Smartchase (SCHS) 10-Q 31 Jul 14 2014 Q2 Quarterly report Financial data

Document_And_Entity_Informatio

Document And Entity Information (USD $)	6 Months Ended
	Jun. 30, 2014	Jul. 29, 2014
Document and Entity Information [Abstract]	'	'
Entity Registrant Name	'Northern Empire Energy Corp.	'
Document Type	'10-Q	'
Current Fiscal Year End Date	'--12-31	'
Entity Common Stock, Shares Outstanding	'	21,442,563
Entity Public Float	'	$102,448
Amendment Flag	'false	'
Entity Central Index Key	'0001390533	'
Entity Current Reporting Status	'Yes	'
Entity Voluntary Filers	'No	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Well-known Seasoned Issuer	'No	'
Document Period End Date	30-Jun-14	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q2	'

Balance_Sheets

Balance Sheets (USD $)	Jun. 30, 2014	Dec. 31, 2013
CURRENT ASSETS	'	'
Cash and cash equivalents	$970	$18,572
TOTAL CURRENT ASSETS	970	18,572
CURRENT LIABILITIES	'	'
Accounts payable	21,356	45,133
Related party loan	95,352	60,352
TOTAL CURRENT LIABILITIES	116,708	105,485
STOCKHOLDERS' EQUITY (DEFICIT)	'	'
Preferred Stock, $0.001 par value, 5,000,000 shares authorized, 62,500 shares issued and outstanding as of June 30, 2014 and December 31, 2013	63	63
Common stock; $0.001 par value; 195,000,000 shares authorized; 21,442,563 shares issued and outstanding as of June 30, 2014 and December 31, 2013	21,443	21,443
Additional paid-in capital	756,608	756,608
Deficit accumulated during development stage	-893,850	-865,026
TOTAL STOCKHOLDERS' EQUITY (DEFICIT)	-115,737	-86,913
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)	$970	$18,572

Balance_Sheets_Parentheticals

Balance Sheets (Parentheticals) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Preferred Stock, par value (in Dollars per share)	$0.00	$0.00
Preferred Stock, shares authorized	5,000,000	5,000,000
Preferred Stock, shares issued	62,500	62,500
Preferred Stock, shares outstanding	62,500	62,500
Common stock, par value (in Dollars per share)	$0.00	$0.00
Common stock, shares authorized	195,000,000	195,000,000
Common stock, shares issued	21,442,563	21,442,563
Common stock, shares outstanding	21,442,563	21,442,563

Condensed_Statements_of_Operat

Condensed Statements of Operations (Unaudited) (USD $)	3 Months Ended		6 Months Ended		98 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014
REVENUES	'	'	'	'	$19,491
OPERATING EXPENSES	'	'	'	'	'
General and administrative	11,380	533	17,330	571	298,273
Professional fees	5,830	1,500	11,830	3,000	139,276
TOTAL OPERATING EXPENSES	17,210	2,033	29,160	3,571	437,549
LOSS FROM OPERATIONS	-17,210	-2,033	-29,160	-3,571	-418,058
OTHER EXPENSES:	'	'	'	'	'
Foreign currency translation gain (loss)	-455	132	337	817	-5,069
Loss on impairment of oil and gas rights	'	'	'	'	-471,524
Gain on settlement of debt	'	'	'	'	802
TOTAL OTHER EXPENSES	-455	132	337	817	-475,791
NET (LOSS) GAIN	($17,666)	($1,901)	($28,824)	($2,754)	($893,850)
NET (LOSS) GAIN PER SHARE - BASIC AND DILUTED (in Dollars per share)	$0	$0	$0	$0	'
SHARES OUTSTANDING - BASIC AND DILUTED (in Shares)	21,442,563	20,827,216	21,442,563	20,827,216	'

Condensed_Statements_of_Cash_F

Condensed Statements of Cash Flows (Unaudited)	6 Months Ended		98 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014
	USD ($)	USD ($)	USD ($)
CASH FLOW FROM OPERATING ACTIVITIES:	'	'	'
Net loss	($28,824)	($2,754)	($893,850)
used in operating activities:	'	'	'
Depreciation	'	'	2,750
Beneficial conversion feature	'	'	7,500
Impairment of asset	'	'	471,524
Gain on extinguishment of debt	'	'	802
Changes in operating assets and liabilities:	'	'	'
Increase (decrease) in accounts payable and accrued expenses	11,222	3,853	214,653
Net cash used in operating activities	-17,602	1,099	-198,188
CASH FLOW FROM INVESTING ACTIVITIES:	'	'	'
Cash paid for prior ownership	'	'	-50,000
Deposits for purchase of oil and gas properties	'	'	-471,524
Net cash used in investing activities	'	'	-521,524
CASH FLOW FROM FINANCING ACTIVITIES:	'	'	'
Contributed capital from officer	'	'	1,425
Common stock issued for cash	'	'	719,257
Purchase of treasury stock	'	'	-5,000
Sale of treasury stock	'	'	5,000
Net cash provided by financing activities	'	'	720,682
NET INCREASE (DECREASE) IN CASH	-17,602	1,099	970
CASH AND CASH EQUIVALENTS, Beginning of period	18,572	'	'
CASH AND CASH EQUIVALENTS, End of period	$970	$1,099	$970

NOTE_1_CONDENSED_FINANCIAL_STA

NOTE 1 - CONDENSED FINANCIAL STATEMENTS	6 Months Ended
	Jun. 30, 2014
Disclosure Text Block [Abstract]	'
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	'
	NOTE 1 - CONDENSED FINANCIAL STATEMENTS
	The accompanying condensed financial statements have been prepared by the Company without audit.  In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows at June 30, 2014 and for all periods presented have been made.
	Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Company's December 31, 2013 audited financial statements.  The results of operations for the period ended June 30, 2014 are not necessarily indicative of the operating results for the full year.

NOTE_2_GOING_CONCERN

NOTE 2 - GOING CONCERN	6 Months Ended
	Jun. 30, 2014
Going Concern Note [Abstract]	'
Going Concern Note	'
	NOTE 2 - GOING CONCERN
	These financial statements have been prepared on a going concern basis, which implies the Company will continue to realize its assets and discharge its liabilities in the normal course of business. As of June 30, 2014, the Company has accumulated operating losses of approximately $(893,850) since inception.
	At June 30, 2014, the Company has limited cash resources and will likely require new financing, either through loans from officers, debt financing, equity offerings or business combinations to continue the development of its business; however, there can be no assurance that management will be successful in raising the funds necessary to maintain operations, or that a self-supporting level of operations will ever be achieved. The likely outcome of these future events is indeterminable. The continuation of the Company as a going concern is dependent upon the continued financial support from its shareholders, the ability of the Company to obtain necessary equity financing to continue operations and the attainment of profitable operations.
	These conditions raise substantial doubt about the Company's ability to continue as a going concern.  These financial statements do not include any adjustments that might arise from this uncertainty.

NOTE_3_SIGNIFICANT_ACCOUNTING_

NOTE 3 - SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2014
Accounting Policies [Abstract]	'
Significant Accounting Policies [Text Block]	'
	NOTE 3 - SIGNIFICANT ACCOUNTING POLICIES
	The Company's financial statements are prepared using the accrual method of accounting.  The Company has elected a December 31 year-end.
	Basis of Accounting
	The basis is United States generally accepted accounting principles.
	Use of Estimates
	The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.
	Revenue Recognition
	The Company recognizes revenue on an accrual basis. Revenue is generally realized or realizable and earned when all of the following criteria are met:  1) persuasive evidence of an arrangement exists between the Company and our customer(s); 2) services have been rendered; 3) our price to our customer is fixed or determinable; and 4) collectability is reasonably assured.
	Income taxes
	The Company accounts for its income taxes in accordance with FASB ASC Topic 740-10, "Income Taxes", which requires recognition of deferred tax assets and liabilities for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.
	Net Loss Per Common Share
	FASB ASC Topic 260-10, "Earnings per Share", requires presentation of "basic" and "diluted" earnings per share on the face of the statements of operations for all entities with complex capital structures. Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted during the period. Dilutive securities having an anti-dilutive effect on diluted earnings per share are excluded from the calculation.
	Stock-Based Compensation
	The Company has adopted FASB ASC Topic 718-10, "Compensation - Stock Compensation" ("ASC 718-10") which requires the measurement and recognition of compensation expense for all stock-based payment awards made to employees and directors. Under the fair value recognition provisions of ASC 718-10, stock-based compensation cost is measured at the grant date based on the value of the award and is recognized as expense over the vesting period.
	Determining the fair value of stock-based awards at the grant date requires considerable judgment, including estimating the expected future volatility of our stock price, estimating the expected length of term of granted options and selecting the appropriate risk-free rate. There is no established trading market for our stock.
	Financial instruments
	The fair value of the Company's financial assets and financial liabilities approximate their carrying values due to the immediate or short-term maturity of these financial instruments.
	Foreign Currency Translation
	The Company's functional and reporting currency is the United States dollar. Occasional transactions may occur in Canadian dollars and management has adopted FASB ASC topic 830 "Foreign Currency Matters". Monetary assets and liabilities denominated in foreign currencies are translated using the exchange rate prevailing at the balance sheet date. Non-monetary assets and liabilities denominated in foreign currencies are translated at rates of exchange in effect at the date of the transaction. Average monthly rates are used to translate revenues and expenses. Gains and losses arising on translation or settlement of foreign currency denominated transactions or balances are included in the determination of income. The Company has not, to the date of these financials statements, entered into derivative instruments to offset the impact of foreign currency fluctuations.
	Cash and Cash Equivalents
	The Company considers all highly liquid instruments with a maturity of three months or less at the time of issuance to be cash equivalents. The Company maintains its cash in bank deposit accounts, which, at times, may exceed federally insured limits. Management does not believe the Company is exposed to significant credit risk. Management, as well, does not believe the Company is exposed to significant interest rate and foreign currency fluctuation risks during the period presented in these financial statements.  As at June 30, 2014 and December 31, 2013, the Company has cash equivalents in the amount of $nil and $nil that are over the federally insured limit.

NOTE_4_RELATED_PARTY_TRANSACTI

NOTE 4 - RELATED PARTY TRANSACTIONS	6 Months Ended
	Jun. 30, 2014
Related Party Transactions [Abstract]	'
Related Party Transactions Disclosure [Text Block]	'
	NOTE 4 - RELATED PARTY TRANSACTIONS
	As of June 30, 2014 the President of the Company is owed $95,352 for loans and payments made directly to vendors on behalf of the Company.  The amount due is unsecured, non-interest bearing and due on demand.

NOTE_5_OIL_AND_GAS_PROPERTIES

NOTE 5 - OIL AND GAS PROPERTIES	6 Months Ended
	Jun. 30, 2014
Oil and Gas Property [Abstract]	'
Oil and Gas Properties [Text Block]	'
	NOTE 5 - OIL AND GAS PROPERTIES
	On December 16, 2009, the Company entered into a "Formal option to Purchase and Sale Agreement of Petroleum and Natural Gas Rights" with Angels Exploration Fund, Inc., an Alberta Corporation.  The Company agreed to purchase certain petroleum and natural gas rights within the Province of Alberta for a total purchase price of $471,524 ($500,000 Canadian Dollars).
	The Company was unsuccessful in raising additional capital in order to conduct exploration and drill wells on the property, and as of December 31, 2009, the property was written down/impaired to $1 and a loss was recognized in the financial statements in the amount of $471,523.
	During the year ended December 31, 2010, the Company terminated the "Formal Option to Purchase and Sale Agreement of Petroleum and Natural Gas Rights" and became a shell corporation whose sole purpose at this time is to locate and consummate a merger and/or acquisition with an operating entity.

NOTE_6_STOCKHOLDERS_EQUITY

NOTE 6 - STOCKHOLDER'S EQUITY	6 Months Ended
	Jun. 30, 2014
Stockholders' Equity Note [Abstract]	'
Stockholders' Equity Note Disclosure [Text Block]	'
	NOTE 6 - STOCKHOLDER'S EQUITY
	As of June 30, 2014 there were 21,442,563 shares of common stock issued and outstanding and 62,500 shares of preferred stock issued and outstanding.
	On April 24, 2006 (inception), the Company issued 361,900 shares of its common stock at $0.01 per share to its sole shareholder for $3,619.
	On April 24, 2006, the Company issued 75,000 shares of its preferred stock in exchange for telephone calling equipment valued at $7,500.  Each share of the Convertible Preferred Stock can be exchanged for two hundred (200) shares of Common Stock of the corporation.  This Series A preferred stock was issued with a beneficial conversion feature totaling $7,500. If the preferred stock were to be converted into common stock, the common stock would be increased by 15,000,000 shares.
	On December 31, 2006, the Company issued 61,200 shares of its common stock at $0.10 per share pursuant to a regulation 504 offering for $6,120.
	On November 17, 2008, the Company issued 18,000,000 shares of its common stock at $0.01 per share for $180,000 in cash to the CEO of the Company.
	On January 30, 2008, the Company initiated a 10 to 1 (10.1) reverse stock split for its issued and outstanding common and preferred stock.  This reverse stock split had no effect on the authorized number of common shares or preferred shares, and did not affect the par value of the stock. The financial statements reflect the reverse stock split on a retroactive basis.
	On November 17, 2008, David Gallagher, a former officer and director of the Company, returned his 361,900 restricted shares of common stock to the corporate treasury in exchange for $50,000 and the Company's specialized phone equipment with a book value of $4,750.  The shares were then cancelled by the Company's transfer agent.
	On February 27, 2009, 8,000 preferred shares of stock were converted into 1,600,000 shares of common stock at a conversion rate of 200 to 1 (200.1).
	On September 10, 2009, the Company conducted a private placement of 615,347 shares of common stock at $0.60 per share for a total of $369,208.
	On October 2, 2009, 4,500 preferred shares of stock were converted into 900,000 shares of common stock at a conversion rate of 200 to 1 (200.1).
	In December 2009, the Company conducted a private placement of 266,016 shares of common stock at $0.60 per share for a total of $160,310.
	On March 21, 2012, a former officer and director of the Company returned his 18,000,000 restricted shares of common stock to the corporate treasury in exchange for $5,000.
	On March 21, 2012, the Company sold 18,000,000 shares of its treasury stock at cost for $5,000 cash.
	During the fiscal year ended December 31, 2012, a company affiliated with a former officer agreed to settle $99,681 of related party debt in consideration for $2,500. This amount of forgiven debt ($97,181) is recorded as contributed capital.

NOTE_7_RECENT_ACCOUNTING_PRONO

NOTE 7 - RECENT ACCOUNTING PRONOUNCEMENTS	6 Months Ended
	Jun. 30, 2014
Policy Text Block [Abstract]	'
New Accounting Pronouncements, Policy [Policy Text Block]	'
	NOTE 7 - RECENT ACCOUNTING PRONOUNCEMENTS
	We do not expect the adoption of recently issued accounting pronouncements to have a significant impact on our results of operations, financial position or cash flow.

NOTE_8_SUBSEQUENT_EVENTS

NOTE 8 - SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2014
Subsequent Events [Abstract]	'
Subsequent Events [Text Block]	'
	NOTE 8 - SUBSEQUENT EVENTS
	The Company has evaluated subsequent events through the date the financial statements are issued and believes there are no events to disclose.

NOTE_2_GOING_CONCERN_Details

NOTE 2 - GOING CONCERN (Details) (USD $)	Jun. 30, 2014
Going Concern Note [Abstract]	'
Cumulative Earnings (Deficit)	($893,850)

NOTE_4_RELATED_PARTY_TRANSACTI1

NOTE 4 - RELATED PARTY TRANSACTIONS (Details) (USD $)	Jun. 30, 2014
Related Party Transactions [Abstract]	'
Due to Officers or Stockholders	$95,352

NOTE_5_OIL_AND_GAS_PROPERTIES_

NOTE 5 - OIL AND GAS PROPERTIES (Details)	12 Months Ended		98 Months Ended
	Dec. 31, 2009	Dec. 31, 2009	Jun. 30, 2014
	USD ($)	CAD	USD ($)
Oil and Gas Property [Abstract]	'	'	'
Payments to Acquire Oil and Gas Property	$471,524	500,000	$471,524
Impairment of Oil and Gas Properties	$471,523	'	$471,524

NOTE_6_STOCKHOLDERS_EQUITY_Det

NOTE 6 - STOCKHOLDER'S EQUITY (Details) (USD $)

1 Months Ended

2 Months Ended

3 Months Ended

4 Months Ended

9 Months Ended

11 Months Ended

12 Months Ended

98 Months Ended

Jan. 30, 2008

Feb. 27, 2009

Mar. 21, 2012

Mar. 21, 2012

Apr. 25, 2006

Sep. 10, 2009

Nov. 17, 2008

Dec. 31, 2012

Dec. 31, 2009

Dec. 31, 2006

Jun. 30, 2014

Dec. 31, 2013

Oct. 02, 2009

Stockholders' Equity Note [Abstract]

'

'

'

'

'

'

'

'

'

'

'

'

'

Common Stock, Shares, Outstanding (in Shares)

'

'

'

'

'

'

'

'

'

'

21,442,563

21,442,563

'

Preferred Stock, Shares Outstanding (in Shares)

'

'

'

'

'

'

'

'

'

'

62,500

62,500

'

Stock Issued During Period, Shares, New Issues (in Shares)

'

'

'

'

361,900

'

'

'

'

'

'

'

'

Sale of Stock, Price Per Share (in Dollars per share)

'

'

'

'

$0.01

$0.60

$0.01

'

$0.60

$0.10

'

'

'

Stock Issued During Period, Value, New Issues

'

'

'

'

$3,619

'

'

'

'

'

'

'

'

Preferred Stock, Shares Issued (in Shares)

'

8,000

'

'

75,000

'

'

'

'

'

62,500

62,500

'

Preferred Stock, Value, Issued for Services

'

'

'

'

7,500

'

'

'

'

'

'

'

'

Preferred Stock, Conversion Ratio

'

-200.1

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'

-200

'

'

'

'

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-200.1

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7,500

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'

'

'

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7,500

'

'

Convertible Preferred Stock, Shares Issued upon Conversion (in Shares)

'

1,600,000

'

'

15,000,000

'

'

'

'

'

'

'

900,000

Development Stage Entities, Stock Issued, Shares, Issued for Cash (in Shares)

'

'

18,000,000

'

'

615,347

18,000,000

'

266,016

61,200

'

'

'

Development Stage Entities, Stock Issued, Value, Issued for Cash

'

369,208

5,000

'

'

'

180,000

'

160,310

6,120

'

'

'

Stockholders' Equity, Reverse Stock Split

'(10.1)

'

'

'

'

'

'

'

'

'

'

'

'

Stock Repurchased and Retired During Period, Shares (in Shares)

'

'

'

'

'

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361,900

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'

'

'

'

'

Stock Repurchased and Retired During Period, Value

'

'

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'

'

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50,000

'

'

'

'

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Stock Repurchased During Period, Value

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'

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5,000

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4,750

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'

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Preferred Stock, Value, Issued

'

'

'

'

'

'

'

'

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63

63

4,500

Stock Repurchased During Period, Shares (in Shares)

'

'

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18,000,000

'

'

'

'

'

'

'

'

'

Increase (Decrease) in Accounts Payable, Related Parties

'

'

'

'

'

'

'

2,500

'

'

'

'

'

Debt Instrument, Decrease, Forgiveness

'

'

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$97,181

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'