| 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 The
accompanying unaudited condensed financial statements have been prepared in accordance with generally accepted accounting principles
for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X. In the
opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation
have been included. Operating results for the three months ended September 30, 2018 are not necessarily indicative of the results
that may be expected for the year ending June 30, 2019. Notes to the unaudited condensed financial statements that would substantially
duplicate the disclosures contained in the audited financial statements for fiscal year 2019 have been omitted. This report should
be read in conjunction with the audited consolidated financial statements and the footnotes thereto for the fiscal year ended
June 30, 2018 included in the Company’s Form 10-K as filed with the Securities and Exchange Commission on October 10, 2018. 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 $22 and $304 in cash as at September 30, 2018 and June 30, 2018, respectively. 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 September 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 5> 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
and Diluted Income (Loss) Per Share The
Company computes income (loss) per share in accordance with FASB ASC 260, “Earnings per Share” which requires presentation
of both basic and diluted earnings per share on the face of the statement of operations. Basic loss per share is computed by dividing
net income (loss) available to common shareholders by the weighted average number of outstanding common shares during the period.
Diluted income (loss) per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive loss
per share excludes all potential common shares if their effect is anti-dilutive. No
potentially dilutive debt or equity instruments were issued or outstanding during the three months ended September 30, 2018 and
September 30, 2017. 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 September 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. |
