Cover
Cover - shares | 3 Months Ended | |
May 31, 2023 | Jul. 10, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | May 31, 2023 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2024 | |
Current Fiscal Year End Date | --02-28 | |
Entity File Number | 000-55695 | |
Entity Registrant Name | Norris Industries, Inc. | |
Entity Central Index Key | 0001603793 | |
Entity Tax Identification Number | 46-5034746 | |
Entity Incorporation, State or Country Code | NV | |
Entity Address, Address Line One | 102 Palo Pinto St | |
Entity Address, Address Line Two | Suite B | |
Entity Address, City or Town | Weatherford | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 76086 | |
City Area Code | (855) | |
Local Phone Number | 809-6900 | |
Trading Symbol | NRIS | |
Title of 12(g) Security | Common Stock, $.01 Par Value | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 90,883,013 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) | May 31, 2023 | Feb. 28, 2023 |
Current Assets | ||
Cash | $ 43,673 | $ 151,731 |
Account receivable - oil & gas | 32,328 | 24,151 |
Total Current Assets | 76,001 | 175,882 |
Oil and Gas Property - Full Cost Method | ||
Properties subject to amortization | 3,003,042 | 3,006,271 |
Less: accumulated depletion and impairment | (2,853,631) | (2,844,022) |
Total Oil and Gas Property, net | 149,411 | 162,249 |
Total Assets | 225,412 | 338,131 |
Current Liabilities | ||
Accounts payable and accrued expenses | 166,518 | 125,647 |
Total Current Liabilities | 166,518 | 125,647 |
Convertible note payable - related party | $ 3,900,000 | $ 3,900,000 |
Notes Payable, Noncurrent, Related and Nonrelated Party Status [Extensible Enumeration] | Related Party [Member] | Related Party [Member] |
Accounts payable and accrued expenses - related parties | $ 487,630 | $ 456,879 |
Asset retirement obligations | 143,242 | 146,245 |
Total Liabilities | 4,697,390 | 4,628,771 |
Commitments and Contingencies | ||
Stockholders’ Deficit | ||
Series A Convertible Preferred stock, $0.001 par value per share 1,000,000 shares authorized; 1,000,000 shares issued and outstanding; liquidation preference of $2,250,000 | ||
Common stock, $0.001 par value per share, 150,000,000 shares authorized; 90,883,013 shares issued and outstanding | 90,883 | 90,883 |
Additional paid-in capital | 6,286,399 | 6,286,399 |
Accumulated deficit | (10,850,260) | (10,668,922) |
Total Stockholder’s Deficit | (4,471,978) | (4,290,640) |
Total Liabilities and Stockholders’ Deficit | 225,412 | 338,131 |
Series A Convertible Preferred Stock [Member] | ||
Stockholders’ Deficit | ||
Series A Convertible Preferred stock, $0.001 par value per share 1,000,000 shares authorized; 1,000,000 shares issued and outstanding; liquidation preference of $2,250,000 | $ 1,000 | $ 1,000 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) | May 31, 2023 | Feb. 28, 2023 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 90,883,013 | 90,883,013 |
Common stock, shares outstanding | 90,883,013 | 90,883,013 |
Series A Convertible Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 1,000,000 | 1,000,000 |
Preferred stock, shares outstanding | 1,000,000 | 1,000,000 |
Preferred stock, liquidation preference | $ 2,250,000 | $ 2,250,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
May 31, 2023 | May 31, 2022 | |
Revenues | ||
Total Revenues | $ 81,352 | $ 152,641 |
Operating Expenses | ||
Lease operating expenses | 138,972 | 164,450 |
General and administrative expenses | 83,132 | 84,134 |
Depletion, depreciation and accretion | 9,835 | 16,297 |
Total Operating Expenses | 231,939 | 264,881 |
Loss from Operations | (150,587) | (112,240) |
Other Expenses | ||
Interest expense | 30,751 | 28,482 |
Total Other Expense | 30,751 | 28,482 |
Net Loss | $ (181,338) | $ (140,722) |
Net loss per common share - basic and diluted | $ (0.02) | $ 0 |
Weighted average number of common shares outstanding - basic and diluted | 90,883,013 | 90,883,013 |
Oil and Gas [Member] | ||
Revenues | ||
Total Revenues | $ 81,352 | $ 152,641 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Deficit (Unaudited) - 3 months ended May 31, 2023 - USD ($) | Preferred Stock [Member] Series A Convertible Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance, value at Feb. 28, 2023 | $ 1,000 | $ 90,883 | $ 6,286,399 | $ (10,668,922) | $ (4,290,640) |
Balance, shares at Feb. 28, 2023 | 1,000,000 | 90,883,013 | |||
Net loss | (181,338) | (181,338) | |||
Balance, value at May. 31, 2023 | $ 1,000 | $ 90,883 | $ 6,286,399 | $ (10,850,260) | $ (4,471,978) |
Balance, shares at May. 31, 2023 | 1,000,000 | 90,883,013 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
May 31, 2023 | May 31, 2022 | |
Cash Flow from Operating Activities | ||
Net loss | $ (181,338) | $ (140,722) |
Adjustments to reconcile net loss to net cash from operating activities: | ||
Depletion, depreciation and accretion | 9,835 | 16,297 |
Changes in operating assets and liabilities: | ||
Accounts receivable - oil & gas | (8,177) | 11,461 |
Accounts payable and accrued expenses | 40,871 | (372) |
Accounts payable and accrued expenses - related parties | 30,751 | 28,482 |
Net Cash Used in Operating Activities | (108,058) | (84,854) |
Net Decrease in Cash | (108,058) | (84,854) |
Cash – beginning of period | 151,731 | 139,569 |
Cash – end of period | 43,673 | 54,715 |
Noncash Investing and Financing Activities | ||
Change in estimate of asset retirement obligations | $ 3,229 | $ 9,424 |
Organization, Nature of Operati
Organization, Nature of Operations and Summary of Significant Accounting Policies | 3 Months Ended |
May 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Nature of Operations and Summary of Significant Accounting Policies | Note 1 – Organization, Nature of Operations and Summary of Significant Accounting Policies Norris Industries, Inc. (“NRIS” or the “Company”), was incorporated on February 19, 2014, as a Nevada corporation. The Company was formed to conduct operations in the oil and gas industry. The Company’s principal operating properties are in the Ellenberger formation in Coleman County, and in Jack County and Palo-Pinto County. Texas. The Company’s production operations are all located in the State of Texas. On April 25, 2018, the Company incorporated a Texas registered subsidiary, Norris Petroleum, Inc., as an operating entity. Basis of Presentation The accompanying financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules of the Securities and Exchange Commission (“SEC”) and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s annual report filed with the SEC on Form 10-K for the year ended February 28, 2023. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. The Company’s consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries and entities in which the Company has a controlling financial interest. All significant inter-company accounts and transactions have been eliminated in consolidation. Liquidity and Capital Considerations The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business for the twelve-month period following the issuance date of these consolidated financial statements. The timeline and potential magnitude of Ukraine-Russia war and its impact on the Company’s future operations is currently unknown. The Company has incurred continuing losses since 2016, including a loss of $ 504,980 181,338 108,000 44,000 91,000 The Company’s principal capital and exploration expenditures during next fiscal year are expected to relate to selected well workovers on its Jack and Palo Pinto County acreages. The Company believes that it has sufficient cash on hand and available funds from its credit line to fund its costs for such expenditures as well as other operating costs, for the 12-month period subsequent to issuance of these financial statements. In the event that the Company requires additional capital to fund higher operational losses or oil and gas property lease purchases for fiscal year ending February 28, 2024, the Company expects to seek additional capital from one or more sources via restricted private placement sales of equity and debt securities. If the Company requires additional financing beyond what is available under its existing credit line, it expects to secure additional borrowing capacity from JBB. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expense during the period. Actual results could differ from those estimates. Risks and Uncertainties The Company’s operations are subject to significant risks and uncertainties, including financial, operational, technological, and other risks associated with operating an emerging business, including the potential risk of business failure. Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of the year or less to be cash equivalents. The Company has not experienced any losses on its deposits of cash and cash equivalents . Oil and Gas Properties, Full Cost Method The Company follows the full cost method of accounting for its oil gas properties, whereby all costs incurred in connection with the acquisition, exploration for and development of petroleum and natural gas reserves are capitalized. Such costs include lease acquisition, geological and geophysical activities, rentals on non-producing leases, drilling, completing and equipping of oil wells and administrative costs directly attributable to those activities and asset retirement costs. Disposition of oil properties are accounted for as a reduction of capitalized costs, with no gain or loss recognized unless such adjustment would significantly alter the relationship between capital costs and proved reserves of oil and gas, in which case the gain or loss is recognized in the statement of operations. Depletion and depreciation of proved oil properties are calculated on the units-of-production method based upon estimates of proved reserves. Such calculations include the estimated future costs to develop proved reserves. Costs of unproved properties are not included in the costs subject to depletion. These costs are assessed periodically for impairment. At the end of each quarter, the unamortized cost of oil and gas properties, net of related deferred income taxes, is limited to the sum of the estimated future after-tax net revenues from proved properties, after giving effect to cash flow hedge positions, discounted at 10%, and the lower of cost or fair value of unproved properties, adjusted for related income tax effects. Costs in excess of the present value of estimated future net revenues are charged to impairment expense. This limitation is known as the “ceiling test,” and is based on SEC rules for the full cost oil and gas accounting method. Income Taxes Income taxes are accounted for in accordance with the provisions of ASC Topic No. 740. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amounts expected to be realized. Uncertain Tax Positions The Company evaluates uncertain tax positions to recognize a tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. Those tax positions failing to qualify for initial recognition are recognized in the first interim period in which they meet the more likely than not standard or are resolved through negotiation or litigation with the taxing authority, or upon expiration of the statute of limitations. De-recognition of a tax position that was previously recognized occurs when an entity subsequently determines that a tax position no longer meets the more likely than not threshold of being sustained. Revenue Recognition The Company’s revenue is comprised entirely of revenue from exploration and production activities. The Company’s oil is sold primarily to wholesalers and others that sell product to end use customers. Natural gas is sold primarily to interstate and intrastate natural-gas pipelines, various end-users, local distribution companies, and natural-gas marketers. NGLs are sold primarily to various end-users. Payment is generally received from the customer in the month following delivery. Contracts with customers have varying terms, including spot sales or month-to-month contracts, or contracts with a finite term, where the production from a well or group of wells is sold to one or more customers. The Company recognizes sales revenues for oil, natural gas, and NGLs based on the amount of each product sold to a customer when control transfers to the customer. Generally, control transfers at the time of delivery to the customer at a pipeline interconnect, the tailgate of a processing facility, or as a tanker lifting is completed. Revenue is measured based on the contract price, which may be index-based or fixed, and may include adjustments for market differentials and downstream costs incurred by the customer, including gathering, transportation, and fuel costs. Revenues are recognized for the sale of the Company’s net share of production volumes. Sales on behalf of other working interest owners and royalty interest owners are not recognized as revenues. The Company does not hedge nor forward sell any of its current production via derivative financial contracts. Net Loss per Common Share Basic net loss per common share amounts are computed by dividing the net loss available to Norris Industries, Inc. shareholders by the weighted average number of common shares outstanding over the reporting period. In periods in which the Company reports a net loss, dilutive securities are excluded from the calculation of diluted earnings per share as the effect would be anti-dilutive. The following table summarizes the common stock equivalents excluded from the calculation of diluted net loss per common share as the inclusion of these shares would be anti-dilutive for the three months ended May 31, 2023, and 2022: Schedule of Antidilitive Securities Excluded from Computation of Earning Per Shares 2023 2022 Series A Convertible Preferred Stock 66,666,667 66,666,667 Convertible debt 24,750,000 21,000,000 Total common shares to be issued 91,416,667 87,666,667 Concentrations of Credit Risk Financial instruments which potentially subject the Company to concentrations of credit risk include cash deposits placed with financial institutions. The Company maintains its cash in bank accounts which, at times, may exceed federally insured limits as guaranteed by the Federal Deposit Insurance Corporation (“FDIC”). At May 31, 2023, $ 0 Recent Issued Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments |
Revenues from Contracts with Cu
Revenues from Contracts with Customers | 3 Months Ended |
May 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenues from Contracts with Customers | Note 2 – Revenues from Contracts with Customers Disaggregation of Revenues from Contracts with Customers The following table disaggregates revenue by significant product types for the three months ended May 31, 2023 and 2022: Schedule of Disaggregation of Revenue 2023 2022 Oil sales $ 109,547 $ 53,269 Natural gas sales 43,094 28,083 Total $ 152,641 $ 81,352 There were no significant contract liabilities or transaction price allocations to any remaining performance obligations as of May 31, 2023 and February 28, 2023. |
Oil and Gas Properties
Oil and Gas Properties | 3 Months Ended |
May 31, 2023 | |
Extractive Industries [Abstract] | |
Oil and Gas Properties | Note 3 – Oil and Gas Properties The following table summarizes the Company’s oil and gas activities by classification for the three months ended May 31, 2023: Summary of Oil and Gas Activities February 28, 2023 Additions Change in Estimates May 31, 2023 Oil and gas properties, subject to depletion $ 2,930,237 $ - $ - $ 2,930,237 Asset retirement costs 76,034 - (3,229 ) 72,805 Accumulated depletion and depreciation (2,844,022 ) (9,609 ) - (2,853,631 ) Total oil and gas assets $ 162,249 (9,609 ) $ (3,229 ) $ 149,411 The depletion and depreciation recorded for production on proved properties for the three months ended May 31, 2023 and 2022, amounted to $ 9,609 7,338 |
Asset Retirement Obligations
Asset Retirement Obligations | 3 Months Ended |
May 31, 2023 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | Note 4 – Asset Retirement Obligations The following table summarizes the change in the Company’s asset retirement obligations during the three months ended May 31, 2023: Schedule of Asset Retirement Obligations Asset retirement obligations as of February 28, 2023 $ 146,245 Additions 226 Current year revision of previous estimates (3,229) Accretion adjustment during the three months ended May 31, 2023 - Asset retirement obligations as of May 31, 2023 $ 143,242 During the three months ended May 31, 2023 and 2022, the Company recognized accretion expense of $ 226 8,959 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
May 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 5 – Related Party Transactions Promissory Note to JBB On December 28, 2017, the Company borrowed $ 1,550,000 3% December 28, 2018 0.20 On June 26, 2018, the Company and JBB entered into a modification of the existing Loan Note, to add provisions to permit the Company to obtain additional advances under the Loan Note up to a maximum of $ 1,000,000 100,000 0.20 On May 21, 2019, the Company entered into an extension agreement with JBB to extend the maturity of its outstanding Loan September 30, 2020 On June 13, 2019, JBB lent the Company $ 250,000 5% June 30, 2022 0.20 On October 1, 2019, the Company entered into another amendment of its Loan Note with JBB to increase the line of credit by an additional $ 500,000 1,500,000 On May 29, 2020, the Company entered into an extension agreement with JBB to extend the maturity of its outstanding Loan September 30, 2021 On December 22, 2020, the Company entered into an extension agreement with JBB to extend the maturity of all its outstanding indebtedness under credit line and Loan May 31, 2022 On May 1, 2021, the Company entered into a new funding agreement with a maturity date of May 31, 2022 5% 1 100,000 0.08 On May 5, 2023, the Company entered into an extension agreement with JBB to extend the maturity of its outstanding Loan September 30, 2024 During the three months ended May 31, 2023, there were no 300,000 The Company recognized interest expense of $ 30,751 28,482 456,879 487,630 3,900,000 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
May 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 6 – Commitments and Contingencies Office Lease In September 2018, the Company moved to the offices of International Western Oil (“IWO”) in Weatherford, TX that is being rented on a month-to-month sublease basis at rate of $ 950 2,850 Leasehold Drilling Commitments In the King County, Texas lease acreage, 640 acres were due to expire in June 2021 |
Subsequent Event
Subsequent Event | 3 Months Ended |
May 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Event | Note 7 - Subsequent Event In preparing these consolidated financial statements, the Company has evaluated events and transactions for potential recognition or disclosure through the date these consolidated financial statements were issued. |
Organization, Nature of Opera_2
Organization, Nature of Operations and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
May 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules of the Securities and Exchange Commission (“SEC”) and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s annual report filed with the SEC on Form 10-K for the year ended February 28, 2023. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. The Company’s consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries and entities in which the Company has a controlling financial interest. All significant inter-company accounts and transactions have been eliminated in consolidation. |
Liquidity and Capital Considerations | Liquidity and Capital Considerations The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business for the twelve-month period following the issuance date of these consolidated financial statements. The timeline and potential magnitude of Ukraine-Russia war and its impact on the Company’s future operations is currently unknown. The Company has incurred continuing losses since 2016, including a loss of $ 504,980 181,338 108,000 44,000 91,000 The Company’s principal capital and exploration expenditures during next fiscal year are expected to relate to selected well workovers on its Jack and Palo Pinto County acreages. The Company believes that it has sufficient cash on hand and available funds from its credit line to fund its costs for such expenditures as well as other operating costs, for the 12-month period subsequent to issuance of these financial statements. In the event that the Company requires additional capital to fund higher operational losses or oil and gas property lease purchases for fiscal year ending February 28, 2024, the Company expects to seek additional capital from one or more sources via restricted private placement sales of equity and debt securities. If the Company requires additional financing beyond what is available under its existing credit line, it expects to secure additional borrowing capacity from JBB. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expense during the period. Actual results could differ from those estimates. |
Risks and Uncertainties | Risks and Uncertainties The Company’s operations are subject to significant risks and uncertainties, including financial, operational, technological, and other risks associated with operating an emerging business, including the potential risk of business failure. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of the year or less to be cash equivalents. The Company has not experienced any losses on its deposits of cash and cash equivalents . |
Oil and Gas Properties, Full Cost Method | Oil and Gas Properties, Full Cost Method The Company follows the full cost method of accounting for its oil gas properties, whereby all costs incurred in connection with the acquisition, exploration for and development of petroleum and natural gas reserves are capitalized. Such costs include lease acquisition, geological and geophysical activities, rentals on non-producing leases, drilling, completing and equipping of oil wells and administrative costs directly attributable to those activities and asset retirement costs. Disposition of oil properties are accounted for as a reduction of capitalized costs, with no gain or loss recognized unless such adjustment would significantly alter the relationship between capital costs and proved reserves of oil and gas, in which case the gain or loss is recognized in the statement of operations. Depletion and depreciation of proved oil properties are calculated on the units-of-production method based upon estimates of proved reserves. Such calculations include the estimated future costs to develop proved reserves. Costs of unproved properties are not included in the costs subject to depletion. These costs are assessed periodically for impairment. At the end of each quarter, the unamortized cost of oil and gas properties, net of related deferred income taxes, is limited to the sum of the estimated future after-tax net revenues from proved properties, after giving effect to cash flow hedge positions, discounted at 10%, and the lower of cost or fair value of unproved properties, adjusted for related income tax effects. Costs in excess of the present value of estimated future net revenues are charged to impairment expense. This limitation is known as the “ceiling test,” and is based on SEC rules for the full cost oil and gas accounting method. |
Income Taxes | Income Taxes Income taxes are accounted for in accordance with the provisions of ASC Topic No. 740. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amounts expected to be realized. |
Uncertain Tax Positions | Uncertain Tax Positions The Company evaluates uncertain tax positions to recognize a tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. Those tax positions failing to qualify for initial recognition are recognized in the first interim period in which they meet the more likely than not standard or are resolved through negotiation or litigation with the taxing authority, or upon expiration of the statute of limitations. De-recognition of a tax position that was previously recognized occurs when an entity subsequently determines that a tax position no longer meets the more likely than not threshold of being sustained. |
Revenue Recognition | Revenue Recognition The Company’s revenue is comprised entirely of revenue from exploration and production activities. The Company’s oil is sold primarily to wholesalers and others that sell product to end use customers. Natural gas is sold primarily to interstate and intrastate natural-gas pipelines, various end-users, local distribution companies, and natural-gas marketers. NGLs are sold primarily to various end-users. Payment is generally received from the customer in the month following delivery. Contracts with customers have varying terms, including spot sales or month-to-month contracts, or contracts with a finite term, where the production from a well or group of wells is sold to one or more customers. The Company recognizes sales revenues for oil, natural gas, and NGLs based on the amount of each product sold to a customer when control transfers to the customer. Generally, control transfers at the time of delivery to the customer at a pipeline interconnect, the tailgate of a processing facility, or as a tanker lifting is completed. Revenue is measured based on the contract price, which may be index-based or fixed, and may include adjustments for market differentials and downstream costs incurred by the customer, including gathering, transportation, and fuel costs. Revenues are recognized for the sale of the Company’s net share of production volumes. Sales on behalf of other working interest owners and royalty interest owners are not recognized as revenues. The Company does not hedge nor forward sell any of its current production via derivative financial contracts. |
Net Loss per Common Share | Net Loss per Common Share Basic net loss per common share amounts are computed by dividing the net loss available to Norris Industries, Inc. shareholders by the weighted average number of common shares outstanding over the reporting period. In periods in which the Company reports a net loss, dilutive securities are excluded from the calculation of diluted earnings per share as the effect would be anti-dilutive. The following table summarizes the common stock equivalents excluded from the calculation of diluted net loss per common share as the inclusion of these shares would be anti-dilutive for the three months ended May 31, 2023, and 2022: Schedule of Antidilitive Securities Excluded from Computation of Earning Per Shares 2023 2022 Series A Convertible Preferred Stock 66,666,667 66,666,667 Convertible debt 24,750,000 21,000,000 Total common shares to be issued 91,416,667 87,666,667 |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments which potentially subject the Company to concentrations of credit risk include cash deposits placed with financial institutions. The Company maintains its cash in bank accounts which, at times, may exceed federally insured limits as guaranteed by the Federal Deposit Insurance Corporation (“FDIC”). At May 31, 2023, $ 0 |
Recent Issued Accounting Pronouncements | Recent Issued Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments |
Organization, Nature of Opera_3
Organization, Nature of Operations and Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
May 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Antidilitive Securities Excluded from Computation of Earning Per Shares | Schedule of Antidilitive Securities Excluded from Computation of Earning Per Shares 2023 2022 Series A Convertible Preferred Stock 66,666,667 66,666,667 Convertible debt 24,750,000 21,000,000 Total common shares to be issued 91,416,667 87,666,667 |
Revenues from Contracts with _2
Revenues from Contracts with Customers (Tables) | 3 Months Ended |
May 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table disaggregates revenue by significant product types for the three months ended May 31, 2023 and 2022: Schedule of Disaggregation of Revenue 2023 2022 Oil sales $ 109,547 $ 53,269 Natural gas sales 43,094 28,083 Total $ 152,641 $ 81,352 |
Oil and Gas Properties (Tables)
Oil and Gas Properties (Tables) | 3 Months Ended |
May 31, 2023 | |
Extractive Industries [Abstract] | |
Summary of Oil and Gas Activities | The following table summarizes the Company’s oil and gas activities by classification for the three months ended May 31, 2023: Summary of Oil and Gas Activities February 28, 2023 Additions Change in Estimates May 31, 2023 Oil and gas properties, subject to depletion $ 2,930,237 $ - $ - $ 2,930,237 Asset retirement costs 76,034 - (3,229 ) 72,805 Accumulated depletion and depreciation (2,844,022 ) (9,609 ) - (2,853,631 ) Total oil and gas assets $ 162,249 (9,609 ) $ (3,229 ) $ 149,411 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 3 Months Ended |
May 31, 2023 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Asset Retirement Obligations | The following table summarizes the change in the Company’s asset retirement obligations during the three months ended May 31, 2023: Schedule of Asset Retirement Obligations Asset retirement obligations as of February 28, 2023 $ 146,245 Additions 226 Current year revision of previous estimates (3,229) Accretion adjustment during the three months ended May 31, 2023 - Asset retirement obligations as of May 31, 2023 $ 143,242 |
Schedule of Antidilitive Securi
Schedule of Antidilitive Securities Excluded from Computation of Earning Per Shares (Details) - shares | 3 Months Ended | |
May 31, 2023 | May 31, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total common shares to be issued | 91,416,667 | 87,666,667 |
Series A Convertible Preferred Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total common shares to be issued | 66,666,667 | 66,666,667 |
Convertible Debt [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total common shares to be issued | 24,750,000 | 21,000,000 |
Organization, Nature of Opera_4
Organization, Nature of Operations and Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | |
May 31, 2023 | May 31, 2022 | Feb. 28, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Net income loss available to common stock holders | $ 181,338 | $ 504,980 | |
Net cash provided by operating activities | 108,058 | $ 84,854 | |
Cash | 44,000 | ||
Negative working capital | 91,000 | ||
Cash, FDIC insured amount | $ 0 |
Schedule of Disaggregation of R
Schedule of Disaggregation of Revenue (Details) - USD ($) | 3 Months Ended | |
May 31, 2023 | May 31, 2022 | |
Reserve Quantities [Line Items] | ||
Total | $ 152,641 | $ 81,352 |
Oil [Member] | ||
Reserve Quantities [Line Items] | ||
Total | 109,547 | 53,269 |
Natural Gas [Member] | ||
Reserve Quantities [Line Items] | ||
Total | $ 43,094 | $ 28,083 |
Summary of Oil and Gas Activiti
Summary of Oil and Gas Activities (Details) | 3 Months Ended |
May 31, 2023 USD ($) | |
Property, Plant and Equipment [Line Items] | |
Oil and gas properties, subject to depletion | $ 2,930,237 |
Oil and gas properties, subject to depletion, additions | |
Oil and gas properties, subject to depletion, change in estimates | |
Oil and gas properties, subject to amortization | 2,930,237 |
Asset retirement costs | 76,034 |
Asset retirement costs, addtions | |
Asset retirement costs, change in estimates | (3,229) |
Asset retirement costs | 72,805 |
Accumulated depletion | (2,844,022) |
Accumulated depletion, additions | (9,609) |
Accumulated depletion | (2,853,631) |
Total oil and gas assets | 162,249 |
Total oil and gas assets, additions | (9,609) |
Total oil and gas assets | (3,229) |
Total acquisition, development and exploration costs | 149,411 |
Dispositions [Member] | |
Property, Plant and Equipment [Line Items] | |
Accumulated depletion, change in estimates |
Oil and Gas Properties (Details
Oil and Gas Properties (Details Narrative) - USD ($) | 3 Months Ended | |
May 31, 2023 | May 31, 2022 | |
Extractive Industries [Abstract] | ||
Depletion recorded for production on proved properties | $ 9,609 | $ 7,338 |
Schedule of Asset Retirement Ob
Schedule of Asset Retirement Obligations (Details) | 3 Months Ended |
May 31, 2023 USD ($) | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset retirement obligations as of February 28, 2022 | $ 146,245 |
Additions | 226 |
Current year revision of previous estimates | (3,229) |
Accretion adjustment during the six months ended August 31, 2022 | |
Asset retirement obligations as of August 31, 2022 | $ 143,242 |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details Narrative) - USD ($) | 3 Months Ended | |
May 31, 2023 | May 31, 2022 | |
Asset Retirement Obligation Disclosure [Abstract] | ||
Accretion expense | $ 226 | $ 8,959 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 3 Months Ended | ||||||||||||
May 05, 2023 | May 01, 2021 | May 01, 2021 | Dec. 22, 2020 | May 29, 2020 | Oct. 01, 2019 | Jun. 13, 2019 | May 21, 2019 | Jun. 26, 2018 | Dec. 28, 2017 | May 31, 2023 | May 31, 2022 | Feb. 28, 2023 | |
Financing Receivable, Modified [Line Items] | |||||||||||||
Interest expense | $ 30,751 | $ 28,482 | |||||||||||
Accrued interest | 487,630 | $ 456,879 | |||||||||||
Notes payable, outstanding | 3,900,000 | $ 3,900,000 | |||||||||||
JBB Partners Inc [Member] | |||||||||||||
Financing Receivable, Modified [Line Items] | |||||||||||||
Loan bears interest rate | 5% | 5% | |||||||||||
Loan maturity date | May 31, 2022 | ||||||||||||
Debt conversion price per share | $ 0.08 | $ 0.08 | |||||||||||
Maximum of amount permitted to obtain advances | $ 1,000,000 | $ 1,000,000 | |||||||||||
Increments of line of credit | $ 500,000 | ||||||||||||
Proceeds from advances | $ 100,000 | ||||||||||||
Line of credit borrowing capacity total | $ 1,500,000 | ||||||||||||
Repayments of related party debt | 0 | ||||||||||||
Availability of existing credit line | $ 300,000 | ||||||||||||
Promissory Note [Member] | JBB Partners Inc [Member] | |||||||||||||
Financing Receivable, Modified [Line Items] | |||||||||||||
Proceed from loan payable | $ 1,550,000 | ||||||||||||
Loan bears interest rate | 3% | ||||||||||||
Loan maturity date | Dec. 28, 2018 | ||||||||||||
Debt conversion price per share | $ 0.20 | ||||||||||||
Promissory Note [Member] | JBB Partners Inc [Member] | Modification of Existing Loan [Member] | |||||||||||||
Financing Receivable, Modified [Line Items] | |||||||||||||
Debt conversion price per share | $ 0.20 | ||||||||||||
Maximum of amount permitted to obtain advances | $ 1,000,000 | ||||||||||||
Increments of line of credit | $ 100,000 | ||||||||||||
Loan Note [Member] | JBB Partners Inc [Member] | |||||||||||||
Financing Receivable, Modified [Line Items] | |||||||||||||
Debt maturity date description | the Company entered into an extension agreement with JBB to extend the maturity of its outstanding Loan | the Company entered into an extension agreement with JBB to extend the maturity of all its outstanding indebtedness under credit line and Loan | the Company entered into an extension agreement with JBB to extend the maturity of its outstanding Loan | the Company entered into an extension agreement with JBB to extend the maturity of its outstanding Loan | |||||||||
Loan Note [Member] | JBB Partners Inc [Member] | Extended Maturity [Member] | |||||||||||||
Financing Receivable, Modified [Line Items] | |||||||||||||
Loan maturity date | Sep. 30, 2024 | May 31, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |||||||||
Secured Promissory Note [Member] | Odyssey Enterprises LLC [Member] | |||||||||||||
Financing Receivable, Modified [Line Items] | |||||||||||||
Loan bears interest rate | 5% | ||||||||||||
Loan maturity date | Jun. 30, 2022 | ||||||||||||
Debt conversion price per share | $ 0.20 | ||||||||||||
Proceeds from advances | $ 250,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) - USD ($) | 3 Months Ended | |
Sep. 01, 2018 | May 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Payments for rent | $ 950 | $ 2,850 |
Lease description | In the King County, Texas lease acreage, 640 acres were due to expire in June 2021 |