Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jun. 30, 2017 | Aug. 14, 2017 | |
Document And Entity Information | ||
Entity Registrant Name | Barrel Energy Inc. | |
Entity Central Index Key | 1,631,463 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --09-30 | |
Is Entity a Well-known Seasoned Issuer? | No | |
Is Entity a Voluntary Filer? | No | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 10,804,000 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,017 |
BALANCE SHEETS
BALANCE SHEETS - USD ($) | Jun. 30, 2017 | Sep. 30, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 200 | $ 330 |
Total current assets | 200 | 330 |
Oil lease - unproved | 45,583 | |
Total assets | 200 | 45,913 |
Current liabilities: | ||
Accounts payable and accrued expenses | 25,747 | 24,656 |
Advance from shareholder | 53,852 | 19,023 |
Convertible note - related party | 2,157 | 2,127 |
Convertible notes payable | 57,773 | 74,037 |
Total current liabilities | 139,529 | 119,843 |
Total liabilities | 139,529 | 119,843 |
Stockholders' deficit: | ||
Preferred stock, $0.001 par value, 5,000,000 authorized, zero issued and outstanding | ||
Common stock, $0.001 par value, 70,000,000 authorized, 10,804,000 issued and outstanding as of June 30, 2017 and September 30, 2016, respectively | 10,804 | 10,804 |
Additional paid in capital | 18,035 | 18,035 |
Accumulated other comprehensive income | (832) | 4,603 |
Accumulated deficit | (167,336) | (107,372) |
Total stockholders' deficit | (139,329) | (73,930) |
Total liabilities and stockholders' deficit | $ 200 | $ 45,913 |
BALANCE SHEETS (Parenthetical)
BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2017 | Sep. 30, 2016 |
Stockholders' deficit: | ||
Preferred Stock, Par value | $ 0.001 | $ 0.001 |
Preferred Stock, Authorized | 5,000,000 | 5,000,000 |
Preferred Stock, Issued | 0 | 0 |
Preferred Stock, Outstanding | 0 | 0 |
Common Stock, Par value | $ 0.001 | $ 0.001 |
Common Stock, Authorized | 70,000,000 | 70,000,000 |
Common Stock, Issued | 10,804,000 | 10,804,000 |
Common Stock, Outstanding | 10,804,000 | 10,804,000 |
STATEMENTS OF OPERATIONS AND CO
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Operating expenses: | ||||
General and administrative expense | $ 17,445 | $ 5,571 | $ 34,183 | $ 16,787 |
Impairment of unproved property | 45,042 | |||
Loss from operations | (17,445) | (5,571) | (79,225) | (16,787) |
Other income (expense) | ||||
Currency gain | 190 | 620 | ||
Gain on debt forgiveness | 24,625 | 24,625 | ||
Interest (expense) | (1,834) | (1,656) | (5,364) | (4,814) |
Total other income (expense) | 22,791 | (1,466) | 19,261 | (4,194) |
Net income (loss) | 5,346 | (7,037) | (59,964) | (20,981) |
Foreign currency translation adjustment | (7,886) | (754) | (5,435) | (3,127) |
Comprehensive income (loss) | $ (2,540) | $ (7,791) | $ (65,399) | $ (24,108) |
Net income (loss) per common share, Basic and Diluted | $ .00 | $ 0 | $ (0.01) | $ 0 |
Weighted average number of common shares outstanding, basic and diluted | 10,804,000 | 10,669,429 | 10,804,000 | 10,353,456 |
STATEMENTS OF CASH FLOWS (Unaud
STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 9 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows from operating activities: | ||
Net loss | $ (59,964) | $ (20,981) |
Adjustments to reconcile net loss to net cash Provided by (used in) operating activities: | ||
Stock issued for services | 900 | |
Gain on debt forgiveness | (24,625) | |
Impairment of unproved property | 45,042 | |
Changes in operating assets and liabilities: | ||
Accounts payable | 39,488 | 2,750 |
Accrued interest | 5,364 | 5,129 |
Net cash provided by (used in) operating activities | 5,305 | (12,202) |
Cash flows from financing activities: | ||
Proceeds from sale of common stock | 18,750 | |
Advances from related party | 4,731 | |
Repayment of related party advances | (2,019) | |
Net cash provided by financing activities | 21,462 | |
Effects of currency translation | (5,435) | (2,337) |
Net increase (decrease) in cash | (130) | 6,923 |
Cash - beginning of period | 330 | 455 |
Cash - end of period | 200 | 7,378 |
SUPPLEMENT DISCLOSURES: | ||
Interest paid | ||
Income taxes paid | ||
Noncash Investing and Financing Activities: | ||
Expenses paid by related party on behalf of Company | $ 34,829 |
NATURE OF BUSINESS
NATURE OF BUSINESS | 9 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
NOTE 1 - NATURE OF BUSINESS | Barrel Energy Inc (we, our, the Company, Barrel) was incorporated on January 27, 2014 under the laws of the State of Nevada. The Company was formed to invest in producing oil and gas properties. On September 26, 2014, the Company leased a non-producing oil and gas property in the province of Alberta, Canada. BASIS OF PRESENTATION The accompanying unaudited interim financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information required to be included in a complete set of financial statements in accordance with accounting principles generally accepted in the United States of America. 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 and nine months ended June 30, 2017 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2017. Notes to the financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal period, as reported in the Form 10-K, have been omitted. The accompanying unaudited financial statements should be read in conjunction with the audited September 30, 2016 financial statements and related notes included in the Companys form 10-K filed with the SEC on December 29, 2016. Reclassifications Certain prior year amounts have been reclassified to conform with the current year presentation. |
GOING CONCERN
GOING CONCERN | 9 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
NOTE 2 - GOING CONCERN | The Companys unaudited interim financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern that contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company, as shown in the accompanying balance sheets, has a working capital deficit and an accumulated deficit as of June 30, 2017, The Company has not established any source of revenue to cover its operating costs. These factors raise substantial doubt about the companys ability to continue as a going concern. The unaudited interim financial statements do not include any adjustments that might result from the outcome of this uncertainty. The Company will engage in very limited activities that must be satisfied in cash until a source of funding is secured. The Company will offer noncash consideration and seek equity lines as a means of financing its operations. If the Company is unable to obtain revenue producing contracts or financing or if the revenue or financing it does obtain is insufficient to cover any operating losses it may incur, it may substantially curtail or terminate its operations or seek other business opportunities through strategic alliances, acquisitions or other arrangements that may dilute the interests of existing stockholders. |
CONVERTIBLE NOTE
CONVERTIBLE NOTE | 9 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
NOTE 3 - CONVERTIBLE NOTE | On July 1, 2014, the Company issued a USD $57,773 (CAD $75,000) convertible note for cash. The note bears an interest rate of 9.5% and matured on December 31, 2015. The note, plus accrued interest, is convertible by the holder, in part or whole, until the date of maturity into common stock of the Company at CAD one cent ($0.01) per share. The note is in default. The Company by resolution has elected to allow conversion of any and all the notes outstanding principal and interest until the note is fully paid. On October 20, 2014, the Company issued a USD $20,000 (CAD $22,454) convertible note for cash. The note bears an interest rate of 9.5% and matured on December 31, 2016. The note, plus accrued interest, is convertible by the holder, in part or whole, until the date of maturity into common stock of the Company at CAD one cent ($0.01) per share. On June 30, 2017, the principal and interest of the note was forgiven by its holders resulting in a gain of $24,625 consisting of principal of $20,000 (CAD $22,454) and interest of $4,625 (CAD $6,039). On December 31, 2014, the Company issued to a related party, who is an officer and director of the Company, a convertible note for USD $2,157 (CAD $2,800). The note bears an interest rate of 5% per annum and matured on December 31, 2015. The note holder may until the date of maturity convert the principal and accrued interest into common stock of the Company at the rate of $0.025 CAD per share. The note is in default. The Company by resolution has elected to allow conversion of any and all the notes outstanding principal and interest until the note is fully paid. As of June 30, 2017, the convertible debt outstanding was USD $57,773 plus accrued interest of USD $15,955 for a total liability of USD $73,728. The Company analyzed the conversion option under ASC for Derivatives and Hedging and Convertible Securities with Beneficial Conversion Features and concluded that none applied. |
RELATED PARTY
RELATED PARTY | 9 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
NOTE 4 - RELATED PARTY | During the nine months ended June 30, 2017, an officer and director of the Company paid USD $34,829 of operating expenses on behalf of the Company. As of June 30, 2017, and September 30, 2016, the total amount due to the officer and director is USD $ 53,852 and USD $19,023, respectively. The funds are unsecured, payable on demand, and bear no interest. On December 1, 2014, the Company issued to a related party, who is an officer and director of the Company, a convertible note for USD $ 2,157 (CAD $2,800). The note bears an interest rate of 5% per annum and matured on December 31, 2015. The note holder may until the date of maturity convert the principal and accrued interest into common stock of the Company at the rate of $0.025 CAD per share. The note is in default. The Company by resolution has elected to allow conversion of any and all the notes outstanding principal and interest until the note is fully paid. Our operations are currently being conducted out of the premises at 14890 66a Ave., Surrey, B.C. V3S 9Y6 Canada. Mr. Sangha makes these premises available to us rent-free. We consider our current principal office space arrangement adequate and will reassess our needs based upon the future growth of the Company. |
IMPAIRMENT OF UNPROVED PROPERTY
IMPAIRMENT OF UNPROVED PROPERTY | 9 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
NOTE 5 - IMPAIRMENT OF UNPROVED PROPERTY | The Company reviewed the status of its asset which is an unimproved oil property under lease. From this review the Company determined it does not have the adequate resources combined with the present market price of oil to develop it into a producing property. As of June 30, 2017, the Company elected to impair the asset and reduce its value to zero. The Company had impairment expense of $45,042 and $0 for the nine months ended June 30, 2017 and 2016, respectively. |
NATURE OF BUSINESS (Details Nar
NATURE OF BUSINESS (Details Narrative) | 9 Months Ended |
Jun. 30, 2017 | |
Nature Of Business Details Narrative | |
State of Incorporation | State of Nevada |
Date of Incorporation | Jan. 27, 2014 |
CONVERTIBLE NOTE (Details Narra
CONVERTIBLE NOTE (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2014 | Oct. 20, 2014 | Jul. 01, 2014 | |
Convertible debt outstanding | $ 57,773 | $ 57,773 | |||||
Accrued interest | 15,955 | 15,955 | |||||
Total liability | 73,728 | 73,728 | |||||
Gain on debt forgiveness | 24,625 | 24,625 | |||||
Gain on debt forgiveness principal amount | 20,000 | ||||||
Gain on debt forgiveness accrued interest | $ 4,625 | $ 4,625 | |||||
Convertible Note [Member] | |||||||
Company issued to a related party | $ 2,157 | $ 20,000 | $ 57,773 | ||||
Interest rate | 5.00% | 9.50% | 9.50% |
RELATED PARTY (Details Narrativ
RELATED PARTY (Details Narrative) - USD ($) | 9 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Sep. 30, 2016 | Dec. 01, 2014 | |
Advance from shareholder | $ 53,852 | $ 19,023 | ||
Expenses paid by related party on behalf of Company | 34,829 | |||
Officer And Director Member [Member] | ||||
Advance from shareholder | $ 53,852 | $ 19,023 | ||
Company issued to a related party | $ 2,157 | |||
Interest rate | 5.00% |
IMPAIRMENT OF UNPROVED PROPER14
IMPAIRMENT OF UNPROVED PROPERTY (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Notes to Financial Statements | ||||
Impairment expense | $ 45,042 |