Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Feb. 28, 2014 | Jun. 13, 2014 | Aug. 31, 2013 | |
Document and Entity Information: | ' | ' | ' |
Entity Registrant Name | 'MediJane Holdings Inc. | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 28-Feb-14 | ' | ' |
Amendment Flag | 'false | ' | ' |
Entity Central Index Key | '0001493212 | ' | ' |
Current Fiscal Year End Date | '--02-28 | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 89,525,000 | ' |
Entity Public Float | ' | ' | $82,600,000 |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'Yes | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
MediJane_Holdings_Inc_A_Develo
MediJane Holdings, Inc. (A Development Stage Company) - Balance Sheets (USD $) | Feb. 28, 2014 | Feb. 28, 2013 |
Assets | ' | ' |
Cash | $6,104 | $1,704 |
Accounts receivable | 0 | 214 |
Other receivable - sale of oil and gas working interest | 0 | 40,000 |
Current assets | 6,104 | 41,918 |
Oil and gas properties, proved net of accumulated depletion, depreciation and impairment of $32,670 and $61,746, respectively | 0 | 0 |
Total Assets | 6,104 | 41,918 |
Current liabilities: | ' | ' |
Accounts payable and accrued liabilities | 10,016 | 42,362 |
Due to related party | 0 | 58,150 |
Convertible debenture | 0 | 215,000 |
Derivative liability | 0 | 227,507 |
Total current liabilities | 10,016 | 543,019 |
Asset retirement obligation | 420 | 247 |
Total Liabilities | 10,436 | 543,266 |
Stockholders' deficit: | ' | ' |
Common stock: Authorized: 1,000,000,000 common shares, par value of $0.001 per share; Issued and outstanding: 63,000,000 and 78,000,000 common shares, respectively | 63,000 | 78,000 |
Additional paid-in capital | 599,920 | 33,357 |
Accumulated deficit during the development stage | -667,252 | -612,705 |
Total stockholders' deficit | -4,332 | -501,348 |
Total Liabilities and Stockholders' Deficit | $6,104 | $41,918 |
MediJane_Holdings_Inc_A_Develo1
MediJane Holdings, Inc. (A Development Stage Company) - Statements of Operations (USD $) | 12 Months Ended | 58 Months Ended |
Feb. 28, 2014 | Feb. 28, 2014 | |
Unaudited | ||
Revenues | $0 | $12,027 |
Operating expenses | ' | ' |
Accretion expense | 173 | 286 |
Depreciation, depletion, and amortization | 0 | 1,059 |
General and administrative | 583,898 | 780,169 |
Impairment of oil & gas properties | 0 | 81,245 |
Lease operating expenses | 0 | 3,864 |
Professional fees | 59,901 | 181,114 |
Total operating expenses | 643,972 | 1,047,737 |
Loss before other expenses | -643,972 | -1,035,710 |
Other income (expense) | ' | ' |
Gain on sale of oil and gas working interest | 0 | 40,000 |
Interest expense | -22,095 | -55,555 |
Gain on settlement of debt | 292,612 | 292,612 |
Gain on settlement of debt, related party | 91,401 | 91,401 |
Change in fair value of derivative liability | 227,507 | 215,347 |
Loss on debt modification | 0 | -215,347 |
Total other expense | 589,425 | 368,458 |
Net loss | ($54,547) | ($667,252) |
Net loss per share - basic and diluted | $0 | ' |
Weighted average shares outstanding - basic and diluted | 70,150,685 | ' |
MediJane_Holdings_Inc_A_Develo2
MediJane Holdings, Inc. (A Development Stage Company) - Statements of Changes in Stockholders' Deficit From April 21, 2009 (Date of Inception) to February 28, 2014 (USD $) | Total | Common Stock, $0.001 Par Value Shares | Common Stock, $0.001 Par Value Amount | Stock subscriptions receivable | Additional Paid-in Capital | Accumulated deficit during the development stage | Total Stockholders' Deficit |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ||
Balance at start of period at Apr. 20, 2009 | ' | 0 | 0 | 0 | 0 | 0 | 0 |
Issuance of shares for $0.01 per share | ' | $1,500,000 | $1,500 | $12,500 | $1,000 | $0 | $15,000 |
Net loss for the period | ' | 0 | 0 | 0 | 0 | -2,613 | -2,613 |
Balances at end of period at Feb. 28, 2010 | ' | 1,500,000 | 1,500 | 12,500 | 1,000 | -2,613 | 12,387 |
Proceeds from share subscriptions | ' | 0 | 0 | -12,500 | 12,500 | 0 | 0 |
Issuance of shares for $0.01 per share | ' | 3,300,000 | 3,300 | 0 | 29,700 | 0 | 33,000 |
Net loss for the period | ' | 0 | 0 | 0 | 0 | -50,382 | -50,382 |
Balances at end of period at Feb. 28, 2011 | ' | 4,800,000 | 4,800 | 0 | 43,200 | -52,995 | -4,995 |
Shares issued for services | ' | 3,000,000 | 3,000 | 0 | 27,000 | 0 | 30,000 |
Forgiveness of related party debt | ' | 0 | 0 | 0 | 20,500 | 0 | 20,500 |
Imputed interest expense | ' | 0 | 0 | 0 | 12,857 | 0 | 12,857 |
Net loss for the period | ' | 0 | 0 | 0 | 0 | -228,609 | -228,609 |
Balances at end of period at Feb. 28, 2012 | ' | 7,800,000 | 7,800 | 0 | 103,557 | -281,604 | -170,247 |
Balance at start of period at Feb. 29, 2012 | ' | ' | ' | ' | ' | ' | ' |
Net loss for the period | ' | 0 | 0 | 0 | 0 | -331,101 | -331,101 |
Balances at end of period at Feb. 28, 2013 | 78,000,000 | 7,800,000 | 7,800 | 0 | 103,557 | -612,705 | -501,348 |
Adjustment for stock split | ' | 70,200,000 | 70,200 | 0 | -70,200 | 0 | 0 |
Cancellation of shares issued to consultant | ' | -15,000,000 | -15,000 | 0 | 15,000 | 0 | 0 |
Stock option compensation expense | ' | 0 | 0 | 0 | 551,563 | 0 | 551,563 |
Net loss for the period | ' | $0 | $0 | $0 | $0 | ($54,547) | ($54,547) |
Balances at end of period at Feb. 28, 2014 | 63,000,000 | 63,000,000 | 63,000 | 0 | 599,920 | -667,252 | -4,332 |
MediJane_Holdings_Inc_A_Develo3
MediJane Holdings, Inc. (A Development Stage Company) - Statements of Cash Flows (USD $) | 12 Months Ended | 58 Months Ended |
Feb. 28, 2014 | Feb. 28, 2014 | |
Unaudited | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net loss | ($54,547) | ($667,252) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Accretion expense | 173 | 286 |
Non-cash stock option compensation | 551,563 | 551,563 |
Gain on release of debt | -384,012 | -384,012 |
Non-cash gain on derivative liability | -253,410 | -253,410 |
Change in fair value of derivative liability | 25,903 | 38,063 |
Depreciation, depletion, and amortization | 0 | 1,059 |
Impairment of oil & gas properties | 0 | 81,245 |
Imputed interest | 0 | 12,857 |
Loss on debt modification | 0 | 215,347 |
Shares issued for management bonuses | 0 | 30,000 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | 214 | 0 |
Other receivable - sale of oil and gas working interest | 40,000 | 0 |
Prepaid expense and deposits | 0 | 0 |
Accounts payable | 10,351 | 52,713 |
Due to related parties | 0 | 49,650 |
Net Cash Used In Operating Activities | -63,765 | -271,891 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Purchase of oil and gas property | 0 | -49,500 |
Net Cash Provided By Investing Activities | 0 | -49,500 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Proceeds from issuance of common shares | 0 | 48,000 |
Proceeds from notes payable | 35,015 | 217,345 |
Proceeds from a related party | 38,150 | 87,150 |
Repayments to a related party | -5,000 | -25,000 |
Net Cash Provided By Financing Activities | 68,165 | 327,495 |
Increase (Decrease) in Cash | 4,400 | 6,104 |
Cash - Beginning of Period | 1,704 | 0 |
Cash - End of Period | 6,104 | 6,104 |
Non-cash investing and financing activities | ' | ' |
Asset retirement obligation - change in estimate | 0 | 1,036 |
Oil and gas property acquired with note payable | 0 | 32,670 |
Related party debt forgiven | 91,300 | 118,500 |
Asset retirement obligation assumed on oil and gas properties | 0 | 1,170 |
Supplemental disclosures | ' | ' |
Interest paid | 0 | 0 |
Income tax paid | $0 | $0 |
Nature_of_Operations_and_Conti
Nature of Operations and Continuance of Business | 12 Months Ended |
Feb. 28, 2014 | |
Notes | ' |
Nature of Operations and Continuance of Business | ' |
1. Nature of Operations and Continuance of Business | |
The company was incorporated in the State of Nevada on April 21, 2009 under the name Mokita Exploration, Ltd. (the “Company”). On February 27, 2014, there was a change of control of the Company. On February 28, 2014, our board of directors and a majority of holders of the Company’s voting securities approved a change of name of the registrant to MediJane Holdings Inc. A Certificate of Amendment to effect the change of name was filed and became effective with the Nevada Secretary of State on March 4, 2014. A Certificate of Correction was subsequently filed with the Nevada Secretary of State on March 6, 2014 to correct a spelling error in the registrant’s new name. These amendments have been reviewed by FINRA and were approved for filing with an effective date of March 10, 2014. The name change became effective with the Over-the-Counter Bulletin Board at the opening of trading on March 10, 2014 under our new ticker symbol "MJMD". | |
The Company is a development stage company, as defined by Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 915, Development Stage Entities. The Company’s principal operations were to provide credit card payment systems. On February 27, 2014, after the change of control, the Company became a medical delivery systems company with a pharmaceutical approach to cannabinoid treatment of various illnesses. | |
Going Concern | |
These financial statements have been prepared on a going concern basis, which implies that the Company will continue to realize its assets and discharge its liabilities in the normal course of business. As at February 28, 2014, the Company has a working capital deficit of $4,332 and an accumulated deficit of $(667,252). The Company’s total operating expenditure plan for the following twelve months will require significant cash resources to meet the goals of its business plan. The continuation of the Company as a going concern is dependent upon the continued financial support from its management, and its ability to identify future investment opportunities and obtain the necessary debt or equity financing, and generating profitable operations from the Company’s future operations. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern. These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||||
Feb. 28, 2014 | ||||||
Notes | ' | |||||
Summary of Significant Accounting Policies | ' | |||||
2. Summary of Significant Accounting Policies | ||||||
Basis of Presentation - The financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“US GAAP”) and are expressed in U.S. dollars. The Company’s fiscal year end is February 28. | ||||||
Use of Estimates - 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 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. The Company regularly evaluates estimates and assumptions related to the deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. | ||||||
A significant item that requires management's estimates and assumptions is the estimate of proved oil reserves which are used in the calculation of depletion, impairment of its properties and asset retirement obligations. Other items subject to estimates and assumptions include the carrying amount of property, plant and equipment, valuation allowances for income taxes, valuation of derivatives instruments and accrued liabilities, among others. Although management believes these estimates are reasonable, actual results could differ from these estimates. | ||||||
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. As at February 28, 2014 and 2013, the Company did not hold any cash equivalents. | ||||||
Basic and Diluted Net Loss per Share - The Company computes net loss per share in accordance with ASC 260, Earnings per Share. ASC 260 requires presentation of both basic and diluted earnings per share (“EPS”) on the face of the income statement. Basic EPS is computed by dividing net loss available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti dilutive. As at February 28, 2014 and 2013, the Company had Nil and 152,786 potentially dilutive shares outstanding, respectively. | ||||||
Financial Instruments - Pursuant to ASC 820, Fair Value Measurements and Disclosures, an entity is required to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 prioritizes the inputs into three levels that may be used to measure fair value: | ||||||
Level 1 - Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. | ||||||
Level 2 - Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. | ||||||
Level 3 - Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. | ||||||
The Company’s financial instruments consist principally of cash, accounts receivable, accounts payable and accrued liabilities, amounts due to related parties, and convertible debenture. Pursuant to ASC 820, the fair value of our cash is determined based on “Level 1” inputs, which consist of quoted prices in active markets for identical assets. We believe that the recorded values of all of our other financial instruments approximate their current fair values because of their nature and respective maturity dates or durations. | ||||||
Assets and liabilities measured at fair value on a recurring basis were presented on the Company’s balance sheet as at February 28, 2014 as follows: | ||||||
Fair Value Measurements Using | ||||||
Quoted | Significant other | Significant | Balance, | Total Gains and (Losses) | ||
prices in | observable Inputs | Unobservable | February 28, | $ | ||
active markets | (Level 2) | inputs | 2013 | |||
for identical | $ | (Level 3) | $ | |||
instruments | $ | |||||
(Level 1) | ||||||
$ | ||||||
Derivative liability | – | – | - | - | - | |
Derivative Financial Instruments - The Company does not use derivative instruments to hedge exposures to cash flow, market or foreign currency risks. | ||||||
The Company reviews the terms of the common stock, warrants and convertible debt it issues to determine whether there are embedded derivative instruments, including embedded conversion options, which are required to be bifurcated and accounted for separately as derivative financial instruments. In circumstances where the host instrument contains more than one embedded derivative instrument, including the conversion option, that is required to be bifurcated, the bifurcated derivative instruments are accounted for as a single, compound derivative instrument. | ||||||
Bifurcated embedded derivatives are initially recorded at fair value and are then revalued at each reporting date with changes in the fair value reported as non-operating income or expense. The Company uses a Black-Scholes model for valuation of the derivative. When the equity or convertible debt instruments contain embedded derivative instruments that are to be bifurcated and accounted for as liabilities, the total proceeds received are first allocated to the fair value of all the bifurcated derivative instruments. The remaining proceeds, if any, are then allocated to the host instruments themselves, usually resulting in those instruments being recorded at a discount from their face value. | ||||||
The discount from the face value of the convertible debt, together with the stated interest on the instrument, is amortized over the life of the instrument through periodic charges to interest expense, using the effective interest method. | ||||||
Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether net cash settlement of the derivative instrument could be required within the 12 months of the balance sheet date. | ||||||
Comprehensive Loss - ASC 220, Comprehensive Income, establishes standards for the reporting and display of comprehensive loss and its components in the financial statements. As at February 28, 2014 and February 28, 2013, the Company has no items that represent a comprehensive loss and, therefore, has not included a schedule of comprehensive loss in the financial statements. | ||||||
Oil and Gas Properties - The Company utilizes the full-cost method of accounting for petroleum and natural gas properties. Under this method, the Company capitalizes all costs associated with acquisition, exploration and development of oil and natural gas reserves, including leasehold acquisition costs, geological and geophysical expenditures, lease rentals on undeveloped properties and costs of drilling of productive and non-productive wells into the full cost pool on a country by country basis. | ||||||
Estimating accumulations of gas and oil is complex and is not exact because of the numerous uncertainties inherent in the process. Refer to Note 3 – Oil and Gas Properties for estimates recorded relating to the oil and gas properties. | ||||||
Asset Retirement Obligations - The Company follows the provisions of ASC 410, Asset Retirement and Environmental Obligations, which establishes standards for the initial measurement and subsequent accounting for obligations associated with the sale, abandonment or other disposal of long-lived tangible assets arising from the acquisition, construction or development and for normal operations of such assets. As at February 28, 2013, the Company recorded asset retirement obligations of $247. During the years ended February 28, 2014 and 2013, the Company recorded an accretion expense of $173 and $24, respectively, and decreased the estimated asset retirement obligation by $1,209 and $1,036, respectively. | ||||||
Stock-based Compensation - The Company records stock-based compensation in accordance with ASC 718, Compensation – Stock Based Compensation and ASC 505-50 - Equity-Based Payments to Non-Employees. All transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable. | ||||||
We account for share-based payments granted to non-employees in accordance with ASC Topic 505, “Equity Based Payments to Non-Employees.” The Company determines the fair value of the stock-based payment as either the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. If the fair value of the equity instruments issued is used, it is measured using the stock price and other measurement assumptions as of the earlier of either (1) the date at which a commitment for performance by the counterparty to earn the equity instruments is reached, or (2) the date at which the counterparty’s performance is complete. | ||||||
The fair value of each share based payment is estimated on the measurement date using the Black-Scholes model with the following assumptions, which are determined at the beginning of each year and utilized in all calculations for that year: | ||||||
Risk-Free Interest Rate. We utilized the U.S. Treasury yield curve in effect at the time of grant with a term consistent with the expected term of our awards. | ||||||
Expected Volatility. We calculate the expected volatility based on a volatility index of peer companies as we did not have sufficient historical market information to estimate the volatility of our own stock. | ||||||
Dividend Yield. We have not declared a dividend on its common stock since its inception and have no intentions of declaring a dividend in the foreseeable future and therefore used a dividend yield of zero. | ||||||
Expected Term. The expected term of options granted represents the period of time that options are expected to be outstanding. We estimated the expected term of stock options by using the simplified method. For warrants, the expected term represents the actual term of the warrant. | ||||||
Forfeitures. Estimates of option forfeitures are based on our experience. We will adjust our estimate of forfeitures over the requisite service period based on the extent to which actual forfeitures differ, or are expected to differ, from such estimates. Changes in estimated forfeitures will be recognized through a cumulative catch-up adjustment in the period of change and will also impact the amount of compensation expense to be recognized in future periods. | ||||||
Revenue Recognition - The Company recognizes revenue in accordance with SEC Staff Accounting Bulletin Topic 13 when persuasive evidence of an arrangement exists and delivery has occurred, provided the fee is fixed or determinable and collection is probable. The Company assesses whether the fee is fixed and determinable based on the payment terms associated with the transaction. If a fee is based upon a variable such as acceptance by the customer, the Company accounts for the fee as not being fixed and determinable. In these cases, the Company defers revenue and recognizes it when it becomes due and payable. Up-front engagement fees are recorded as deferred revenue and amortized to income on a straight-line basis over the term of the agreement, although the fee is due and payable at the time the agreement is signed or upon annual renewal. Payments related to substantive, performance-based milestones in an agreement are recognized as revenue upon the achievement of the milestones as specified in the underlying agreement when they represent the culmination of the earnings process. | ||||||
The Company assesses the probability of collection based on a number of factors, including past transaction history with the customer and the current financial condition of the customer. If the Company determines that collection of a fee is not reasonably assured, revenue is deferred until the time collection becomes reasonably assured. Significant management judgment and estimates must be made and used in connection with the revenue recognized in any accounting period. Material differences may result in the amount and timing of our revenue for any period if our management made different judgments or utilized different estimates. | ||||||
From inception to February 28, 2014, revenues associated with the sale of oil is accounted for using the sales method, whereby revenue is recognized by the operator of the mineral properties for oil sold to purchasers with the Company recognizing the portion of its share of the revenues. | ||||||
Shipping and Handling costs— shipping and handling costs are included in cost of sales in the Statements of Operations. | ||||||
Recent Accounting Pronouncements - The recent accounting 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. | ||||||
Reclassifications - Certain amounts in the prior period financial statements have been reclassified to conform with the current period presentation. These reclassifications had no effect on previously reported losses, total assets or stockholders equity. |
Oil_and_Gas_Properties
Oil and Gas Properties | 12 Months Ended | |||
Feb. 28, 2014 | ||||
Notes | ' | |||
Oil and Gas Properties | ' | |||
3. Oil and Gas Properties | ||||
a. Capitalized Costs | ||||
Noble County, Oklahoma | Stephens County, Oklahoma | |||
$ | $ | |||
Capitalized costs, February 28, 2011 | – | – | ||
Acquisition costs | 32,670 | 49,500 | ||
Other costs | 1,170 | – | ||
Depreciation, depletion, and amortization | -720 | – | ||
Impairment | -11,526 | -49,500 | ||
Capitalized costs, February 29, 2012 | 21,594 | – | ||
Revision to asset retirement cost | -1,036 | – | ||
Depreciation, depletion, and amortization | -339 | – | ||
Impairment | -20,219 | – | ||
Capitalized costs, February 28, 2013 | – | – | ||
Capitalized costs, February 28, 2014 | – | – | ||
i. On May 12, 2011, the Company entered into a participation agreement to acquire a 6% working interest in oil and gas properties located in Noble County, Oklahoma for $32,670. | ||||
ii. On May 31, 2011, the Company entered into a participation agreement to acquire a 1% working interest in oil and gas properties located in Stephens County, Oklahoma for $49,500. | ||||
b. Sale of Working Interest | ||||
On February 1, 2013, the Company entered into a Letter of Intent with a third party for the sale of its 1% working interest in the oil and gas properties located in Stephens County, Oklahoma for proceeds of $40,000. The sale of Company’s proceeds from sale of working interest resulted in a gain of $40,000 for the year ended February 28, 2013. | ||||
c. Non-Consent Penalty Charges and Impairment Charge | ||||
On September 14, 2012, the Company was deemed a non-consenting investor, pursuant to the Operators Agreement, in a proposal to stimulate the Noble County property to increase production. As a result, and per the operating agreement with the property operator, the Company will lose its revenue for the Noble County property for a period of time sufficient to recover 500% of the Company’s invoiced proportionate share of the total expenses for the stimulation project. Revenues earned from this property were approximately $1,000 for the year ended February 28, 2013. The proportionate expenses for the stimulation project that were charged to the Company by the Operator were approximately $6,000 for the year ended February 28, 2013. Therefore, approximately $30,000 of future revenue from this project will be paid to the other investors in this project who have consented to the stimulation project and who paid their allocable share of the approximate $6,000 of expenses that was charged to the Company, but which the Company elected not to pay, before the Company can earn future revenue from its interest in this property. This elective non-consent by the Company and 500% penalty charged pursuant to the Operators Agreement results in a full impairment of this property to be recorded at February 28, 2013. At February 28, 2014, there has been no change to the status. |
Accounts_Payable_and_Accrued_L
Accounts Payable and Accrued Liabilities | 12 Months Ended | ||||
Feb. 28, 2014 | |||||
Notes | ' | ||||
Accounts Payable and Accrued Liabilities | ' | ||||
4. Accounts Payable and Accrued Liabilities | |||||
28-Feb-14 | 28-Feb-13 | ||||
Trade accounts payable | 9,713 | 4,009 | |||
Accrued liabilities | 302 | 17,750 | |||
Accrued interest payable | - | 20,603 | |||
Total accounts payable and accrued liabilities | 10,016 | 42,362 |
Convertible_Debenture
Convertible Debenture | 12 Months Ended |
Feb. 28, 2014 | |
Notes | ' |
Convertible Debenture | ' |
5. Convertible Debenture | |
As at February 28, 2013, the Company owed $215,000 to a non-related party for an outstanding note payable. Included in this amount is $32,670 which was paid by the note holder for the acquisition of oil and gas properties. The amount owing is unsecured, bears interest at 10%, and due on demand. On March 15, 2012, the Company amended the terms of the note payable to be convertible at a rate of 75% of the weighted average closing price for the ten trading days immediately preceding the conversion date. During the year ended February 28, 2013, the Company recorded a loss on the debt modification of $215,347. On September 28, 2013, the Company entered into an additional Convertible Debenture with the same related party for $35,015. The note is unsecured and bears interest at the rate of 10% per annum. The principal amount of the loan together with accrued interest is payable in full by September 18, 2015. The any portion of the amount payable pursuant to the note is convertible into shares of our common stock at a conversion price equal to 75% of the average closing price of our common stock during the 10 trading days immediately preceding the conversion date. | |
On February 6, 2014, the note holder waived the Company’s obligation related to the convertible debentures. During the year ended February 28, 2014, the Company recorded a gain of $292,612 representing principal of $250,015 and accrued interest of $42,597 related to the waiver of the Company’s obligation under the convertible debentures. The Company has no further obligation under these convertible debentures. |
Derivative_Liability
Derivative Liability | 12 Months Ended | ||||
Feb. 28, 2014 | |||||
Notes | ' | ||||
Derivative Liability | ' | ||||
6. Derivative Liability | |||||
The conversion option of the convertible debenture disclosed in Note 5 is required to record a derivative at its estimated fair value on each balance sheet date with changes in fair value reflected in the statement of operations. | |||||
During the year ended February 28, 2013, the Company recorded a gain on the change in fair value of the conversion option derivative liability of $12,160 and as of February 28, 2013, the fair value of the conversion option derivative liability was $227,507. | |||||
The fair value of the derivative financial liability was determined using the Black-Scholes option pricing model, using the following assumptions: | |||||
Expected Volatility | Risk-free Interest Rate | Expected Dividend Yield | Expected Life (in years) | ||
As at issuance date: | |||||
March 15, 2012 convertible debenture | 268% | 0.13% | 0% | 2 | |
As at February 28, 2013: | |||||
March 15, 2012 convertible debenture | 231% | 0.17% | 0% | 1.04 | |
As discussed in Note 5, the note holders waived the Company’s obligation under the convertible debentures associated derivative financial liability. For the year ended February 28, 2014, the company has recorded a gain in the amount of $227,507 related to adjustments in the derivative liability during the year ended February 28, 2014 including the write down the derivative liability due to the cancelation and waiver of the convertible debentures. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Feb. 28, 2014 | |
Notes | ' |
Related Party Transactions | ' |
7. Related Party Transactions | |
Irma Colon-Alfonso - At February 28, 2013, the Company owed $58,150 to Irma Colon-Alfonso, the then President and CEO of the Company, for the funding of general operations and management fees. The amount owing is unsecured, non-interest bearing, and due on demand. Between March 2013, and February 2014, an additional $33,250 was loaned to the Company under the same terms. On February 6, 2014, Ms. Colon resigned and waived the company’s obligations under the loans. During the year ended February 28, 2014, the Company recorded a gain of $91,401 related to the release of the Company’s obligations under these loans. |
Income_Taxes
Income Taxes | 12 Months Ended | |||
Feb. 28, 2014 | ||||
Notes | ' | |||
Income Taxes | ' | |||
8. Income Taxes | ||||
The Company has $2,801 of net operating losses carried forward to offset taxable income in future years which expire commencing in fiscal 2031. | ||||
The income tax benefit differs from the amount computed by applying the US federal income tax rate of 34% to net loss before income taxes for the years ended February 28, 2014 and February 28, 2013 as a result of the following: | ||||
Year ended February 28, 2014 | Year ended February 28, 2013 | |||
Net loss before taxes | -54,547 | -331,101 | ||
Statutory rate | 34% | 34% | ||
Computed expected tax recovery | 18,546 | 112,574 | ||
Permanent differences and other | 59,784 | -77,000 | ||
Change in valuation allowance | -78,330 | -35,574 | ||
Income tax provision | 0 | 0 | ||
The significant components of deferred income tax assets and liabilities as at February 28, 2014 and February 28, 2013 after applying enacted corporate income tax rates are as follows: | ||||
28-Feb-14 | 28-Feb-13 | |||
Net operating losses carried forward | 309,060 | 119,783 | ||
Oil and gas properties | 0 | 11,506 | ||
Valuation allowance | -309,060 | -131,289 | ||
Net deferred tax asset | 0 | 0 | ||
The Company has no uncertain tax positions, or interest owing as at February 28, 2014. |
Common_Stock
Common Stock | 12 Months Ended |
Feb. 28, 2014 | |
Notes | ' |
Common Stock | ' |
9. Common Stock | |
The company has authorized 1,000,000,000 shares of its common stock, $0.001 par value. On February 28, 2013, there were 7,800,000 original shares of common stock issued and outstanding. Effective August 23, 2013, the company filed a Certificate of Change with the Nevada Secretary of State to give effect to a forward split of our authorized, issued and outstanding shares of common stock on a 10 new for 1 old basis and, consequently, an increase to our authorized share capital from 100,000,000 to 1,000,000,000 common shares, with a par value of $0.001 per share. After the forward stock split there were 78,000,000 shares of common stock issued and outstanding as of February 28, 2013. | |
On February 27, 2014, the Company issued 5,000,000 shares to its Chief Executive Officer, who agreed to retire the 5,000,000 common shares and return them to the unissued, authorized common shares of the Company in exchange for a stock option described below. | |
On August 22, 2013, a shareholder of the Company voluntarily cancelled 15,000,000 common shares. | |
The Company had issued and outstanding 63,000,000 shares of its common stock on February 28, 2014. |
Common_Stock_Options
Common Stock Options | 12 Months Ended | ||||||||
Feb. 28, 2014 | |||||||||
Notes | ' | ||||||||
Common Stock Options | ' | ||||||||
10. Common Stock Options | |||||||||
Effective February 27, 2014, the Company’s CEO was granted incentive stock options to purchase 5,000,000 common shares of the registrant at $0.34 per common share valued at $551,363. Immediately upon the grant of the option, options to purchase 2,500,000 common shares vested. The option to purchase the remaining 2,500,000 common shares shall vest in equal amounts over the next three years ending February 27, 2017. | |||||||||
The following table describes stock options outstanding and exercisable at February 28, 2014: | |||||||||
Options Outstanding and Exercisable | |||||||||
Options Outstanding | Options Exercisable | ||||||||
Range of Exercise Prices | Number | Price | Life | Number | Price | Life | |||
$0.34 | 5,000,000 | $0.34 | 5 | 2,500,000 | $0.34 | 5 | |||
5,000,000 | 2,500,000 | ||||||||
Subsequent_Events
Subsequent Events | 12 Months Ended |
Feb. 28, 2014 | |
Notes | ' |
Subsequent Events | ' |
11. Subsequent Events | |
Effective March 1, 2014, the Company entered into a Sublease Agreement with Kronos International Investments, Ltd for a four (4) year term. The monthly sublease rent is $2,500 per month. | |
On March 14, 2014, the Company entered into a License Agreement with Phoenix BioPharmaceuticals Corporation (“Phoenix Bio Pharm”) where Phoenix Bio Pharm has granted exclusive rights to the Company for North America to exploit all presently owned and after-acquired intellectual property rights and know-how of Phoenix Bio Pharm for certain medical cannabinoid products and delivery systems for the treatment and management of illnesses. In consideration of the acquired license, the Company issued 26,000,000 shares of common stock to Phoenix Bio Pharm. | |
Between March 31, 2014 and June 12, 2014, the Company sold 325,000 shares of its restricted common stock to accredited investors for consideration for proceeds of $300,600. The shares were issued in reliance upon the exemption provided by Section 4(a)(2) of the Securities Act of 1933, as amended. The Company intends to use the funds for working capital. | |
On May 13, 2014, the Company entered into a distribution agreement with GoKush.com (www.gokush.com) that is part of a not-for-profit California Cooperative Corporation that is dedicated to providing safe and legal access to medical marijuana for patients throughout California. Pursuant to the Agreement, amongst other things, the Company has agreed to issue GoKush 200,000 shares of the Company’s restricted common stock and GoKush agreed to become the online ordering platform for the ordering and re-stock of the Company’s products in California. | |
Effective June 4, 2014, the Board of Directors adopted the 2014 Stock Awards Plan (the “Plan”) under which the Company is authorized to grant employees, directors, and consultants (“Participant”) incentive and non-qualified stock options. Pursuant to the Plan the Company is authorized to grant an aggregate of 10,000,000 stock options to purchase common stock of the Company. The stock option price and vesting terms are determined by the Board of Directors or Compensation Committee (the “Committee”), and evidenced by a stock option agreement extended to the Participant. The options granted generally terminate five years from the date of issuance. | |
Nature_of_Operations_and_Conti1
Nature of Operations and Continuance of Business: Going Concern (Policies) | 12 Months Ended |
Feb. 28, 2014 | |
Policies | ' |
Going Concern | ' |
Going Concern | |
These financial statements have been prepared on a going concern basis, which implies that the Company will continue to realize its assets and discharge its liabilities in the normal course of business. As at February 28, 2014, the Company has a working capital deficit of $4,332 and an accumulated deficit of $(667,252). The Company’s total operating expenditure plan for the following twelve months will require significant cash resources to meet the goals of its business plan. The continuation of the Company as a going concern is dependent upon the continued financial support from its management, and its ability to identify future investment opportunities and obtain the necessary debt or equity financing, and generating profitable operations from the Company’s future operations. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern. These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies: Basis of Presentation (Policies) | 12 Months Ended |
Feb. 28, 2014 | |
Policies | ' |
Basis of Presentation | ' |
Basis of Presentation - The financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“US GAAP”) and are expressed in U.S. dollars. The Company’s fiscal year end is February 28. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies: Use of Estimates, Policy (Policies) | 12 Months Ended |
Feb. 28, 2014 | |
Policies | ' |
Use of Estimates, Policy | ' |
Use of Estimates - 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 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. The Company regularly evaluates estimates and assumptions related to the deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. | |
A significant item that requires management's estimates and assumptions is the estimate of proved oil reserves which are used in the calculation of depletion, impairment of its properties and asset retirement obligations. Other items subject to estimates and assumptions include the carrying amount of property, plant and equipment, valuation allowances for income taxes, valuation of derivatives instruments and accrued liabilities, among others. Although management believes these estimates are reasonable, actual results could differ from these estimates. |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies: Cash and cash equivalents (Policies) | 12 Months Ended |
Feb. 28, 2014 | |
Policies | ' |
Cash and cash equivalents | ' |
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. As at February 28, 2014 and 2013, the Company did not hold any cash equivalents. |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies: Earnings Per Share, Policy (Policies) | 12 Months Ended |
Feb. 28, 2014 | |
Policies | ' |
Earnings Per Share, Policy | ' |
Basic and Diluted Net Loss per Share - The Company computes net loss per share in accordance with ASC 260, Earnings per Share. ASC 260 requires presentation of both basic and diluted earnings per share (“EPS”) on the face of the income statement. Basic EPS is computed by dividing net loss available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti dilutive. As at February 28, 2014 and 2013, the Company had Nil and 152,786 potentially dilutive shares outstanding, respectively. |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies: Financial Instruments Disclosure (Policies) | 12 Months Ended | |||||
Feb. 28, 2014 | ||||||
Policies | ' | |||||
Financial Instruments Disclosure | ' | |||||
Financial Instruments - Pursuant to ASC 820, Fair Value Measurements and Disclosures, an entity is required to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 prioritizes the inputs into three levels that may be used to measure fair value: | ||||||
Level 1 - Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. | ||||||
Level 2 - Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. | ||||||
Level 3 - Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. | ||||||
The Company’s financial instruments consist principally of cash, accounts receivable, accounts payable and accrued liabilities, amounts due to related parties, and convertible debenture. Pursuant to ASC 820, the fair value of our cash is determined based on “Level 1” inputs, which consist of quoted prices in active markets for identical assets. We believe that the recorded values of all of our other financial instruments approximate their current fair values because of their nature and respective maturity dates or durations. | ||||||
Assets and liabilities measured at fair value on a recurring basis were presented on the Company’s balance sheet as at February 28, 2014 as follows: | ||||||
Fair Value Measurements Using | ||||||
Quoted | Significant other | Significant | Balance, | Total Gains and (Losses) | ||
prices in | observable Inputs | Unobservable | February 28, | $ | ||
active markets | (Level 2) | inputs | 2013 | |||
for identical | $ | (Level 3) | $ | |||
instruments | $ | |||||
(Level 1) | ||||||
$ | ||||||
Derivative liability | – | – | - | - | - |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies: Derivative Financial Instruments (Policies) | 12 Months Ended |
Feb. 28, 2014 | |
Policies | ' |
Derivative Financial Instruments | ' |
Derivative Financial Instruments - The Company does not use derivative instruments to hedge exposures to cash flow, market or foreign currency risks. | |
The Company reviews the terms of the common stock, warrants and convertible debt it issues to determine whether there are embedded derivative instruments, including embedded conversion options, which are required to be bifurcated and accounted for separately as derivative financial instruments. In circumstances where the host instrument contains more than one embedded derivative instrument, including the conversion option, that is required to be bifurcated, the bifurcated derivative instruments are accounted for as a single, compound derivative instrument. | |
Bifurcated embedded derivatives are initially recorded at fair value and are then revalued at each reporting date with changes in the fair value reported as non-operating income or expense. The Company uses a Black-Scholes model for valuation of the derivative. When the equity or convertible debt instruments contain embedded derivative instruments that are to be bifurcated and accounted for as liabilities, the total proceeds received are first allocated to the fair value of all the bifurcated derivative instruments. The remaining proceeds, if any, are then allocated to the host instruments themselves, usually resulting in those instruments being recorded at a discount from their face value. | |
The discount from the face value of the convertible debt, together with the stated interest on the instrument, is amortized over the life of the instrument through periodic charges to interest expense, using the effective interest method. | |
Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether net cash settlement of the derivative instrument could be required within the 12 months of the balance sheet date. |
Summary_of_Significant_Account7
Summary of Significant Accounting Policies: Comprehensive Income, Policy (Policies) | 12 Months Ended |
Feb. 28, 2014 | |
Policies | ' |
Comprehensive Income, Policy | ' |
Comprehensive Loss - ASC 220, Comprehensive Income, establishes standards for the reporting and display of comprehensive loss and its components in the financial statements. As at February 28, 2014 and February 28, 2013, the Company has no items that represent a comprehensive loss and, therefore, has not included a schedule of comprehensive loss in the financial statements. |
Summary_of_Significant_Account8
Summary of Significant Accounting Policies: Oil and Gas Properties Policy (Policies) | 12 Months Ended |
Feb. 28, 2014 | |
Policies | ' |
Oil and Gas Properties Policy | ' |
Oil and Gas Properties - The Company utilizes the full-cost method of accounting for petroleum and natural gas properties. Under this method, the Company capitalizes all costs associated with acquisition, exploration and development of oil and natural gas reserves, including leasehold acquisition costs, geological and geophysical expenditures, lease rentals on undeveloped properties and costs of drilling of productive and non-productive wells into the full cost pool on a country by country basis. | |
Estimating accumulations of gas and oil is complex and is not exact because of the numerous uncertainties inherent in the process. Refer to Note 3 – Oil and Gas Properties for estimates recorded relating to the oil and gas properties. |
Summary_of_Significant_Account9
Summary of Significant Accounting Policies: Asset Retirement Obligations, Policy (Policies) | 12 Months Ended |
Feb. 28, 2014 | |
Policies | ' |
Asset Retirement Obligations, Policy | ' |
Asset Retirement Obligations - The Company follows the provisions of ASC 410, Asset Retirement and Environmental Obligations, which establishes standards for the initial measurement and subsequent accounting for obligations associated with the sale, abandonment or other disposal of long-lived tangible assets arising from the acquisition, construction or development and for normal operations of such assets. As at February 28, 2013, the Company recorded asset retirement obligations of $247. During the years ended February 28, 2014 and 2013, the Company recorded an accretion expense of $173 and $24, respectively, and decreased the estimated asset retirement obligation by $1,209 and $1,036, respectively. |
Recovered_Sheet1
Summary of Significant Accounting Policies: Share-based Compensation, Option and Incentive Plans Policy (Policies) | 12 Months Ended |
Feb. 28, 2014 | |
Policies | ' |
Share-based Compensation, Option and Incentive Plans Policy | ' |
Stock-based Compensation - The Company records stock-based compensation in accordance with ASC 718, Compensation – Stock Based Compensation and ASC 505-50 - Equity-Based Payments to Non-Employees. All transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable. | |
We account for share-based payments granted to non-employees in accordance with ASC Topic 505, “Equity Based Payments to Non-Employees.” The Company determines the fair value of the stock-based payment as either the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. If the fair value of the equity instruments issued is used, it is measured using the stock price and other measurement assumptions as of the earlier of either (1) the date at which a commitment for performance by the counterparty to earn the equity instruments is reached, or (2) the date at which the counterparty’s performance is complete. | |
The fair value of each share based payment is estimated on the measurement date using the Black-Scholes model with the following assumptions, which are determined at the beginning of each year and utilized in all calculations for that year: | |
Risk-Free Interest Rate. We utilized the U.S. Treasury yield curve in effect at the time of grant with a term consistent with the expected term of our awards. | |
Expected Volatility. We calculate the expected volatility based on a volatility index of peer companies as we did not have sufficient historical market information to estimate the volatility of our own stock. | |
Dividend Yield. We have not declared a dividend on its common stock since its inception and have no intentions of declaring a dividend in the foreseeable future and therefore used a dividend yield of zero. | |
Expected Term. The expected term of options granted represents the period of time that options are expected to be outstanding. We estimated the expected term of stock options by using the simplified method. For warrants, the expected term represents the actual term of the warrant. | |
Forfeitures. Estimates of option forfeitures are based on our experience. We will adjust our estimate of forfeitures over the requisite service period based on the extent to which actual forfeitures differ, or are expected to differ, from such estimates. Changes in estimated forfeitures will be recognized through a cumulative catch-up adjustment in the period of change and will also impact the amount of compensation expense to be recognized in future periods. |
Recovered_Sheet2
Summary of Significant Accounting Policies: Revenue Recognition (Policies) | 12 Months Ended |
Feb. 28, 2014 | |
Policies | ' |
Revenue Recognition | ' |
Revenue Recognition - The Company recognizes revenue in accordance with SEC Staff Accounting Bulletin Topic 13 when persuasive evidence of an arrangement exists and delivery has occurred, provided the fee is fixed or determinable and collection is probable. The Company assesses whether the fee is fixed and determinable based on the payment terms associated with the transaction. If a fee is based upon a variable such as acceptance by the customer, the Company accounts for the fee as not being fixed and determinable. In these cases, the Company defers revenue and recognizes it when it becomes due and payable. Up-front engagement fees are recorded as deferred revenue and amortized to income on a straight-line basis over the term of the agreement, although the fee is due and payable at the time the agreement is signed or upon annual renewal. Payments related to substantive, performance-based milestones in an agreement are recognized as revenue upon the achievement of the milestones as specified in the underlying agreement when they represent the culmination of the earnings process. | |
The Company assesses the probability of collection based on a number of factors, including past transaction history with the customer and the current financial condition of the customer. If the Company determines that collection of a fee is not reasonably assured, revenue is deferred until the time collection becomes reasonably assured. Significant management judgment and estimates must be made and used in connection with the revenue recognized in any accounting period. Material differences may result in the amount and timing of our revenue for any period if our management made different judgments or utilized different estimates. | |
From inception to February 28, 2014, revenues associated with the sale of oil is accounted for using the sales method, whereby revenue is recognized by the operator of the mineral properties for oil sold to purchasers with the Company recognizing the portion of its share of the revenues. |
Recovered_Sheet3
Summary of Significant Accounting Policies: Shipping and handling costs (Policies) | 12 Months Ended |
Feb. 28, 2014 | |
Policies | ' |
Shipping and handling costs | ' |
Shipping and Handling costs— shipping and handling costs are included in cost of sales in the Statements of Operations. |
Recovered_Sheet4
Summary of Significant Accounting Policies: New Accounting Pronouncements, Policy (Policies) | 12 Months Ended |
Feb. 28, 2014 | |
Policies | ' |
New Accounting Pronouncements, Policy | ' |
Recent Accounting Pronouncements - The recent accounting 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. |
Recovered_Sheet5
Summary of Significant Accounting Policies: Reclassifications (Policies) | 12 Months Ended |
Feb. 28, 2014 | |
Policies | ' |
Reclassifications | ' |
Reclassifications - Certain amounts in the prior period financial statements have been reclassified to conform with the current period presentation. These reclassifications had no effect on previously reported losses, total assets or stockholders equity. |
Recovered_Sheet6
Summary of Significant Accounting Policies: Financial Instruments Disclosure: Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Tables) | 12 Months Ended | |||||
Feb. 28, 2014 | ||||||
Tables/Schedules | ' | |||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | |||||
Fair Value Measurements Using | ||||||
Quoted | Significant other | Significant | Balance, | Total Gains and (Losses) | ||
prices in | observable Inputs | Unobservable | February 28, | $ | ||
active markets | (Level 2) | inputs | 2013 | |||
for identical | $ | (Level 3) | $ | |||
instruments | $ | |||||
(Level 1) | ||||||
$ | ||||||
Derivative liability | – | – | - | - | - |
Oil_and_Gas_Properties_Capital
Oil and Gas Properties: Capitalized Costs (Tables) | 12 Months Ended | |||
Feb. 28, 2014 | ||||
Tables/Schedules | ' | |||
Capitalized Costs | ' | |||
a. Capitalized Costs | ||||
Noble County, Oklahoma | Stephens County, Oklahoma | |||
$ | $ | |||
Capitalized costs, February 28, 2011 | – | – | ||
Acquisition costs | 32,670 | 49,500 | ||
Other costs | 1,170 | – | ||
Depreciation, depletion, and amortization | -720 | – | ||
Impairment | -11,526 | -49,500 | ||
Capitalized costs, February 29, 2012 | 21,594 | – | ||
Revision to asset retirement cost | -1,036 | – | ||
Depreciation, depletion, and amortization | -339 | – | ||
Impairment | -20,219 | – | ||
Capitalized costs, February 28, 2013 | – | – | ||
Capitalized costs, February 28, 2014 | – | – |
Accounts_Payable_and_Accrued_L1
Accounts Payable and Accrued Liabilities: Schedule of Accounts Payable and Accrued Liabilities (Tables) | 12 Months Ended | ||||
Feb. 28, 2014 | |||||
Tables/Schedules | ' | ||||
Schedule of Accounts Payable and Accrued Liabilities | ' | ||||
28-Feb-14 | 28-Feb-13 | ||||
Trade accounts payable | 9,713 | 4,009 | |||
Accrued liabilities | 302 | 17,750 | |||
Accrued interest payable | - | 20,603 | |||
Total accounts payable and accrued liabilities | 10,016 | 42,362 |
Derivative_Liability_Fair_valu
Derivative Liability: Fair value of the derivative financial liability (Tables) | 12 Months Ended | ||||
Feb. 28, 2014 | |||||
Tables/Schedules | ' | ||||
Fair value of the derivative financial liability | ' | ||||
Expected Volatility | Risk-free Interest Rate | Expected Dividend Yield | Expected Life (in years) | ||
As at issuance date: | |||||
March 15, 2012 convertible debenture | 268% | 0.13% | 0% | 2 | |
As at February 28, 2013: | |||||
March 15, 2012 convertible debenture | 231% | 0.17% | 0% | 1.04 |
Income_Taxes_Schedule_of_Compo
Income Taxes: Schedule of Components of Income Tax Expense (Benefit) (Tables) | 12 Months Ended | |||
Feb. 28, 2014 | ||||
Tables/Schedules | ' | |||
Schedule of Components of Income Tax Expense (Benefit) | ' | |||
Year ended February 28, 2014 | Year ended February 28, 2013 | |||
Net loss before taxes | -54,547 | -331,101 | ||
Statutory rate | 34% | 34% | ||
Computed expected tax recovery | 18,546 | 112,574 | ||
Permanent differences and other | 59,784 | -77,000 | ||
Change in valuation allowance | -78,330 | -35,574 | ||
Income tax provision | 0 | 0 |
Income_Taxes_Deferred_income_t
Income Taxes: Deferred income tax assets and liabilities (Tables) | 12 Months Ended | |||
Feb. 28, 2014 | ||||
Tables/Schedules | ' | |||
Deferred income tax assets and liabilities | ' | |||
28-Feb-14 | 28-Feb-13 | |||
Net operating losses carried forward | 309,060 | 119,783 | ||
Oil and gas properties | 0 | 11,506 | ||
Valuation allowance | -309,060 | -131,289 | ||
Net deferred tax asset | 0 | 0 |
Common_Stock_Options_Stock_opt
Common Stock Options: Stock options outstanding and exercisable (Tables) | 12 Months Ended | ||||||||
Feb. 28, 2014 | |||||||||
Tables/Schedules | ' | ||||||||
Stock options outstanding and exercisable | ' | ||||||||
The following table describes stock options outstanding and exercisable at February 28, 2014: | |||||||||
Options Outstanding and Exercisable | |||||||||
Options Outstanding | Options Exercisable | ||||||||
Range of Exercise Prices | Number | Price | Life | Number | Price | Life | |||
$0.34 | 5,000,000 | $0.34 | 5 | 2,500,000 | $0.34 | 5 | |||
5,000,000 | 2,500,000 | ||||||||
Nature_of_Operations_and_Conti2
Nature of Operations and Continuance of Business: Going Concern (Details) (USD $) | Feb. 28, 2014 |
Details | ' |
Working capital deficit | $4,332 |
Retained Earnings (Accumulated Deficit) | ($667,252) |
Recovered_Sheet7
Summary of Significant Accounting Policies: Asset Retirement Obligations, Policy (Details) (USD $) | 12 Months Ended | |
Feb. 28, 2014 | Feb. 28, 2013 | |
Details | ' | ' |
Asset retirement obligation | $420 | $247 |
Accretion expense | $173 | $24 |
Oil_and_Gas_Properties_Details
Oil and Gas Properties (Details) (USD $) | 12 Months Ended | ||
Feb. 28, 2013 | 31-May-11 | 12-May-11 | |
Details | ' | ' | ' |
Noble County participation agreement | ' | ' | $32,670 |
Stephens County participation agreement | ' | 49,500 | ' |
Proceeds from sale of working interest | $40,000 | ' | ' |
Accounts_Payable_and_Accrued_L2
Accounts Payable and Accrued Liabilities: Schedule of Accounts Payable and Accrued Liabilities (Details) (USD $) | Feb. 28, 2014 | Feb. 28, 2013 |
Details | ' | ' |
Accounts Payable, Trade, Current | $9,713 | $4,009 |
Accrued Liabilities, Current | 302 | 17,750 |
Accrued interest payable | ' | 20,603 |
Accounts Payable and Accrued Liabilities, Current | $10,016 | $42,362 |
Convertible_Debenture_Details
Convertible Debenture (Details) (USD $) | 12 Months Ended | ||
Feb. 28, 2014 | Feb. 28, 2013 | Sep. 28, 2013 | |
Details | ' | ' | ' |
Notes Payable | ' | $215,000 | ' |
Loss on the debt modification | ' | 215,347 | ' |
Convertible Debenture with related party | ' | ' | 35,015 |
Gain of principal and accrued interest | $292,612 | ' | ' |
Derivative_Liability_Details
Derivative Liability (Details) (USD $) | 12 Months Ended | |
Feb. 28, 2014 | Feb. 28, 2013 | |
Details | ' | ' |
Change in fair value of the conversion option derivative liability | ' | $12,160 |
Fair value of the conversion option derivative liability | ' | 227,507 |
Writing down the derivative liability | $227,507 | ' |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 12 Months Ended |
Feb. 28, 2014 | |
Details | ' |
Gain related to the release of obligations | $91,401 |
Income_Taxes_Schedule_of_Compo1
Income Taxes: Schedule of Components of Income Tax Expense (Benefit) (Details) (USD $) | 12 Months Ended | |
Feb. 28, 2014 | Feb. 28, 2013 | |
Details | ' | ' |
Income (Loss) from Continuing Operations before Interest Expense, Interest Income, Income Taxes, Extraordinary Items, Noncontrolling Interests, Net | ($54,547) | ($331,101) |
Computed expected tax recovery | 18,546 | 112,574 |
Permanent differences and other | 59,784 | -77,000 |
Valuation Allowance, Deferred Tax Asset, Change in Amount | -78,330 | -35,574 |
Income tax provision | $0 | $0 |
Income_Taxes_Deferred_income_t1
Income Taxes: Deferred income tax assets and liabilities (Details) (USD $) | Feb. 28, 2014 | Feb. 28, 2013 |
Details | ' | ' |
Net operating losses carried forward | $309,060 | $119,783 |
Oil and Gas Property, Full Cost Method, Net | 0 | 11,506 |
Valuation Allowances and Reserves, Balance | -309,060 | -131,289 |
Deferred Tax Assets, Net of Valuation Allowance | $0 | $0 |
Common_Stock_Details
Common Stock (Details) (USD $) | Feb. 28, 2014 | Aug. 22, 2013 | Feb. 28, 2013 |
Details | ' | ' | ' |
Common Stock, Shares Authorized | 1,000,000,000 | ' | ' |
Common Stock, Par or Stated Value Per Share | $0.00 | ' | ' |
Balance at start of period | 63,000,000 | ' | 78,000,000 |
Shares cancelled | ' | 15,000,000 | ' |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | Jun. 12, 2014 | 13-May-14 | Mar. 14, 2014 |
Details | ' | ' | ' |
Shares, Issued | 325,000 | 200,000 | 26,000,000 |
Proceeds from shares issued | $300,600 | ' | ' |