| 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, 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, 2024. 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 intercompany 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 $ 643,335 286,893 182,000 72,000 17,000 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
consolidated financial statements with available borrowings under its line of credit with a related party of $ 400,000 In
the event that the Company requires additional capital to fund higher operational losses or oil and gas property lease purchases for
the next 12 months, the Company expects to seek additional capital from one or more sources via restricted private placement sales of
equity and debt securities from those other than JBB. However, there can be no assurance that the Company would be able to secure the
necessary capital to fund its costs on acceptable terms, or at all. If, for any reason, the Company is unable to fund its operations,
it would have to undertake other aggressive cost cutting measures and then be subject to possible loss of some of its rights and interests
in prospects to curtail operations and forced to forego opportunities or in worst case, cease operations. 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. Significant
Accounting Policies During
the six months ended August 31, 2024, there have been no material changes to the Company’s significant accounting policies as described
in its 2024 Form 10-K. 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 since the inclusion of these shares would
be anti-dilutive for the three and six months ended August 31, 2024 and 2023: Schedule
of Anti-dilutive Securities Excluded from Computation of Earning Per Share
2024 2023
Stock options - -
Series A Convertible Preferred Stock 66,666,667 66,666,667
Convertible debt 29,750,000 27,250,000
Total common shares to be issued 96,416,667 93,916,667 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 August 31, 2024, the Company had no |
