Cherubim Interests (CHIT) 10-Q/A 23 Apr 15 2015 Q2 Quarterly report (amended) Financial data

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
	Feb. 28, 2015	Apr. 20, 2015
Document and Entity Information:
Entity Registrant Name	Falcon Crest Energy Inc.
Entity Trading Symbol	FCEN
Document Type	10-Q
Document Period End Date	28-Feb-15
Amendment Flag	FALSE
Entity Central Index Key	1421865
Current Fiscal Year End Date	-23
Entity Common Stock, Shares Outstanding		75,960,214
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	Q2

Condensed_Balance_Sheets_unaud

Condensed Balance Sheets (unaudited) (USD $)	Feb. 28, 2015	Aug. 31, 2014
Current assets
Cash	$284	$11,489
Notes receivable, net of allowance of $878,354		0
Total current assets	284	11,489
Oil and Natural Gas Property, Unproved (successful efforts method)	25,020	25,000
Total assets	25,304	36,489
Current liabilities
Accounts payable	98,139	123,770
Notes payable	368,836	353,586
Related party payables	1,324,848	1,324,848
Accrued interest	447,663	383,450
Derivative liability	51,734	106,785
Accrued expenses and other liabilities	346,070	196,051
Total current liabilities	2,637,290	2,488,490
Notes payable (non-current portion)		0
Total liabilities	2,637,290	2,488,490
Stockholders' Deficit
Common stock, $0.001 par value; 200,000,000 shares authorized; 73,626,881 and 63,100,000 issued and outstanding at February 28, 2015 and August 31, 2014, respectively	73,627	63,100
Shares held in escrow	-10,000	-10,000
Additional paid in capital	971,487	794,770
Deficit accumulated during the development stage	-3,647,100	-3,299,871
Total stockholders' deficit	-2,611,986	-2,452,001
Total liabilities and stockholders' deficit	$25,304	$36,489

Balance_Sheets_Parentheticals

Balance Sheets Parentheticals (USD $)	Feb. 28, 2015	Aug. 31, 2014
Parentheticals
Notes receivable, net of allowance	$0	$878,354
Common Stock, par value	$0.00	$0.00
Common Stock, shares authorized	200,000,000	200,000,000
Common Stock, shares issued	73,626,881	63,100,000
Common Stock, shares outstanding	73,626,881	63,100,000

Condensed_Statements_of_Operat

Condensed Statements of Operations (unaudited) (USD $)	3 Months Ended		6 Months Ended
	Feb. 28, 2015	Feb. 28, 2014	Feb. 28, 2015	Feb. 28, 2014
Revenues {1}
Revenues	$0		$0
Operating expenses
Exploration expenses		5,000		278,500
Professional fees	161,522	39,200	322,236	301,749
Travel and promotion	3,049	3,794	21,774	11,714
Bad debt	0		0
Other general and administrative	5,618	3,185	14,563	7,137
Total operating expenses	170,189	51,179	358,573	599,100
Loss from operations	-170,189	-51,179	-358,573	-599,100
Other income (expense)
Other income	0			0
Interest expense	-32,914	-30,832	-65,792	-57,979
Debt discount	-33,000		-65,500
Derivative recovery (expense)	100,048		120,048
Impairment of assets	0		0
Gain (loss) on extinguishment of debt	28,085		22,085	-44,000
Total other income (expense)	62,219	-30,832	-11,344	-101,979
Loss before provision for income taxes	-107,970	-82,011	-347,229	-701,079
Provision for Income taxes	0			0
Net loss	($107,970)	($82,011)	($347,229)	($701,079)
Basic and diluted loss per common share	$0	$0	($0.01)	($0.03)
Weighted average shares outstanding	66,431,135	26,100,000	68,288,172	23,781,768

Condensed_Statements_of_Cash_F

Condensed Statements of Cash Flows (unaudited) (USD $)	6 Months Ended
	Feb. 28, 2015	Feb. 28, 2014
Cash flows from operating activities
Net loss	($347,229)	($701,079)
Adjustments to reconcile net loss to net cash used in operating activities
Change in derivative	-120,551
Debt discount	65,500
Common stock issued for services	157,500	250,000
Impairment loss		0
Stock issued to convert debt	0
Extinguishment of debt	-20,506	44,000
Bad debt expense		0
Changes in operating assets and liabilities:
Accounts payable	-25,631
Interest payable	64,213	57,978
Accrued expenses and other liabilities	150,019	45,500
Cash provided by (used in) operating activities	-76,685	-303,601
Cash flows from investing activities
Investment in oil and natural gas property	20
Note receivable	0
Cash flows used in investing activities	-20
Cash flows from financing activities
Proceeds from related party loan		278,628
Repayments of related party loan	0
Increase in bank indebtedness		19
Proceeds from notes payable	65,500	14,631
Proceeds from sale of stock		0
Cash provided by financing activities	65,500	293,278
Net change in cash	-11,205	-10,323
Cash at beginning of period	11,489	11,667
Cash at end of period	284	1,344
Supplemental cash flow Information:
Cash paid for interest		0
Cash paid for income taxes	0
Notes payable converted to common stock	13,500
Notes payable cancelled	$36,750

CONDENSED_FINANCIAL_STATEMENTS

CONDENSED FINANCIAL STATEMENTS	6 Months Ended
	Feb. 28, 2015
CONDENSED FINANCIAL STATEMENTS
CONDENSED FINANCIAL STATEMENTS	NOTE 1–CONDENSED FINANCIAL STATEMENTS
	The accompanying financial statements have been prepared by Falcon Crest Energy Inc. (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 February 28, 2015 and for all periods presented herein, 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 August 31, 2014 and 2013 audited financial statements.  The results of operations for the period ended February 28, 2015 are not necessarily indicative of the operating results for the full year.

NATURE_OF_BUSINESS

NATURE OF BUSINESS	6 Months Ended
	Feb. 28, 2015
NATURE OF BUSINESS
NATURE OF BUSINESS	NOTE 2–NATURE OF BUSINESS
	The Company was incorporated in the State of Nevada, United States of America on September 27, 2006 and its fiscal year end is August 31. The Company was engaged in sales of new food products produced or developed by North American companies to foreign markets and discontinued that business in August 2009. The Company currently operates in the oil and gas industry, focused on the exploration for and development of oil and gas properties.

GOING_CONCERN

GOING CONCERN	6 Months Ended
	Feb. 28, 2015
GOING CONCERN
GOING CONCERN	NOTE 3–GOING CONCERN
	The Company’s financial statements are prepared in accordance with generally accepted accounting principles applicable to a going concern. The Company has accumulated deficit since inception of $3,646,400 and a negative working capital of $2,637,006 as of February 28, 2015. This contemplates the realization of assets and the liquidation of liabilities in the normal course of business. Currently, the Company has minimal cash and no material assets, nor does it have operations or a source of revenue sufficient to cover its operation costs and allow it to continue as a going concern. The Company will be dependent upon the raising of additional capital through placement of our common stock in order to implement its business plan. There can be no assurance that the Company will be successful in either situation in order to continue as a going concern. The officers and directors have committed to advancing certain operating costs of the Company.

OIL_AND_NATURAL_GAS_PROPERTY

OIL AND NATURAL GAS PROPERTY	6 Months Ended
	Feb. 28, 2015
OIL AND NATURAL GAS PROPERTY
OIL AND NATURAL GAS PROPERTY	NOTE 4–OIL AND GAS PROPERTY
	On October 20, 2014 the company, through its agents Pacer Energy Acquisitions LLC and Pahasapa Petroleum LLC received assignment of a 75% Working Interest Position in approximately 585 Acres in Crook County, Wyoming from the United States Bureau of Land Management (BLM).
	On January 7, 2015 the company, through its agents Pacer Energy Acquisitions LLC and Pahasapa Petroleum LLC received assignment of a 100% Working Interest Position in approximately 585 Acres in Crook County, Wyoming from the United States Bureau of Land Management (BLM).

CONVERTIBLE_NOTES_PAYABLE

CONVERTIBLE NOTES PAYABLE	6 Months Ended
	Feb. 28, 2015
CONVERTIBLE NOTES PAYABLE
CONVERTIBLE NOTES PAYABLE	NOTE 5-CONVERTIBLE NOTES PAYABLE
	On August 5th, 2014, the Company issued a convertible promissory note in the amount of $32,500. The note is due on May 7th, 2015 and bears interest at 8% per annum. The loan becomes convertible 180 days after the date of the note. The loan and any accrued interest can then be converted into shares of the Company’s common stock at a rate of 58% multiplied by the market price, which is the average of the lowest two (2) trading prices for the common stock during the twenty (20) trading day period ending on the latest complete trading day prior to the conversion date. On February 13, 2015, $12,000 of the principal was converted into 1,333,333 common shares resulting in a loss on extinguishment of debt of $8,667.
	On August 5th, 2014, the Company issued a convertible promissory note in the amount of $36,750. The note is due on August 5th, 2015 and bears interest at 8% per annum. The loan becomes convertible 180 days after the date of the note. The loan and any accrued interest can then be converted into shares of the Company’s common stock at a rate of 55% multiplied by the market price, which is the average of the lowest two (2) trading prices for the common stock during the fifteen (15) trading day period ending on the latest complete trading day prior to the conversion date. On February 19, 2015, the note was cancelled by the holder resulting in a gain on extinguishment of debt of $38,329.
	On August 12th, 2014, the Company issued a convertible promissory note in the amount of $25,000. The note is due on August 12th, 2015 and bears interest at 8% per annum. The loan becomes convertible 180 days after the date of the note. The loan and any accrued interest can then be converted into shares of the Company’s common stock at a rate of 50% multiplied by the market price, which is the average of the lowest two (2) trading prices for the common stock during the fifteen (14) trading day period ending on the latest complete trading day prior to the conversion date. On February 18, 2015, $1,500 of the principal was converted into 193,548 common shares resulting in a loss on extinguishment of debt of $1,577.
	On September 8th, 2014, the Company issued a convertible promissory note in the amount of $32,500. The note is due on June 10th, 2015 and bears interest at 8% per annum. The loan becomes convertible 180 days after the date of the note. The loan and any accrued interest can then be converted into shares of the Company’s common stock at a rate of 58% multiplied by the market price, which is the average of the lowest two (2) trading prices for the common stock during the twenty (20) trading day period ending on the latest complete trading day prior to the conversion date.
	On December 19th, 2014, the Company issued a convertible promissory note in the amount of $33,000. The note is due on September 26th, 2015 and bears interest at 8% per annum. The loan becomes convertible 180 days after the date of the note. The loan and any accrued interest can then be converted into shares of the Company’s common stock at a rate of 58% multiplied by the market price, which is the average of the lowest two (2) trading prices for the common stock during the twenty (20) trading day period ending on the latest complete trading day prior to the conversion date.

DERIVATIVE_LIABILITIES

DERIVATIVE LIABILITIES	6 Months Ended
	Feb. 28, 2015
DERIVATIVE LIABILITIES
DERIVATIVE LIABILITIES	NOTE 6–DERIVATIVE LIABILITIES
	In accordance with AC 815, the Company has bifurcated the conversion feature of their convertible notes and recorded a derivative liability on the date each note became convertible. The derivative liability was then revalued on each reporting date. The Company uses the Black-Scholes option pricing model to value the derivative liability. Included in the model to value the derivative liabilities of the above loans are the following assumptions: stock price at valuation date of $0.016 - $0.036, exercise price of $0.09 - $0.023, dividend yield of zero, years to maturity of 0.019 – .493, a risk free rate of 0.02% - 0.05%, and annualized volatility of 11% - 347%. The above loans were all discounted in full based on the valuations and the Company recognized an additional derivative expense of $90,151 upon recording of the current period’s derivative liabilities. Once the loans are fully converted, the remaining derivative liability is reclassified to equity as additional paid-in capital. As of February 28, 2015, unamortized debt discount totaling $159,750 remained.
	ASC 815 requires Company management to assess the fair market value of certain derivatives at each reporting period and recognize any change in the fair market value as another income or expense item. The Company’s only asset or liability measured at fair value on a recurring basis is its derivative liability associated with the above convertible debt. During the period ended February 28, 2015, the Company recorded a total change in the value of the derivative liabilities of $(68,494).
	From inception to February 28, 2015 the Company has not granted any stock options.

STOCKHOLDERS_EQUITY

STOCKHOLDERS' EQUITY	6 Months Ended
	Feb. 28, 2015
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY	NOTE 7-STOCKHOLDERS' EQUITY
	The total number of common shares authorized that may be issued by the Company is 200,000,000 shares with a par value of $0.001 per share and no other class of shares is authorized.
	On October 21, 2014 1,000,000 shares were issued to Cloud Solutions LLC for services.
	On October 29, 2014 3,000,000 shares were issued to Corporate Ads LLC for services.
	On February 11, 2015 4,000,000 shares were issued to an executive of the company for services.
	On February 11, 2015 1,000,000 shares were issued for services.
	On February 13, 2015 1,333,333 shares were issued on conversion of a convertible promissory note.
	On February 18, 2015 193,548 shares were issued on conversion of a convertible promissory note.

RELATED_PARTY_TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
	Feb. 28, 2015
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	NOTE 8-RELATED PARTY TRANSACTIONS
	The Company has current loans totaling $1,324,848 to fund operations which carry varying interest rates. As of February 28, 2015 (August 31, 2014), the Company owed $1,324,848 ($1,324,848) of principal plus accrued interest of $447,663 ($383,450). The loans are unsecured and due on demand and as such are included in current liabilities. A portion of the related party transactions were reclassified in 2014 to properly reflect the relationship with the company

NOTE_RECEIVABLE

NOTE RECEIVABLE	6 Months Ended
	Feb. 28, 2015
NOTE RECEIVABLE
NOTE RECEIVABLE	NOTE 9–NOTE RECEIVABLE
	The Company has advanced funds totaling $540,010 to Steele Resources with the intention of establishing a joint venture. The venture did not materialize and Steele Resources has agreed to return the funds to the Company. We have not received repayment as of February 28, 2015 and have established a full reserve against the balance as a result.
	The Company has advanced funds totaling $338,344 to Global Finishing with the intention of establishing a joint venture. The venture did not materialize. We have not received repayment as of February 28, 2015 and have established a full reserve against the balance as a result.

SUBSEQUENT_EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Feb. 28, 2015
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	NOTE 10–SUBSEQUENT EVENTS
	On March 24, 2015, the Company converted $23,333 of debt currently owed at 0.01 per share price for a total of 2,333,333 shares.

GOING_CONCERN_Details

GOING CONCERN (Details) (USD $)	Feb. 28, 2015
GOING CONCERN DETAILS
Accumulated deficit	$3,646,400
Negative working capital	$2,637,006

OIL_AND_PROPERTY_Details

OIL AND PROPERTY (Details)	Jan. 07, 2015	Oct. 20, 2014
OIL AND PROPERTY
Received assignment of Working Interest Position	100.00%	75.00%

CONVERTIBLE_NOTES_PAYABLE_Deta

CONVERTIBLE NOTES PAYABLE (Details) (USD $)	Feb. 19, 2015	Feb. 18, 2015	Feb. 13, 2015	Dec. 19, 2014	Sep. 08, 2014	Aug. 12, 2014	Aug. 05, 2014
CONVERTIBLE NOTES PAYABLE DETAILS
Issued a convertible promissory note							$32,500
Issued a convertible promissory note in the amount				33,000	32,500	25,000	36,750
Note bears interest				8.00%	8.00%	8.00%	8.00%
Loan and accrued interest converted into shares of common stock at a rate				58.00%	58.00%	50.00%	58.00%
Converted shares of common stock at a rate							55.00%
Principal of 12,000 was converted into common shares			1,333,333
Loss on extinguishment of debt			$8,667			$1,577
Note was cancelled	$38,329
Principal of 1,500 was converted into common shares		193,548

DERIVATIVE_LIABILITIES_Details

DERIVATIVE LIABILITIES (Details) (USD $)	6 Months Ended
	Feb. 28, 2015
Pricing model with the assumptions Details
Stock price at valuation minimum	$0.02
Stock price at valuation maximum	$0.04
Exercise price minimum	$0.09
Exercise price maximum	$0.02
Expected dividend yield	$0
Risk-free interest rate minimum	0.02%
Risk-free interest rate maximum	0.05%
Expected volatility minimum	11.00%
Expected volatility maximum	347.00%
Expected term years to maturity minimum	0.019
Expected term years to maturity maximum	0.493
Recognized an additional derivative expense	90,151
Unamortized debt discount	159,750
Total change in the value of the derivative liabilities	($68,494)

EQUITY_Details

EQUITY (Details) (USD $)	Feb. 28, 2015	Feb. 18, 2015	Feb. 13, 2015	Feb. 11, 2015	Oct. 29, 2014	Oct. 21, 2014
Capital stock transactions:
Authorized the issuance of shares	200,000,000
Authorized the issuance of shares, Par value	$0.00
Shares issued for services				1,000,000	3,000,000	1,000,000
Shares were issued to an executive for services				4,000,000
Shares were issued on conversion of convertible promissory note		193,548	1,333,333

RELATED_PARTY_TRANSACTIONS_Det

RELATED PARTY TRANSACTIONS (Details) (USD $)	Feb. 28, 2015	Aug. 31, 2014
RELATED PARTY TRANSACTIONS DETAILS:
Current loans	$1,324,848	$1,324,848
Related party payables	1,324,848	1,324,848
Accrued interest	$447,663	$383,450

NOTE_RECEIVABLE_Details

NOTE RECEIVABLE (Details) (USD $)	Feb. 28, 2015
NOTE RECEIVABLE DETAILS:
Advanced funds to Steele Resources	$540,010
Advanced funds to Global Finishing	$338,344

SUBSEQUENT_EVENTS_Details

SUBSEQUENT EVENTS (Details) (USD $)	Mar. 24, 2015
SUBSEQUENT EVENTS DETAILS:
Company converted debt	$23,333
Share price	$0.01
Total shares	2,333,333