Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2018 | Oct. 10, 2018 | Dec. 29, 2017 | |
Document And Entity Information | |||
Entity Registrant Name | Perkins Oil & Gas, Inc. | ||
Entity Central Index Key | 1,567,802 | ||
Document Type | 10-K | ||
Document Period End Date | Jun. 30, 2018 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --06-30 | ||
Is Entity a Well-known Seasoned Issuer? | No | ||
Is Entity a Voluntary Filer? | No | ||
Is Entity's Reporting Status Current? | Yes | ||
Trading Symbol | peknd | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 8,993,000 | ||
Entity Common Stock, Shares Outstanding | 29,770,241 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY |
BALANCE SHEETS
BALANCE SHEETS - USD ($) | Jun. 30, 2018 | Jun. 30, 2017 |
Current Assets | ||
Cash and cash equivalents | $ 304 | |
Total Current Assets | 304 | |
TOTAL ASSETS | 304 | |
Current Liabilities | ||
Accounts payable and accrued liabilities | 8,798 | 9,767 |
Due to related party | 5,603 | 5,603 |
Accrued interest payable | 12,765 | |
Promissory notes payable | 49,351 | |
Total Current Liabilities | 76,517 | 15,370 |
Long Term Liabilities | ||
Convertible notes payable, net of discount amortization of $0 | 10,000 | |
Total Long Term Liabilities | 10,000 | |
Total Liabilities | 86,517 | 15,370 |
STOCKHOLDERS' DEFICIT | ||
Common stock, $0.001 par value, 75,000,000 shares authorized; 27,270,241 shares and 270,241 shares issued and outstanding as of June 30, 2018 and June 30, 2017 | 27,270 | 270 |
Additional paid-in capital | 23,050,491 | 117,491 |
Accumulated deficit | (23,163,974) | (133,131) |
Total stockholders' deficit | (86,213) | (15,370) |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $ 304 |
BALANCE SHEETS (Parenthetical)
BALANCE SHEETS (Parenthetical) - USD ($) | Jun. 30, 2018 | Jun. 30, 2017 |
Long Term Liabilities | ||
Convertible notes payable, amortization discount amount | $ 0 | $ 0 |
STOCKHOLDERS' DEFICIT | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares issued | 27,270,241 | 270,241 |
Common stock, shares outstanding | 27,270,241 | 270,241 |
STATEMENTS OF OPERATIONS
STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Statements Of Operations | ||
REVENUES | ||
OPERATING EXPENSES | ||
General and administrative | 8,408 | 27,376 |
Professional fees | 44,417 | |
Stock-based compensation | 22,950,000 | |
Total operating expenses | 23,002,825 | 27,376 |
LOSS FROM OPERATIONS | (23,002,825) | (27,376) |
OTHER INCOME (EXPENSES) | ||
Forgiveness of debts | 230 | |
Impairment of oil and gas property | (5,483) | |
Interest expense | (22,765) | (1,066) |
TOTAL OTHER INCOME (EXPENSES) | (28,018) | (1,066) |
Provision for income taxes | ||
NET LOSS | $ (23,030,843) | $ (28,442) |
Basic and Diluted Loss per Common Share | $ (2.46) | $ (0.11) |
Basic and Diluted Weighted Average Common Shares Outstanding | 9,368,871 | 270,000 |
STATEMENTS OF STOCKHOLDERS' DEF
STATEMENTS OF STOCKHOLDERS' DEFICIT - USD ($) | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Total |
Beginning Balance, Shares at Jun. 30, 2016 | 6,750,000 | |||
Beginning Balance, Amount at Jun. 30, 2016 | $ 6,750 | $ 40,751 | $ (104,689) | $ (57,188) |
Net profits (loss) | (28,442) | (28,442) | ||
Forgiveness of related party liabilities credited to additional paid in capital | 70,260 | 70,260 | ||
Reverse Stock Split 25:1, Shares | (6,479,759) | |||
Reverse Stock Split 25:1, Amount | $ (6,480) | 6,480 | ||
Ending Balance, Shares at Jun. 30, 2017 | 270,241 | |||
Ending Balance, Amount at Jun. 30, 2017 | $ 270 | 117,491 | (133,131) | (15,370) |
Shares issued for services, Shares | 27,000,000 | |||
Shares issued for services, Amount | $ 27,000 | 22,923,000 | 22,950,000 | |
Convertible notes debt discount | 10,000 | 10,000 | ||
Net profits (loss) | (23,030,843) | (23,030,843) | ||
Forgiveness of related party liabilities credited to additional paid in capital | ||||
Ending Balance, Shares at Jun. 30, 2018 | 27,270,241 | |||
Ending Balance, Amount at Jun. 30, 2018 | $ 27,270 | $ 23,050,491 | $ (23,163,974) | $ (86,213) |
STATEMENTS OF CASH FLOWS
STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (23,030,843) | $ (28,442) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Stock-based compensation | 22,950,000 | |
Impairment of oil and gas property | 5,483 | |
Amortization on note discount | 10,000 | |
Changes in operating assets and liabilities: | ||
Accounts payable and accrued liabilities | (969) | 17,708 |
Accrued interest payable | 12,765 | 1,066 |
Net cash used in operating activities | (53,564) | (9,668) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Lease cost on oil and gas property | (5,483) | |
Net cash used in investing activities | (5,483) | |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from issuance of notes payable | 59,351 | 9,000 |
Net cash provided by financing activities | 59,351 | 9,000 |
Net increase (decrease) in cash and cash equivalents | 304 | (668) |
Cash and cash equivalents - beginning of period | 668 | |
Cash and cash equivalents - end of period | 304 | |
Supplemental Cash Flow Disclosures | ||
Cash paid for interest | ||
Cash paid for income taxes | ||
Non-cash investing and financing transactions | ||
Replacement of a promissory note by convertible notes | 10,000 | |
Forgiveness of related party liabilities credited to additional paid in capital | $ 70,260 |
NATURE OF OPERATIONS AND BASIS
NATURE OF OPERATIONS AND BASIS OF PRESENTATION | 12 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
NOTE 1 - NATURE OF OPERATIONS AND BASIS OF PRESENTATION | Perkins Oil & Gas, Inc. (“The Company”) was incorporated in the State of Nevada on May 25, 2012 and established a fiscal year end of June 30. The Company intends to engage in the exploration and development of oil and gas properties. The Company’s activities to date have been limited to organization and capital. The Company is currently looking for new wells. In connection with the submission of a reverse stock split as previously announced on our Current Report on Form 8-K filed on February 1, 2018, our Company applied to change our ticker symbol from “PEKN” to “OOIL”. The change of ticker symbol become effective at the OTC Markets on February 28, 2018. Basis of Presentation In the opinion of management, the accompanying balance sheets and related interim statements of income, cash flows, and stockholders’ deficit include all adjustments, consisting only of normal recurring items, necessary for their fair presentation in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles 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 the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company continually evaluates its estimates and judgments. The Company bases its estimates and judgments on historical experience and other factors that it believes to be reasonable under the circumstances. Materially different results can occur as circumstances change and additional information becomes known, even for estimates and judgments that are not deemed critical. Cash and Cash Equivalents The Company considers all highly liquid investments with the original maturities of three months or less to be cash equivalents. The Company had $304 and $0 in cash as at June 30, 2018 and June 30, 2017, respectively. Income Taxes Income taxes are computed using the asset and liability method. Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized. <see Note 8> Related Party Balances and Transactions The Company follows FASB ASC 850, “ Related Party Disclosures Fair Value of Financial Instruments The Company adopted the provisions of ASC Topic 820, “Fair Value Measurements and Disclosures,” which defines fair value as used in numerous accounting pronouncements, establishes a framework for measuring fair value and expands disclosure of fair value measurements. The estimated fair value of certain financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued expenses are carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments. The carrying amounts of our short and long term credit obligations approximate fair value because the effective yields on these obligations, which include contractual interest rates taken together with other features such as concurrent issuances of warrants and/or embedded conversion options, are comparable to rates of returns for instruments of similar credit risk. ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value: Level 1 - quoted prices in active markets for identical assets or liabilities Level 2 - quoted prices for similar assets and liabilities in active markets or inputs that are observable Level 3 - inputs that are unobservable (for example cash flow modeling inputs based on assumptions) The recorded amounts of financial instruments, including cash equivalents, accounts payable, and notes payable approximate their market value as of June 30, 2018. Revenue Recognition Oil and gas sales result from undivided interests held by the Company in oil and gas properties and royalty revenues. Sales of oil and gas produced from oil and gas operations are recognized when the product is delivered to the purchaser and title transfers to the purchaser. Charges for gathering and transportation are included in production expenses. Revenue from royalties is recognized as they are earned, when collection is reasonably assured. Royalty revenue is recorded in the same period as the sales that generate the royalty payment. Stock-Based Compensation ASC 718, ”Compensation - Stock Compensation,” The Company accounts for stock-based compensation issued to non-employees and consultants in accordance with the provisions of ASC 505-50, ”Equity - Based Payments to Non-Employees.” During the year ended June 30, 2018, the Company incurred stock-based compensation of $22,950,000 for the issuance of 27,000,000 shares of common stock to the newly appointed Executive for CEO, CFO and Director services. <see Note 7> Oil and Gas Properties Oil and gas acquisition expenditures are accounted for in accordance with the successful efforts method of accounting. Direct costs incurred for finding oil and natural gas reserves, are initially capitalized until the properties are evaluated and determined to be either productive or nonproductive. Such evaluations are made on a periodic basis. If an exploratory well is determined to be nonproductive, the costs will be charged to expense. Basic Income (Loss) Per Share The Company computes basic and diluted earnings per share amounts in accordance with ASC Topic 260, “Earnings per Share.” Basic earnings per share is computed by dividing net income (loss) available to common shareholders by the weighted average number of common shares outstanding during the reporting period. Diluted earnings per share reflects the potential dilution that could occur if stock options and other commitments to issue common stock were exercised or equity awards vest resulting in the issuance of common stock that could share in the earnings of the Company. As of June 30, 2018, and June 30, 2017, convertible notes was dilutive instrument and was not included in the calculation of diluted loss per share as their effect would be antidilutive. The following is a reconciliation of the numerator and denominator used for the computation of basic and diluted net loss per common shares: For the Years Ended June 30 June 30 2018 2017 Numerator: Net loss available to stockholders $ (23,030,843 ) $ (28,442 ) Denominator: Weighted average number of common shares- Basic and Diluted 9,368,871 270,000 Net loss per common share - Basic and Diluted $ (2.46 ) $ (0.11 ) For the year ended June 30, 2018 and June 30, 2017, respectively, the following convertible notes was excluded from the computation of diluted net loss per shares as the result of the computation was anti-dilutive: For the Years Ended June 30 June 30 2018 2017 (Shares) (Shares) Convertible notes payable 2,500,000 - Recent Accounting Pronouncements The Company has reviewed and analyzed the above recent accounting pronouncements, and notes no material impact on the financial statements as of June 30, 2018. Adoption of New Accounting Standards We have adopted the following recent accounting pronouncement in these financial statements with no significant impact on reported financial position, results of operations or cash flow: ASU 2014-09, Revenue We adopted the standard as of January 1, 2018 using the modified retrospective approach applied to all contracts that were not completed at adoption based on the contract terms in existence at adoption. No adjustment was required to beginning retained earnings as a result of this adoption and none of the enhanced revenue-related disclosures were required. |
GOING CONCERN
GOING CONCERN | 12 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
NOTE 2 - GOING CONCERN | The Company’s financial statements are prepared in accordance with generally accepted accounting principles applicable to a going concern. This contemplates the realization of assets and the liquidation of liabilities in the normal course of business. Currently, the Company has a working capital deficit of $76,213 and an accumulated deficit of $23,163,974. The Company has not yet established an ongoing source of revenues sufficient to cover its operating costs and allow it to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable. If the Company is unable to obtain adequate capital, it could be forced to cease operations. In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management’s plan is to obtain such resources for the Company by obtaining capital from management and significant shareholders sufficient to meet its minimal operating expenses and seeking equity and/or debt financing. However management cannot provide any assurances that the Company will be successful in accomplishing any of its plans. The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually secure other sources of financing and attain profitable operations. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. |
OIL AND GAS PROPERTY
OIL AND GAS PROPERTY | 12 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
NOTE 3 - OIL AND GAS PROPERTY | During the year ended June 30, 2018, the Company incurred $5,483 acquisition costs associated with the acquisition of leases in the states of Wyoming, North Dakota and Colorado. As at June 30, 2018, the Company evaluated the capitalized value of the oil and gas leases and determined to impair the amount in full due to the fact that the Company had no historical cost basis for the leases to perform full-cost ceiling test, and no immediate development plans for the lease land. A total of $5,483 has been expensed as Impairment loss on oil and gas lease during the year ended June 30, 2018. |
PROMISSORY NOTE PAYABLE
PROMISSORY NOTE PAYABLE | 12 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
NOTE 4 - PROMISSORY NOTE PAYABLE | The Company had no promissory notes on June 30, 2017 and had the following principal balances under its promissory notes outstanding as June 30, 2018: June 30, 2018 Promissory Note - July 2017 $ - Promissory Note - December 2017 22,690 Promissory Note - February 2018 11,953 Promissory Note -June 2018 14,708 49,351 Less current portion of promissory note payable (49,351 ) Long-term promissory note payable $ - On July 17, 2017, the Company issued a demand promissory note to an unaffiliated party for cash proceed of $10,000. The note bears interest rate at 50% per annum and is due on demand. On June 16, 2018, the Company replaced the promissory note held by a non-affiliated assignee with two convertible notes at principal amount of $5,000, for total note principal amount of $10,000. (See Note 5) On December 31, 2017, the Company issued a demand promissory note of $22,690 to an unaffiliated party payment of operating expenses on behalf of the Company. The note bears interest rate at 55% per annum and is due on demand. As of June 30, 2018, the accrued interest on the note was $6,189. On February 28, 2018, the Company issued a demand promissory note of $11,953 to an unaffiliated party for cash proceed of $8,000 and for payment of $3,953 operating expenses on behalf of the Company. The note bears interest rate at 50% per annum and is due on demand. As of June 30, 2018, the accrued interest on the note was $1,998. On June 30, 2018, the Company issued a demand promissory note of $14,708 to an unaffiliated party for payment of operating expenses on behalf of the Company. The note bears interest rate at 50% per annum and is due on demand. |
CONVERTIBLE NOTE PAYABLE
CONVERTIBLE NOTE PAYABLE | 12 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
NOTE 5 - CONVERTIBLE NOTE PAYABLE | The Company had no convertible notes on June 30, 2017 and had the following principal balances under its convertible notes outstanding as June 30, 2018: June 30, 2018 Convertible Notes - June 2018 $ 10,000 Less debt discount - 10,000 Less current portion of convertible note payable - Long-term convertible notes payable $ 10,000 On June 16, 2018, the Company replaced the promissory note held by a non-affiliated assignee with two convertible notes at principal amount of $5,000, for total note principal amount of $10,000. The convertible notes bear interest at 1% per annum, expire on June 16, 2020 and are convertible at $0.004 per share for the Company common stock. On June 16, 2018, debt discount on the notes was recognized on its beneficial conversion feature at $10,000 and has been fully amortized and recorded in interest expense. As of June 30, 2018, the convertible notes payable was $10,000 and accrued interest payable was $4,579. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
NOTE 6 - RELATED PARTY TRANSACTIONS | As of June 30, 2018 and June 30, 2017, the amount due to the former Company’s Chief Office for payment of operating expenses on behalf of the Company was $5,603 and $5,603, respectively. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
NOTE 7 - STOCKHOLDERS EQUITY | The Company has authorized 75,000,000 shares with a par value $0.001 per share. On December 18, 2017, our board of directors and a majority stockholders of our company approved the implementation of a one-for-twenty-five (1:25) reverse stock split of all of our company’s issued and outstanding common stock. As a result of the reverse stock split, every twenty-five (25) shares of the issued and outstanding common stock of the Company will be converted into one (1) share of common stock. All fractional shares created by the Reverse Stock Split will be rounded up to the nearest whole share. The number of our company’s authorized shares of common stock remains unchanged. The reverse stock split has been reviewed by the Financial Industry Regulatory Authority (FINRA) and has been approved for filing with an effective date of February 1, 2018. The outstanding shares have been restated retroactively. On February 28, 2018, the Company issued 27,000,000 common shares valued at $22,950,000 to the newly appointed Executive for CEO, CFO and Director services for year 2018. As of June 30, 2018 and June 30, 2017, the Company has 27,270,241 and 270,241 common shares issued and outstanding, respectively. |
INCOME TAX
INCOME TAX | 12 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
NOTE 8 - INCOME TAX | The Company provides for income taxes under ASC 740, “ Income Taxes.” On December 22, 2017, the United States enacted the Tax Cuts and Jobs Act (the “Act”) resulting in significant modifications to existing law. The Company has considered the accounting impact of the effects of the Act during the year ended June 30, 2018 including a reduction in the corporate tax rate from 34% to 21% among other changes. The components of the Company’s deferred tax asset and reconciliation of income taxes computed at the new statutory rate of 21% to the income tax amount recorded as of June 30, 2018 and June 30, 2017 are as follows: June 30, 2018 June 30, 2017 Net operating carryforward $ (208,491 ) $ (133,131 ) Effective tax rate 21 % 21 % Tax benefit of net operating loss carryforward 43,783 27,958 Valuation allowance (43,783 ) (27,958 ) Deferred income tax assets $ - $ - As of June 30, 2018, the Company had $208,491 in net operating losses (“NOLs”) that may be available to offset future taxable income, which begin to expire between 2033 and 2038. In accordance with Section 382 of the U.S. Internal Revenue Code, the usage of the Company’s net operating loss carry forwards is subject to annual limitations following greater than 50% ownership changes. Tax returns for the years ended 2012 through 2018 are subject to review by the tax authorities. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
NOTE 9 - SUBSEQUENT EVENTS | Subsequent to June 30, 2018 and through the date that these financials were made available, the Company had the following subsequent events: On July 27, 2018, the Company issued 2,500,000 shares of common stock for the conversion of convertible notes in the aggregate principal amount of $10,000. Subsequent to the note conversion, the Company has 29,770,241 shares of common stock issued and outstanding. |
NATURE OF OPERATIONS AND BASI_2
NATURE OF OPERATIONS AND BASIS OF PRESENTATION (Policies) | 12 Months Ended |
Jun. 30, 2018 | |
Nature Of Operations And Basis Of Presentation | |
Basis of presentation | In the opinion of management, the accompanying balance sheets and related interim statements of income, cash flows, and stockholders’ deficit include all adjustments, consisting only of normal recurring items, necessary for their fair presentation in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). |
Use of Estimates | The preparation of financial statements in conformity with generally accepted accounting principles 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 the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company continually evaluates its estimates and judgments. The Company bases its estimates and judgments on historical experience and other factors that it believes to be reasonable under the circumstances. Materially different results can occur as circumstances change and additional information becomes known, even for estimates and judgments that are not deemed critical. |
Cash and Cash Equivalents | The Company considers all highly liquid investments with the original maturities of three months or less to be cash equivalents. The Company had $304 and $0 in cash as at June 30, 2018 and June 30, 2017, respectively. |
Income Taxes | Income taxes are computed using the asset and liability method. Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized. <see Note 8> |
Related Party Balances and Transactions | The Company follows FASB ASC 850, “ Related Party Disclosures |
Fair Value of Financial Instruments | The Company adopted the provisions of ASC Topic 820, “Fair Value Measurements and Disclosures,” which defines fair value as used in numerous accounting pronouncements, establishes a framework for measuring fair value and expands disclosure of fair value measurements. The estimated fair value of certain financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued expenses are carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments. The carrying amounts of our short and long term credit obligations approximate fair value because the effective yields on these obligations, which include contractual interest rates taken together with other features such as concurrent issuances of warrants and/or embedded conversion options, are comparable to rates of returns for instruments of similar credit risk. ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value: Level 1 - quoted prices in active markets for identical assets or liabilities Level 2 - quoted prices for similar assets and liabilities in active markets or inputs that are observable Level 3 - inputs that are unobservable (for example cash flow modeling inputs based on assumptions) The recorded amounts of financial instruments, including cash equivalents, accounts payable, and notes payable approximate their market value as of June 30, 2018. |
Revenue Recognition | Oil and gas sales result from undivided interests held by the Company in oil and gas properties and royalty revenues. Sales of oil and gas produced from oil and gas operations are recognized when the product is delivered to the purchaser and title transfers to the purchaser. Charges for gathering and transportation are included in production expenses. Revenue from royalties is recognized as they are earned, when collection is reasonably assured. Royalty revenue is recorded in the same period as the sales that generate the royalty payment. |
Stock-Based Compensation | ASC 718, ”Compensation - Stock Compensation,” The Company accounts for stock-based compensation issued to non-employees and consultants in accordance with the provisions of ASC 505-50, ”Equity - Based Payments to Non-Employees.” During the year ended June 30, 2018, the Company incurred stock-based compensation of $22,950,000 for the issuance of 27,000,000 shares of common stock to the newly appointed Executive for CEO, CFO and Director services. <see Note 7> |
Oil and Gas Properties | Oil and gas acquisition expenditures are accounted for in accordance with the successful efforts method of accounting. Direct costs incurred for finding oil and natural gas reserves, are initially capitalized until the properties are evaluated and determined to be either productive or nonproductive. Such evaluations are made on a periodic basis. If an exploratory well is determined to be nonproductive, the costs will be charged to expense. |
Basic Income (Loss) Per Share | The Company computes basic and diluted earnings per share amounts in accordance with ASC Topic 260, “Earnings per Share.” Basic earnings per share is computed by dividing net income (loss) available to common shareholders by the weighted average number of common shares outstanding during the reporting period. Diluted earnings per share reflects the potential dilution that could occur if stock options and other commitments to issue common stock were exercised or equity awards vest resulting in the issuance of common stock that could share in the earnings of the Company. As of June 30, 2018, and June 30, 2017, convertible notes was dilutive instrument and was not included in the calculation of diluted loss per share as their effect would be antidilutive. The following is a reconciliation of the numerator and denominator used for the computation of basic and diluted net loss per common shares: For the Years Ended June 30 June 30 2018 2017 Numerator: Net loss available to stockholders $ (23,030,843 ) $ (28,442 ) Denominator: Weighted average number of common shares- Basic and Diluted 9,368,871 270,000 Net loss per common share - Basic and Diluted $ (2.46 ) $ (0.11 ) For the year ended June 30, 2018 and June 30, 2017, respectively, the following convertible notes was excluded from the computation of diluted net loss per shares as the result of the computation was anti-dilutive: For the Years Ended June 30 June 30 2018 2017 (Shares) (Shares) Convertible notes payable 2,500,000 - |
Recent Accounting Pronouncements | The Company has reviewed and analyzed the above recent accounting pronouncements, and notes no material impact on the financial statements as of June 30, 2018. |
Adoption of New Accounting Standards | We have adopted the following recent accounting pronouncement in these financial statements with no significant impact on reported financial position, results of operations or cash flow: ASU 2014-09, Revenue We adopted the standard as of January 1, 2018 using the modified retrospective approach applied to all contracts that were not completed at adoption based on the contract terms in existence at adoption. No adjustment was required to beginning retained earnings as a result of this adoption and none of the enhanced revenue-related disclosures were required. |
NATURE OF OPERATIONS AND BASI_3
NATURE OF OPERATIONS AND BASIS OF PRESENTATION (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Nature Of Operations And Basis Of Presentation Tables Abstract | |
Basic and diluted net loss per common shares | For the Years Ended June 30 June 30 2018 2017 Numerator: Net loss available to stockholders $ (23,030,843 ) $ (28,442 ) Denominator: Weighted average number of common shares- Basic and Diluted 9,368,871 270,000 Net loss per common share - Basic and Diluted $ (2.46 ) $ (0.11 ) |
Convertible notes payable | For the Years Ended June 30 June 30 2018 2017 (Shares) (Shares) Convertible notes payable 2,500,000 - |
PROMISSORY NOTE PAYABLE (Tables
PROMISSORY NOTE PAYABLE (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Promissory Note Payable | |
Schedule of promissory note payable | June 30, 2018 Promissory Note - July 2017 $ - Promissory Note - December 2017 22,690 Promissory Note - February 2018 11,953 Promissory Note -June 2018 14,708 49,351 Less current portion of promissory note payable (49,351 ) Long-term promissory note payable $ - |
CONVERTIBLE NOTE PAYABLE (Table
CONVERTIBLE NOTE PAYABLE (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Convertible Note Payable | |
Schedule of convertible notes | June 30, 2018 Convertible Notes - June 2018 $ 10,000 Less debt discount - 10,000 Less current portion of convertible note payable - Long-term convertible notes payable $ 10,000 |
INCOME TAX (Tables)
INCOME TAX (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Income Tax | |
Schedule of reserved the benefit from tax loss carryforward | June 30, 2018 June 30, 2017 Net operating carryforward $ (208,491 ) $ (133,131 ) Effective tax rate 21 % 21 % Tax benefit of net operating loss carryforward 43,783 27,958 Valuation allowance (43,783 ) (27,958 ) Deferred income tax assets $ - $ - |
NATURE OF OPERATIONS AND BASI_4
NATURE OF OPERATIONS AND BASIS OF PRESENTATION (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Numerator: | ||
Net loss available to stockholders | $ (23,030,843) | $ (28,442) |
Denominator: | ||
Weighted average number of common shares- Basic and Diluted | 9,368,871 | 270,000 |
Net loss per common share - Basic and Diluted | $ (2.46) | $ (0.11) |
NATURE OF OPERATIONS AND BASI_5
NATURE OF OPERATIONS AND BASIS OF PRESENTATION (Details 1) - USD ($) | Jun. 30, 2018 | Jun. 30, 2017 |
Nature Of Operations And Basis Of Presentation Details 1Abstract | ||
Convertible notes payable | $ 250,000 |
NATURE OF OPERATIONS AND BASI_6
NATURE OF OPERATIONS AND BASIS OF PRESENTATION (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Feb. 28, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
State of Incorporation | Nevada | |||
Date of Incorporation | May 25, 2012 | |||
Cash and cash equivalents | $ 304 | $ 668 | ||
Stock-based compensation | 22,950,000 | |||
Executive [Member] | ||||
Stock-based compensation | $ 22,950,000 | |||
Shares issued for services, Shares | 27,000,000 | 27,000,000 |
GOING CONCERN (Details Narrativ
GOING CONCERN (Details Narrative) - USD ($) | Jun. 30, 2018 | Jun. 30, 2017 |
Going Concern | ||
Working capital deficit | $ (76,213) | |
Accumulated deficit | $ (23,163,974) | $ (133,131) |
OIL AND GAS PROPERTY (Details N
OIL AND GAS PROPERTY (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Oil And Gas Property | ||
Lease cost on oil and gas property | $ (5,483) | |
Impairment of oil and gas property | $ 5,483 |
PROMISSORY NOTE PAYABLE (Detail
PROMISSORY NOTE PAYABLE (Details) - USD ($) | Jun. 30, 2018 | Jun. 30, 2017 |
Promissory Note Payable | $ 49,351 | |
Less current portion of promissory note payable | (49,351) | |
Long-term promissory note payable | ||
Promissory note payable [Member] | ||
Promissory Note Payable | ||
Promissory note payable one [Member] | ||
Promissory Note Payable | 22,690 | |
Promissory note payable two [Member] | ||
Promissory Note Payable | 11,953 | |
Promissory note payable Three [Member] | ||
Promissory Note Payable | $ 14,708 |
PROMISSORY NOTE PAYABLE (Deta_2
PROMISSORY NOTE PAYABLE (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Jun. 16, 2018 | Feb. 28, 2018 | Jul. 17, 2017 | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | |
Accrued interest payable | $ 12,765 | |||||
Proceeds from issuance of notes payable | 59,351 | 9,000 | ||||
Promissory Note Payable | 49,351 | |||||
Replacement of a promissory note by convertible notes | 10,000 | |||||
Operating expenses | $ 23,002,825 | $ 27,376 | ||||
Unaffiliated Party [Member] | ||||||
Interest rate on notes payable | 50.00% | |||||
Promissory Note Payable | $ 14,708 | |||||
Unaffiliated Party [Member] | Promissory note payable [Member] | ||||||
Interest rate on notes payable | 50.00% | 50.00% | 55.00% | |||
Accrued interest payable | $ 6,189 | |||||
Proceeds from issuance of notes payable | $ 8,000 | $ 10,000 | $ 22,690 | |||
Promissory Note Payable | 11,953 | |||||
Operating expenses | $ 3,953 | |||||
Unaffiliated Party [Member] | Promissory note payable one [Member] | ||||||
Accrued interest payable | $ 1,998 | |||||
Non-affiliated [Member] | ||||||
Interest rate on notes payable | 1.00% | |||||
Replacement of a promissory note by convertible notes | $ 10,000 | |||||
Non-affiliated [Member] | Promissory note payable [Member] | ||||||
Replacement of a promissory note by convertible notes | 5,000 | |||||
Non-affiliated [Member] | Promissory note payable one [Member] | ||||||
Replacement of a promissory note by convertible notes | $ 5,000 |
CONVERTIBLE NOTE PAYABLE (Detai
CONVERTIBLE NOTE PAYABLE (Details) - USD ($) | Jun. 30, 2018 | Jun. 30, 2017 |
Convertible Note Payable Details Abstract | ||
Convertible Notes - June 2018 | $ 10,000 | |
Less debt discount | 0 | $ 0 |
Convertible notes payable, net of discount amortization | 10,000 | |
Less current portion of convertible note payable | ||
Long-term convertible notes payable | $ 10,000 |
CONVERTIBLE NOTE PAYABLE (Det_2
CONVERTIBLE NOTE PAYABLE (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | |
Jun. 16, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | |
Replacement of a promissory note by convertible notes | $ 10,000 | ||
Interest expense | 22,765 | 1,066 | |
Convertible notes payable, net of discount amortization | 10,000 | ||
Accrued interest payable | $ 4,579 | ||
Non-affiliated [Member] | |||
Replacement of a promissory note by convertible notes | $ 10,000 | ||
Interest rate on notes payable | 1.00% | ||
Conversion price per share | $ 0.004 | ||
Interest expense | $ 10,000 | ||
Non-affiliated [Member] | Promissory note payable [Member] | |||
Replacement of a promissory note by convertible notes | $ 5,000 | ||
Debt maturity date | Jun. 16, 2020 | ||
Non-affiliated [Member] | Promissory note payable one [Member] | |||
Replacement of a promissory note by convertible notes | $ 5,000 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | Jun. 30, 2018 | Jun. 30, 2017 |
Related Party Transactions | ||
Due to related party | $ 5,603 | $ 5,603 |
STOCKHOLDERS' EQUITY (Details N
STOCKHOLDERS' EQUITY (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | |
Feb. 28, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | |
Common stock, shares authorized | 75,000,000 | 75,000,000 | |
Common stock, par value | $ 0.001 | $ 0.001 | |
Common stock, shares issued | 27,270,241 | 270,241 | |
Common stock, shares outstanding | 27,270,241 | 270,241 | |
Shares issued for services, Amount | $ 22,950,000 | ||
Executive [Member] | |||
Shares issued for services, Shares | 27,000,000 | 27,000,000 | |
Shares issued for services, Amount | $ 22,950,000 | ||
Common Stock [Member] | |||
Shares issued for services, Shares | 27,000,000 | ||
Shares issued for services, Amount | $ 27,000 | ||
Common Stock [Member] | Director [Member] | |||
Reverse stock split description | the implementation of a one-for-twenty-five (1:25) reverse stock split of all of our company’s issued and outstanding common stock. As a result of the reverse stock split, every twenty-five (25) shares of the issued and outstanding common stock of the Company will be converted into one (1) share of common stock. |
INCOME TAX (Details)
INCOME TAX (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Income Tax Details Abstract | ||
Net operating carryforward | $ (208,491) | $ (133,131) |
Effective tax rate | 21.00% | 21.00% |
Tax benefit of net operating loss carryforward | $ 43,783 | $ 27,958 |
Valuation allowance | (43,783) | (27,958) |
Deferred income tax assets |
INCOME TAX (Details Narrative)
INCOME TAX (Details Narrative) | 12 Months Ended |
Jun. 30, 2018USD ($) | |
Income Tax Details Narrative Abstract | |
Net operating loss carryforward | $ 208,491 |
Operating loss carryforwards, expiration period | <font style="font: 10pt Times New Roman, Times, Serif">Expire between 2033 and 2038</font></p>" id="sjs-B5"><p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Expire between 2033 and 2038</font></p> |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - USD ($) | 1 Months Ended | ||
Jul. 27, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | |
Common stock, shares issued | 27,270,241 | 270,241 | |
Common stock, shares outstanding | 27,270,241 | 270,241 | |
Subsequent Event [Member] | |||
Common stock shares issued for conversion of debt | 2,500,000 | ||
Convertible notes principal amount | $ 10,000 | ||
Common stock, shares issued | 29,770,241 | ||
Common stock, shares outstanding | 29,770,241 |