |
Interest expense | 0 | 1,104 |
Regulatory filing fees | 1,643 | 0 |
Legal fees | 15,855 | 0 |
Office and general administration | 49,448 | 11,983 |
Salaries and management fees | 116,000 | 0 |
Travel and entertainment | 5,839 | 1,000 |
NET LOSS | ($522,159) | ($56,413) |
LOSS PER SHARE - BASIC AND DILUTED | ($0.01) | $0 |
WEIGHTED AVERAGE NUMBER OF COMMON STOCK OUTSTANDING - BASIC AND DILUTED | 90,525,125 | 33,941,993 |
STATEMENTS_OF_CASH_FLOWSUnaudi
STATEMENTS OF CASH FLOWS(Unaudited) (USD $) | 3 Months Ended | |
Nov. 30, 2014 | Nov. 30, 2013 | |
CASH FLOW OPERATING ACTIVITIES | ||
NET LOSS | $522,159 | $56,403 |
Interest expense, | 0 | 1,104 |
Consulting fees, | 165,000 | 0 |
Financing fees, | 165,000 | 0 |
Prepaid expenses , | 13,375 | 0 |
Accounts payable and accrued liabilities | 123,179 | 33,656 |
Lease inducement | 25,358 | 0 |
NET CASH USED IN OPERATING ACTIVITIES | -30,247 | -21,643 |
Issuance of common stock | 5,000 | 0 |
Notes payable, | 0 | 58,000 |
Subscription received | 21,200 | 0 |
Convertible debt repaid | 0 | -5,000 |
NET CASH FROM FINANCING ACTIVITIES | 26,200 | 53,000 |
INCREASE (DECREASE) IN CASH | -4,047 | 31,357 |
Cash, beginning | 5,096 | -76 |
CASH, ENDING | 1,049 | 31,281 |
Interest | 0 | 0 |
Income tax | $0 | $0 |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Nov. 30, 2014 | |
BASIS OF PRESENTATION | |
BASIS OF PRESENTATION | 1. BASIS OF PRESENTATION |
Dominovas Energy Corporation ("us", "we" or "our") is a Nevada corporation with | |
an inception date of October 16, 2003. We are in the business of developing fuel | |
cell / alternative energy projects internationally. Our principal executive | |
office is located at 1395 Chattahoochee Avenue in Atlanta, GA, 30318. Our | |
telephone number is 800-679-1249. | |
The following interim unaudited financial statements have been prepared in | |
accordance with United States Generally Accepted Accounting Principles for | |
interim financial information and with the rules and regulations of the | |
Securities and Exchange Commission ("SEC"). | |
Accordingly these financial statements do not include all of the disclosures | |
required by Generally Accepted Accounting Principles for complete financial | |
statements. These interim unaudited financial statements should be read in | |
conjunction with the Company's audited financial statements for the year ended | |
August 31, 2014. In the opinion of management, the interim unaudited financial | |
statements furnished herein include all adjustments, all of which are of a | |
normal recurring nature, necessary for a fair statement of the results of the | |
interim period presented. Operating results for the three month period ended | |
November 30, 2014 are not necessarily indicative of the results that may be | |
expected for the year ending August 31, 2015. | |
GOING CONCERN | |
These consolidated financial statements have been prepared in accordance with US | |
GAAP on a going concern basis, which contemplated the realization of assets and | |
the satisfaction of liabilities and commitments in the normal course of | |
business. The Company incurred a net loss of $522,159 for the period ended | |
November 30, 2014 [2013 - $56,413] and at November 30, 2014 had a deficit | |
accumulated of $7,077,386. The Company has no revenue and negative working | |
capital of $928,329. Further losses are anticipated in the development of its | |
business and there can be no assurance that the Company will be able to achieve | |
or maintain profitability. The continuing operations of the Company and the | |
recoverability of the carrying value of its assets depends upon the ability of | |
the Company to obtain necessary financing to fund its on-going working capital | |
requirements and fuel cell deployment activities, and upon future profitable | |
operations. The accompanying financial statements do not include any adjustments | |
related to the recoverability and classification of asset carrying amounts or | |
the amount and classification of liabilities that might result from the outcome | |
of this uncertainty. There is no assurance that equity or debt capital will be | |
available as necessary to meet the Company's capital requirements or, if the | |
capital is available, that it will be on terms acceptable to the Company. The | |
issuances of additional equity securities by the Company may result in | |
significant dilution in the equity interests of its current shareholders. | |
Obtaining commercial loans, assuming those loans would be available, will | |
increase the Company's liabilities and future cash commitments. If the Company | |
is unable to obtain financing in the amounts and on terms deemed acceptable, the | |
business and future success may be adversely affected. | |
RECENT_ACCOUNTING_PRONOUNCEMEN
RECENT ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Nov. 30, 2014 | |
RECENT ACCOUNTING PRONOUNCEMENTS | |
RECENT ACCOUNTING PRONOUNCEMENTS | 2. RECENT ACCOUNTING PRONOUNCEMENTS |
Recent pronouncements with future effective dates are either not applicable or | |
are not expected to be significant to the financial statement of the Company. | |
COMMON_STOCK
COMMON STOCK | 3 Months Ended |
Nov. 30, 2014 | |
COMMON STOCK | |
COMMON STOCK | 3. COMMON STOCK |
Authorized: 200,000,000 common shares. | |
On April 14, 2010, the Company adopted a stock option plan allowing the | |
Company's directors to grant up to 5,000,000 stock options pursuant to the terms | |
and conditions of the stock option plan. As of November 30, 2014 no options have | |
been granted. | |
During the period ended November 30, 2014, the Company issued 20,000 shares at | |
$0.25 per share for gross proceeds of $5,000. | |
During the period ended November 30, 2014, the Company received subscriptions of | |
$17,500 to issue 70,000 shares at $0.25 per share. The shares were issued on | |
February 28, 2015. | |
During the period ended November 30, 2014, the Company received subscriptions of | |
$3,700 to issue 10,572 shares at $0.35 per share. The shares were issued on | |
February 28, 2015. | |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Nov. 30, 2014 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | 4. RELATED PARTY TRANSACTIONS |
During the three months ended November 30, 2014, the Company incurred wages of | |
$23,250 (November 30, 2013 - $Nil), $22,500 (2013 - $Nil), $26,000 (November 30, | |
2013 - $Nil) and $44,250 (November 30, 2013 - $Nil) to the Executive Vice | |
President of Business Operations, the Executive Vice President of Fuel Cell | |
Operations, the Chief Operating Officer and the President and Chief Executive | |
Office of the Company, respectively. As of August 31, 2014, unpaid wages of | |
$274,598 (August 31, 2014 - $162,950) was owing to the related parties and is | |
included in accrued liabilities. | |
As of November 30, 2014, the Company owed notes payable of $50,000 (August 31, | |
2014 - $50,000) to a former director of the Company. The notes are non-interest | |
bearing, unsecured and due on demand. | |
CONVERTIBLE_DEBT
CONVERTIBLE DEBT | 3 Months Ended |
Nov. 30, 2014 | |
CONVERTIBLE DEBT | |
CONVERTIBLE DEBT | 5. CONVERTIBLE DEBT |
On October 27, 2014, the Company issued Kodiak Capital Group ("Kodiak") a | |
convertible note in the amount of $165,000 (see exhibit 10.10) in exchange for | |
consulting services rendered. The note is non-interest bearing, is due on | |
October 27, 2015, and is unsecured. The Company may repay the loan at any time | |
prior to October 27, 2015 without incurring any penalties. | |
Kodiak may convert the entire loan amount into shares of the Company's common | |
stock, at a conversion price for each share equal to the lowest closing bid | |
price for the common stock for the thirty trading days ending on the trading day | |
immediately before the conversion date multiplied by 50% at any time up to April | |
28, 2015. | |
As the value of the shares under the conversion option is greater than the face | |
value of the debt, the value of the shares, should the conversion option be | |
exercised, of $330,000 has been recognized as a liability in these financial | |
statements. Financing fees of $165,000 was recorded on the transaction. | |
COMMITMENTS
COMMITMENTS | 3 Months Ended |
Nov. 30, 2014 | |
COMMITMENTS | |
COMMITMENTS | 6. COMMITMENTS |
On April 28, 2014, the Company entered into a lease agreement for office, | |
warehouse and production space in Atlanta, GA for a term of five years. Under | |
the agreement, the Company is committed to rent payments of a minimum of $ | |
13,374 per month commencing November 1, 2014. | |
Under the agreement, the Company is committed to the following monthly rent | |
payments: | |
Dates Monthly Amount | |
----- -------------- | |
Though October 2015 $ 13,374 | |
November 1, 2015 to October 31, 2016 $ 13,776 | |
November 1, 2016 to October 31, 2017 $ 14,189 | |
November 1, 2017 to October 31, 2018 $ 14,615 | |
November 1, 2018 to October 31, 2019 $ 15,053 | |
Under the agreement, the Company also has to incur $125,000 in leasehold | |
improvements by September 30, 2014. If the expenses are not incurred by | |
September 30, 2014, the total lease will be in default. As of the date of these | |
financial statements, the Company has not yet incurred the required expenditures | |
and the lease is in default. | |
On March 1, 2014, the Company entered into an employment agreement with the | |
President and Chief Executive Officer of the Company. Under the agreement, the | |
Company will pay him an annual salary of $177,000 for 18 months with a 25% | |
increase after 18 months. The agreement will be in effect for 3 years. | |
On March 1, 2014, the Company entered into an employment agreement with the | |
Chief Operating Officer of the Company. Under the agreement, the Company will | |
pay him an annual salary of $104,000 for 18 months with a 25% increase after 18 | |
months. The agreement will be in effect for 3 years. | |
On March 1, 2014, the Company entered into an employment agreement with the | |
Executive Vice President of Operations of the Company. Under the agreement, the | |
Company will pay him an annual salary of $93,000 for 18 months with a 25% | |
increase after 18 months. The agreement will be in effect for 3 years. | |
On May 1, 2014, the Company entered into an employment agreement with the | |
Executive Vice President of Fuel Cell Operations of the Company. Under the | |
agreement, the Company will pay him an annual salary of $112,000. The agreement | |
will be in effect for 5 years. | |
RESTATEMENT_OF_CURRENT_YEAR_FI
RESTATEMENT OF CURRENT YEAR FINANCIAL STATEMENTS | 3 Months Ended |
Nov. 30, 2014 | |
RESTATEMENT OF CURRENT YEAR FINANCIAL STATEMENTS: | |
RESTATEMENT OF CURRENT YEAR FINANCIAL STATEMENTS | 7. RESTATEMENT OF CURRENT YEAR FINANCIAL STATEMENTS |
During the period ended November 30, 2014, management identified a potential | |
default in a lease agreement which indicated that the Company would permanently | |
cease to use the premises; therefore an accrual was made to recognize the losses | |
under the onerous contract. Subsequent to the period ended November 30, 2014, it | |
was determined that the accrual was unnecessary as the Company has not abandoned | |
the lease and are still using the premises. A lease inducement has also been | |
recognized, representing the rental discount received during the year. | |
For the financial statements for the period ended November 30, 2014, management | |
used the equity method to account for its investment in Pro Eco Energy Corp | |
("Pro Eco"); however, because the company did not have the ability to exercise | |
significant influence over Pro Eco and because the fair value of the shares is | |
not easily determinable, management subsequently recognized that the cost method | |
would be more appropriate. | |
The net effect of these adjustments are that assets decreased by $207,045 and | |
liabilities decreased by $761,709. | |
As previously | |
reported Change Restated | |
-------- ------ -------- | |
CONSOLIDATED BALANCE SHEET: | |
Investment in Pro Eco $ 207,045 $ (207,045) $ -- | |
Total assets $ 226,660 $ (207,045) $ 19,615 | |
Lease inducement $ -- $ 76,998 $ 76,998 | |
Accrued liabilities $ 1,113,305 $ (838,707) $ 274,598 | |
Deficit $(7,632,050) $ 554,664 $(7,077,386) | |
Total liabilities $ 1,786,651 $ (761,709) $ 1,024,942 | |
Total shareholders' deficit $(1,559,991) $ 554,664 $(1,005,327) | |
CONSOLIDATED STATEMENT OF OPERATIONS: | |
Income from investment in Pro Eco $ 14,139 $ (14,139) $ -- | |
Office and general | |
administration $ (16,442) $ (38,732) $ (55,174) | |
Net loss $ (469,288) $ (52,871) $ (522,159) | |
Loss per share $ (0.01) $ -- $ (0.01) | |
Schedule_of_monthly_rent_payme
Schedule of monthly rent payments (Tables) | 3 Months Ended |
Nov. 30, 2014 | |
Schedule of monthly rent payments | |
Schedule of Future Minimum Rental Payments for Leases | Under the agreement, the Company is committed to the following monthly rent |
payments: | |
Dates Monthly Amount | |
----- -------------- | |
Though October 2015 $13,374 | |
November 1, 2015 to October 31, 2016 $13,776 | |
November 1, 2016 to October 31, 2017 $14,189 | |
November 1, 2017 to October 31, 2018 $14,615 | |
November 1, 2018 to October 31, 2019 $15,053 | |
RESTATEMENT_OF_CURRENT_YEAR_FI1
RESTATEMENT OF CURRENT YEAR FINANCIAL STATEMENTS(TABLE) | 3 Months Ended |
Nov. 30, 2014 | |
RESTATEMENT OF CURRENT YEAR FINANCIAL STATEMENTS(TABLE): | |
RESTATEMENT OF CURRENT YEAR FINANCIAL STATEMENTS(TABLE) | The net effect of these adjustments are that assets decreased by $207,045 and |
liabilities decreased by $761,709. | |
As previously | |
reported Change Restated | |
-------- ------ -------- | |
CONSOLIDATED BALANCE SHEET: | |
Investment in Pro Eco $ 207,045 $ (207,045) $ -- | |
Total assets $ 226,660 $ (207,045) $ 19,615 | |
Lease inducement $ -- $ 76,998 $ 76,998 | |
Accrued liabilities $ 1,113,305 $ (838,707) $ 274,598 | |
Deficit $(7,632,050) $ 554,664 $(7,077,386) | |
Total liabilities $ 1,786,651 $ (761,709) $ 1,024,942 | |
Total shareholders' deficit $(1,559,991) $ 554,664 $(1,005,327) | |
CONSOLIDATED STATEMENT OF OPERATIONS: | |
Income from investment in Pro Eco $ 14,139 $ (14,139) $ -- | |
Office and general | |
administration $ (16,442) $ (38,732) $ (55,174) | |
Net loss $ (469,288) $ (52,871) $ (522,159) | |
Loss per share $ (0.01) $ -- $ (0.01) | |
Going_concern_Details
Going concern (Details) (USD $) | 3 Months Ended | |
Nov. 30, 2014 | Nov. 30, 2013 | |
Going concern Details | ||
The Company incurred a net loss | $22,159 | $56,413 |
Deficit accumulated during the period | 7,077,386 | |
Company has negative working capital | $928,329 |
COMMON_STOCK_TRANSACTIONS_Deta
COMMON STOCK TRANSACTIONS (Details) (USD $) | Nov. 30, 2014 | Apr. 14, 2010 |
COMMON STOCK TRANSACTIONS | ||
Authorized common shares | 200,000,000 | |
Issued shares shares of common stock | 70,000 | 5,000,000 |
Received subscriptions | $17,500 | |
Shares of common stock per share | $0.25 | |
Issued shares shares of common stock | 10,572 | |
Received subscriptions | $3,700 | |
Shares of common stock per share | $0.35 |
RELATED_PARTY_TRANSACTIONS_AS_
RELATED PARTY TRANSACTIONS AS FOLLOWS (Details) (USD $) | 3 Months Ended | |
Nov. 30, 2014 | Nov. 30, 2013 | |
RELATED PARTY TRANSACTIONS AS FOLLOWS: | ||
Incurred wages to the Executive Vice President of Operations | $23,250 | $0 |
Incurred wages to the Executive Vice President of Fuel Cell Operations | 22,500 | 0 |
Incurred wages to the Chief Operating Officer | 26,000 | 0 |
Incurred wages to the the President and Chief Executive Officer | 44,250 | 0 |
Notes payable related Party | 50,000 | 50,000 |
Notes payable to a director | $0 | $50,000 |
Related_party_Unpaid_wages_Det
Related party -Unpaid wages (Details) (USD $) | Nov. 30, 2014 | Aug. 31, 2014 |
Related party -Unpaid wages Details | ||
Unpaid wages owed to related party | $274,598 | $162,950 |
CONVERTIBLE_DEBT_Details
CONVERTIBLE DEBT (Details) (USD $) | Oct. 27, 2014 |
Convertible transactions: | |
Issued convertible note | $165,000 |
Recognized as a liability in financial statements | 330,000 |
Financing fee ; | $165,000 |
COMMITMENTS_TRANSACTIONS_Detai
COMMITMENTS TRANSACTIONS (Details) (USD $) | Nov. 30, 2014 |
COMMITMENTS TRANSACTIONS: | |
Rent payments Though October 2015 | $13,374 |
Rent payments November 1, 2015 to October 31, 2016 | 13,776 |
Rent payments November 1, 2016 to October 31, 2017 | 14,189 |
Rent payments November 1, 2017 to October 31, 2018 | 14,615 |
Rent payments November 1, 2018 to October 31, 2019 | $15,053 |
COMMITMENTS_Details
COMMITMENTS (Details) (USD $) | Sep. 30, 2014 | Mar. 01, 2014 |
COMMITMENTS DETAILS | ||
leasehold improvements | $125,000 | |
President and Chief Executive Officer annual salary | 177,000 | |
Chief Operating Officer annual salary | 104,000 | |
Executive Vice President annual salary | 93,000 | |
Executive Vice President of Fuel Cell Operations | $112,000 |